2013 Deloitte Belgium Tomorrow's connected vehicle will become a node on the mobile communications highway capable of connecting drivers with friends,
analytics to detect part failures in advance Intelligent in-vehicle transactions E-wallet integration allowing for voice-enabled in-vehicle transactions Vehicle to infrastructure (V2i) Communication between vehicle
and infrastructure to dynamically reroute Integrated parking finder NAVI integrated parking spot identifier Vehicle to Vehicle awareness (V2v) V2v awareness to prevent accidents Near field transactions Near field communications
and will likely change dynamics in the economy and in our personal lives 9 Auto manufacturers Auto insurers Auto financiers Fleet managers Service & repair shops Rental agencies Taxi operators Oil companies Emergency rooms Health
insurers Medical practices Road construction companies Parking lot operators Government taxing authorities Ripple effects 2013 Deloitte Belgium Car sharing and on-demand solutions are growing increasingly popular,
Northeastern university in Boston, KCR, Economist, Deloitte research Young people increasingly view cars as appliances not aspirations,
The primary driver Gen Y's sees these vehicles as being more economical to operate than traditional gasoline-powered vehicles, especially in an environment with frequent swings in fuel prices 2013 Deloitte Belgium
Applications and automotive app stores Improved onboard diagnostics & extended vehicle life In-car data services Increased safety (V2i, V2v,)
New revenue opportunities Partnerships European ecall initiative Personalisation options Regulation App developers Distracted driving Communications industry A world of opportunities 2013 Deloitte
or two people Shift in customer demand toward commodity products Eroding margins Undercut business models depending on premium autos and large margin options Reduced entry barriers
and new business models will emerge 16 Subsidise purchase price of a car, in return for A x-year contract to use certain services Offer concierge services around the maintenance of the car Be an intermediary who manages car-sharing
and assures that shared cars are treated well and maintained including having the latest driving software Help car owners earn extra money by renting their unused cars out to strangers Capture new
service revenue opportunities 2013 Deloitte Belgium Our commitment to our clients includes access to our timely,
Trends and Strategic Implications for the Automotive Industry The connected vehicle industry continues to emerge as a result of rapid advancements in technology and increased consumer demand.
Emerging Markets, Emerging Opportunities This latest article examines how the nature and structure of automotive strategic partnerships have changed,
Manufacturing Opportunity This report examines some of the main challenges facing any attempt to cultivate an American manufacturing renaissance,
London School of economics and Political science Department of Media and Communications http://www. lse. ac. uk p. dini@lse. ac. uk Andrea Nicolai T6 http
by leveraging an evolutionary and open knowledge approach we have been able to engage diverse communities of small and medium-sized enterprises (SMES) in several regions of Europe in the adoption of state-of-the-art business modelling, software development,
and run-time environments. The DBE ecosystem community realised that to bring into existence information
and communication technologies (ICTS) that help in the achievement of the challenges identified by the objectives of the Council of Lisbon (higher growth,
communication and representation dimensions in one single research domain. This approach, applied to social and economic processes and their digital representation, is consistent with the changes in the production processes brought by networks of users/producers (Benkler, 2006),
and communication theory brought to a revolution in the studies of human behaviour, interaction, and communications, led by the Palo alto school (Watzlawick et al.,
967; Bateson, 972. We do not know whether the DBE research effort will lead to a new science of the interaction and communications between economic and digital actors.
For a new science similar to the development of the general systems theory (Bertalanffy, 969), the path still has to be forged. 2
and transferred, 3 activating services and mechanisms capable of becoming more intelligent and effective over time.
it presents the first applications to the economy of a few regions, but also the future perspectives.
and the willingness to contribute to a shared enterprise. In this introductory chapter we will give a high-level overview of the conceptual foundations, assumptions,
starting from an agreed overarching goal of economic development and from basic assumptions of democratic processes and fair competition, several principles, theories,
and which organisations and processes can foster innovation and dense communities of users, leading to a vibrant Knowledge Economy.
and its frequent forays into very theoretical research as well as very applied and action-oriented research (Lewin, 946) through direct engagement with the software industry and socioeconomic stakeholders,
Social constructivism Epistemology P2p run-time architecture Biological ecosystems Networks Evolutionary architecture Democratic processes Innovation Competition Dynamic economy Scientific research outputs Open
formalised knowledge, services, training modules, skills, business and licencing models, laws, digital contracts...Knowledge Economy Motivation Assumptions Theories and Principles Strategies Instruments Processes Structures Development SME engagement Research Action research Multi-stakeholder processes ICT
s Socioeconomic Dimensions Biological Metaphors Fig. 1 Research and development in Digital Ecosystems 8 Originsthe research area related to Digital Business Ecosystems was triggered by the initiative Go Digital (EC,
It is thought generally that ICT is one of the major contributors to economic growth and economic efficiency:
The decline in EU labour productivity growth rates in the mid-990s was attributed equally to a lower investment per employee and to a slowdown in the rate of technological progress (Kok, 2004.
In the presence of roughly 20 million small and medium-sized enterprises (SMES) in the EU25,
which make up more than 99%of all European companies by number and approximately 50%of European GDP, the Lisbon Strategy's call (COM, 2004) for the most competitive and dynamic knowledge-based economy in the world,
capable of sustainable economic growth with more and better jobs and greater social inclusion by 20 0, was interpreted as a need to boost the SME sector in Europe.
Public and private information and communication technologies contributed nearly 50%of EU productivity growth between 2000 and 2004 (EC, 2007;
Such direct investments in a necessarily limited number of individual SMES can achieve only limited results.
human capital, diffused knowledge and skills; technical infrastructures; entrepreneurial culture; and critical mass of available services.
Such programmes should rather become focused on creating favourable environmental conditions and ecosystems of innovation: Like individual plants or animals, individual businesses cannot thrive alone they must develop in clusters or economic ecosystems (Moore, 2003.
where a multi-stakeholder process of policy development and implementation was likely to be more effective.
aimed at building environments favourable to SMES'business and their networking, compatibly with the EC policy for Helping SMES to go digital (EC, 200 a),
1. promote a favourable environment and framework conditions for electronic business and entrepreneurship2. facilitate the take-up of electronic business3. contribute to providing Information and Communication Technology (ICT) skills.
It is worthwhile to note the integrated approach which stresses the creation of an environment, a business ecosystem,
and the need for IT skills. 4) http://ec. europa. eu/information society/topics/ebusiness/godigital/index en. htm 9 The Digital Business Ecosystem The synthesis of the concept of Digital
and connects services and information over Internet links enabling networked transactions, and the distribution of all the digital‘objects'present within the infrastructure.
and processed (by computer software and/or humans), e g. software applications, services, knowledge, taxonomies, folksonomies, ontologies, descriptions of skills, reputation and trust relationships, training modules, contractual frameworks, laws.
