# Concepts

Government budget appropriations or outlays for research and development activity.

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R&D in full-time equivalents refers to the amount of time spent on R&D work during one year of full-time work (approx. 35 hours per week), allowing for 4-6 weeks of holidays.

R&D work done outside normal working hours is taken into account in calculating R&D in full-time equivalents, provided it is remunerated.

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A real estate is a unit of ownership in a land or water area entered as real estate in the real estate register. Buildings and fixtures owned by the owner of a real estate and located on it belong to the real estate.

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Real estate maintenance refers to activity aimed at the preservation of the condition, value and properties of a real estate (Glossary of real estate activity).

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The price calculated with the prices of a certain base year, from which the effects of changes in the price level have been removed. In most cases the real price refers to the nominal price deflated with the Consumer Price Index.

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Indicates the change in real prices compared with the index base time period (e.g. 2000, 1983 or 1970). The real price index is derived by dividing the point figure of the nominal price index with the point figure of the Consumer Price Index of the corresponding time period and base year.

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In the statistics on special education in comprehensive schools, the reasons for part-time special education were in the academic years 2001/2002 to 2009/2010 as follows:
1) Speech disorder
2) Reading or writing disorder or difficulty
3) Learning difficulty in mathematics
4) Learning difficulty in foreign languages
5) Difficulties in adjustment or emotional disorder, or
6) Other learning difficulties.

The reason for part-time special education was determined by the primary reason for needing special education.

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There are several definitions for this concept

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A standard method used for ensuring the coherence and consistency of inventory calculations is recalculation of the estimates with the same method for all the years the inventory covers. The aim of the recalculation is to ensure that the entire time series has been compiled in accordance with the new data and/or method.

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In a reconstituted family, a child aged under 18 is a child of only one of the spouses. Not all the children aged under 18 in the family are common children.

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Recovered fuels mean fuels with known properties made from dry and combustible wastes generated by industry, enterprises and municipalities and sorted at source.

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Reduction of fixed capital means that a capital good is removed from the capital stock after having reached the end of its life cycle. The reduction is calculated as the difference between investments and changes in the gross capital stock.

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The reference loan refers to serial bonds or housing bonds issued in large quantities by the state and quoted constantly by primary dealers. The yield on these bonds indicates the risk-free market interest rate. Primary dealers are banks or securities intermediaries, which have undertaken, based on an agreement with the State Treasury, to participate in the auctions for benchmark bonds and to maintain a secondary market for them. Under an agreement signed by the Bank of Finland and the primary dealers, the primary dealers undertake to observe the codes of conduct for dealing in the secondary market for benchmark bonds.

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The reference period is the period for which data is collected. In structural statistics the reference period is the accounting period.

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There are several definitions for this concept

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A reference year is a year which is used particularly for the presentation of a time series of constant price data. In a series of index numbers it is the year that takes the value 100. The series' internal weights do not need to be based on the reference year. The base year is the year that is used in constructing the series.

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There are several definitions for this concept

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The country is divided into regions for the development of the areas and for the planning of their use. Regional councils are responsible for supervising the interests of the municipalities in their area and for the regional development of their territory.

According to the Government resolution (6 February 1997), the regional division of regional councils is taken as the basis for the regional divisions of State regional administrative authorities. From September 1997 onwards, the areas of regions and the regional councils representing them are exactly the same.

A region and a regional council are areas in which the municipalities form an operationally and economically functional whole for the development of the area. The Government determines the number, areas and names of regions after hearing the regional councils and municipalities concerned.

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In the regional division a geographical area is divided into smaller areas. Statistical regional divisions are such as divisions into municipalities and regions.

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The economic territory of a country can be broken down into regional and extraregio territory.

The regional territory includes the region that is part of the geographic territory of a country and any free zones, including bonded warehouses and factories under customs control in the region.

The nomenclature of territorial units for statistics (NUTS) provides a single, uniform breakdown of the economic territory of the European Union. NUTS is the territorial breakdown for compiling regional accounts.

