1、Oxford EconomicsSAP Canada Economic Impacts20223Approach4Economic impact of SAP Canada This project seeks to measure SAPs economic contribution to the Canadian economy.All results are presented in Canadian dollars(C$)and refer to Calendar Year 2021(CY21)unless otherwise indicated.SAPs activities can

2、 be categorised as:o Direct Effects-The direct impacts of people working at SAP and the value it produceso Indirect effects The value generated by SAPs purchases down its supply chain.Suppliers then purchase from their suppliers and so on.o Induced effects The value generated by SAPs workers and the

3、 supply chain workers as they make purchases across businesses who purchase from their businesses and so on.The combination of direct,indirect and induced effects is known as the Total Economic Contribution.SAPs direct activities therefore create a“virtuous circle”of economic activity and the Total

4、Economic Contribution provides the full measure of this.5Impacts across the economy:I-O modellingAn Input-Output(I-O)model is a type of economic model developed to measure the Total Economic Contribution.A specialist version of this class of models was developed for this project using information pr

5、ovided by SAP.Modelled outputs are jobs and Gross Value Added(GVA)(aka GDP at basic prices).As indicated the I-O model measures outputs across the Canadian economy.Spending by SAP and its staff increases demand by its suppliers,their suppliers and so on.This allows us to see how SAP not only directl

6、y benefits the economy through its own operations but to trace the ripple or multiplier effects across the economy as a whole.6Results7SAP Canada:Direct and total contribution SAP directly contributed over$1.5 billion in turnover,$892 million in GDP to Canada in calendar 2021 and over 3,100 jobs.How