'This economic community produces goods and services of value to customers, who themselves are members of the ecosystem.
Moore, 996) A wealthy ecosystem sees a balance between cooperation and competition in a dynamic free market.
a biological metaphor that highlights the interdependence of all actors in the business environment, who coevolve their capabilities and roles (Moore, 996.
and self-optimising environment (Evolutionary Environemnt or Eve). 5) Now Networked Enterprise and RFID Unit, Directorate General information Society and Media. 6) Inspired by work of Thomas Kurz,
Salzburg University of Applied sciences Fig. 2 The stack view of the Digital Business Ecosystem 6 Exe Eve Collective intelligence achieved through tools for the formalisation of knowledge built on top of a distributed persistent storage
business models, training modules, skill descriptions, digital contracts, software services, ontologies, dynamic semantic networks and taxonomies, folksonomies, tag clouds...
Evolutionary Environment P2p architecture and Execution Environment SME Networks Business Ecosystem of companies, goods, and services 10 Bringing these three terms together has been effective in broadening the appeal of the approach to a wide range of stakeholders from academia, industry, business, and policy-making.
However, it has rendered also a clear explanation of what the three terms mean when used together very difficult.
The understanding of the term‘digital ecosystem'and of the stakeholders that populate it has developed during the course of the research over the last few years.
Computing environments likewise spilled over from the single computer to the local area network (LAN) at first, and eventually to the global Internet.
The faster and more pervasive communications enabled by the technology reinforced the already existing trend from a material economy based on manufacturing toward a service economy based on knowledge production and distributed value chains.
in information and communication technologies often a group of applications complementing a specific product or platform is considered to form a digital ecosystem 8;
and the introduction of a holistic view of the resulting techno-social and economic system inspired by the multi-scalar biological ecosystem metaphor.
and the surrounding applications and services as a digital ecosystem. 9) The Digital Ecosystem project launched by the World Economic Forum established a Digital Ecosystem community (http://www. decommunity. net/)11 and interdependent
through its integration with the many societies and economies of the world a more constructive dynamic of interaction between the local and the global scales can be achieved.
but represents a significant weakness for the economy of the region when when the dominant economic actor experiences economic difficulties.
This model also matches the economic structure of the USA where there is a predominant number of large enterprises at the center of large value networks of suppliers (Eurostat, 2006.
It looks at new institutional and transaction costs economics (Coase 937; Williamson, 975; Benkler, 2002) as well as at the economics of sharing (Benkler, 2004) and community currencies.
Perhaps most importantly, it strives to remain open to new ideas coming from research and academia as well as from business and development experience.
A greater openness 2 and a multi-stakeholder approach between academia, business, and local government implies a greater emphasis on a collaborative sense-making process for analysing the priorities of a particular region and for devising appropriate development strategies.
0) Crowdsourcing is defined as new business model in which a company or institution takes a job traditionally performed by a designated agent (usually an employee) and outsources it to an undefined, generally large group of people in the form of an open call over the Internet.
but partly delegating that role to a number of companies that offer a range of SME networking services,
from meeting and conference space to ISP services. Four years since the emergence of the Digital Ecosystem concept, we still believe that socioeconomic growth depends on innovation,
Openness in the Knowledge Economy is not so different from encouraging spending to stimulate the dynamism of the Exchange Economy.
However, we recognise that spending ideas are easier to implement in research environments than in business environments.
Therefore, the balance that seems to work in business environments is layered based on a approach: combining an open source shared middleware infrastructure with software services,
models and information that compete on the revenue models (which can vary from proprietary to shared or free).
Relativism and Reflexivityseveral statements in the above paragraphs are organised by a mixture of beliefs and interpretations of research results, 3 leading to temporary but fairly confident conclusions regarding the Digital Ecosystems approach (principles of openness, multi-stakeholder approach,
Game theory sees atomised economic agents in competition to maximise their own utilities as offering a better explanation,
or even prescription, for a healthy dynamic equilibrium of economic systems. We do not consider Game theory a good framework for explaining what has happened in the regions that have adopted the Digital Ecosystems approach primarily
Knowledge is received not passively either through the senses or by way of communication, but is built actively up by the cognising subject.
the subject must somehow receive the information from the environment, i e. it must be instructed"."Cybernetics began with the recognition that all our knowledge of systems is mediated by our simplified representations or models.
and mediate socioeconomic interactions between enterprises and people. Autopoiesis and Dynamic Conservatismmaturana and Varela (973) invented the concept of autopoiesis as a model that generalises the structure and function of a biological cell,
and has been used to explain human communication and social systems impacting on sociology, psychotherapy, management, anthropology, organisational science, and law.
but is triggered by the environment. Thus, the structure of a given system is not static;
and therefore also to the Internet and its applications/services. It was remarked by Lessig when he observed that the code is the law of cyberspace (999).
The Internet's role in innovation, based on the‘spontaneous'creation and implementation of new protocols and services, would not be possible with a different structure characterised by a centralised instead of an end-to-end and layered‘intelligence'.
The Internet was designed with no gatekeepers over new content or services. The Internet is layered based on a,
for aggregating and recommending services, for reorganising value chains, and for recommending potentially cooperating business partners.
The digital ecosystem influences the structure of the enterprises and of their social and business networks,
DIGITAL ECOSYSTEM (digital representations of economy) XXX XXX XXX XXX BUSINESS ECOSYSTEM (economy) Perturbation/Compensation Perturbation/Compensation Structural Coupling between Business Ecosystem
and innovators in the knowledge-based economy, integrating them within local/regional/global socioeconomic ecosystems
and that enact unstructured dynamic business clustering to achieve greater competitiveness in the global economy. In the course of the subsequent debates the concept was developed further into the peer production of a‘digital nervous system'that supports a participative society in which public and private organisations,
in order to enable the participation of all players in the knowledge economy and in the knowledge society,
and the dynamic interactions (the relationships and the cooperation/competition) between all the economic players. The public consultation process produced a research agenda (Dini et al.
or are specific to the structure of the local economy. In this paper we present only a few of these interrelated keystone principles,
or actor Equal opportunity of access for all Scalability and robustnessthese principles imply a fully decentralised architecture;
and the software services where there is a greater probability of their use. From the organisational perspective these principles imply the need for balanced
This structure should be able to adapt to different societal environments which are constantly changing.
