WEEKLY INFORMATION TECHNOLOGY AND ECONOMY NEWSPAPER
What kind of place does software have in national income?
At the end of 2016, the ‘self-developed software’ was added to the system within the scope of the change made by TÜİK to the revision of GDP calculations. Spending on ‘R&D’ and ‘Weapon Systems’, which used to be evaluated as input, is taken into the category of investment expenditure. It will be clear from over time how this change will be reflected in Turkish software sector, R&D studies in this subject and Turkish companies using Turkish software sector solutions. The Turkish Statistical Institute (TÜİK) has revised its Gross Domestic Product (GDP) calculations. In line with the revision of TÜİK has been working on for some time, it is emphasized that the updated GDP data will be 2009 based on the transition from ESA-95 to ESA-2010 and SNA-2008. In addition, the main causes of change in all countries are listed as ‘R&D’ and ‘Weapon Systems’ expenditures becoming investment expenditures, the change of calculation method of the insurance sector and the change of the output of the Central Bank. Within the scope of the change made by TÜİK, ‘Self-developed software’ was added to the system. Spending on ‘R&D’ and
‘Weapon Systems’; used to be evaluated as input, is taken into the category of investment expenditure. Parameter changes in national income calculation and ‘Including self-developed software in national income calculation system’ needs to be explained further. In general terms, ‘Self-developed software’ can be defined as “software that is developed by companies’ and organizations’ employees to meet the needs of their own and to be used in their organizations.” KPMG Turkey IT Consultancy Services Leader Tanıl Durkaya shared the example that banks, financial institutions and medium-sized institutions in our country develop their own software with their own resources. Looking at the inclusion of this software in the national income calculation system, an income increasing aspect emerges. Because the development of such software increases the staffing, infrastructure and R&D costs of organizations, it also reduces software license and license maintenance costs. In this equilibrium, according to Tanıl Durkaya, in the calculation of the national income, it is anticipated that it will have an increasing effect on income be-
cause it is not included so far. If we look at this decision both in terms of Turkish software sector and companies using Turkish software, we need to pay attention to some needs. Obligation will be adopted over time As Tanıl Durkaya’s definition of the Turkish software sector is based on the definition of “organizations that develop software to sell,” it is not anticipated that adding self-developed software to GNP will be an effect. Likewise, companies that use Turkish software are unlikely to be affected unless they develop it themselves. Tanıl Durkaya makes the following assessment: “As a result, since this is a calculation method, the greatest impact is that, the material values of “Self-developed software” will have to be recorded more clearly and accurately. For companies that do not have a preparation in this regard, the need for detailed analysis may come into question.” R&D limits in software “As a simple citizen, the total value of tomatoes and peppers grown in your garden for your consumption is not included in the national income
calculations according to the market prices. The value of the software developed by the company for its own needs was not included in the national income. It was this that changed with the final regulation. With the new calculation method, the size of the informatics sector and the national income will seem to increase.” wrote BThaber newspaper writer Dr. Osman Coşkunoğlu and he added: “There is no statement in the new R&D regulation regarding all kinds of software to be accepted as R&D activities. This is in contradiction with the Frascati Manual, which sets the international standard. Therefore, the criteria set out in the Ministry’s 2013 guideline should still apply.” Prof. Dr. Osman Coşkunoğlu shared the following details regarding the subject, in consultation with the relevant departments of the public: “In the TÜİK announcement (http://www.tuik.gov.tr// duyurular/duyuru_3244.pd): (S. 2:) The issues of “The spending of ‘R&D’ and ‘Weapon Systems’, which are used to be evaluated as input, is taken into the investment expenditures category” and “Inclusion of self-developed software to the
system” are mentioned. In ESA FAQ document (http:// ec.europa.eu/eurostat/documents/737960/738004/ ESA2010-FAQ.pdf/fea21e81a2cb-421a-8b9e-41aae7d02a14): (S. 1:) There is only this statement: Research and development expenditure is counted as investment. Expenditures on research and development (R&D) have the nature of an investment and contribute to future economic growth. This is the major improvement introduced by ESA 2010. Hence, there is no statement as “Self-developed software is added to the system.” This can only be the result of evaluating any kind of software development as an R&D activity. However, the Ministry of Industry has stated in the 2013 document which types of software can be regarded as R&D. (p. 11) (https:// biltek.sanayi.gov.tr/ARGE%20 Merkezleri%20Dkmanlar/ HAKEM%20DE%C4%9EERLD%C4%B0RME%20 KILAVUZU.pdf) So, if a company develops a software for its staff, it cannot be accepted as R&D. It is also on the agenda that Eurostat will review the new TÜİK method and make a decision in June.”