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
R&D intensity category | Manufacturing | Nonmanufacturing | ||||
---|---|---|---|---|---|---|
ISIC, Rev.4, industry code | Name | R&D intensity (%) | ISIC, Rev.4, industry code | Name | R&D intensity (%) | |
High R&D intensity | 303 | Air and spacecraft and related machinery | 31.69 | 72 | Scientific R&D | 30.39 |
21 | Pharmaceuticals | 27.98 | 582 | Software publishing | 28.94 | |
26 | Computer, electronic, and optical products | 24.05 | empty | empty | empty | |
Medium-high R&D intensity | 252 | Weapons and ammunition | 18.87 | 62–63 | IT and other information services | 5.92 |
29 | Motor vehicles, trailers, and semi-trailers | 15.36 | empty | empty | empty | |
325 | Medical and dental instruments | 9.29 | empty | empty | empty | |
28 | Machinery and equipment nec | 7.89 | empty | empty | empty | |
20 | Chemicals and chemical products | 6.52 | empty | empty | empty | |
27 | Electrical equipment | 6.22 | empty | empty | empty | |
30X | Railroad, military vehicles, and transport nec (ISIC 302, 304, and 309) | 5.72 | empty | empty | empty | |
Medium R&D intensity | 22 | Rubber and plastic products | 3.58 | empty | empty | empty |
301 | Building of ships and boats | 2.99 | empty | empty | empty | |
32X | Other manufacturing except medical and dental instruments | 2.85 | empty | empty | empty | |
23 | Other nonmetallic mineral products | 2.24 | empty | empty | empty | |
24 | Basic metals | 2.07 | empty | empty | empty | |
33 | Repair and installation of machinery and equipment | 1.93 | empty | empty | empty | |
Medium-low R&D intensity | 13 | Textiles | 1.73 | 69–75X | Professional, scientific, and technical activities except scientific R&D services (ISIC 69–75 except 72) | 1.76 |
15 | Leather and related products | 1.65 | 61 | Telecommunications | 1.45 | |
17 | Paper and paper products | 1.58 | 05–09 | Mining and quarrying | 0.8 | |
10–12 | Food products, beverages, and tobacco | 1.44 | 581 | Publishing of books and periodicals | 0.57 | |
14 | Wearing apparel | 1.40 | empty | empty | empty | |
25X | Fabricated metal products except weapons and ammunition (ISIC 25 except 252) | 1.19 | empty | empty | empty | |
19 | Coke and refined petroleum products | 1.17 | empty | empty | empty | |
31 | Furniture | 1.17 | empty | empty | empty | |
16 | Wood and products of wood and cork | 0.70 | empty | empty | empty | |
18 | Printing and reproductions of recorded media | 0.67 | empty | empty | empty | |
Low R&D intensity | empty | empty | empty | 64–66 | Financial and insurance activities | 0.38 |
empty | empty | empty | 35–39 | Electricity, gas, and water supply; waste management; and remediation | 0.35 | |
empty | empty | empty | 59–60 | Audiovisual and broadcasting activities | 0.32 | |
empty | empty | empty | 45–47 | Wholesale and retail trade | 0.28 | |
empty | empty | empty | 01–03 | Agriculture, forestry, and fishing | 0.27 | |
empty | empty | empty | 41–43 | Construction | 0.21 | |
empty | empty | empty | 77–82 | Administrative and support services | 0.18 | |
empty | empty | empty | 90–99 | Arts, entertainment, repair of household goods, and other services | 0.11 | |
empty | empty | empty | 49–53 | Transportation and storage | 0.08 | |
empty | empty | empty | 55–56 | Accommodation and food service activities | 0.02 | |
empty | empty | empty | 68 | Real estate activities | 0.01 |
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
R&D intensity category | Value added, by industry | NAICS 2012 | ISIC, Rev.4 | ||
---|---|---|---|---|---|
Industry title | Industry code | Industry title | Industry code | Industry title | |
High R&D intensity | Pharmaceutical and medicine manufacturing | 3254 | Pharmaceutical and medicine manufacturing | 21 | Manufacture of pharmaceuticals, medicinal chemical and botanical products |
Computer and electronic products | 334 | Computer and electronic product manufacturing | 26 | Manufacture of computer, electronic and optical products | |