Just considering the services or the business models, this means that in some ecosystems new services will appear,
in others the same services will be modified to be adapted to local conditions, regulations, business models, in yet others the services will disappear from lack of use.
Solutions that need to be developed on a European scale could have sector-specific implementations that can be adapted
The Representations that Populate Digital Ecosystemsthe digital ecosystem is the ICT infrastructure designed to support economic activities,
the knowledge that expresses different socially-constructed partial interpretations and views of the economy and
Thus, the ecosystem is an environment with a‘life support'architecture designed to enable the‘life'of its‘digital organisms'.
The digital ecosystem in its evolution will acquire more services and will be able to include more mechanisms of interpretation of knowledge(‘introspection),
the more aspects of the economy can be described and mediated. Thus, when we abandon the mirage of an objective reality
and therefore to be negotiated between the regional stakeholders, but the technology itself needs to grow out of the languages and interactions between these stakeholders (Vaca, 2005).
In other words, having embraced a holistic approach that highlights the dependence of the business models and interactions and of their formalisation into software services on their socioeconomic and cultural context,
no assumptions can be made by external actors about what constitutes an optimum technology for a particular business domain.
Technology here is meant in a wider sense that encompasses the distributed infrastructure and middleware, the software services and applications, all the attendant web technologies,
and their services from their locally and socially constructed point of view, automating the generation of the software to interface to the underlying mediating technology through appropriate transformations.
As a consequence, due to the scarcity of human resources, very limited aspects of the‘real world'have been described.
The movement of information goods to centre stage as drivers of economic growth The ever more widespread use of the peer-to-peer modes of conducting the distribution
The access to the infosphere created by the digital ecosystem commons represents one of the most promising strategies to reduce the digital divide between SMES and large enterprises.
reducing cost and investment, and working at the centre of a peer knowledge production process allows small enterprises to overcome the activation threshold needed to use ICT in a novel and productive way.
The Open source approach has thus been the only possible choice for the Digital Ecosystem infrastructure,
and transform their business/economic environment according to their shared description of the world. However, access to the code does not solve everything.
The key actors in the development of an open source product are the individual contributors companies (for profit and nonprofit) and researchers.
Up to now economic theory suggests that long-term incentives are stronger under three conditions: more visible performance to the relevant audience (peers, labour market, and venture capital community;
2) higher impact of effort on performance; 3) more informative performance about talent. The first condition gives rise to
what economists call‘strategic complementarities'.'To have an‘audience, 'programmers will want to work on software projects that will attract a large number of other programmers.
Digital Ecosystems surely require a variety of business models to be viable and sustainable in the long run. Some of these models will be based mainly on a new Exchange Economy characterised by peer production behaviour to become integrated with the Gift Economy. 29 In the gift economy a immediate remuneration is sought not,
and in many cases it is expected not. Reciprocity is believed to work eventually to provide a‘return on investment'that may in any case be difficult to monetise
such as one's reputation among peers. In other words, an exchange rate is required by the companies and the people who straddle both economies.
Social constructivism takes a further step to what we have discussed so far in its recognition of language as a medium of power relationships.
It is therefore important()to acknowledge the emergence of power relationships and hierarchies as a direct consequence of the mediation of social interactions by language and communications;
'But, instead of any such miraculous business plan, something else has emerged: the apparent willingness of profit-seeking producers of complementary goods and services to source software (Dalle 2005). 22 also express a process.
In other words, Language leads to Power, which leads to Organisational Structure. Adding Transparency, Accountability, Identity, and Trust leads to an Open Governance and Institutional Innovation process,
to arrive at a participatory socioeconomic development process that can bootstrap the Knowledge Economy in any regional context to construct a sustainable, global, pluralistic,
and Epistemology, University of chicago Press. Baudrillard, J (975. The Mirror of Production, Mark Poster (trans. St louis:
Knowledge Identity Communication & Collaboration Tools Network Fig. 4 Flow of innovation through community to sustain open knowledge productio 23 Benkler, Y (2004.
Economy, Society and Culture volume: The rise of the network society. Oxford: Blackwell. Chesbrough, H (2003.
European commission (200 a). Communication from the Commission: Helping SMES to go digital. COM (200) 36 final. 200,3 March.
Communication from the Commission, COM (2003) 729. The EU Economy: 2003 Review. European commission (2004. Communication from the Commission, COM (2004). 480-3. 07. 2004european Commission, DG-INFSO (2005a),
What is an European Digital Ecosystem? Policy Priorities and Goals, internal report, Bruxelles, February 2006. http://www. digital-ecosystems. org/doc/fp7-de-shortintro. pdf last visit/6/2007european
Commission, DG-INFSO (2005b) Towards Business Cases and User-oriented Services in Digital Business Ecosystems, Conclusions of the FP7 Workshop on Needs and Requirements of Regions, Bruxelles,
8 april 2005. http://europa. eu. int/information society/topics/ebusiness/godigital/sme research/doc/dbe discussionpaper. pdf last visit 30/5/2006european Commission (2006).
The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems, New york: Harper Business.
Technological Innovation in Organisations and Their Ecosystems, in Transforming Enterprise: The Economic and Social Implications of Information technology, Edited by William H. Dutton, Boston:
Pragmatics of Human Communication: A Study of Interactional Patterns, Pathologies, and Paradoxes, New york: Norton. Wilkins, J S (998.
Such interventions take place in the context of wider efforts to create a social economy. Whilst the relationships between social innovation and digital technologies are being explored in policy and practice,
Social innovation towards a social economy The definition of social innovation is contested and the subject of an ongoing debate across academic,
and digital technologies Social innovations are new solutions (products, services, models, markets, processes etc.)that simultaneously meet a social need (more effectively than existing solutions) and lead to new or improved capabilities and relationships and better use of assets and resources.
The Young Foundation, 2012: 17-18) Based on this definition we suggest that social innovations can be viewed an effort to establish a (more) social economy.
Like social innovation, the concept of a social economy has manifold meanings. In one sense, all economies are social economies in that there is a moral sentiment between counter-parties engaging in market transactions.
The tendency to monopoly, market failure and non-optimal outcomes challenge this assumption in contemporary economies.
As a consequence, a revival of interest in social economics and the construct of social economics has emerged.
A simple definition suggests: the economy is limited not to the market, but includes principles of redistribution and reciprocity (Laville et al.,
1994) These principles suggest that increased social integration will play a central role in establishing a social economy.
