International seminar: How to measure economic activities based on digital platforms?

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1 International seminar: How to measure economic activities based on digital platforms? San Ignacio de Loyola Auditorium IBERO, campus Santa Fe, Mexico City November 6 and 7, 2017 Background: Internet is now considered as a general-purpose technology, with impacts in society, economy and culture. Communications and information had extended with digitalization, nowadays is becoming the basis for almost all economic sectors. To measure the economic activities based on digital platforms, we should start from a wide conceptualization of this phenomenon, trying to understand what is new, where does value is added and what are the retributions to the production factors? Activities carry through mobile devices, social networks, and using big data are facilitating new business models and transforming markets. These activities can be heterogeneous, but they have in common several characteristics such as: access to digital networks, socialization and entrance to already established markets is done by social networks, or sometimes new markets are formed, a digital identity is been created, contents are shared, mobility prevails and actualizations are constantly generated. Many interactions occur opening multiple possibilities for new economic activities, based in digitalization and internet networks, just to name some of the most known; electronic banking, remote shopping, e-commerce, get a taxi, book a room, rent an apartment or a house, watch movies, listen to music, among many others that are coming. To measure correctly these transactions, production, value added, employment and prices, should be collected considering the huge new volume that is being carried out through digital platforms and the internet. Additionally, different factors should be taken into account such as the new forms of intermediation that are blurring the borders between consumers and producers, different forms of financing, free assets, trans-border data flows, trans-border services and the measurement of prices and volumes, among others. Objective: Review and discuss how official statistics can measure volume of production, value added, employment and prices of goods and services adequately, using digital platforms. Development: The seminar will be held in sessions and keynote speeches in which speakers from the academia, national statistical offices, international organizations and private sector, will address relevant issues organized by; conceptual, consequences for measuring the economy and for the economic statistics. Participants: People in charge of statistical information systems, policy makers interested in the analysis of information, academics, and graduate students, all interested in the measurement of the modern and digitized economy.

2 November 6 8:30-9:00 Registration 9:00 9:15 Opening Julio A. Santaella Castell, President of INEGI Alejandro Guevara Sanginés, Academic Vicerrector of IBERO 9:15-10:25 Keynote Speech Paul Schreyer, OECD: Measuring GDP in a Digitalised Economy: Main advances Discussant: Julio A Santaella INEGI Chair: Graciela Teruel, IBERO 10:10-10:25 Q & A 10:30-11:15 Speech John Verrinder, EUROSTAT, Luxemburg: Digital platforms: European statistical experience (videoconference) Chair: Graciela Teruel, IBERO 11:10-11:15 Q & A 11:15-11:30 Coffee Break 11:30-14:10 Session 1: Conceptual issues The session will discuss what is new in these activities, where value is added and what are the retributions to the different production factors introducing academic and practical arguments. Ellen Helsper, LSE media and communications: Uses of the internet Ricardo Zermeño, SELECT: The ICT sector as a provider of business transformation tools Raúl Arturo Alvarado, CONACYT-INFOTEC: Data driven innovation Dora Carmen Gálvez Cruz, U. Anáhuac: Social networks 13:30-13:40 Discussant: Luis Miguel Martínez Cervantes, IBERO Chair: Ricardo Rodríguez, INEGI 13:40-14:10 Q & A 14:10-15:30 Lunch 15:30-17:40 Session 2: Relevant consequences The second session will address the consequences of incorporating these activities when measuring the economy and productivity. Hamish Grant, Statistics New Zealand: Valuing New Zealand s Digital Economy Carlos Urrutia, ITAM: Implications for Economic Growth Analysis Liliana Meza, INEGI: Digitalization and labor marketst 17:00-17:10 Discussant: Alejandrina Salcedo, Banxico Chair: Miguel Reyes, IBERO (C) 17:10-17:40 Q & A

