DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY

STAN INDICATORS

Updated series: 1980-2001/2

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 TABLE OF CONTENTS
I. INTRODUCTION............................................................................................................................. 5
II. GENERAL NOTES ......................................................................................................................... 6
III. LIST OF INDICATORS................................................................................................................ 8
INTERNATIONAL TRADE............................................................................................................. 8
1. Intra-industry trade (IIT) ............................................................................................................. 8
2. Contribution to manufacturing trade balance (CMTB) ............................................................... 9
3. Export import ratio (XM) .......................................................................................................... 10
4. Export shares relative to OECD23 (XMSO23) ......................................................................... 10
5. Import propensity relative to OECD23 and the total economy (MSPEC23)............................. 10
6. Import propensity relative to OECD23 and total manufacturing (MSPEC23M) ...................... 11
7. Export specialisation relative to OECD23 and the total economy (XSPEC23) ........................ 11
8. Export specialisation relative to OECD23 and total manufacturing (XSPEC23M) .................. 12
9. Composition of total exports of goods (XSH)........................................................................... 12
10. Composition of manufacturing exports of goods (XSHMAN) ............................................... 12
11. Composition of total imports of goods (MSH)........................................................................ 12
12. Composition of manufacturing imports of goods (MSHMAN) .............................................. 12
13. Export share of production (XPROD) ..................................................................................... 13
14. Import penetration (MPEN)..................................................................................................... 13
INDUSTRIAL COMPOSITION .................................................................................................... 15
15. Value added shares relative to the total economy (VASH) ..................................................... 15
16. Value added shares relative to total manufacturing (VASHMAN) ......................................... 15
17. Value added shares of manufacturing industries relative to OECD15 (VASHOM) ............... 15
BUSINESS ENTERPRISE R&D.................................................................................................... 16
18. Distribution of R&D expenditures across industries for the total economy (RDS) ................. 16
19. Distribution of R&D expenditures across industries for total manufacturing (RDSMAN) ..... 16
20. R&D expenditures shares across OECD12 (RDSO12) ............................................................ 16
21. R&D intensity using value added (RDIV)................................................................................ 17
22. R&D intensity using production (RDIP) .................................................................................. 17
EMPLOYMENT AND PRODUCTIVITY .................................................................................... 18
23. Employment shares in the total economy (EMPSH) ............................................................ 18
24. Employment shares in total manufacturing (EMPSHM)...................................................... 18
25. Labour compensation per employee relative to the total economy (LABEMP) ................... 19
26. Labour compensation per employee relative to total manufacturing (LABEMPM) ............. 19
27. Labour share of value added (LABVAL) .............................................................................. 19
28. Labour productivity (LPDTY).............................................................................................. 20

IV. COUNTRY GROUPS .................................................................................................................. 21

V. INDUSTRY COVERAGE............................................................................................................. 22
ANNEX 1. DEFINITIONS OF THE UNDERLYING VARIABLES ............................................ 24
ANNEX 2. COUNTRY NOTES ........................................................................................................ 25
ANNEX 3. CLASSIFICATION OF MANUFACTURING INDUSTRIES
BASED ON TECHNOLOGY ............................................................................................................ 28

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I. INTRODUCTION

STAN Indicators are based on the STAN database for Industrial Analysis (March 2004) and use data
from other existing OECD databases such as the Analytical Business Enterprise R&D Database
(ANBERD); they complement the 2003 edition of the Science, Industry and Technology - Scoreboard of
Indicators.

STAN Indicators consist of 28 measures related to international trade, industrial composition, business
enterprise R&D, employment and productivity; they highlight trends in industrial structure and
performance for OECD countries and various country groups.

For further information concerning science, technology and industry statistics, please visit our web page
http://www.oecd.org/sti/ and the Scoreboard internet address at www.oecd.org/sti/scoreboard/.

Any suggestions for including new indicators in this data set are welcomed.

The recommended citation for use of these data is OECD, STAN Indicators 2004.

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II. GENERAL NOTES

1. Groups of indicators
STAN indicators are presented in four groups according to the following main themes: international
trade, industrial composition, business enterprise research & development; employment and productivity
(see section III. for further details).