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Register correction is to change a person's domicile information in the Population Information System so that the change of information does not involve an actual move of that person. In general, the move has taken place a very long time ago, in which case changing the information by a notice of removal would not make sense, or the person is known to have moved at some point but no information has been obtained on the target domicile and the person is thus included in the absent population.

When such an increase is made to the population living in an area, it is a question of an increase correction. When such a decrease is made to an area, it is a decrease correction. The difference between increase and decrease corrections is called register correction or net of register corrections.

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Statistics Finland's Register of Enterprises and Establishments is a basic statistical register that covers all enterprises, corporations (inc. public corporations) and private practitioners of trade that are liable to pay value added tax, or are employers or entered into the preliminary tax withholding register. In 2002, the Register of Enterprises and Establishments contained approximately 320,000 actively operating enterprises and corporations and 384,000 establishments.

However, only farms that act as employers or pay value added tax on the proceeds from their business activity are entered into the Register of Enterprises and Establishments. Included are also public authorities, i.e. all government agencies, municipalities and joint municipal boards, and their establishments.

Data on the structures of enterprise groups are maintained in the Enterprise Group Register. The Enterprise Group Register covers the largest groups operating in Finland as well as their group heads and subsidiary and associate companies.

Data for Statistics Finland's Register of Enterprises and Establishments are obtained from two main sources: Tax Administration's registers and own surveys.

Maintenance of the Business Register is decreed in the EU regulation on Business Registers (EEC 2186/92).

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The Register of Public Corporations is part of the Register of Enterprises and Establishments. It includes all state agencies, municipalities and joint municipal boards, and their establishments, as well as the Regional Government of Åland and its establishments. A public corporation has no turnover but otherwise the data content of the Register of Public Corporations is almost the same as in the rest of the Register of Enterprises and Establishments.

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Registered partnership of two persons of the same sex aged 18 or over (Act on Registered Partnerships of 9 Nov. 2001/950). Partnership is registered by an authority entitled to perform civil marriage ceremonies. Registered partnership is dissolved when one partner dies or is declared dead, or when it is dissolved by court order.

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The basic education system is regarded primarily as consisting of:
- teaching provided for young people at upper secondary schools, vocational schools and colleges, polytechnics, and universities
- teaching at folk high schools, music schools and colleges and sports colleges leading to a vocational qualification, and
- postgraduate education at universities (researcher training).

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Part of the working time is regularly after 6 pm but mostly before 9 pm.

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Most of the working time is regularly between 9 pm and 6 am.

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A person who has used the Internet at least weekly during the three months preceding the survey is defined as a regular user of the Internet.

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Regular wages for each pay period include
- basic pay
- supplements based on duties, professional skill, years of service etc.
- supplements based on location and conditions of workplace
- performance-based pay components for salaried employees, workers' performance-based earnings
- taxation value for fringe benefits
- (in structural statistics on wages and salaries also pay for working hours not worked).

Regular wages do not include one-off items, such as holiday and performance bonuses. The concept of regular wages including performance-based bonuses is, however, also used in statistics on wages and salaries.

Regular wages are used in all statistics on wages and salaries, but the content may vary according to the statistics. In statistics on hourly wages, for example, regular wages include wages for time and piece rate work and contract work for the regular working time as well as the basic component of Sunday and overtime pay, but not the premia.

Cf. Total earnings

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Rehabilitation is here defined fairly broadly; it also includes activities arranged at workplaces for maintaining working capacity or increasing welfare at work. It is essential whether the person regards the activity as rehabilitation.

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Reinvested earnings are calculated as the difference between the earnings on equity accruing to direct investors and distributed earnings. The counter item of reinvested earnings presented in the current account is recorded in equity.

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Reinvested earnings on direct foreign investment (D.43) are equal to:

the operating surplus of the direct foreign investment enterprise
+ any property incomes or current transfers receivable
- any property incomes or current transfers payable, including actual remittances to foreign direct investors and any current taxes payable on the income, wealth, etc., of the direct foreign investment enterprise.