3 November 7 8:30-9:00 Registration 9:00-10:10 Keynote Speech Timothy J. Sturgeon, Industrial Performance Center, MIT: New Digital Economy and Development Discussant: Luis Foncerrada, CEESP Chair: Isidro Soloaga, IBERO (C) 9:55-10:10 Q & A 10:10-10:25 Coffee Break 10:25-13:10 Session 3: Reviewing the economic statistics The session will review quantitative implications of the measurement of economic activity associated with digital economy: How the economic statistics can capture activities that are following new business models? and What is need to be done when generating official statistics? Rebecca Riley, Economic Statistics Center for Excellence, UK: Measuring the Modern Economy: Challenges and Opportunities (videoconference) Luis Miguel Martínez Cervantes, IBERO: What can be capture following the digital print? Barteld Braaksma, Statistics Netherlands, Center for Big Data Statistics: Measuring the internet economy in The Netherlands: a big data study Marshall Reinsdorf, IMF Statistics Department, Potential Measurement Problems posed by Digital Platform Activities Discussant: Gerardo Durand, INEGI Chair: Rolando Ocampo, INEGI 12:35-13:10 Q & A 13:10-13:40 Conclusions and closing Graciela Teruel, IBERO Rolando Ocampo, INEGI

4 Paul Schreyer Is Deputy Chief Statistician at the OECD. His personal research areas include national accounts, the measurement of capital, productivity, welfare, non-market activities and price statistics. He is the author of several OECD Manuals and has a record of publications in international journals and books. In , he was rapporteur in the Stiglitz-Sen-Fitoussi Commission on the Measurement of Economic Performance and Social Progress. Julio Alfonso Santaella Castell He is President of INEGI. He is graduate in Economics from the Instituto Tecnológico Autónomo de México (ITAM), as well as a Master and Ph.D in Economics from the University of California at Los Angeles (UCLA), in the United States. From he worked in the Bank of Mexico as Executive Coordinator of the Mexican Fund Oil for the Stabilization and Development, he was Manager of Information and Analysis and Director of Operations Support of Central Banking. He was a researcher in the General Directorate of Economic Research and on the Board of Government. In the academic field, has been researcher and teacher of the ITAM ( , ), where he led the coordination of the Center for Applied Economics. He led the Academic Head of the Department of Economics and was Deputy Director at the Center for Economic Analysis and Research. During , was economist in the Research Department and European I Department of the International Monetary Fund. From 1984 to 1987 was Head of the Department of Macroeconomic Policy of the Directorate General of Treasury Planning at the Ministry of Finance and Public Credit. Graciela Teruel Graciela Teruel has a degree in Economics from the Instituto Tecnológico Autónomo de México ITAM, a Master and Ph.D in Economics from the University of California, Los Angeles. Her areas of specialization are: measurement of well-being, poverty and evaluation of social programs. Currently, she is the director of the Institute of Research for Development with Equity (EQUIDE) and full-time professor at the Universidad Iberoamericana A.C. She is a Academic member of the Consejo Nacional de Evaluación de la Política de Desarrollo Social (CONEVAL), academic member of the Advisory Council for the Development of Sustainable Energy and a member of the National System of Researchers (SNI), level III. She is co-director of the National Survey on Living Standards of Households, 2002, 2005 and 2009, this is the first multi-thematic and longitudinal survey in Mexico, with national representation. There are her most important contributions in the field of welfare measurement, among others. She has participated in the evaluation of impact of social programs: Progresa (rural component), Opportunities (rural and urban component) and productive projects. John Verrinder Is Head of Unit for national accounts methodology at Eurostat, the Statistical Office of the European Union. He has worked in national accounts-related fields for nearly 20 years at European level. Ellen Helsper Is Associate Professor in the Media and Communications Department at the LSE. Her current research interests include the links between social and digital inequalities; new media audiences; mediated interpersonal communication; and methodological innovation in quantitative and qualitative media and communications research. The main research projects she is involved in are: the From Digital Skills to Tangible Outcomes Project; Network Effects in Digital Inequalities; Socio-digital Skills of Disadvantaged Young People; the World Internet Project and the Global Kids Online project. She consults widely for governments, the third and commercial sector on issues to do with citizen and client engagement in increasingly digital societies. Ellen currently is