2. Data coverage
Most of indicators are provided for all OECD countries; however, for countries which have recently been
included in the STAN database, the detailed industry and/or time coverage can be very weak for some
indicators. Figures are also given for selected country groups such as European Union, G7, NAFTA,
OECD, etc. The composition of these groups varies according to the indicators in order to optimise the
industry and period coverage (see section IV. for country groups’ definitions). Series cover the time
period 1980-2001/2 and are presented for the manufacturing and services sectors as well as for additional
industry groups based on technology intensity (see section V. for details on the industry list used).

3. Data dissemination
STAN Indicators are available on OlisNet, the OECD secure extranet for Government Officials, in Excel
tables and are also disseminated on line via SourceOECD, OECD’s commercial online service, using the
query based tool Beyond 20/20. The Beyond 20/20 version is supplied with the Beyond 20/20™ browser
(version 6.2) under licence from Ivation Datasystems Inc. This is a Windows-based data dissemination
tool that allows viewing, printing, graphing and exporting selected data in a user-friendly manner.

4. Notation
The following notation is used in the presentation of the definitions of indicators:

Variables

ANBERD business enterprise R&D at current prices

PROD production at current prices
VALU value added at current prices
EMPN number engaged (total employment)
LABR labour compensation at current prices
EXPO total exports at current prices
IMPO total imports at current prices
VALUK value added at constant prices

Qualifiers and indices

i ISIC Rev.3 activity sector

total total of all activity sectors
total manuf. total of manufacturing sectors
k country or country group
OECD total of all OECD countries (varies according to indicators' group)

Definitions of the underlying variables can be found in Annex 1.

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Remarks on calculations for country groups:

• The underlying data (i.e. production, exports and imports), used for trade indicators, were first
converted to US dollars using the exchange rates.

• The underlying data (i.e. production, business enterprise R&D, value added and labour
compensation), used for the indicators of industrial composition, research and development,
employment and productivity, were first converted to US dollars using the purchasing power
parities for total GDP (PPPs).

• The exchange rates and purchasing power parities are extracted from OECD’s System of
National Accounts database (SNA). They are used for converting the countries’ raw data before
aggregation to the country groups.

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III. LIST OF INDICATORS

This section details the calculation of each indicator and provides some explanations regarding their
interpretation, and potential limits.

INTERNATIONAL TRADE

These indicators address the question of trade specialisation and performance in international markets.

Note: Country groupings include intra-group trade (for example, the EU group does not exclude intra-EU
trade). Up to and including 1990, the data for Germany refer to western Germany (Federal Republic of
Germany, including West Berlin). From 1991, data for Germany include Eastern Germany.

a) Indicators based on Exports and Imports only

1. Intra-industry trade (IIT)

2. Contribution to manufacturing trade balance (CMTB)

3. Export / Import ratio (XM)

4. Export shares relative to OECD23 (XMSO23)

5. Import propensity relative to OECD23 & the total economy (MSPEC23)

6. Import propensity relative to OECD23 & total manufacturing (MSPEC23M)

7. Export specialisation relative to OECD23 & the total economy (XSPEC23)

8. Export specialisation relative to OECD23 & total manufacturing (XSPEC23M)

9. Composition of total exports of goods (XSH)

10. Composition of manufacturing exports of goods (XSHMAN)

11. Composition of total imports of goods (MSH)

12. Composition of manufacturing imports of goods (MSHMAN)

1. Intra-industry trade (IIT)

Intra-industry trade is the value of total trade remaining after subtraction of the absolute value of net
exports or imports of an industry. For comparison between countries and industries, the measures are
expressed as a percentage of each industry's combined exports and imports. For total manufacturing, the
calculation is the summation of the value of total trade remaining after subtraction of the absolute value
of net exports or imports for all manufacturing industries.

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This index varies between zero and 100. If a country exports and imports roughly equal quantities of a
certain product, the IIT index is high. If trade is mainly one-way (whether exporting or importing), the
IIT index is low.

For individual industries:



(
EXPO ik − IMPO ik ) 
IIT = 1 −
k

( )
x 100
i
EXPO ik + IMPO ik


For total manufacturing:

(
 ∑ EXPO ki − IMPO ik

) 
k
= 1 − i
IIT total manuf.
 ∑ (
EXPO ik + IMPO ik ) x 100
 i 

IIT is not calculated for country groups.

