Estimation Method and Analysis of R-JIP database 2021

The fourth update of R-JIP database requires not only extension of the estimated period, but also substantial revision of the estimation method. The Prefectural Accounts of Japan, which we use as fundamental information of regional output (value added) of the database, is newly based on the SNA 2008 and research and development is treated as capital formation. This new treatment of research and development must be reflected in value added and capital stock. Unfortunately, the new Prefectural Accounts of Japan publishes data from 2006. Since our database focusing on the long-term productivity issues needs a longer data period, we originally estimate the corresponding data from 1994 to 2005 relying on the Guidelines on Estimation Method of Prefectural Accounts of Japan. As two new features of the R-JIP database, we have more detailed classification of service industries and regional intangible capital stock, such as R&D stock. In this paper we explain the detailed construction of the R-JIP database 2021 and report new results from the database concerning regional productivity differences in Japan.