To develop the Economic Research services, Frost & Sullivan employs a rigorous and comprehensive research methodology, such as the following:

Create an Optimal Research Team: Each research project's success is based on a well-developed and diverse research methodology. Frost & Sullivan's Country Industry Forecast team brings the advantage of dual expertise in their services - each team member combines an industry focus with a specific functional area expertise. The functional areas include the following:

• Consumption and Investment Economics
• Financial Economics
• Labor Economics
• Business Policy Economics
• Political Economics

Launch the Data Collection Phase: During this phase, the research team designs and implements the data collection process. The required data for the service is collected through extensive secondary research.

Analyze Data and Determine the Position of the Country and the Industry: At this stage, the research team will begin to identify the trends and important issues that are specific to each functional area and industry. This helps the analysts to narrow down the key trends and issues, and chart the linkage between the country and the industry.

Perform Country Analysis and Forecasting: At this stage, the research team consolidates information on the functional areas, and determines the anticipated course of the economy during the forecast period.

Perform Industry Analysis and Forecasting: At this stage, the researchers analyze the industry-specific trends and issues, and estimate the impact of macroeconomic factors on the key industry parameters. Additionally, the analysts forecast the parameters.

Develop the Industry Progression Index: Based on the importance of the industry parameters, weights are assigned to both the industry segments and the parameters. Combined with the anticipated movement of the industry parameters, the progression index is constructed.

COUNTRY INDUSTRY FORECASTS BY MARKET

Aerospace & Defense			Chemicals, Materials & Foods
Communication & IT			Electronics
Environment & Energy			Healthcare
Industrial Automation			Transportation