2. Contribution to manufacturing trade balance (CMTB)

The "contribution to the trade balance" makes it possible to identify an economy’s structural strengths
and weaknesses via the composition of international trade flows. It takes into account not only exports,
but also imports, and tries to eliminate business cycle variations by comparing an industry’s trade
balance with the overall trade balance. It can be interpreted as an indicator of "revealed comparative
advantage", as it indicates whether an industry performs relatively better or worse than the manufacturing
total, no matter whether the manufacturing total itself is in deficit or surplus.

If there were no comparative advantage or disadvantage for any industry i, a country’s total trade balance
(surplus or deficit) should be distributed across industries according to their share in total trade. The
"contribution to the manufacturing trade balance" is the difference between the actual and this theoretical
balance:
 EXPO ik + IMPO ik ( ) 
k k
( k k
) (
CMTB =  EXPO i − IMPO i − EXPO manuf − IMPO manuf
k
)  x 100


i k
EXPO manuf (
+ IMPO kmanuf )


A positive value for an industry indicates a structural surplus and a negative one a structural deficit. The
indicator is additive and individual industries can be grouped together by summing their respective
values: by construction, the sum over all industries is zero. To allow comparisons across countries, the
indicator is generally expressed as a percentage of total trade or of GDP.

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3. Export / Import ratio (XM)

This indicator shows exports as a percentage of imports.

EXPO ik
k
XM = i x 100
IMPO ik

4. Export shares relative to OECD23 (XMSO23)

This indicator shows exports of a certain industry for a given country (or country group) as a percentage
of exports of this industry for 23 selected OECD countries (see country groups’ definitions, in section
IV).

EXPO ik
XMSO23ik = x 100
EXPO OECD23
i

5. Import propensity relative to OECD23 and the total economy (MSPEC23)

This indicator shows a country's (or country group's) imports for an industry relative to total industries’
imports, divided by OECD23 imports of the same industry relative to OECD23 total industries’ imports.

For a given country, a value above 100 in a certain industry implies that, relative to the OECD23
average, the country tends to have a high propensity to import in that given industry.

 IMPO ki 
 
 IMPO k 
MSPEC23 i =
k  total 
x 100
 IMPO iOECD23 
 
 IMPO OECD23 
 total 

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6. Import propensity relative to OECD23 and total manufacturing (MSPEC23M)

This indicator shows a country's (or country group's) imports for an industry relative to total
manufacturing imports, divided by OECD23 imports of the same industry relative to OECD23 total
manufacturing imports.

For a given country, a value above 100 in a certain industry implies that, relative to the OECD23
average, the country tends to have a high propensity to import in that given industry.

 IMPO ki 
 
 IMPO k 
MSPEC23M i =   x 100
k total manuf.

 IMPO iOECD23 
 
 IMPO OECD23 
 total manuf. 

7. Export specialisation relative to OECD23 and the total economy (XSPEC23)

This indicator shows a country's (or country group's) exports for an industry relative to total industries'
exports, divided by OECD23 exports of the same industry relative to OECD23 total industries' exports.

For a given country, a value of 100 implies that the country exports equal proportions of goods than the
OECD23 average. A value above 100 in a certain industry implies that, relative to the OECD23 average,
the country tends to specialise in exports in that given industry. This indicator is quite versatile but for
each country, it allows to draw and compare its overall profile relative to the OECD area; it is also
commonly known as the index of revealed comparative advantage.

 EXPO ik 
 
 EXPO k  XSH ik
XSPEC23 ik = 
total 
x 100 =
 EXPO OECD23  XSH iOECD23
 i

 EXPO OECD23 
 total 

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8. Export specialisation relative to OECD23 and total manufacturing (XSPEC23M)

This indicator shows a country's (or country group's) exports for an industry relative to total
manufacturing exports, divided by OECD23 exports of the same industry relative to OECD23 total
manufacturing exports.

 EXPO ik 
 
 EXPO k  k
XSPEC23M i =   x 100 = XSHMAN i
k total manuf.