Optical instrument and lens manufacturing | 333314 | Optical instrument and lens manufacturing | |||
Aerospace product and parts manufacturing | 3364 | Aerospace product and parts manufacturing | 303 | Manufacture of air and spacecraft and related machinery | |
Software publishers | 5112 | Software publishers | 582 | Software publishing | |
Scientific R&D services | 5417 | Scientific R&D services | 72 | Scientific R&D services | |
Medium-high R&D intensity | Basic chemical manufacturing | 3251 | Basic chemical manufacturing | 20 | Manufacture of chemicals and chemical products |
Resin, rubber, and artificial fibers manufacturing | 3252 | Resin, synthetic rubber and artificial synthetic fibers and filaments manufacturing | |||
Other chemical manufacturing | 3253 | Pesticide, fertilizer and other agricultural chemical manufacturing | |||
3255 | Paint, coating and adhesive manufacturing | ||||
3256 | Soap, cleaning compound and toilet preparation manufacturing | ||||
3259 | Other chemical product and preparation manufacturing | ||||
Electrical equipment, appliances, and components | 335 | Electrical equipment, appliance and component manufacturing | 27 | Manufacture of electrical equipment | |
Agricultural implement manufacturing | 3331 | Agriculture, construction and mining machinery manufacturing | 28 | Manufacture of machinery and equipment nec | |
Construction machinery manufacturing | |||||
Mining and oil and gas field machinery manufacturing | |||||
Other machinery | 3332 | Industrial machinery manufacturing | |||
333316 | Photographic and photocopying equipment manufacturing | ||||
333318 | Other commercial and service industry machinery manufacturing | ||||
3334 | Ventilation, heating, air-conditioning and commercial refrigeration equipment manufacturing | ||||
333517 | Machine tool manufacturing | ||||
333514 | Special tool, die, jig and fixture manufacturing | ||||
333515 | Cutting tool and machine tool accessory manufacturing | ||||
333519 | Rolling mill and other metalworking machinery manufacturing | ||||
3336 | Engine, turbine and power transmission equipment manufacturing | ||||
3339 | Other general purpose machinery manufacturing | ||||
Plumbing fixture fitting and trim manufacturing | 332913 | Plumbing fixture fitting and trim manufacturing | |||
Ball and roller bearing manufacturing | 332991 | Ball and roller bearing manufacturing | |||
Motor vehicle manufacturing | 3361 | Motor vehicle manufacturing | 29 | Manufacture of motor vehicles, trailers and semi-trailers | |
Light truck and utility vehicle manufacturing | |||||
Heavy duty truck manufacturing | |||||
Motor vehicle body, trailer, and parts manufacturing | 3362 | Motor vehicle body and trailer manufacturing | |||
33631 | Motor vehicle gasoline engine and engine parts manufacturing | ||||
33632 | Motor vehicle electrical and electronic equipment manufacturing | ||||
33633 | Motor vehicle steering and suspension component (except spring) manufacturing | ||||
33634 | Motor vehicle brake system manufacturing | ||||
33635 | Motor vehicle transmission and power train parts manufacturing | ||||
33636 | Motor vehicle seating and interior trim manufacturing | ||||
33639 | Other motor vehicle parts manufacturing | ||||
All other transportation equipment manufacturing | 3365 | Railroad rolling stock manufacturing | 30X | Manufacture of railroad, military vehicles and transport nec (ISIC 302, 304, and 309) | |
3369 | Other transportation equipment manufacturing | ||||
Medical equipment and supplies manufacturing | 3391 | Medical equipment and supplies manufacturing | 325 | Manufacture of medical and dental instruments and supplies | |
Computer systems design and related services | 5415 | Computer systems design and related services | J62–J63 | IT and other information services | |
Data processing, internet publishing and other information services | 518 | Data processing, hosting and related services | |||
519 | Other 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.