Technical Appendix

This appendix provides information on the classification of industries for output and trade cross-country data used in this report. Knowledge- and technology-intensive (KTI) industries are defined using a taxonomy of economic activities based on research and development (R&D) intensity developed in the OECD Taxonomy of Economic Activities Based on R&D Intensity (Organisation for Economic Co-operation and Development 2016). The OECD Taxonomy clusters industries into five R&D intensity groups—high, medium-high, medium, medium-low, and low—based on a measure of R&D intensity computed as the ratio of R&D expenditures to value added. KTI industries are those in the high and medium-high R&D intensity groups. See Table SAKTI-1 and Table SAKTI-2. See the Glossary section for definitions.

OECD classification of industries, by R&D intensity category

(Percent)
R&D intensity categoryManufacturingNonmanufacturing
ISIC, Rev.4, industry codeNameR&D intensity (%)ISIC, Rev.4, industry codeNameR&D intensity (%)
High R&D intensity303Air and spacecraft and related machinery31.6972Scientific R&D30.39
21Pharmaceuticals27.98582Software publishing28.94
26Computer, electronic, and optical products24.05 empty empty empty
Medium-high R&D intensity252Weapons and ammunition18.8762–63IT and other information services5.92
29Motor vehicles, trailers, and semi-trailers15.36 empty empty empty
325Medical and dental instruments9.29 empty empty empty
28Machinery and equipment nec7.89 empty empty empty
20Chemicals and chemical products6.52 empty empty empty
27Electrical equipment6.22 empty empty empty
30XRailroad, military vehicles, and transport nec (ISIC 302, 304, and 309)5.72 empty empty empty
Medium R&D intensity22Rubber and plastic products3.58 empty empty empty
301Building of ships and boats2.99 empty empty empty
32XOther manufacturing except medical and dental instruments2.85 empty empty empty
23Other nonmetallic mineral products2.24 empty empty empty
24Basic metals2.07 empty empty empty
33Repair and installation of machinery and equipment1.93 empty empty empty
Medium-low R&D intensity13Textiles1.7369–75XProfessional, scientific, and technical activities except scientific R&D services (ISIC 69–75 except 72)1.76
15Leather and related products1.6561Telecommunications1.45
17Paper and paper products1.5805–09Mining and quarrying0.8
10–12Food products, beverages, and tobacco1.44581Publishing of books and periodicals0.57
14Wearing apparel1.40 empty empty empty
25XFabricated metal products except weapons and ammunition (ISIC 25 except 252)1.19 empty empty empty
19Coke and refined petroleum products1.17 empty empty empty
31Furniture1.17 empty empty empty
16Wood and products of wood and cork0.70 empty empty empty
18Printing and reproductions of recorded media0.67 empty empty empty
Low R&D intensity empty empty empty64–66Financial and insurance activities0.38
 empty empty empty35–39Electricity, gas, and water supply; waste management; and remediation0.35
 empty empty empty59–60Audiovisual and broadcasting activities0.32
 empty empty empty45–47Wholesale and retail trade0.28
 empty empty empty01–03Agriculture, forestry, and fishing0.27
 empty empty empty41–43Construction0.21
 empty empty empty77–82Administrative and support services0.18
 empty empty empty90–99Arts, entertainment, repair of household goods, and other services0.11
 empty empty empty49–53Transportation and storage0.08
 empty empty empty55–56Accommodation and food service activities0.02
 empty empty empty68Real estate activities0.01

ISIC, Rev.4 = International Standard Industrial Classification, Revision 4; IT = information technology; nec = not elsewhere classified; OECD = Organisation for Economic Co-operation and Development.

Note(s):

R&D intensity is measured as the ratio of R&D expenditures to value-added output of industry. Industries are classified according to ISIC, Rev.4.

Source(s):

Galindo-Rueda F, Verger F, 2016, OECD Taxonomy of Economic Activities Based on R&D Intensity, OECD Science, Technology and Industry Working Papers, No. 2016/04, available at https://doi.org/10.1787/5jlv73sqqp8r-en, accessed 15 February 2024.