 EXPO OECD23  XSHMAN iOECD23

 i

 EXPO OECD23 
 total manuf. 

9. Composition of total exports of goods (XSH)

This indicator shows the exports in a given industry as a percentage of total industries’ exports.

EXPO ik
XSH = k
i x 100
EXPO ktotal goods

10. Composition of manufacturing exports of goods (XSHMAN)

This indicator shows the exports in a given manufacturing industry as a percentage of total
manufacturing exports.

EXPO ik
XSHMAN = k
i x 100
EXPO ktotal manuf.

11. Composition of total imports of goods (MSH)

This indicator shows the imports of a given industry as a percentage of the total sectors’ imports.

IMPO ik
MSH ik = x 100
IMPO ktotal goods

12. Composition of manufacturing imports of goods (MSHMAN)

This indicator shows the imports of a given manufacturing industry as the percentage of the total
manufacturing imports of goods.

IMPO ik
MSHMAN ik = x 100
IMPO ktotal manuf.

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b) Indicators based on Exports, Imports and Production

13. Export share of production (XPROD)

14. Import penetration (MPEN)

13. Export share of production (XPROD)

This indicator shows exports as a percentage of production.

The export share of production shows the importance of the foreign market for a given industry in a
country. This indicator may change over time as supply and demand conditions change in foreign and
domestic markets.

EXPO ik
XPROD ik = x 100
PROD ik

14. Import penetration (MPEN)

This indicator shows imports as a percentage of total domestic demand (this latter is estimated as
production plus imports less exports).

For a given country (country group), a value close to 100 in a certain industry, implies that the country
(country group) tends to export all of its production in that industry. Whereas a value above 100 (and/or a
negative value) implies that the country (country group) exports more than it produces in the given
sector.

IMPO ik
MPEN ki =
(PROD ik + IMPO ki − EXPO ki ) x100

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Note: When interpreting those two indicators, it is important to bear in mind that exports can exceed
production. This can occur for the following reasons:

(i) exports include re-exports (this particularly concerns countries such as Belgium and the Netherlands
where there is a significant amount of ‘transit trade’) ;

(ii) production data are normally based on Industrial Surveys which record establishments’ primary
activities. Therefore, activities that are mainly secondary may be understated in terms of production
by not being allocated to the relevant ISIC code while exports of the related commodities are
allocated to that ISIC code;

(iii) bias introduced by the conversion from product-based trade statistics to activity-based industry
statistics for certain sectors for certain countries.

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INDUSTRIAL COMPOSITION

These indicators attempt to reveal the importance of each industry in the economies of OECD countries.

Note: The valuation of value added differs among countries and may therefore influence the
interpretation of these indicators - value added is measured at basic prices for all countries except
Japan, Korea and the USA that use producer’s prices or market prices.

15. Value added shares relative to the total economy (VASH)

16. Value added shares relative to total manufacturing (VASHMAN)

17. Value added shares of manufacturing industries relative to OECD15 (VASHOM)

15. Value added shares relative to the total economy (VASH)

This indicator shows each industry’s value added as a percentage of value added for the total economy.

 VALU ik 
VASH ik =  k  x 100
 VALU total 

16. Value added shares relative to total manufacturing (VASHMAN)

This indicator shows the value added contributed by each manufacturing sector to total manufacturing.

 VALU ik 
VASHMAN =  k
i k  x 100
 VALU total manuf. 

17. Value added shares of manufacturing industries relative to OECD15 (VASHOM)

This indicator shows, for a given manufacturing industry, each country’s value added as a percentage of
value added for 15 selected OECD countries (see country groups’ definitions, in section IV.).

 VALU ik 
VASHOM ik =  k  x 100
 VALU OECD15 

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BUSINESS ENTERPRISE R&D

These indicators highlight the efforts undertaken by the OECD countries in the field of business
enterprise expenditures in research and development; these measures also show the distribution of R&D
expenditures within and across OECD countries, as well as R&D intensity.

18. Distribution of R&D expenditures across industries for the total economy (RDS)

19. Distribution of R&D expenditures across industries for total manufacturing (RDSMAN)

20. R&D expenditures shares across OECD12 (RDSO12)

21. R&D intensity using value added (RDIV)

22. R&D intensity using production (RDIP)

18. Distribution of R&D expenditures across industries for the total economy (RDS)

This indicator shows the R&D expenditures for an industry as a percentage of R&D expenditures for the
total economy.