We argue that both social innovation and digital technologies open up possibilities for greater social integration by addressing social needs,
Hence we suggest that digitally mediated forms of social innovation are a key component of the wider effort to establish a social economy.
there are extensive opportunities to engage with related bodies of knowledge to develop further understanding of these relationships.
and the niche sheltered environments in which innovations can develop outside the mainstream. In this model both innovation and system stability arise from the dynamic interactions of social and technical factors, taking place within and between each level.
This arises from both the adverse environmental impacts associated with unsustainable demand for finite resources used in the manufacturing of consumer electronics (e g. rare earth metals),
and communication technology (ICT) enabled or driven social and economic development, of which digitally mediated social innovation is merely one of the most recent examples.
The economic theory, Work Foundation. Degelsegger, A. & Kesselring, A. 2012. Do Nonhumans Make a Difference?
Environment and Planning-Part C, 30,381. A provisional framework for analysing relationships between social innovation and digital technologies Smith, A.,Voß, J.-P. & Grin, J. 2010.
Opportunities and Challenges: A Report on the Research Workshop'Digital Challenges in Innovation Research'(June 8, 2010
Doing Business 2015 Spain Economy Profile 2015 Spain Doing Business 2015 Spain 2 2014 The International Bank for reconstruction and development/The World bank 1818 H Street NW, WASHINGTON DC
4 The business environment...6 Starting a business...16 Dealing with construction permits...23 Getting electricity...
and the protection of property rights that can be compared across 189 economies, from Afghanistan to Zimbabwe, over time.
The data set covers 47 economies in Sub-saharan africa, 32 in Latin america and the Caribbean, 25 in East asia and the Pacific, 26 in Eastern europe and Central asia, 20 in the middle East and North africa and 8 in South Asia
as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.
This economy profile presents the Doing Business indicators for Spain. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator.
The data in this report are current as of June 1, 2014 (except for the paying taxes indicators,
Other areas important to business such as an economy's proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders
comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business;
Second, for the 11 economies with a population of more than 100 million, data for a second city have been added to the data set and the ranking calculation.
These economies are Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United states. Third, for getting credit,
and the scope of the indicator set has been expanded to include shareholders'rights in corporate governance beyond related-party transactions.
Doing Business 2015 Spain 6 THE BUSINESS ENVIRONMENT For policy makers trying to improve their economy's regulatory environment for business,
a good place to start is to find out how it compares with the regulatory environment in other economies.
and benchmark regulations applying to domestic small to medium-size businesses through their life cycle. Economies are ranked from 1 to 189 by the ease of doing business ranking.
This year's report presents results for 2 aggregate measures: the distance to frontier score and the ease of doing business ranking.
The ranking of economies is determined by sorting the aggregate distance to frontier (DTF) scores. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
An economy's distance to frontier score is indicated on a scale from 0 to 100,
where 0 represents the worst performance and 100 the frontier. See the chapter on the distance to frontier
but the data are presented in this year's economy profile. The aggregate ranking on the ease of doing business benchmarks each economy's performance on the indicators against that of all other economies in the Doing Business sample (figure 1. 1)
. While this ranking tells much about the business environment in an economy, it does not tell the whole story.
The ranking on the ease of doing business, and the underlying indicators, do not measure all aspects of the business environment that matter to firms and investors or that affect the competitiveness of the economy.
Still, a high ranking does mean that the government has created a regulatory environment conducive to operating a business.
ECONOMY OVERVIEW Region: OECD high income Income category: High income Population: 46,647, 421 GNI per capita (US$:
29,180 DB2015 rank: 33 DB2014 rank: 32*Change in rank: -1 DB 2015 DTF: 73.17 DB 2014 DTF:
Doing Business 2015 Spain THE BUSINESS ENVIRONMENT Figure 1. 1 Where economies stand in the global ranking on the ease of doing business Source:
Doing Business 2015 Spain THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy stands in the aggregate ranking on the ease of doing business is useful.
Also useful is to know how it ranks relative to comparator economies and relative to the regional average (figure 1. 2). The economy's rankings (figure 1. 3)
and distance to frontier scores (figure 1. 4) on the topics included in the ease of doing business ranking provide another perspective.
Figure 1. 2 How Spain and comparator economies rank on the ease of doing business Note:
The rankings are benchmarked to June 2014 and based on the average of each economy's distance to frontier (DTF) scores for the 10 topics included in this year's aggregate ranking.
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
An economy's distance to frontier score is indicated on a scale from 0 to 100,
where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are weighted a population average for the 2 cities.
Source: Doing Business database. Doing Business 2015 Spain 9 THE BUSINESS ENVIRONMENT Figure 1. 3 Rankings on Doing Business topics-Spain (Scale:
Rank 189 center, Rank 1 outer edge) Figure 1. 4 Distance to frontier scores on Doing Business topics-Spain (Scale:
The rankings are benchmarked to June 2014 and based on the average of each economy's distance to frontier (DTF) scores for the 10 topics included in this year's aggregate ranking.
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
An economy's distance to frontier score is indicated on a scale from 0 to 100,
For the economies for which the data cover 2 cities, scores are weighted a population average for the 2 cities.
Yearly movements in rankings can provide some indication of changes in an economy's regulatory environment for firms,
Moreover, year-to-year changes in the overall rankings do not reflect how the business regulatory environment in an economy has changed over time
This measure shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator Comparing the measure for an economy at 2 points in time allows users to assess how much the economy's regulatory environment as measured by Doing Business has changed over time how far it has moved toward
The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator
on their own or in comparison with the indicators of a good practice economy or those of comparator economies in the region, may reveal bottlenecks reflected in large numbers of procedures, long delays or high costs.
Comparison of the economy's indicators today with those in the previous year may show where substantial bottlenecks persist
14.1 2. 3 2. 0 0. 3 Slovenia (0. 0) Paid-in min. capital(%of
income per capita) 13.8 13.4 0. 0 35.8 0. 0 0. 0 25.4 0. 0 112 Economies (0. 0)* Dealing with Construction
) Procedures (number) 5. 0 5. 0 5. 0 3. 0 5. 0 5. 0 3. 0 4. 0 12 Economies (3
0 5. 0 4. 0 1. 0 4. 0 6. 0 4 Economies (1. 0)* Time (days) 12.0 12.5 49.0
40.0 16.0 1. 0 16.0 21.5 3 Economies (1. 0)* Cost(%of property value) 6. 1 7 1 6. 1 6
. 7 4. 4 7. 3 0. 3 4. 6 4 Economies (0. 0)* Getting Credit (rank) 52 45 71 23
) Strength of legal rights index (0-12) 5 5 4 6 2 2 6 7 3 Economies (12)* Doing Business 2015 Spain 13
Depth of credit information index (0-8) 7 7 6 8 7 7 6 8 23 Economies (8)* Credit registry coverage
0. 0 100.0 100.0 23.4 26.3 100.0 23 Economies (100.0)* Protecting Minority Investors (rank) 30 30 17 51 21 51
. 3 Singapore (9. 3)* Extent of shareholder governance index (0-10) 7. 5 7. 5 7. 8 6. 8 7
10.0 10.0 9. 0 19.0 15.0 8. 0 8. 0 5 Economies (6. 0)* Cost to export (US$ per container) 1, 310.0 1
14.5 12.0 11.0 5 Economies (15.0)* Note: DB2014 rankings shown are not last year's published rankings but comparable rankings for DB2014 that capture the effects of such factors as data corrections and changes to the methodology.