5 a Visiting Scholar at the USC Annenberg School for Communication and Journalism and the Pontificia Universidad Catolica de Chile, Centro Regional de Estudos para o Desenvolvimento da Sociedade da Informação Latino America (Cetic.br). She has held similar positions at Microsoft research in Boston, NYU Steinhardt s department of Media, Culture and Communications, the University of Twente and the University of Oxford. She has an MSc degree in Media Psychology from Utrecht University and has worked in Europe, Chile, Mexico and the US in commercial market and audience research. Ricardo Zermeño González Is President, CEO and Founder of Select, a leading consulting firm in Mexico, specialized on analyzing the market for information and communication technologies (ICT) and their impact on the competitiveness of organizations. He was vice-president of the Ponencia 2010 of the Mexican Institute of Financial Executives (IMEF), a major document containing the key proposals of the institute to foster a national agreement for development (Ponencia IMEF 2010: Towards an agreement for national development ). He was also President of the National Technical Committee for Competitiveness, Quality and IT of IMEF from 2007 to Ricardo Zermeño González holds a doctorate degree in Technology Policy Research from the University of Aston in Birmingham and a Master's degree in Design Technology from the University of Manchester in England, as well as a degree in Chemical and Industrial Engineering from the Instituto Tecnológico y de Estudios Superiores de Monterrey, Mexico. Dr. Zermeño has occupied important positions, both in the private chemical industry - in various areas of process evaluation, industrial engineering and manufacturing at CYDSA, and in the public service at SECOFI - the Mexican Ministry for Trade and Industry - as director of the electronics industry division. In his professional experience as an independent consultant, Dr. Zermeño has produced many indepth studies on the development and diffusion of microelectronics, computer and telecommunications technologies, for international agencies such as the United Nations as well as for national and multinational corporations. Dr. Zermeño is a frequently featured speaker at industry events in Mexico, the United States and other countries. Dora Carmen Gálvez Cruz Cross studied mechanical electronics engineering in the Faculty of Engineering at UNAM. Subsequently, with usability studies for the modeling of the doubts of the students as part of educational software, she helds a master's degree in computer science from the Institute for Research in Applied Mathematics at the UNAM systems with the title of Master of Science. Applying usability, developed of new human-computer interfaces in the Diploma of Automatic Control of Robots, in the Kanazawa Institute of Technology in Japan and finally, she proposed a solution to maintain the privacy within the personalization of e-commerce, at the University of Glasgow in Scotland, United Kingdom where he obtained the degree of Phd in Computer Science. She has worked at the Associated Press, managed projects for Financial Group Invermexico, researching on business intelligence software for the Tax Administration Service and was Webmaster and Web Project Manager for UNOTV. She has combined her work in the industry with teaching and has been a professor at the Instituto Tecnológico de Estudios Superiores de Monterrey and the Faculty of Engineering of the UNAM.She is currently a research professor of the Universidad Anahuac Mexico. Dora Gálvez has published a book on privacy, several articles in international conferences and journals indexed. Her research interests are focused on the privacy, customization, e-commerce, usability, project management, web and digital marketing. Raul Arturo Alvarado López Phd in economics, in the field of Economics of Technology, by the Graduate Studies Division of the Faculty of Economics UNAM, Master in Economics and Management of Innovation he holds

