Concordance IPC V8 – NACE REV.2

Bart Van Looy1,2 Caro Vereyen1

Ulrich Schmoch3,4

Research Division INCENTIM, Faculty of Economics & Business, KU Leuven1

ECOOM (Centre for R&D Monitoring)2 Universität Speyer3 - Fraunhofer Gesellschaft4

PATSTAT User Day Tokyo – November 19th 2014

BACKGROUND

• Technology Classification: IPC (V8) • Industries: Nace (or ISIC)

• If one has an interest to look at technological

capabilities from an industrial perspective, a concordance scheme - which relates IPC codes to industries – becomes a necessity.

• Current ‘standard’: Schmoch, U., LaVille, F., Patel, P., Frietsch, R., 2003. Linking technology areas to industrial sectors. DG Research November. ftp://ftp.cordis.europa.eu/pub/indicators/docs/ind_report_isi_ost_spru.pdf

Relevance (Illustration)

Background

• Revision of Nace initiated in 2006.

• Currently being adopted by national/international agencies collecting and reporting industry level data.

• Nace1: 22 categories (15 – 36 + 72) • Nace2: 27 categories (11 – 32 + 42, 43, 62, 99)

• A ‘simple’ reclassification might not do…

BACKGROUND

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Industry links between NACE

1.1 & NACE Rev.2 on

3 & 4-digit level 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 38 41 43 58 59 62 95Grand Total

Count of NACE

Rev.2/NACE 1.1 on 2-

digit levelFood products and Beverages 15 34 8 1 43 3

Tobacco products 16 1 1 1Textiles 17 20 3 1 1 2 1 28 6

Wearing apparel; dressing and dyeing of fur 18 2 6 1 2 11 4Tanning and dressing of leather; luggage, handbags,

saddlery, harness and footw ear 19 3 1 2 1 7 4Wood and of products of w ood and cork, except furniture; articles of straw and plaiting materials 20 7 2 2 1 2 14 5

Pulp, paper and paper products 21 7 2 9 2Publishing, printing and reproduction of recorded

media 22 1 8 1 6 1 17 5Coke, refined petroleum products and nuclear fuel 23 2 1 1 1 2 7 5

Chemicals and chemical products 24 1 19 2 2 1 1 26 6Rubber and plastic products 25 7 2 3 4 1 1 18 6

Other non-metallic mineral products 26 25 6 31 2Basic metals 27 16 1 17 2

Fabricated metal products, except machinery and equipment 28 1 19 3 1 11 1 1 37 7

Machinery and equipment n.e.c. 29 2 3 30 2 1 23 1 1 63 8Office machinery and computers 30 1 1 1 1 4 4

Electrical machinery and apparatus n.e.c. 31 1 1 5 13 2 2 1 6 31 8Radio, television and communication equipment and

apparatus 32 8 1 1 3 1 14 5Medical, precision and optical instruments, w atches

and clocks 33 5 1 3 6 8 23 5Motor vehicles, trailers and semi-trailers 34 2 3 1 2 8 4

Other transport equipment 35 2 8 1 8 19 4Furniture; manufacturing n.e.c. 36 1 1 1 1 1 4 1 1 3 1 4 7 9 3 5 43 15

Recycling 37 3 3 1Grand Total 34 8 1 23 9 5 9 10 10 3 22 3 13 26 18 24 22 20 47 6 16 8 28 79 6 3 5 6 1 1 8 474 112

Methodological Approach

SOURCES1) NACE1 – NACE2 concordance

2) WIPO / FhG44 IPC – NACE1 2003 concordance(n=624 IPC)

ConcordanceIPC to NACE2(n= 640 IPC)

No (n=10)

Yes (n=536)

No (n=44)

1 to 1 relation forNACE1-2 (n=44 IPC);

(n=5 NACE level2)

1 to many relation forNACE1-2 (n=580 IPC); (n=24 NACE level 2)

Allocationof 34 IPC to NACE2

Match IPC to NACE2 via NACE1-2 concordance

IPC code still relevant for NACE2 category?

Yes (n=34)

Identification of potential NACE2 cat. for IPC by means of:• Content analysis of IPC &

other NACE titles

Which NACE2 category is most relevant?