The best performer on time for paying taxes is defined as the lowest time recorded among all economies in the DB2015 sample that levy the 3 major taxes:
profit tax, labor taxes and mandatory contributions, and VAT or sales tax. If an economy has no laws
or regulations covering a specific area for example, insolvency it receives a no practice mark. Similarly, an economy receives a no practice
or not possible mark if regulation exists but is used never in practice or if a competing regulation prohibits such practice.
Either way, a no practice mark puts the economy at the bottom of the ranking on the relevant indicator.*
*Two or more economies share the top ranking on this indicator. A number shown in place of an economy's name indicates the number of economies that share the top ranking on the indicator.
For a list of these economies, see the Doing Business website (http://www. doingbusiness. org.
Source: Doing Business database. Doing Business 2015 Spain 16 STARTING A BUSINESS Formal registration of companies has many immediate benefits for the companies and for business owners and employees.
Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets.
And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies.
These limit the financial liability of company owners to their investments so personal assets of the owners are not put at risk.
Doing Business measures the ease of starting a business in an economy by recording all procedures officially required
The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business.
To make the data comparable across economies, Doing Business uses several assumptions about the business and the procedures.
name verification or reservation, notarization) Registration in the economy's largest business city1 Postregistration (for example, social security registration,
no bribes No professional fees unless services required by law Paid-in minimum capital(%of income per capita) Deposited in a bank
or with a notary before registration (or within 3 months) Has a start-up capital of 10 times income per capita.
Does not own real estate. 1 For the 11 economies with a population of more than 100 million
Doing Business 2015 Spain 17 STARTING A BUSINESS Where does the economy stand today? What does it take to start a business in Spain?
costs 4. 6%of income per capita and requires paid-in minimum capital of 13.8%of income per capita (figure 2. 1). Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Figure 2. 1 What it takes to start a business in Spain Paid-in minimum capital(%of income per capita:
Spain stands at 74 in the ranking of 189 economies on the ease of starting a business (figure 2. 2). The rankings for comparator economies
and comparator economies rank on the ease of starting a business Source: Doing Business database.
Doing Business 2015 Spain 19 STARTING A BUSINESS Economies around the world have taken steps making it easier to start a business streamlining procedures by setting up a one-stop shop,
Among the benefits have been greater firm satisfaction and savings and more registered businesses, financial resources and job opportunities.
These are identified by Doing Business through collaboration with relevant local professionals and the study of laws, regulations and publicly available information on business entry in that economy.
Madrid Start-up Capital: 10 times GNI per capita Table 2. 2 Summary of time, cost and procedures for starting a business in Spain No.
Notary costs approximately €500 (depending on the amount of the share capital and complexity of the operation) and registration costs EUR 155 to EUR 300 (depending on the amount of the share capital) Agency:
to avoid excessive constraints on a sector that plays an important part in every economy.
time and cost for a business in the construction industry to obtain all the necessary approvals to build a warehouse in the economy's largest business city,
The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits.
To make the data comparable across economies Doing Business uses several assumptions about the business
For the 11 economies with a population of more than 100 million, data for a second city have been added.
Doing Business 2015 Spain 24 DEALING WITH CONSTRUCTION PERMITS Where does the economy stand today?
and costs 5. 2%of the warehouse value (figure 3. 1). Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Spain stands at 105 in the ranking of 189 economies on the ease of dealing with construction permits (figure 3. 2). The rankings for comparator economies and the regional average ranking provide other useful
Figure 3. 2 How Spain and comparator economies rank on the ease of dealing with construction permits Source:
dated September 26, 2013, setting the maximum price for services of the private collaborating entities for 2014 (Official Gazette of the City council of Madrid N. 7015 (09/30/2013.
many firms in developing economies have to rely on self-supply, often at a prohibitively high cost.
The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity.
To make the data comparable across economies several assumptions are used. The warehouse: is owned by a local entrepreneur, located in the economy's largest business city,
in an area where other warehouses are located. For the 11 economies with a population of more than 100 million, data for a second city have been added.
Is not in a special economic zone where the connection would be eligible for subsidization or faster service.
Doing Business 2015 Spain 31 GETTING ELECTRICITY Where does the economy stand today? What does it take to obtain a new electricity connection in Spain?
and costs 242.0%of income per capita (figure 4. 1). Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Spain stands at 74 in the ranking of 189 economies on the ease of getting electricity (figure 4. 2). The rankings for comparator economies and the regional average ranking provide another perspective in assessing how easy
Figure 4. 2 How Spain and comparator economies rank on the ease of getting electricity Source:
the one serving the largest number of customers is selected. OBTAINING AN ELECTRICITY CONNECTION Name of utility:
customers usually contract a private firm that deals with the administrative procedure for them. This private firm will also inspect the installation before submitting the project for approval.
and awaits the preparation of an estimate Most customers submit their service application to Iberdrola at the same time that they apply for the administrative approval with the Dirección General.
Iberdrola 20 calendar days EUR 3, 604 3*The customer obtains a license for the external works from the City council Customers need to obtain a license for the external works from the municipality.
City council 25 calendar days EUR 1, 840 4 Iberdrola or a private firm does the connection works Customers have two choices:
The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property.
To make the data comparable across economies several assumptions about the parties to the transaction, the property and the procedures are used.
are located in the economy's largest business city2. Have 50 employees each, all of whom are nationals.
paying property transfer taxes) Registration in the economy's largest business city2 Postregistration (for example, filing title with the municipality) Time required to complete each procedure (calendar days) Does not include time spent gathering information Each
There is no heating system. 2 For the 11 economies with a population of more than 100 million,
Doing Business 2015 Spain 37 REGISTERING PROPERTY Where does the economy stand today? What does it take to complete a property transfer in Spain?
and costs 6. 1%of the property value (figure 5. 1). Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Spain stands at 66 in the ranking of 189 economies on the ease of registering property (figure 5. 2). The rankings for comparator economies
and comparator economies rank on the ease of registering property Source: Doing Business database. Doing Business 2015 Spain 39 REGISTERING PROPERTY Economies worldwide have been making it easier for entrepreneurs to register
and transfer property such as by computerizing land registries, introducing time limits for procedures and setting low fixed fees.
