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measuring Scotland's progress towards A SMART, SUCCESSFUL SCOTLAND
Footnotes
1 Transfer pricing is undertaken within a company when it sells goods from unit to unit within the company. In doing so it can set the price equal to the market price for the good, or it can set the price above/below the market price in order to make use of favourable tax or tariff regimes within the two countries.
2 This is defined as that per cent of the labour force that is either actively involved in starting a new venture, or the owner/manager of a business that is less than 42 months old.
3 The aim of the Global Entrepreneurship Monitor (GEM) is to measure the difference in the level of entrepreneurial activity between countries, and study the complex relationships between entrepreneurship and economic growth. The 2002 report was the third year of Scotland's involvement in the GEM study.
4 The CIS counts an innovative firm as one which has "introduced a new or significantly improved good, service or process; been engaged in innovation projects not yet complete or abandoned; been engaged in longer-term innovation activity such as basic R&D or technology watch; had expenditure in areas such as internal research and development, training, acquisition of external knowledge or machinery and equipment linked to innovation activities, or; formally co-operated on innovation activities with other enterprises or institutions".
5 The DTI defines trading on-line as: (a) enabling customers to order on-line; (b) enabling customers to pay on-line; (c) using ICTs to order goods and services on-line; and (d) using ICTs to pay for goods and services on-line.
6 For definition of mainstream broadband see indicator 6a.
7 There is no one definition of broadband. The definition of broadband used for this indicator is at the low end at over 128kbps per second.
8 The full OECD classification of technology and knowledge intensive industries is: pharmaceuticals; office machinery and computers; aerospace; electronics-communications; scientific instruments; post and telecommunications; finance and insurance; business activities (not including real estate); motor vehicles; electrical machinery; chemicals; other transport equipment; non-electrical machinery.
9 Value added can be defined as the difference between the revenue derived from sales and the cost of the inputs to production. In this way the "value added" by the production process can be measured.
10 The Business Week 1000 is a publication by the American magazine "Business Week" that lists annually the 1000 largest firms in the world by stock market value.
11 Higher education has a wider definition than degree level courses. 25% of the population have a higher education qualification. This includes, for example, HNDs.
12 From mid-April 2003 onwards data for this indicator and the other labour market indicators in this report based on the Labour Force Survey will be revised when ONS starts to incorporate population data at sub-UK level from the 2001 Census. Since summer 2002 it has not been possible to compare Scottish LFS data with UK LFS data. Thus in order to allow comparisons with the UK and its constituent parts, historical data provided for both Scotland and the UK (up until October 2002) have been used in this report. While not ideal, in that it does not take account of Population Census revisions, it does at least allow direct comparisons to be made between Scotland and the UK, England, Wales, Northern Ireland and the English regions.
13 Skill shortage vacancies were defined in this survey as those positions that firms were having difficulty filling due to being unable to find candidates with the required skills, qualifications or experience. This definition differs slightly from that used for the English Employers Skills Survey, where skill shortage vacancies were those hard to fill vacancies caused by a low number of applicants with the required skills, qualifications or personal qualities.
14 Although the worst 10 per cent of areas was first defined in 1991 it has been regularly updated since then.
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