Air and spacecraft and related machinery, manufacture of: Includes the manufacture of airplanes for the transport of goods or passengers, defense forces, or other purposes; helicopters; gliders and hang gliders; dirigibles and hot air balloons; parts and accessories of the aircraft of this class; ground-flying trainers; spacecraft and launch vehicles, satellites, planetary probes, orbital stations, and shuttles; intercontinental ballistic missiles; overhaul and conversion of aircraft or aircraft engines; and aircraft seats.

Chemicals and chemical products, manufacture of: This industry includes the transformation of organic and inorganic raw materials by a chemical process and the formation of products.

Computer, electronic, and optical products, manufacture of: Includes the manufacture of computers, computer peripherals, communications equipment, and similar electronic products, as well as components such as electronic components and boards. The latter include resistors, microprocessors, and semiconductors. Also includes consumer electronics; measuring, testing, navigating, and control equipment; irradiation, electromedical, and electrotherapeutic equipment; optical instruments and equipment; and magnetic and optical media.

Electrical equipment, manufacture of: This industry includes the manufacture of products that generate, distribute, and use electrical power, as well as electrical lighting, signaling equipment, and electric household appliances.

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): A chain of activities to produce goods and services that may extend across firms or countries. These activities include design, production, marketing and sales, logistics, and maintenance.

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

Information technology (IT) and other information services: This industry is the composite of International Standard Industrial Classification of All Economic Activities (ISIC) sectors 62 (computer programming, consultancy, and related activities) and 63 (information service activities). ISIC 62 includes providing expertise in information technologies: writing, modifying, testing, and supporting software; planning and designing computer systems that integrate computer hardware, software, and communication technologies; and on-site management and operation of clients’ computer systems or data processing facilities. ISIC 63 includes Web search portals and data processing and hosting activities.

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; and entertainment, literary and artistic originals, and other IPPs.

Knowledge- and technology-intensive (KTI) industries: Industries classified by the Organisation for Economic Co-operation and Development (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.

Machinery and equipment not elsewhere classified (nec), manufacture of: This industry includes the manufacture of machinery and equipment that act independently on materials either mechanically or thermally or perform operations on materials (such as handling, spraying, weighing, or packing). Includes the manufacture of fixed and mobile or handheld devices, regardless of whether they are designed for industrial, building, and civil engineering; agricultural; or home use. Also included is the manufacture of special equipment for passenger or freight transport within demarcated premises.

Medical and dental instruments and supplies, manufacture of: Includes manufacture of laboratory apparatus, surgical and medical instruments, surgical appliances and supplies, dental equipment and supplies, orthodontic goods, and dentures and orthodontic appliances.

Motor vehicles, trailers, and semi-trailers, manufacture of: This industry includes the manufacture of motor vehicles for transporting passengers or freight. Also included is the manufacture of parts and accessories and of trailers and semi-trailers.

Pharmaceuticals (manufacture of basic pharmaceutical products and pharmaceutical preparations): This industry includes the manufacture of basic pharmaceutical products, pharmaceutical preparations, and medicinal chemical and botanical products.

Railroad, military vehicles, and transport not elsewhere classified (nec), manufacture of: This manufacturing industry is the composite of International Standard Industrial Classification of All Economic Activities (ISIC) 302 (railway locomotives and rolling stock), ISIC 304 (military fighting vehicles), and ISIC 309 (transport equipment nec).

Scientific research and development (R&D) services: This industry includes the activities of three types of R&D: (1) basic research, (2) applied research, and (3) experimental development.

Semiconductors: This industry refers to the manufacture of electronic components and boards (International Standard Industrial Classification of All Economic Activities 261), which includes semiconductors and other components for electronic applications.

Software publishing: This industry includes publishing of ready-made (noncustomized) software: operating systems, business and other applications, and computer games for all platforms.

Total private services: Aggregate of the following International Standard Industrial Classification of All Economic Activities (ISIC) industries (ISIC Revision 4): wholesale and retail trade and repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities; information and communication; financial and insurance activities; real estate activities; professional, scientific, technical activities; and administrative and support service activities. This aggregate corresponds to Business Sector Services (ISIC aggregate “D45T82”) in economic and R&D data from the Organisation for Economic Co-operation and Development (OECD).

Value added: Value added is a net measure of output; it is the difference between the value of goods and services (gross output) and the cost of intermediate inputs that were used in production, including energy, materials, and services. Industry value added is a measure of an industry’s contribution to overall GDP.

Weapons and ammunition, manufacture of: This industry includes the manufacture of heavy weapons (such as artillery, mobile guns, and rocket launchers), small arms (revolvers, shotguns, light machine guns), ammunition, and explosive devices, as well as hunting and sporting firearms. Excludes the manufacture of space vehicles and tanks or other fighting vehicles (included in other industries).

ATP: assembly, testing, and packing

BEA: Bureau of Economic Analysis

CHIPS: Creating Helpful Incentives to Produce Semiconductors

EU-27: European Union

EV: electric vehicle

GDP: gross domestic product

GVC: global value chain

IMF: International Monetary Fund

IP: intellectual property

IPP: intellectual property product

ISIC: International Standard Industrial Classification of All Economic Activities

IT: information technology

KTI: knowledge and technology intensive

LQ: location quotient

MNE: multinational enterprise

NAICS: North American Industry Classification System

NCSES: National Center for Science and Engineering Statistics

nec: not elsewhere classified

NSF: National Science Foundation

OECD: Organisation for Economic Co-operation and Development

R&D: research and development

TiVA: trade in value added