Identification of potential NACE2 cat. for IPC by means of:

• Content analysis of IPC & NACE titles of the

NACE1-2 concordance

Assessing relevance of NACE2 allocation by means of:• Co-occurence • Co-citations (& Top-

applicants)• Expert validation

Assessing relevance of NACE2 allocation by means of:• Co-occurence • Co-citations (& Top-

applicants)• Expert validation

Allocation of 10 IPC to NACE2

Allocation of 44 IPC to NACE2

• Content analysis of IPC & other NACE titles

New IPC codes (n=16 IPC)

Which NACE2 category is most relevant?

Identification of potential NACE2 cat. for IPC by means of:• Content analysis of IPC &

NACE Rev. 2 titles

Assessing relevance of NACE2 allocation by means of:• Co-occurence • Co-citations (& Top-

applicants)• Expert validation

Allocationof 536 IPC to NACE2

Allocationof 16 IPC to NACE2

RESULTS (extract – see report for the full table)

10 Manufacture of Food Products [10]

A01H A21D A23B A23C A23D A23F A23G A23J A23K A23P C12J C13F C13J C13K A23L 1/* A23L 3/* C13B A01J

11 Manufacture of Beverages [11] C12C C12F C12G C12H A23L 2/* 12 Manufacture of Tobacco Products

[12] A24B A24D A24F

13 Manufacture of Textiles [13] B65D (5,88%) D06C D04G D04H D06J D06M D06P D06Q D04D D06N

14 Manufacture of Wearing Apparel [14]

A41B A41C A41D A41F

15 Manufacture of Leather and Related Products [15]

A43B A43C B68B B68C

16 Manufacture of Wood and of Products of Wood and Cork, except Furniture; Manufacture of Articles of Straw and Plaiting Materials [16]

B27D B27H B27M B27N B65D (1,25%)

17 Manufacture of Paper and Paper Products [17]

B42F B65D (20,44%) D21C D21H D21J

18 Printing and Reproduction of Recorded Media [18]

B41M B42D B44F

19 Manufacture of Coke and Refined Petroleum Products [19]

C10G C10L

Special Cases: Food & Beverages

• The class ‘Food & Beverages’, present in the NACE 1.1 classification, has been disaggregated into ‘Manufacture of Food Products’ and ‘Manufacture of Beverages’ in the NACE Rev.2 classification.

• For IPC A23L (foods, foodstuffs, or non-alcoholic beverages, not covered by subclasses A23B to A23J) that spans both foods/foodstuffs and beverages, the more fine-grained IPC ‘main group’ level (IPC5-digit) is used to arrive at a correct classification under either ‘Food’ or ‘Beverages’.

Special Cases: Food & Beverages

Subclass (IPC4-digit)

NACE 1.1 Main group (IPC5-digit)

IPC5 Description NACE Rev.2

NACE Rev.2 Description

A23L Food & Beverages 15

A23L 1/* Foods or foodstuffs; Their preparation or treatment (preservation thereof in general A23L 3/00) [4]

10 Food

A23L Food & Beverages 15

A23L 2/* Non-alcoholic beverages; Dry compositions or concentrates thereof; Their preparation (soup concentrates A23L 1/40; preparation of non-alcoholic beverages by removal of alcohol C12H 3/00) [2]

11 Beverages

A23L Food & Beverages 15

A23L 3/* Preservation of foods or foodstuffs, in general, e.g. pasteurising, sterilising, specially adapted for foods or foodstuffs (preserving foods or foodstuffs in association with packaging B65B 55/00 )

10 Food

Special Cases: Pharmaceuticals/Cosmetics/Chemicals • For A61K (Preparations for Medical, Dental, or Toilet purposes) the

more fine-grained IPC main group level is used to separate A61K 8/ from all other main groups under A61K.

• All A61K groups belong to the ‘Manufacture of Basic Pharmaceutical Products and Pharmaceutical Preparations’ (NACE Rev.2 21) except A61K 8/, which belongs to NACE Rev.2 20.4, the ‘Manufacture of Soap and Detergents. Cleaning and Polishing Preparations. Perfumes and Toilet Preparations’ industry.

• Boolean condition introduced (+ ‘old’ conditions regarding the distinction between pharma/chemicals still apply).

