- Labor and training costs during the period between the delivery of an asset and its full entry into service.

- Costs due to the closure or relocation of a facility.

On the other hand, there are two elements of GFCF that are not included in FAI. _First_ , residential FAI is measured at the cost of the construction to the property developer. In GFCF, however, it is measured at the cost to the acquirer of the asset. The difference between these two concepts is the gross margin of the property developer (the difference between the construction cost and the selling price). The level residential investment has been corrected by adding this margin to residential FAI (Herd, 2013). _Second_ , since July 2016, research and development expenditure has been partially reclassified as a form of final capital expenditure rather than a cost element that is written off against profit in the year when the expenditure occurs. The overall result was to raise the level of GDP by 1.3% in 2016 and to increase the growth rate by 0.06 percentage point in the decade to 2015.

The NBS has not published a detailed breakdown of R&D spending by sector or type of expenditure. However, a comparison of the revisions to fixed capital formation in the 2015 and 2016 Statistical Yearbooks shows that the estimate of R&D expenditure included in GFCF was substantially lower than the estimate of R&D outlays published in the Science and Technology Yearbook. In the decade to 2014, just under 35% of outlays in the latter Yearbook were not classified as R&D. This presumably reflects a decision that a significant portion of development expenditure by companies should be regarded as a cost of production rather than an asset from which future benefits will flow.

A further measure of gross fixed investment can be derived from the data included in the Main Economic Indicators of Industrial Enterprises. This publication gives the results of a monthly census of financial data of all industrial enterprises with sales of over a threshold value that changes over time. The available series includes the balance sheet data for the depreciated historic cost of fixed assets, the cumulated depreciation of the fixed assets and the original value of the assets. The latter series is the sum of the depreciated value of the assets and the cumulative deprecation of the assets. The net value of fixed assets cannot be used as a measure of the capital stock of industrial enterprises because the assets are valued at the historic acquisition cost, though assets acquired before 1998 were revalued to 1998 prices in that year. However, the difference between the original value of the assets at the end of two adjacent years represents the gross increase in fixed capital between the two years less the amount of fixed assets that were scrapped in that year. When assets are scrapped, as opposed to being fully depreciated, the depreciated value is removed from net assets, the original cost of the asset is removed from the original value series and a deduction is made from cumulated depreciation. The scrapping rate has been estimated by Holz (2006). He suggests that if the average asset life is 40 years (which appears reasonable given a depreciation rate of around 6% in the business sector), then the scrapping rate will be 0.2% per year. This scrapping rate has been used in the calculation of investment in the industrial sector using the following identity: Gross fixed capital formationt = Original value of assetst - original value assetst-1 + scrappingt

# _Sectoral estimates prior to 2002_

The analytical problem is how to combine the various sectoral investment series in way that generates a series that corresponds to the published overall data for gross fixed capital formation. The methodology adopted here differs for the periods before and after 2003, as definitions of sectors were changed in 2003 and more data on expenditure on different assets has been published since 2003.

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