Science and Engineering Indicators

Concordance of NAICS 2012 industries to ISIC, Rev.4, industries, by R&D intensity category

(Industry title and code)
R&D intensity categoryValue added, by industryNAICS 2012ISIC, Rev.4
Industry titleIndustry codeIndustry titleIndustry codeIndustry title
High R&D intensityPharmaceutical and medicine manufacturing3254Pharmaceutical and medicine manufacturing21Manufacture of pharmaceuticals, medicinal chemical and botanical products
Computer and electronic products334 Computer and electronic product manufacturing26Manufacture of computer, electronic and optical products
Optical instrument and lens manufacturing333314Optical instrument and lens manufacturing
Aerospace product and parts manufacturing3364Aerospace product and parts manufacturing303Manufacture of air and spacecraft and related machinery
Software publishers5112Software publishers582Software publishing
Scientific R&D services5417Scientific R&D services72Scientific R&D services
Medium-high R&D intensityBasic chemical manufacturing3251Basic chemical manufacturing20Manufacture of chemicals and chemical products
Resin, rubber, and artificial fibers manufacturing3252Resin, synthetic rubber and artificial synthetic fibers and filaments manufacturing
Other chemical manufacturing3253 Pesticide, fertilizer and other agricultural chemical manufacturing
3255Paint, coating and adhesive manufacturing
3256Soap, cleaning compound and toilet preparation manufacturing
3259Other chemical product and preparation manufacturing
Electrical equipment, appliances, and components335Electrical equipment, appliance and component manufacturing27Manufacture of electrical equipment
Agricultural implement manufacturing3331 Agriculture, construction and mining machinery manufacturing28Manufacture of machinery and equipment nec
Construction machinery manufacturing
Mining and oil and gas field machinery manufacturing
Other machinery3332 Industrial machinery manufacturing
333316Photographic and photocopying equipment manufacturing
333318Other commercial and service industry machinery manufacturing
3334Ventilation, heating, air-conditioning and commercial refrigeration equipment manufacturing
333517Machine tool manufacturing
333514Special tool, die, jig and fixture manufacturing
333515Cutting tool and machine tool accessory manufacturing
333519Rolling mill and other metalworking machinery manufacturing
3336Engine, turbine and power transmission equipment manufacturing
3339Other general purpose machinery manufacturing
Plumbing fixture fitting and trim manufacturing332913Plumbing fixture fitting and trim manufacturing
Ball and roller bearing manufacturing332991Ball and roller bearing manufacturing
Motor vehicle manufacturing3361Motor vehicle manufacturing29Manufacture of motor vehicles, trailers and semi-trailers
Light truck and utility vehicle manufacturing
Heavy duty truck manufacturing
Motor vehicle body, trailer, and parts manufacturing3362Motor vehicle body and trailer manufacturing
33631Motor vehicle gasoline engine and engine parts manufacturing
33632Motor vehicle electrical and electronic equipment manufacturing
33633Motor vehicle steering and suspension component (except spring) manufacturing
33634Motor vehicle brake system manufacturing
33635Motor vehicle transmission and power train parts manufacturing
33636Motor vehicle seating and interior trim manufacturing
33639Other motor vehicle parts manufacturing
All other transportation equipment manufacturing3365Railroad rolling stock manufacturing30XManufacture of railroad, military vehicles and transport nec (ISIC 302, 304, and 309)
3369Other transportation equipment manufacturing
Medical equipment and supplies manufacturing3391Medical equipment and supplies manufacturing325Manufacture of medical and dental instruments and supplies
Computer systems design and related services5415Computer systems design and related servicesJ62–J63IT and other information services
Data processing, internet publishing and other information services518Data processing, hosting and related services
519Other information services

ISIC, Rev.4 = International Standard Industrial Classification, Revision 4; IT = information technology; NAICS = North American Industry Classification System; nec = not elsewhere classified.

Note(s):

R&D intensity is measured as the ratio of R&D expenditures to value-added output of industry.

Source(s):

This concordance was developed using the Census Bureau 2012 NAICS to ISIC, Rev.4, concordance available at https://www.census.gov/naics/; more information on NAICS 2012 classification is available at https://www.census.gov/naics/, and more information on ISIC, Rev.4, is available at https://unstats.un.org/unsd/classifications/Econ/Structure.

Science and Engineering Indicators

Industry codes are based on the United Nations’ International Standard Industrial Classification of All Economic Activities, Revision 4 (ISIC, Rev.4). This classification delineates the economic activities of industries based on similarities in inputs and factors of production, the process and technology of production, and characteristics and use of outputs. (For more information on ISIC, Rev.4, see https://unstats.un.org/unsd/classifications/Econ/Structure.)

Reference

Organisation for Economic Co-operation and Development (OECD). 2016. OECD Taxonomy of Economic Activities Based on R&D Intensity. Paris: OECD Publishing. Available at https://doi.org/10.1787/5jlv73sqqp8r-en. Accessed 1 June 2023.