ANBERD ik
RDS ik = x 100
ANBERD ktotal

19. Distribution of R&D expenditures across industries for total manufacturing (RDSMAN)

This indicator shows the R&D expenditures for an industry as a percentage of R&D expenditures for
total manufacturing.

ANBERD ik
RDSMAN ik = x 100
ANBERD ktotal manuf.

20. R&D expenditures shares across OECD12 (RDSO12)

This indicator represents the R&D expenditures for a given country relative to the R&D expenditures for
12 selected OECD countries (see country groups’ definitions, in section IV).

ANBERD ik
RDSO12 = k
i x 100
ANBERD OECD_RD2
i

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R&D intensities have been calculated in two ways. The first expresses R&D expenditures as a
percentage of value added while the second expressed R&D expenditures as a percentage of production.

These two indicators cannot be calculated for most country groups and are not available for recent years
due to the coverage of R&D data by country.

21. R&D intensity using value added (RDIV)

ANBERD ik
RDIV ki = x 100
VALU ik

22. R&D intensity using production (RDIP)

ANBERD ik
RDIP ki = x 100
PROD ik

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EMPLOYMENT AND PRODUCTIVITY

Indicators in this area address the issue of employment structure and compensation, labour costs and
labour productivity.

Note: For countries, where coverage for total employment data was weak, other employment variables
were used (eg: number of employees for the Czech Republic, Mexico, the United Kingdom); therefore
comparisons across countries should be undertaken with caution. For country groups, all calculations are
based on the number of persons engaged (i.e. total employment).

23. Employment shares in the total economy (EMPSH)

24. Employment shares in total manufacturing (EMPSHM)

25. Labour compensation per employee for the total economy (LABEMP)

26. Labour compensation per employee for total manufacturing (LABEMPM)

27. Labour share of value added (LABVAL)

28. Labour productivity (LPDTY)

23. Employment shares in the total economy (EMPSH)

This indicator shows each industry’s employment as a percentage of employment for the total economy.

EMPN ik
EMPSH ik = x 100
EMPN ktotal

24. Employment shares in total manufacturing (EMPSHM)

This indicator shows each industry’s employment as a percentage of employment for total
manufacturing.

EMPN ik
EMPSHM ik = x 100
EMPN ktotal manuf.

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25. Labour compensation per employee relative to the total economy (LABEMP)

This indicator is calculated as the ratio of labour compensation for a particular industry (or industry
group) to the number engaged divided by the ratio of labour compensation for the total economy to the
number of persons engaged for the total economy.

 LABR ik 
 
 EMPN ik 
LABEMP i =
k
x 100
 LABR ktotal 
 
 EMPN k 
 total 

26. Labour compensation per employee relative to total manufacturing (LABEMPM)

This indicator is calculated as the ratio of labour compensation for a particular manufacturing industry
(or industry group) to the number engaged divided by the ratio of labour compensation for total
manufacturing to the number of persons engaged for total manufacturing.

 LABR ik 
 
 EMPN ik 
LABEMPM i =
k
x 100
 LABR ktotal manuf. 
 
 EMPN k 
 total manuf. 

27. Labour share of value added (LABVAL)

This indicator shows labour compensation in a certain industry as a percentage of value added in that
industry.

LABR ik
LABVAL ki = x 100
VALU ik

Note: Labour costs can exceed value added when an industry incurs losses or when an industry receives
significant net subsidies (value added measured at producer’s prices does not include subsidies).
However, the occurrence of values exceeding 100 may also be due to measurement biases when certain
series are estimates.

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28. Labour productivity (LPDTY)

This indicator is the ratio of constant price value added to number engaged. Although hours worked
would be preferable as a measure of labour input, at the present time consistent hours worked data are
not available for all OECD countries, at the industry level. Labour productivity represents the amount of
output per unit of input, output being defined as value added.

VALUK ik
LPDTY ik =
EMPN ik

Note: The series are presented as indices. The reference year for all countries is 1995, exceptions being
Australia, Belgium, Finland, Hungary,Poland, Sweden that use 2000, Canada that uses 1997 and Mexico
that uses 1993 as base years. This indicator is not calculated for country groups.

