European Union (EU-27): The EU comprises 27 member nations: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. The United Kingdom withdrew from the EU on 1 February 2020. Unless otherwise noted, data on the EU include all 27 member countries.

Global value chain (GVC): Sequence of tasks or business functions needed to produce goods and services. These activities include R&D, engineering and design, production, marketing and sales, logistics, and customer service.

Gross domestic product (GDP): The market value of all final goods and services produced within a country in a given period.

Gross domestic spending on R&D (GERD): Defined by the OECD as the total expenditure (current and capital) on R&D carried out by all resident companies, research institutes, and university and government laboratories in a country. It includes R&D funded from abroad but excludes domestic funds for R&D performed outside the domestic economy (https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm).

Intangibles or intellectual property products (IPPs): IPPs are the result of R&D or innovation leading to knowledge that the developers can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection. They include R&D, mineral exploration and evaluation, computer software and databases, entertainment, literary and artistic originals, and other IPPs (OECD Glossary).

Knowledge- and technology-intensive (KTI) industries: Industries classified by the OECD as high R&D-intensive and medium-high R&D-intensive industries. OECD defines industry R&D intensity as the ratio of an industry’s business R&D expenditures to its value added.

Organisation for Economic Co-operation and Development (OECD): An international organization of 37 countries, headquartered in Paris, France. The member countries are Australia, Austria, Belgium, Canada, Chile, Colombia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Latvia, Lithuania, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States. Among its many activities, OECD compiles social, economic, and science and technology statistics for all member and selected nonmember countries.

Research and experimental development (R&D): R&D comprises creative and systematic work undertaken to increase the stock of knowledge—including knowledge of humankind, culture, and society—and to devise new applications of available knowledge (OECD 2015).

EU-27: European Union

FFRDC: federally funded research and development center

FY: fiscal year

GDP: gross domestic product

GERD: gross domestic expenditures on R&D

KTI: knowledge- and technology-intensive

NAICS: North American Industry Classification System

NCSES: National Center for Science and Engineering Statistics

OECD: Organisation for Economic Co-operation and Development

PPP: purchasing power parity

R&D: research and experimental development

S&E: science and engineering