A direct foreign investment enterprise is an incorporated or unincorporated enterprise in which an investor resident in another economy owns 10 per cent or more of the ordinary shares or voting power (for an incorporated enterprise) or the equivalent (for an unincorporated enterprise). Direct foreign investment enterprises comprise those entities that are identified as subsidiaries (investor owns more than 50 per cent), associates (investor owns 50 per cent or less) and branches (wholly or jointly owned unincorporated enterprises), either directly or indirectly owned by the investor. Consequently, ‘direct foreign investment enterprises’ is a broader concept than ‘foreign controlled corporations’.

Actual distributions may be made out of the entrepreneurial income of direct foreign investment enterprises in the form of dividends or withdrawals of income from quasi-corporations.

In addition, retained earnings are treated as if they were distributed and remitted to foreign direct investors in proportion to their ownership of the equity of the enterprise and then reinvested by them.

Reinvested earnings on direct foreign investment can be either positive or negative.

Time of recording: Reinvested earnings on direct foreign investment are recorded when they are earned.

In the system of accounts, reinvested earnings on direct foreign investment appear:
a) among uses and resources in the allocation of primary income account of the sectors;
b) among uses and resources in the external account of primary incomes and current transfers.

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A remand prisoner is a person imprisoned in a prison due to a suspected offence. The decision to imprison is made by a court of justice.

Also a prosecuted person who is imprisoned while waiting for the decision of a Court of Appeal on a sentence imposed by a District Court is a remand prisoner, even if he/she was the only party who appealed the decision.

Persons in police custody are not included in these statistics.

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A common feature of renewable energy sources is that their sustainable use does not deplete their stocks in the long term. The renewable energy sources used in Finland are hydro and wind power, solar energy, aerothermal energy and ground heat captured by heat pumps, biogas, biodegradable parts of recovered and waste fuels, wood-based fuels, and other vegetable and animal-based fuels.

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In broad terms renovation refers to all activity aimed at improvement and maintenance of the condition of an existing building or parts thereof.

In Statistics Finland's different statistics, renovation is broken down to basic renovation and refurbishment. The term used for refurbishment varies in different statistics. In the Household Budget Survey, for instance, it is referred to as maintenance repairs.

In national accounts, building renovation is included in fixed capital formation and refers to fundamental improvement of a building. After renovation the value of a building is comparable to new.

Refurbishment is a less significant activity than renovation. Refurbishment refers to regular repairs and maintenance to buildings or parts thereof (also referred to annual repairs).

Building extensions count as newbbuilding.

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Rents in the statistics also include water and heating charges paid separately. Rents do not include usage charges of dwellings, such as sauna, laundry or other such charges or electricity and telephone charges. The released mean rents are calculated per residential square metre of the dwelling per month (€/m2/kk).

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A rental dwelling refers to a dwelling which the tenant occupies on the basis of a rental agreement, where the tenant pays rent for the right to use the dwelling and for the facilities related to it. The data released in the rent statistics concern tenancies where the whole dwelling is occupied by the tenant. The rent statistics do not include rental dwellings where rents are for some reason, e.g. family connection, clearly lower than the market level. The rent statistics do not either contain halls of residence, serviced flats and old people's homes.

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In the tourism statistics, a rented cottage (chalet, bungalow) refers to a private rental tourist accommodation. As a mode of accommodation rented cottage can be compared to one's own holiday home. They are usually rented on a weekly, fortnightly or monthly basis, either direct from the owner or by a mediator. Accommodation in cottages (chalets, bungalows) provided by hotels, holiday villages or camping sites belongs to the category of collective accommodation establishments.

In Finland rented holiday dwellings located in the surroundings of tourists centres have increased rapidly in recent years. In the area of tourism centres rented holiday dwellings form a sort of holiday community, where, besides accommodation, dwellers are offered other services, like cleaning, laundry, waste disposal and other maintenance services. The dwellers can also use all the services offered in the centre, such as restaurant and catering services, shops, spas, ski lifts, ski slopes and tracks.