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IV. COUNTRY GROUPS

STAN indicators are presented for the country groups outlined below. These country groups vary accross
indicators and represent the sum of OECD countries for which industrial and / or time period coverage
for data is good, while providing a maximum of details.

EU: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Netherlands, Portugal, Spain, Sweden and United Kingdom.

EU14: EU excluding Luxembourg.

EU11: EU14 excluding Belgium, Greece and Netherlands.

EU8: EU11 excluding Ireland, Portugal and Sweden.

EU_RD: Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Spain, Sweden and
United Kingdom.

EU_RD9: EU_RD excluding Belgium and Netherlands.

NAFTA: Canada, Mexico and United States.

G7: Canada, France, Germany, Italy, Japan, United Kingdom and United States.

OECD: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, Norway,
New Zealand, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom
and United States.

OECD29: OECD excluding Luxembourg.

OECD26: OECD excluding Czech Republic, Korea, Luxembourg and Slovak Republic.

OECDSTAN: OECD excluding Iceland, Ireland, New Zealand, Switzerland and Turkey.

OECD23: OECD excluding Czech Republic, Hungary, Korea, Luxembourg, Mexico, Poland and
Slovak Republic.

OECD20: OECD15 including Australia, Belgium, Mexico, Netherlands and Norway.

OECD16: EU11 including Australia, Canada, Japan, Norway and United States.

OECD15: OECD11 including Canada, Ireland, Portugal and Sweden.

OECD11: Austria, Denmark, Finland, France, Germany, Italy, Japan, Korea, Spain, United Kingdom
and United States.

OECD_RD: EU_RD including Australia, Canada, Czech Republic, Japan, Korea, Norway, Poland and
United States.
OECD_RD2: EU_RD9 including Canada, Japan and United States.

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 V. INDUSTRY COVERAGE

STAN indicators’ industry list is based upon ISIC revision 3 and covers 65 sectors; detailed information
by sector varies across countries and across indicators.

Description ISIC Rev.3 division

GRAND TOTAL 01-99

AGRICULTURE, HUNTING, FORESTRY AND FISHING 01-05
MINING AND QUARRYING 10-14
TOTAL MANUFACTURING 15-37
Food products, beverages and tobacco 15-16
Textiles, textile products, leather and footwear 17-19
Wood, pulp, paper, paper products, printing and publishing 20-22
Wood and products of wood and cork 20
Pulp, paper, paper products, printing and publishing 21-22
Chemical, rubber, plastics and fuel products 23-25
….Coke, refined petroleum products and nuclear fuel 23
….Chemicals and chemical products 24
……Chemicals excluding pharmaceuticals 24 less 2423
……Pharmaceuticals 2423
….Rubber and plastic products 25
Other non-metallic mineral products 26
Basic metals and fabricated metal products 27-28
….Basic metals 27
……Iron and steel 271+2731
……Non-ferrous metals 272+2732
….Fabricated metal products, except machinery and equipment 28
Machinery and equipment 29-33
…. Machinery and equipment, n.e.c. 29
…. Electrical and optical equipment 30-33
……Office, accounting and computing machinery 30
……Electrical machinery and apparatus, n.e.c. 31
……Radio, television and communication equipment 32
……Medical, precision and optical instruments 33
Transport equipment 34-35
….Motor vehicles, trailers and semi-trailers 34
….Other transport equipment 35
……Building and repairing of ships and boats 351
……Aircraft and spacecraft 353
……Railroad equipment and transport equipment, n.e.c. 352+359
Manufacturing, n.e.c; recycling 36+37

