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Size of the ICT sector (value added)
comparison with the USA

 

In 2009, EU ICT sector Value Added (VA), excluding the Trade and Repair sub-sectors [1], amounted to € 416 billion. In the US, it amounted to € 510 billion – 22.3% higher than in the EU. In 2008, this difference had been lower (10.5%), but by 2009, it had doubled because EU ICT VA dropped by € 31 billion, whereas US ICT VA increased by € 16 billion. This difference originated in both the Manufacturing and Services sectors. The biggest drops in the EU were recorded in Manufacture of electronic components and boards (NACE 261), 41%, and Telecommunications (NACE 61), 6%. The biggest increases in the US occurred in Software publishing (NACE 5820), 10%, and Computer programming, consultancy and related activities (NACE 62), 6%.

In 2009, ICT VA generated by the US Manufacturing sector amounted to € 93.5 billion, more than twice that of the EU (€ 38.2 billion). Similarly in 2008, ICT VA was € 92.6 billion in the US, almost twice that of the EU (€ 54.3 billion). The main differences between the US and the EU Manufacturing sectors lie in two sub-sectors: Manufacturing of electronic components and boards which is almost four times larger in the US (€ 42.1 billion in 2009) than in the EU (€ 11.8 billion); and NACE 262, Manufacture of computers and peripheral equipment (€ 28.2 billion in the US vs. € 5.7 billion in the EU). The most important ICT Manufacturing sub-sector in the EU (Manufacture of communication equipment [NACE 263]) produced € 16.4 billion VA – € 4.5 billion less than the same sector in the US. On the other hand, NACE 264 + 268 (Manufacture of consumer electronics plus Manufacture of magnetic and optical media) [2] ICT VA was higher in the EU.  However, these two sub-sectors are very small, compared to the other ICT sub-sectors (€ 4.3 billion in the EU and € 2.3 billion in the US in 2009).

In 2009, Value Added in ICT Services in the US amounted to € 417 billion (more than four times the VA in Manufacturing). In comparison, VA in ICT Services in the EU was € 378 billion – € 39 billion less (and € 55 billion less in manufacturing). Thus, ICT Services VA was only 10% higher in the US than in the EU. ICT VA was higher in the US for three Services sub-sectors (Software publishing [NACE 5820]; Telecommunications [NACE 61]; and Data processing, hosting and related activities; web portals [NACE 631]), while it was higher in the EU for Computer programming, consultancy and related activities

[1] => We did not consider ICT Trade and Repair sub-sectors in this comparison between the US and the EU, since data on value added in these sub-sectors are not available for the US. These sub-sectors produced 11% of the total EU ICT sector value added in 2009.

[2] => These two sectors have been added up due to their very small size.

Comparison of ICT Value Added between the EU and US by sub-sectors (bn. EUR, 2008-2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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The figure below compares the importance of the ICT sub-sectors in the EU and US by looking at their contributions to the total ICT Value Added. In 2009, Computer programming, consultancy and related activities (NACE 62) and Telecommunications (NACE 61) were the most important ICT sub-sectors in the EU, producing more than 80% of the total ICT VA. Other sub-sectors played a much smaller role in terms of Value Added. Similarly, in the US, these two sub-sectors were also the most important ones, although their joint contribution was about 20% lower (64%). A big difference in ICT Services was also found in Software publishing (NACE 5820) – 11% in the US vs. 3% in the EU. US ICT Manufacturing sub-sectors produced almost 20% of the total VA, while they only produced about 10% in the EU: the largest differences were in Manufacturing of electronic components and boards (NACE 261) and Manufacture of computers and peripheral equipment (NACE 262), while the sub-sector Manufacture of communication equipment (NACE 263) had the same share of ICT Value Added in the US and EU.

 

Distribution of ICT VA by Manufacturing and Services sub-sectors (2009)

 

Source: Eurostat, elaborated by Ivie and JRC-IPTS [Download full image]

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