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A reparation measure refers to an operation that changes or completely replaces an individual structure, part or system of a building.

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The balance sheet includes repos based on binding resale commitments at purchase price. Repos are part of the credit institution's lending. The credit institution acts as the buyer (investor) and purchases, with commitment to resell, securities owned by its customers.
Repo options are reported as off-balance sheet items.

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The reproduction of the population refers to a change of a generation into a new one. Reproduction is measured by gross reproduction rates or net reproduction rates that generally indicate the ratio between the sizes of the daughter's and mother's generations. The fertility and mortality of the mother's generation before the end of the childbearing age is taken into account in the calculation of the net reproduction rate. In the gross reproduction rate this mortality is not taken into consideration. If the net reproduction rate calculated per one woman is less than one, the daughter's generation is smaller than the mother's generation and the mother's generation has not reproduced itself.

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Research and development activity (R&D) is understood as systematic work undertaken to increase the stock of knowledge and use it to devise new applications. The defining criterion is that the purpose of the activity should be the presence of an appreciable element of novelty. Research and development activity includes basic research, applied research and experimental development.

Basic research is defined as work undertaken to acquire new knowledge, without any particular application in view. Basic research includes analyses of properties, structures and relationships with a view to formulating and testing hypotheses, theories or regularities.

Applied research is work undertaken to acquire new knowledge directed primarily towards a specific practical application. Applied research includes seeding applications for the findings of basic research or determining new methods or ways of solving a particular problem.

Product and process development (experimental development) is systematic work that draws on existing knowledge gained from research and/or practical experience with the aim of producing new materials, products, processes, methods and systems or of substantially improving existing ones.

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The labour costs of R&D personnel are calculated as the proportion of labour costs of people doing R&D work accounted for by R&D. Labour costs include actual wages, fringe benefits counted under current costs, holiday pay and holiday bonuses. They also include social security payments, contributions to unemployment insurance, compulsory and voluntary pension contributions, and contributions to mutual benefit funds.

Current expenditure on buildings includes the R&D share of, for example, the following items of expenditure: heating, electricity, water, rents, maintenance of premises, cleaning and insurance.

Materials and equipment: materials and equipment needed for R&D activities, which also include the R&D share of the following items of expenditure: books, journals, etc., as well as purchases of machinery, appliances or instruments whose estimated service life is not more than one year.

Services bought in: these are defined as purchases of services relevant to an enterprise's own R&D activities. Whole R&D projects that are contracted out are considered to be contracted research. Services bought in might be construction work, software activities or other planning services, which are not generally considered R&D activities from the point of view of the service provider. However, whole R&D projects that are contracted out are not included.

Other current expenditure: this includes the R&D share in postal and telephone charges, as well as administrative costs (including labour costs of administrative and maintenance personnel that are not counted as research staff labour costs).

Building acquisition costs include the total booked costs of constructing laboratories, production plants and other buildings used for R&D, or the proportion of costs accounted for by R&D activities according to utilisation if the building is also used for other purposes. Acquisition costs essentially also include such things as major improvements that extend service life or enhance capacity.

Other acquisition costs for fixed assets include the total costs of acquiring equipment and machinery that are used exclusively for R&D activities; otherwise the proportion of expenditure accounted for by R&D activities is estimated according to use.

Expenditure is reported minus value-added tax (VAT), and should include costs incurred by activities during the statistical year and items counted as assets on the balance sheet. Depreciation provisions are excluded. In the absence of detailed monitoring, the R&D share of the various expenditures can be calculated for example from the labour costs of research personnel and total labour costs of the unit.

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Research and development personnel are people who during the statistical year have spent at least 0.1 person-years (or 10% of their time) in an R&D unit doing administrative, office or other support work that is directly linked to R&D work or R&D projects. This category does not include people belonging to central departments who have done general administrative or office work serving the whole unit.