6 a degree in Economics, both from the UAM-Xochimilco. Since November 2016, he is Professor CONACYT assigned to the INFOTEC project: "Social appropriation of Information and Communication Technologies for Development. He has participated in several forums and national and international congresses, his interests and publications dealing with topics of: innovation and development; learning and technological capabilities; business cooperation for innovation; among others, mainly for the analysis of issues on the environment, renewable energy, ICT and intelligent territories. Hamish Grant Is a Senior Analyst in national accounts at Statistics New Zealand. With 12 years of experience in national accounts he has built a good understanding of the New Zealand economy and how this is reflected in official economic estimates. As part of his current role he is involved in better understanding the digital economy and impacts on economic estimates. He has participated in digital nation discussions in New Zealand and is a member of the OECD informal advisory group on measuring GDP in a digital economy. Carlos Urrutia He studied the Bachelor's Degree in Economics at the Pontifical Catholic University of Peru and a doctorate in Economics at the University of Minnesota. Since 2002, he is a professor and researcher at the Instituto Tecnológico Autónomo de México ITAM, where he has directed the Economic Research Center, by several years. Also, he has been a visiting professor at the University Carlos III of Madrid and the University of Georgetown, as well as senior economist at the International Monetary Fund. His areas of research are related to macroeconomics in emerging countries, in particular with the impact of financial frictions and labor productivity. He also works on topics related to development, distribution of income and intergenerational mobility. His research has been published in magazines such as American Economic Review, Journal of Monetary Economics, Journal of International Economics, Journal of Development Economics and Review of Economic Dynamics. He is currently editor of the latin american blog named Economic Focus. Liliana Meza She is a graduate with honors from the bachelor and master degree in Economics from ITAM. Also, she holds a master's and Ph.D. in Economics from the University of Houston. She has been a consultant to the World Bank, the International Labor Organization, the International Organization for Migration and the Inter-American Development Bank, as well as a visiting scholar at the American University and Georgetown University. Liliana Meza was professor and researcher at full-time in the departments of Economics of the Universidad Anahuac and the Universidad Iberoamericana in Mexico City. In this university, was also Coordinator of the Program on Migration Issues and she was on charge of the Systemic Coordination on Migrants. Dr. Liliana Meza has published more than 30 articles and chapters of books on topics labor and migration. She is also compiler of four books on migration, water policy and technological innovation, and was author of one book on Professional Salaries. She has been Technical Secretariat of the Social Cabinet of the Presidency of the Republic, Advisor to the Secretary for Population, Migration and Religious Affairs, Director General in the National Population Council and Deputy Coordinator of Hemispheric Labor Policy in the Ministry of Labor and Social Security. His research interests are international migration, labor markets, wage inequality, social policy and economic integration. Currently, she is a researcher at the National Institute of Statistics and Geography, INEGI (for its acronym in Spanish), and professor of the Universidad Iberoamericana. Since 1999 she is a member of the National System Researchers of CONACYT.

7 Alejandrina Salcedo Cisneros Is Director of Economic Measurement at Banco de Mexico. Prior to her current position, she worked as Manager of the Real Sector Research Division and as a researcher at the Mexican Central Bank and as a World Bank summer consultant. Her research has focused on development topics including migration and education. Some of her studies have been published in relevant academic journals. She holds a PhD and an MA in economics from Stanford University, and she completed, with honors, her undergraduate studies at the Instituto Tecnologico Autonomo de Mexico (ITAM) in Mexico City. Timothy J. Sturgeon Is Senior Researcher at the at the Massachusetts Institute of Technology s Industrial Performance Center (IPC). His research focuses on the process of global integration, with an emphasis on offshoring and outsourcing practices in the electronics, automotive, and services industries. His work explores the implications for employment, industrial development, technological learning, and policy of deepening business linkages between industrialized and developing economies. Tim has made significant contributions to Global Value Chain (GVC) theory, and is working to improve the metrics and methods available for globalization research. He collaborates actively with policymakers in international development agencies, industrialized countries, and developing countries on actionable, effective policy responses to global integration. Tim is co-editor (with Momoko Kawakami) of Local Learning in Global Value Chains: Experiences from East Asia, published by Palgrave Macmillan, and has published his research in international peer-reviewed journals including Studies in Comparative International Development, Industrial and Corporate Change, Review of International Political Economy, Journal of East Asian Studies, and Journal of Economic Geography. Luis Foncerrada Pascal Estudió Física y Economía en la UNAM y obtuvo la Maestría en Economía en el CIDE, posteriormente fue investigador visitante (visiting fellow), en la Universidad de Princeton y realizó sus estudios de doctorado en la UAM. En el campo académico, se desempeñó como vicerrector general de la Universidad de las Américas Puebla, y ha sido profesor e investigador en materias económicas y financieras en instituciones como el CIDE, ITESM, ITAM, Universidad Anáhuac, Universidad Iberoamericana, UAM y el Colegio de México. Organizó una Sociedad Financiera Popular (Finsocial) de la que actualmente es Presidente del Consejo de Administración. Actualmente se desempeña como director del Centro de Estudios Económicos del Sector Privado (CEESP). Rebecca Riley Is the Director of the Economic Statistics Centre of Excellence (ESCoE), an independent research centre funded by the UK Office for National Statistics (ONS) and based at the National Institute of Economic and Social Research (NIESR) in London. Rebecca s research interests include employment, productivity, the UK economy and policy evaluation. She has 20 years of experience as an applied economist using economic statistics and other data to contribute to the UK economics discourse. She has led numerous research projects for government departments and funding councils. She led NIESR s UK economy forecast for a number of years and more recently the NIESR s work on productivity. Rebecca has also acted as an external advisor to UK Trade & Investment, the Department for Work and Pensions and the ONS. She is affiliated with the Centre for Macroeconomics and the Centre for Learning and Life Chances in Knowledge Economies and Societies. Her research is published in peer reviewed journals, including the Journal of the Royal Statistical Society and the Economic Journal.