Special Cases: Instruments & Measurement

FhG44 FhG44_title NACE 1.1 NACE 1.1_title NACE Rev.2

NACE Rev.2_title

38 Measuring instruments

33.2 Measuring instruments 26.5 Manufacture of Instruments and Appliances for Measuring, Testing and Navigation; Watches and Clocks [26.5]

39 Industrial control 33.3 Industrial process control equipment

26.51 Manufacture of Instruments and Appliances for Measuring, Testing and Navigation [26.51]

Special Cases: Indexing schemes and Constructional elements • The following IPC codes, have been allocated to the NACE

industries associated with the co-IPC codes: – F16S (constructional elements in general; structures built-up from such

elements, in general) – B29K (indexing scheme associated with subclasses B29B, B29C or B29D,

relating to moulding materials or to materials for reinforcements, fillers or preformed parts)

– B29L (indexing scheme associated with subclass B29C, relating to particular articles)

– C12R (indexing scheme associated with subclasses C12C-C12Q or C12S, relating to micro-organisms).

• All these IPC classes are new, have a limited number of patent applications, hardly occur alone, and mostly co-occur in a secondary position

Special Cases: Containers (B56D)

CATEGORY NACE Rev.2 code & title PT CNT %

Plastic containers 22.22 - Manufacture of Plastic Packing Goods 3188 35,96%

Glass containers 23.13 - Manufacture of Hollow Glass 1889 21,31%

Paper containers 17.21 - Manufacture of Corrugated Paper and Paperboard and of Containers of Paper and Paperboard

1812 20,44%

Metal containers 25.91 - Manufacture of Steel Drums and Similar Containers

1345 15,17%

Textile containers 13.9 - Manufacture of Other Textiles 521 5,88%

Wooden containers 16.24 - Manufacture of Wooden Containers 111 1,25%

TOTAL 8866 100,00%

Special Cases: Nuclear Technology

• G21B (fusion reactors) has been attributed to NACE 25.30 (Manufacture of steam generators, except central heating hot water boilers) as this industry covers the manufacture of nuclear reactors.

• G21H (obtaining energy from radioactive sources;

applications of radiation from radioactive sources; utilising cosmic radiation): As most applicants have a ‘nuclear’ profile, this IPC code is associated with NACE class 24.46 (Processing of Nuclear Fuel).

Special Cases: Nano-Technology

• B81B (micro-structural devices or systems), B82Y (specific uses or applications of nano-structures; measurement or analysis of nano-structures; manufacture or treatment of nano-structures) and B82B (nano-structures formed by manipulation of individual atoms, molecules, or limited collections of atoms or molecules as discrete units; manufacture or treatment thereof) are rather broad technological fields.

• Currently, B81B has been associated with NACE class 26.11 (Manufacture of Electronic Components and Boards).

• Depending on co-occurring IPC codes, other options might be considered.

• Plus: Search key based identification/Tags (EPO)

Special Cases: Services Subclass

(IPC4-digit) Subclass (IPC4-digit) Description NACE

Rev.2 NACE Rev.2_title

E02B Hydraulic Engineering 42.91 Construction of Water Projects

E03B Installations or Methods for obtaining, collecting, or distributing water), E03C (domestic plumbing installations for fresh water or waste water)

42.2 Construction of Utility Projects

E03F Sewers; Cesspools 43 Specialised Construction Activities

E04B General Building Constructions 43 Specialised Construction Activities

E04C Structural Elements; Building Materials

43 Specialised Construction Activities

E04D Roof coverings; Sky-lights; Gutters; Roof-working tools

43 Specialised Construction Activities

E04F Finishing work on Buildings 43 Specialised Construction Activities

E04G Scaffolding; Forms; Shuttering 43 Specialised Construction Activities

E04H Buildings or like structures for Particular purposes; Swimming or Splash baths or Pools; Masts; Fencing; Tents or Canopies

43 Specialised Construction Activities

G06Q Data processing Systems or Methods, specially adapted for administrative, commercial, financial, managerial, supervisory or forecasting purposes

62 Computer Programming, Consultancy and Related Activities

Multiple NACE codes will occur: defining counting rules (full/fractional) will be mandatory.