Product development engineers, researchers or equivalent are persons whose job is to produce new knowledge or develop new applications in product, process or other development work. This category also includes people responsible for the managing and planning of the contents of R&D projects.

Other R&D staff, such as technical experts, other personnel carrying out R&D tasks (e.g. laboratory technicians, computer programmers) and staff providing other kinds of support for R&D projects belong to this category.

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Services related to basic research, applied research and experimental development of new products and processes. Research and development in the fields of natural sciences, social sciences and humanities. Development of technologically advanced software. Commercial research in the fields of electronics, medicine and biotechnology.

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A researcher or equivalent is a person whose job is to produce new knowledge or develop new applications in product, process or other development work. This category also includes people responsible for managing and planning the content of R&D projects. People who are responsible only for R&D-related administrative tasks are classified as other R&D personnel.

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The statistics on emissions into air by industry, which are accordant with the regulation on environmental accounting, also contain Finnish citizens' emissions from land, water and air transport and from Finnish fishing vessels operating abroad. The emissions by foreign citizens from land, water and air transport on Finnish territory are subtracted from the emissions into air by industry.

This resident principle approach is different from that used in the greenhouse gas inventory, which only contains the emissions generated in the territory of Finland regardless of the nationality of the individual causing the emission (national territory principle). The difference between the greenhouse gas inventory and the statistics on emissions into air by industry is recorded in the bridging table for each emission component.

The bridging table contains data on Finnish citizens' emissions from land, water and air transport and from Finnish fishing vessels operating abroad, and on emissions by foreign citizens from land, water and air transport in Finland.

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The total economy is defined in terms of resident units. A unit is said to be a resident unit of a country when it has a centre of economic interest on the economic territory of that country – that is, when it engages for an extended period (one year or more) in economic activities on this territory. The institutional sectors are groups of resident institutional units.

Resident units engage in transactions with non-resident units (that is, units which are residents in other economies). These transactions are the external transactions of the economy and are grouped in the rest of the world account. So, in the accounting structure of the national accounts, the rest of the world plays a role similar to that of an institutional sector, although non-resident units are included only in so far as they are engaged in transactions with resident institutional units. Consequently, as far as coding of classifications is concerned, a specific item for the rest of the world is included at the end of the classification of sectors.

Notional resident units, treated in the system as institutional units, are defined as:

a) those parts of non-resident units which have a centre of economic interest (that is in most cases which engage in economic transactions for a year or more or which carry out a construction activity for a period of less than a year if the output constitutes gross fixed capital formation) on the economic territory of the country;

b) non-resident units in their capacity as owners of land or buildings on the economic territory of the country, but only in respect of transactions affecting such land or buildings.

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In these statistics, residential buildings refer to the main categories of Residential buildings (A) and Free-time residential buildings (B) in Statistics Finland's classification of buildings. These are divided into the following sub-categories:
- detached houses: one and two-dwelling houses, semi-detached houses and other detached and semi-detached houses.
- terraced houses: rowhouses, terraced houses and other attached houses
- blocks of flats: balcony-access blocks and houses with at least three dwellings of which at least two are on top of each other.
- free-time residential buildings: detached summer cottages or free-time residences mainly intended for private use.

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A residential home refers to a building intended for dormitory accommodation. Residents share the same kitchen, living lounge and/or washing facilities. This type of residential home does not normally have separate dwelling units proper.

In terms of structural engineering a residential home hardly differs from an accommodation building. A residential home is intended for specific groups of people, such as the elderly, disabled, etc. Ordinary residential dwellings built for these groups with no special uses of space (communal kitchens, etc.) are not residential homes.

A dwelling unit within a building classified as a residential home is regarded as a normal dwelling if the dwelling has
- more than one room, including kitchen,
- a kitchen or kitchenette,
- toilet, and
- shower, bath or sauna.

Dwellings in residential homes are not classified as a separate category, but they are counted as part of the regular housing stock. Dwellings in residential homes that do not meet the above conditions are not included in the dwelling stock statistics.