8 Luis Miguel Martínez Cervantes Professor and researcher in the Departments of Communication and Engineering. Currently, he coordinates the Project of Digital Convergence of the Universidad Iberoamericana in Mexico City. He is an engineer in electronics and communications (Universidad Iberoamericana, Mexico), he obtein a Master of Science in Industrial Measurement Systems and holds a Ph.D. in Engineering (Brunel University, London, United Kingdom). His research is focused on the impact of technology on society, through education and communication. His research and technological development is focussed on the application of information and communication technologies in community models. He developed the engineering to consolidate the 400KHz transmission in conditions of a significant difference in potency between adjacent stations on FM. In the same way, made the first installation of HD Radio in an educational institution in Latin America, one of the first to demonstrate the technical and economic feasibility of the combination of the analog and digital signals in FM at a high level (atmospheric). He has collaborated on various projects to achieve radio communication in the Internet. Also worked on the development of radio stations in rural conditions, especially in the states of Chiapas, Guerrero and rural areas of Mexico City. He has developed electronic instrumentation for the measurement of transmission parameters in low power. As a designer of recording and audio studios, he developed sustainable composite materials for insulation and acoustic conditioning. He has contributed to the design and construction of 15 teaching and research laboratories in Mexico and abroad. He is author of books and articles, currently in the journals Merca 2.0, Roboteknia and DIDAC. He is member of the First and Second Consultative Council of the IFT. Barteld Braaksma Is innovation manager at CBS, the National Statistical Institute of the Netherlands. In this role he has supported and promoted a wide range of innovation tracks during the past five years, often in the form of concrete pilots or proofs of concept. For example, the current open data site of CBS started as a proof of concept under his responsibility. Other examples include the first infographics published by CBS, the introduction of a process mining tool for internal process optimisation, a number of concrete big data experiments and some pilots involving the use of mobile devices and sensors. In many cases, these innovation tracks have been realised in close collaboration with public and/or private partners like cities, universities, large companies and small start-ups. In the past, Barteld has been involved in a broad range of activities at CBS, including research, development of new statistics, quality management and enterprise architecture. Beside his CBS duties, Barteld is active in different international groups at European and United Nations level; for example as innovation manager for the UN/ECE Modernisation Committee on Products and Sources and as a member of the ESS Steering Group on Big Data. He was secretary to the high-level group that formulated the ESS Vision Barteld was trained as a mathematician, in particular in nonlinear dynamics and chaos theory. Before and during his career at CBS he taught mathematics at various universities in Holland and Belgium. In his free time, Barteld likes to play bridge; which implies a form of data processing which neither concerns open data nor big data. Marshall Reinsdorf Currently works in the IFM, Statistics Department, was a researcher in the National Accounts Research Group at the US Bureau of Economic Analysis. After receiving his Ph.D. in Economics from the University of Maryland, Dr. Reinsdorf spent eleven years as a researcher at the U.S. Bureau of Labor Statistics where he did path-breaking work on sources of bias in the Consumer Price Index and links between consumer search behavior and price dispersion. He also did financial research for the Federal Deposit Insurance Corporation where he developed a model for predicting bank failures and non-parametric estimates of the non-linear relation between bank capital ratios and failure probabilities. He has done research on a wide variety of