NACE2 NACE1 # Nace # Patents # Nace # Patents

10 17

170 0.00% 10

9

90 0.00%

9 44

396 0.00% 9

16

144 0.00%

8 151

1,208 0.00% 8 139 1,112 0.00%

7 631

4,417 0.01% 7 533 3,731 0.01%

6 2,481 14,886 0.03% 6

3,036

18,216 0.03%

5 14,043

70,215 0.15% 5 15,848

79,240 0.17%

4 82,055

328,220 0.86% 4 89,084

356,336 0.93%

3 442,746 1,328,238 4.63% 3 499,829 1,499,487 5.22%

2 2,161,575 4,323,150 22.59% 2 2,534,278 5,068,556 26.49% 1 6,863,627 6,863,627 71.74% 1 6,423,572 6,423,572 67.14%

9,567,370 12,934,527 1.351942 9,566,344 13,450,484 1.406021

Sum of PAT_CNT NACE2NACE1 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 42 43 62 99 Grand Total15 61519 2429 6394816 5626 562617 9300 930018 10012 1001219 13473 1347320 1779 5127 690621 11258 11376 2263423 14440 12632 2707224 538645 339560 1671 13096 89297225 64094 9148 29230 4006 68240 17471826 46373 336 2696 33733 8313827 45515 1021 4703 6743 655 10766 6940328 4676 83 86908 46294 878 3980 14281929 2123 23233 2157 112343 912378 105223430 400260 275053 67531331 7926 16455 257743 28212432 1105107 20682 8307 113409633 183 439236 395773 83519234 29845 266013 29585835 7249 70315 7756436 39284 124513 16379772 46712 46712Grand Total 63642 2429 5626 9300 10012 13473 1779 11258 11376 14440 538645 339743 65765 51049 45598 119424 1993646 406659 1273515 266013 71193 39284 558478 7986 49626 46712 68240 6084911

Shifts in terms of aggregate industry indicators

NACE2 NACE110 115,907 Manufacture of Food Products [10] 15 149,723 Manufacture of food products and beverages [15] 89%11 5,204 Manufacture of Beverages [11]12 10,766 Manufacture of Tobacco Products [12] 16 10,766 Manufacture of tobacco products [16] 113 60,404 Manufacture of Textiles [13] 17 60,404 Manufacture of textiles [17] 100%14 24,337 Manufacture of Wearing Apparel [14] 18 24,337 Manufacture of wearing apparel; dressing and dyein 100%15 20,156 Manufacture of Leather and Related Products [15] 19 20,156 Tanning and dressing of leather; manufacture of lug 100%16 8,620 Manufacture of Wood and of Products of Wood and Cork, Exce 20 23,242 Manufacture of wood and of products of wood and c 54%17 39,769 Manufacture of Paper and Paper Products [17] 21 92,654 Manufacture of pulp, paper and paper products [21] 60%18 56,033 Printing and Reproduction of Recorded Media [18]19 51,719 Manufacture of Coke and Refined Petroleum Products [19] 23 83,590 Manufacture of coke, refined petroleum products a 76%20 1,226,637 Manufacture of Chemicals and Chemical Products [20] 24 2,058,474 Manufacture of chemicals and chemical products [24 75%21 990,804 Manufacture of Basic Pharmaceutical Products and Pharmaceutical Preparations [21]22 232,517 Manufacture of Rubber and Plastic Products [22] 25 467,444 Manufacture of rubber and plastic products [25] 66%23 253,970 Manufacture of Other Non-Metallic Mineral Products [23] 26 326,386 Manufacture of other non-metallic mineral product 88%24 124,461 Manufacture of Basic Metals [24] 27 231,058 Manufacture of basic metals [27] 70%25 282,326 Manufacture of Fabricated Metal Products, Except Machinery a 28 353,678 Manufacture of fabricated metal products, except m 89%

26 3,578,115 Manufacture of Computer, Electronic and Optical Products [26]30 1,450,498 Manufacture of office machinery and computers [30 142%27 879,201 Manufacture of Electrical Equipment [27] 31 619,071 Manufacture of electrical machinery and apparatus 117%28 2,624,302 Manufacture of Machinery and Equipment N.E.C. [28] 29 2,103,290 Manufacture of machinery and equipment n.e.c. [29 111%29 556,841 Manufacture of Motor Vehicles, Trailers and Semi-Trailers [29]34 652,510 Manufacture of motor vehicles, trailers and semi-tra 92%30 143,452 Manufacture of Other Transport Equipment [30] 35 169,631 Manufacture of other transport equipment [35] 92%31 80,479 Manufacture of Furniture [31] 36 286,875 Manufacture of furniture; manufacturing n.e.c. [36] 44%32 1,108,437 Other Manufacturing [32]42 22,442 Civil Engineering [42]43 115,066 Specialised Construction Activities62 118,302 Computer Programming, Consultancy and Related Activities

72 118,293 Computer and related activities [72] 100%32 2,025,642 Manufacture of radio, television and communicatio 0%33 2,122,762 Manufacture of medical, precision and optical instru 0%

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