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Waste that can be recovered as energy (energy recovery) or by recycling. In recycling, the material contained in waste is returned back to production. Recycling of waste does not include reuse of second-hand goods.

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A district court can admit a person with severe debt problems into a debt restructuring scheme. The provisions on the restructuring of private debts are included in the Act on the Adjustment of the Debts of a Private Individual, which entered into force on 8 February 1993. The purpose of the Act is to ameliorate the situation of private persons in financial difficulties.

Before petitioning for debt restructuring, the debtor shall determine whether there is a possibility to a negotiated settlement with the creditors. If a settlement cannot be negotiated, a petition for debt restructuring can be filed in a court of justice. If the preconditions of debt restructuring are in place, the court of justice may confirm a payment schedule. When the payment schedule ends the debtor is released from the remainder of his/her debts.

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There are several definitions for this concept

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Revaluation of land and water areas, including revaluation of shares in real estate companies.

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Revenues accrued during the reference period from guarantee fees received as commission from guarantees for which the guarantor (state) is liable.

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Revenues accrued by the guarantor from recovery claims based on indemnities paid by to the guarantor (state) during the reference period.

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Reverse investment refers to the acquisition by a direct investment enterprise of a financial claim on its direct investor

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Revision means added accuracy of data. The accuracy of data can increase due to changes in the data that are used in calculations or to the availability of new data.

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Road transport enterprise offering and performing services in the transport of goods, whose main activity in the field of road transport, according to value-added, is road goods transport.

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A road vehicle fi tted with an engine whence it derives its sole means of propulsion, which is normally used for carrying persons or goods or for drawing, on the road, vehicles used for the carriage of persons or goods.

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Road motor vehicle designed, exclusively or primarily, to haul other road vehicles which are not power-driven (mainly semi-trailers).

Agricultural tractors are excluded.

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An event having lead to personal injury or damage to property that has taken place in an area intended for public transport or generally used for transport and in which at least one of the involved parties has been a moving vehicle. In addition to the vehicles specified in the Road Traffic Act, such party can also be a tram and in level crossing accidents a train. The falling down of a pedestrian is not a traffic accident, but that of a rider of a bicycle (= vehicle) is.

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Goods road motor vehicle coupled to a trailer.

Articulated vehicle with a further trailer attached is included.

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A vehicle running on wheels and intended for use on roads.

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A room is a space with one or more windows that has a floor area of at least 7 square metres and an average height of at least 2 metres. A hall, porch, bed recess, etc. are not counted as rooms. Kitchen is not normally counted in the number of rooms.

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Room occupancy rate indicates the ratio between occupied rooms and available rooms. Two variables of room occupancy are used in tourism statistics: net occupancy rate and gross occupancy rate. Net occupancy rate is obtained by dividing the number of rooms occupied by the number of rooms actually available in a given month, net of seasonal or other temporary closures. Gross occupancy rate is calculated by dividing the number of rooms occupied in a given month by the total number of rooms, irrespective whether the rooms are actually available or not.

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In Statistics Finland's accommodation statistics, room price (room rate) indicates the average price (incl. VAT) per occupied room per day, i.e. the average price a customer has paid for a room for an overnight stay. The average room rate is calculated by dividing the sales revenue from sold rooms (VAT included) by the number of occupied rooms.

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Charges collected for the use of intellectual property n.i.e. include charges for the use of propriety rights (such as patents, trademarks, copyrights, protection of methods and designs, incl. trade secrets and franchising). These rights may be produced from research and development and marketing, and charges for licences to reproduce and/or distribute intellectual property embodied in produced originals or prototypes (such as copyrights of books, manuscripts, software, film work, recordings) to make them available to the public or related rights (like television, cable television and satellite broadcasts).

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Income and expenditure from royalties and licence fees and payments originate from:

1) Authorised use of an intangible asset such as a trademark, copyright, patent, industrial process or technology, design, model, production right, franchise or computer software
2) Use of a produced original or prototype such as a manuscript, cinematographic work or the like to which a licence agreement or copyright has been bought.

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