9 measurement problems in national accounts and helped to guide several improvements in the national accounts of the United States. Among his research interest are: actuarial measures of defined benefit pensions, measurement of financial services in national accounts, measurement and analysis of terms of trade effects, international comparisons, and measurement of productivity change. He has been a long time, very active member of the Conference of Research on Income and Wealth (CRIW) of the National Bureau of Economic Research (NBER), helping to organize, presenting papers at or serving as a chair or discussant in numerous sessions over the years. He serves as a member of the editorial board of the Review of Income and Wealth and has organized sessions on a variety of topics at past and for the upcoming IARIW General Conferences. He has extensively published on economic measurement topics in academic books and journals, including the American Economic Review, the Review of Economics and Statistics, the International Economic Review, and the Journal of Business and Economic Statistics. Gerardo Durand Alcántara He has a degree in Economics from the Universidad Autónoma Metropolitana, UAM with specialization in Industrial Organization. From 2011, as Deputy Director of Economic Surveys and Administrative Records, he has the responsability to lead the Integrated Survey System in Economic Units (SIEUE). In this system, he are implementing conceptual and methodological standards in economic surveys conducted by Units of the State and INEGI, as well as coordinating the production of statistics based on the use of economic administrative records. Currently, he is Deputy Chairman of the Specialized Committee on Foreign Trade Statistics; also he belongs to the Expert Groups on Statistics of International Merchandise Trade of the Statistics Division of the United Nations Organization, the Organization for Economic Cooperation and Development and, the Latin American Integration Association. On the other hand, he is a coordinator of the mexican delegation that participates with the Statistical and Regulatory Agencies of Transportation of the United States of America and Canada in the Exchange Forum on Transportation Statistics of North America. Gerardo has held positions as Head of Department, Director and Deputy Director of INEGI at the state, regional and central levels, collaborating in the production of statistical information based on censuses and surveys, as well as the use of administrative records. He has taught Economics at the UAM as well as at the Universidad Autónoma del Estado de México. In the Economics Division of the Centro de Investigación y Docencia Económicas (CIDE), he participated as a researcher in projects related to the analysis of the technology and productivity in the mexican manufacturing industry. He is author of articles on economic issues and co-author of the book Business Strategies and Structural Adjustment in Mexico, edited by the CIDE. Rolando Ocampo Alcántar He is Vice President of Economic Information of INEGI, he is actuary from the UNAM; Rolando obtain a master degree in General Statistics from the Complutense University of Madrid, Spain, as well as a masters degree in Education Economics and Labor from the Carlos III University. In the public sector, from 1984 to 1989, he worked in the Directorate General Statistics of the INEGI. In 1994, he returned to our Institute to take charge of the Coordination of Analysis Methodologies and Procedures, putting into practice the Program of Purchasing Power Parities, coordinated at the international level by the OECD, as well as the International Comparisons Program, coordinated by ECLAC. From January 2001 to 2004, he was director general of Public Opinion of the Presidency of the Republic and in April 2005, he collaborated with the federal government as undersecretary of Sectorial Policy of the Ministry of Agrarian Reform. Subsequently, from May to November of 2006, he served as director in Chief of the National Agrarian Record, RAN (for its acronym in Spanish). Furthermore, in the private sector, during the period , he worked as director general of GAUSCC and for the presidential campaign of Vicente Fox. In addition

10 served in Homex, as head of the Territorial Reserve and Relations with Government for the center of the country. He, was director of the Center for Latin American Intelligence (CILA), an international consulting firm.

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