Technology Matrix

This Model Table function represents the Technology Matrix, which is the basis of input-output-modeling calculation. It specifies connections and interdependencies between sectors and countries/regions. The coefficients of the Technology Matrix show to what extent sectors are dependent on the input from other sectors to create one unit of output, by providing the input ratios per sector and country/region. Given a final demand, these direct input linkages serve as a basis to derive the intermediate demands required from the sub-suppliers. It is the starting point for the creation of the Leontief Inverse Matrix, from which the total demand (that is, the sum of the final demand and the intermediate demand) can be assessed.

The Technology Matrix is derived from input-output tables which are regularly updated and published by statistical offices and other public and private institutions using the latest statistical data and market insights. The Technology Matrix used in the Value Chain Sustainability Management is provided by a private research institute and is aggregated down to the most relevant countries and sectors for this sample content to reduce the amount of data. As each of the original countries and industries are assigned to the regions and sectors used in the model, the Technology Matrix comprises all original values in aggregated form. The sector aggregation can be found in the Industry to Sector Mapping Model Table. As for the countries/regions in this sample content, only the countries/regions for which company codes are defined are used as such. All other countries were assigned to the four regions rest of Americas, rest of Europe, rest of Asia and Pacific, and Africa, according to their geographical affiliation.

The function defines the following fields:

• Data Year: You use this field to specify the year of the data entry.

• Country/Region: You use this field to specify the country/region of business.

• Sector: You use this field to specify the economic sector of business.

• Partner Country/Region: You use this field to specify the country/region of the business partner.

• Partner Sector: You use this field to specify the economic sector of the business partner.

• Matrix Entry: You use this field as a key figure used to store the coefficients from the Technology Matrix. The value gives information about the magnitude of the reliance of the production in the specified partner region and partner sector on input goods from the specified region and sector. More precisely, the value can be interpreted as the amount of input (in monetary terms) from the region-sector combination to the partner region-partner sector combination. This is needed to produce one unit of output (in monetary terms) in the partner region and sector. Thus, the higher the value, the higher is the dependency from the partner region and partner sector on input from the specified region and sector.