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.

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.)

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.