For the 11 economies with a population of more than 100 million, data for a second city have been added.
The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit.
Doing Business 2015 Spain 44 GETTING CREDIT Where does the economy stand today? How well do the credit information system
The economy has a score of 7 on the depth of credit information index and a score of 5 on the strength of legal rights index (see the summary of scoring at the end of this chapter for details).
Globally, Spain stands at 52 in the ranking of 189 economies on the ease of getting credit (figure 6. 1). The rankings for comparator economies
Figure 6. 1 How Spain and comparator economies rank on the ease of getting credit Source:
Doing Business 2015 Spain 45 GETTING CREDITONE way to put an economy's score on the getting credit indicators into context is to see where the economy stands in the distribution of scores across economies.
Figure 6. 2 highlights the score on the strength of legal rights index for Spain and shows the scores for comparator economies as well as the regional average score.
Economy scores on strength of legal rights index Note: Higher scores indicate that collateral and bankruptcy laws are designed better to facilitate access to credit.
Economy scores on depth of credit information index Note: Higher scores indicate the availability of more credit information, from either a credit registry or a credit bureau,
The getting credit indicators reported here for Spain are based on detailed information collected in that economy.
publicity and enforcement of functional equivalents to security interests in movable assets exist in the economy?
An economy receives a score of 1 if there is a"yes"to either bureau or registry.
Doing Business 2015 Spain 49 PROTECTING MINORITY INVESTORS Protecting minority investors matters for the ability of companies to raise the capital they need to grow,
require shareholder participation in major decisions of the company and set detailed standards of accountability for company insiders.
Doing Business measures the protection of minority investors from conflicts of interest through one set of indicators and shareholders'rights in corporate governance through another.
The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors.
These scores are the simple average of the distance to frontier scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.
is traded a publicly corporation listed on the economy's most important stock exchange (or at least a large private company with multiple shareholders.
Mr. James, a director and the majority shareholder of the company, proposes that the company purchase used trucks from another company he owns.
Shareholders sue the interested parties and the members of the board of directors. WHAT THE PROTECTING MINORITY INVESTORS INDICATORS MEASURE Extent of disclosure index (0 10) Review and approval requirements for related-party transactions;
Disclosure requirements for related-party transactions Extent of director liability index (0 10) Ability of minority shareholders to sue
Available legal remedies (damages, disgorgement of profits, fines, imprisonment, rescission of the transaction) Ease of shareholder suits index (0 10) Access to internal corporate documents;
Evidence obtainable during trial and allocation of legal expenses Extent of conflict of interest regulation index (0 10) Sum of the extent of disclosure, extent of director liability and ease of shareholder
indices, divided by 3 Extent of shareholder rights index (0-10.5) Shareholders'rights and role in major corporate decisions Strength of governance structure index (0-10.5) Governance safeguards protecting shareholders from undue board control
and entrenchment Extent of corporate transparency index (0-9) Corporate transparency on ownership stakes, compensation, audits and financial prospects Extent of shareholder governance index (0 10
) Sum of the extent of shareholders rights, strength of governance structure and extent of corporate transparency indices, divided by 3 Strength of investor protection index (0 10) Simple average of the extent of conflict of interest regulation
and extent of shareholder governance indices Doing Business 2015 Spain 50 PROTECTING MINORITY INVESTORS Where does the economy stand today?
How strong are minority investor protections against self-dealing in Spain? The economy has a score of 6. 4 on the strength of minority investor protection index,
with a higher score indicating stronger protections. Globally, Spain stands at 30 in the ranking of 189 economies on the strength of minority investor protection index (figure 7. 1)
. While the indicator does not measure all aspects related to the protection of minority investors, a higher ranking does indicate that an economy's regulations offer stronger minority investor protections against self-dealing in the areas measured.
Figure 7. 1 How Spain and comparator economies perform on the strength of minority investor protection index Source:
Doing Business database. Doing Business 2015 Spain 51 PROTECTING MINORITY INVESTORS One way to put an economy's scores on the protecting minority investors indicators into context is to see where the economy stands in the distribution of scores
across comparator economies. Figures 7. 2 through 7. 7 highlight the scores on the various minority investor protection indices for Spain in 2014.
A summary of scoring for the protecting minority investors indicators at the end of this chapter provides details on how the indices were calculated.
Ease of shareholder suits index (0-10) Note: Higher scores indicate greater minority shareholder access to evidence before and during trial.
Source: Doing Business database. Doing Business 2015 Spain 53 PROTECTING MINORITY INVESTORS Figure 7. 5 How extensive are shareholder rights?
Extent of shareholder rights index (0-10.5) Note: The higher the score, the stronger the protections.
Source: Doing Business database. Figure 7. 6 How strong is the governance structure? Strength of governance structure index (0-10.5) Note:
scores are assigned to each based on a range of conditions relating to disclosure, director liability, shareholder suits, shareholder rights,
0-2) Disclosure on the transaction and on the conflict of interest 2 Is immediate disclosure of the transaction to the public and/or shareholders required?(
0-1) No 0 Extent of director liability index (0-10) 6. 0 Can shareholders sue directly
0-1) Yes 1 Can shareholders hold the interested director liable for the damage caused by the transaction to the company?(
0-2) Liable if negligent 1 Can shareholders hold members of the approving body liable for the damage cause by the transaction to the company?(
0-2) Liable if negligent 1 Must the interested director pay damages for the harm caused to the company upon a successful claim by a shareholder plaintiff?(
0-1) Yes 1 Must the interested director repay profits made from the transaction upon a successful claim by a shareholder plaintiff?(
0-1) Yes 1 Can a court void the transaction upon a successful claim by a shareholder plaintiff?(
0-2) Only in case of fraud or bad faith 0 Ease of shareholder suits index (0-10) 5. 0 Before filing suit,
can shareholders owning 10%of the company's share capital inspect the transaction documents?(0-1) No 0 Can the plaintiff obtain any documents from the defendant Any relevant document 3 Doing Business 2015 Spain 56
0-1) No 0 Can shareholder plaintiffs recover their legal expenses from the company?(0-2) Yes if successful 1 Strength of minority investor protection index (0-10) 6. 4 Extent of conflict of interest regulation index (0-10) 5
. 3 Extent of shareholder rights index (0-10.5) 10.5 Can shareholders amend company bylaws or statutes with a simple majority?
Yes 1. 5 Can shareholders owning 10%of the company's share capital call for an extraordinary meeting of shareholders?
Yes 1. 5 Can shareholders remove members of the board of directors before the end of their term.
Yes 1. 5 Must a company obtain its shareholders'approval every time it issues new shares?
Yes 1. 5 are granted shareholders automatically subscription rights on new shares? Yes 1. 5 Must shareholders approve the election and dismissal of the external auditor?
Yes 1. 5 Can shareholders freely trade shares prior to a major corporate action or meeting of shareholders?
Yes 1. 5 Strength of governance structure index (0-10.5) 5. 0 is barred the CEO from also serving as chair of the board of directors?
Yes 1. 5 Must a potential acquirer make a tender offer to all shareholders upon acquiring 50%of a company?
Yes for listed companies 1 Is cross-shareholding between 2 independent companies limited to 10%of outstanding shares?
Yes 1. 5 Extent of shareholder governance index (0-10) 7. 5 Source: Doing Business database.
Firms in economies that rank better on the ease of paying taxes in the Doing Business study tend to perceive both tax rates and tax administration as less of an obstacle to business according to the World bank Enterprise Survey research.
The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes.
To make the data comparable across economies, several assumptions are used. Taxpayerco is a medium-size business that started operations on January 1, 2012.
The business starts from the same financial position in each economy. All the taxes and mandatory contributions paid during the second year of operation are recorded.
if required Total tax rate(%of profit before all taxes) Profit or corporate income tax Social contributions and labor taxes paid by the employer Property and property transfer taxes Dividend,
and adjusted on a yearly basis. The threshold is not based on any economic theory of an optimal tax rate that minimizes distortions
or maximizes efficiency in the tax system of an economy overall. Instead it is mainly empirical in nature,
set at the lower end of the distribution of tax rates levied on medium-size enterprises in the manufacturing sector as observed through the paying taxes indicators.
This reduces the bias in the indicators toward economies that do need not to levy significant taxes on companies like the Doing Business standardized case study company
%Doing Business 2015 Spain 60 PAYING TAXES Where does the economy stand today? What is the administrative burden of complying with taxes in Spain
and pay total taxes amounting to 58.2%of profit (see the summary at the end of this chapter for details).
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Globally, Spain stands at 76 in the ranking of 189 economies on the ease of paying taxes (figure 8. 1). The rankings for comparator economies
Figure 8. 1 How Spain and comparator economies rank on the ease of paying taxes Source:
Doing Business 2015 Spain 61 PAYING TAXES Economies around the world have made paying taxes faster and easier for businesses such as by consolidating filings,
Some economies simplifying tax payment and reducing rates have seen tax revenue rise. What tax reforms has Doing Business recorded in Spain (table 8. 1?
(%of profit) Notes on total tax rate Employer paid-Social security contributions 1 online filing 90 30.9%gross salaries 35.68 Corporate income tax 1 online
filing 33 30%taxable profit 21.9 Tax on interest 0 paid jointly 21%interest income 0. 54 not included Property tax 1 0. 581
(%of profit) Notes on total tax rate Transport tax 1 EUR 592 type of truck 0. 04 Fuel tax 1 included in fuel price 0 small
making trade between economies easier is increasingly important for business. Excessive document requirements, burdensome customs procedures, inefficient port operations and inadequate infrastructure all lead to extra costs
The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders.
To make the data comparable across economies, Doing Business uses several assumptions about the business and the traded goods. The business:
is located in the economy's largest business city. For the 11 economies with a population of more than 100 million, data for a second city have been added.
Is a private, limited liability company, domestically owned and does not operate with special export or import privileges.
Does not require refrigeration or any other special environment. Do not require any special phytosanitary or environmental safety standards other than accepted international standards.
Is one of the economy's leading export or import products. is transported in a dry-cargo, 20-foot full container load.
Doing Business 2015 Spain 65 TRADING ACROSS BORDERS Where does the economy stand today? What does it take to export
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Globally, Spain stands at 30 in the ranking of 189 economies on the ease of trading across borders (figure 9. 1). The rankings for comparator economies
and comparator economies rank on the ease of trading across borders Source Doing Business database.
Doing Business 2015 Spain 66 TRADING ACROSS BORDERSIN economies around the world, trading across borders as measured by Doing Business has become faster and easier over the years.
These changes help improve the trading environment and boost firms'international competitiveness. What trade reforms has Doing Business recorded in Spain (table 9. 1?
Speedy trials are essential for small enterprises, which may lack the resources to stay in business
To make the data comparable across economies, Doing Business uses several assumptions about the case:
The seller and buyer are located in the economy's largest business city. For the 11 economies with a population of more than 100 million, data for a second city have been added.
The buyer orders custom-made goods, then fails to pay. The seller sues the buyer before a competent court.
Doing Business 2015 Spain 70 ENFORCING CONTRACTS Where does the economy stand today? How efficient is the process of resolving a commercial dispute through the courts in Spain?
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Globally, Spain stands at 69 in the ranking of 189 economies on the ease of enforcing contracts (figure 10.1).
) The rankings for comparator economies and the regional average ranking provide other useful benchmarks for assessing the efficiency of contract enforcement in Spain.
Figure 10.1 How Spain and comparator economies rank on the ease of enforcing contracts Source:
in a quarter of the economies covered by Doing Business, by judges as well). COURT NAME Claim value:
By law Defendant has the opportunity to appeal the judgment during a specified period. Defendant decides not to appeal.
Plaintiff retains the services of a court enforcement officer such as a court bailiff or sheriff,
save more viable businesses and thereby improve growth and sustainability in the economy overall. What do the indicators cover?
supplemented with data from central banks and the Economist Intelligence Unit. In addition, Doing Business evaluates the adequacy and integrity of the existing legal framework applicable to liquidation and reorganization proceedings through the strength of insolvency framework index.
The index tests whether economies adopted internationally accepted good practices in four areas: commencement of proceedings, management of debtor's assets, reorganization proceedings and creditor participation.
-4) Doing Business 2015 Spain 77 RESOLVING INSOLVENCY Where does the economy stand today? Combination of quality regulations and efficient practice characterize the top-performing economies.
How efficient are insolvency proceedings in Spain? According to data collected by Doing Business, resolving insolvency takes 1. 5 years on average and costs 11.0%of the debtor's estate,
Most indicator sets refer to a case scenario in the largest business city of an economy,
except for 11 economies for which the data are weighted a population average of the 2 largest business cities.
Globally, Spain stands at 23 in the ranking of 189 economies on the ease of resolving insolvency (figure 11.1).
) The rankings for comparator economies and the regional average ranking provide other useful benchmarks for assessing the efficiency of insolvency proceedings in Spain.
Figure 11.1 How Spain and comparator economies rank on the ease of resolving insolvency Doing Business 2015 Spain 78 Source:
The report does not present rankings of economies on these indicators nor include the topic in the aggregate distance to frontier score
To make the data comparable across economies, several assumptions about the worker and the business are used.
Is a limited liability company (or the equivalent in the economy) with 60 employees. Operates a supermarket or grocery store in the economy's largest business city.
For 11 economies the data are collected also for the second largest business city. Is subject to collective bargaining agreements
if such agreements cover more than 50%of the food retail sector and they apply even to firms that are not party to them.
Many economies that changed their labor market regulation in the past 5 years did so in ways that increased labor market flexibility.
The average value added per worker is the ratio of an economy's GNI per capita to the working-age population as a percentage of the total population.
The ease of doing business ranking compares economies with one another; the distance to frontier score benchmarks economies with respect to regulatory best practice, showing the absolute distance to the best performance on each Doing Business indicator.
When compared across years, the distance to frontier score shows how much the regulatory environment for local entrepreneurs in an economy has changed over time in absolute terms,
while the ease of doing business ranking can show only how much the regulatory environment has changed relative to that in other economies.
Distance to Frontier The distance to frontier score captures the gap between an economy's performance
and a measure of best practice across the entire sample of 31 indicators for 10 Doing Business topics (the labor market regulation indicators are excluded).
and Australia, Colombia and 110 other economies have paid no-in minimum capital requirement (table 15.1 in the Doing Business 2015 report).
Calculation of the distance to frontier score Calculating the distance to frontier score for each economy involves 2 main steps.
In this formulation the frontier represents the best performance on the indicator across all economies since 2005 or the third year after data for the indicator were collected for the first time.
the frontier is defined as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis. For the time to pay taxes the frontier is defined as the lowest time recorded among all economies that levy the 3 major taxes:
profit tax, labor taxes and mandatory contributions, and value added tax (VAT) or sales tax. In addition, the cost to export
when benchmarking these absolute-cost indicators across economies with different inflation trends. The base year for the deflator is 2013 for all economies.
In the same formulation, to mitigate the effects of extreme outliers in the distributions of the rescaled data for most component indicators (very few economies need 700 days to complete the procedures to start a business
but many need 9 days), the worst performance is calculated after the removal of outliers. The definition of outliers is based on the distribution for each component indicator.
the 95th percentile is used for the indicators with the most dispersed distributions (including time, cost, minimum capital and number of payments to pay taxes),
Second, for each economy the scores obtained for individual indicators are aggregated through simple averaging into one distance to frontier score, first for each topic and then across all 10 topics:
An economy's distance to frontier score is indicated on a scale from 0 to 100,
The difference between an economy's distance to frontier score in any previous year and its score in 2014 illustrates the extent to
which the economy has closed the gap to the regulatory frontier over time. And in any given year the score measures how far an economy is from the best performance at that time.
Treatment of the total tax rate This year, for the first time, the total tax rate component of the paying taxes indicator set enters the distance to frontier calculation in a different way than any other indicator.
and therefore on the distance to frontier score for paying taxes for economies with a below-average total tax rate than it would have in the calculation done in previous years (line B is smaller than line A in figure 15.2 of the Doing Business 2015 report).
And for economies with an extreme total tax rate (a rate that is very high relative to the average), an increase has a greater impact on both these distance to frontier scores than before (line D is bigger than line C in figure
The nonlinear transformation is not based on any economic theory of an optimal tax rate that minimizes distortions
or maximizes efficiency in an economy's that from the simple average method because both these methods assign roughly equal weights to the topics,
which are considered of more or less importance in the context of a specific economy. 7 For getting credit,
The nonlinear transformation along with the threshold reduces the bias in the indicator toward economies that do need not to levy significant taxes on companies like the Doing Business standardized case study company
In addition, it acknowledges the need of economies to collect taxes from firms. Calculation of scores for economies with 2 cities covered For each of the 11 economies for
which a second city was added in this year's report, the distance to frontier score is calculated as the population-weighted average of the distance to frontier scores for the 2 cities covered (table 12.1).
Table 12.1 Weights used in calculating the distance to frontier scores for economies with 2 cities covered Source:
Petersburg30new York60los Angeles40mexiconigeriapakistanrussian Federationunited Statesjapanbangladeshbrazilchinaindiaindonesia Doing Business 2015 Spain 90 Economies that improved the most across 3
or more Doing Business topics in 2013/14 Doing Business 2015 uses a simple method to calculate which economies improved the ease of doing business the most.
First, it selects the economies that in 2013/14 implemented regulatory reforms making it easier to do business in 3
Twenty-one economies meet this criterion: Azerbaijan; Benin; the Democratic Republic of congo; Côte d'ivoire; the Czech republic; Greece; India;
and the United arab emirates. Second, Doing Business sorts these economies on the increase in their distance to frontier score from the previous year using comparable data.
Selecting the economies that implemented regulatory reforms in at least 3 topics and had the biggest improvements in their distance to frontier scores is intended to highlight economies with ongoing, broad-based reform programs.
The improvement in the distance to frontier score is used to identify the top improvers because this allows a focus on the absolute improvement in contrast with the relative improvement shown by a change in rankings that economies have made in their regulatory environment for business.
Ease of Doing Business ranking The ease of doing business ranking ranges from 1 to 189.
The ranking of economies is determined by sorting the aggregate distance to frontier scores, rounded to 2 decimals.
Doing Business 2015 Spain 91 RESOURCES ON THE DOING BUSINESS WEBSITE Current features News on the Doing Business project http://www. doingbusiness. org Rankings How economies rank from 1 to 189
http://www. doingbusiness. org/rankings Data All the data for 189 economies topic rankings, indicator values,
and customized economy and regional profiles http://www. doingbusiness. org/reports Methodology The methodologies and research papers underlying Doing Business http://www. doingbusiness. org/methodology Research Abstracts of papers
-library Contributors More than 10,700 specialists in 189 economies who participate in Doing Business http://www. doingbusiness. org/contributors/doing-business Entrepreneurship data Data on business density (number of newly registered
000 working-age people) for 139 economies http://www. doingbusiness. org/data/exploretopics/entrepreneurship Distance to frontier Data benchmarking 189 economies to the frontier in regulatory
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