22
 INDUSTRY COVERAGE (continued)

Description ISIC Rev.3 division

ELECTRICITY, GAS AND WATER 40-41

CONSTRUCTION 45
WHOLESALE AND RETAIL TRADE; RESTAURANTS AND HOTELS 50-55
Wholesale and retail trade; repairs 50-52
Hotels and restaurants 55
TRANSPORT AND STORAGE; COMMUNICATION 60-64
Transport and storage 60-63
Post and telecommunications 64
FINANCE, INSURANCE, REAL ESTATE AND BUSINESS SERVICES 65-74
Financial intermediation 65-67
Real estate, renting and business activities 70-74
….Real estate activities 70
….Renting and other business activities 71-74
……Other business activities 74
COMMUNITY, SOCIAL AND PERSONAL SERVICES 75-99
Public administration and defence; compulsory social security 75
Education 80
Health and social work 85
Other community, social and personal services 90-93
Private households with employed persons 95
NON-AGRICULTURE BUSINESS SECTOR (excl. "Real estate activities", ISIC70) 10-74
TOTAL SERVICES 50-99
BUSINESS SECTOR SERVICES 50-74

Additional groups

HIGH TECHNOLOGY MANUFACTURES 2423, 30, 32, 33, 353

MEDIUM-HIGH TECHNOLOGY MANUFACTURES 29, 31, 34, 24 less 2423, 352+359
MEDIUM-LOW TECHNOLOGY MANUFACTURES 23, 25, 26, 351, 27-28
LOW TECHNOLOGY MANUFACTURES 15-16, 17-19, 20, 21-22, 36-37
HIGH-MEDIUM HIGH TECHNOLOGY MANUFACTURES 1 24, 29-33, 35
ICT MANUFACTURES 30, 32, 33 2
ENERGY PRODUCING ACTIVITIES 10-12, 23, 40

1
Including shipbuilding which allows for wide coverage for many countries.
2
This does not correspond to the official OECD list of ICT manufactures; see the OECD publication
Measuring information economy for more details.

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 ANNEX 1. DEFINITIONS OF THE UNDERLYING VARIABLES

Analytical Business Enterprise Research and Development (ANBERD) are estimates of R&D
expenditures derived from official R&D data and adjusted to provide better international
comparability.

Production (PROD) is national accounts compatible production (gross output) in current prices.

Value Added (VALU and VALUK) represents the contribution of each industry to total GDP in
current prices and in volumes (usually with reference year 1995). The valuation for each country
depends on that used by national statistical offices in their presentations of tables of National Accounts
by activity.

Number Engaged (EMPN) includes number of employees as well as self-employed, owner

proprietors and unpaid family workers.

Labour Compensation (LABR) is current price national accounts compatible labour costs which
include wages as well as the costs of supplements such as employer's compulsory pension or medical
payments.

Exports and Imports (EXPO and IMPO) data are derived from the OECD's International Trade by
Commodity Statistics (ITCS) database. The data are converted from product-based classifications
(SITC Revisions 1, 2 and 3 and the Harmonised System, depending upon the year concerned) to
activity-based ISIC Revision 3 categories using standard conversion matrices. The conversion from
commodity classifications to the ISIC industry classification is not exact because many SITC
commodities can be produced by two or more ISIC industries.

24
 ANNEX 2. COUNTRY NOTES

Note: ISIC rev.3 codes are given in parentheses.

Australia
• Data refer to fiscal years beginning on the 1st of July (i.e. 2000 represents July 2000 to June 2001).
• For all indicators: Electricity, gas & water supply (40_41) includes Sanitary & similar services
(90); Real estate activities (70) consists of ownership of dwellings (imputed rent of owner-
occupied dwellings) only; Renting of machinery & equipment and Other business activities
(71_74) includes Other real estate activities. Other Community and Personal Services (90_93)
includes Private Households with Employed Persons (95) and does not include sanitary and
similar services (part of 90).

Austria
• For all indicators except trade indicators: Railroad equipment and other transport equipment n.e.c.
(352+359) include Aircraft and spacecraft (353).

Canada
• For all indicators except trade indicators: Agriculture, hunting, forestry and fishing (01_02)
includes aquaculture; Fishing (05) includes hunting and trapping; Publishing, printing and
reproduction of recorded media (22) includes NAICS 5112 Software publishers (72) and NAICS
514 Information and data processing services; Radio, TV and communication equipment (32)
includes NAICS 3345 Navigational, Measuring, Medical and Control Instruments Manufacturing
(33) and NAICS 3346 Manufacturing and Reproducing Magnetic and Optical Media (22);
Medical, Precision and Optical Instruments (33) included in Radio, TV and communication
equipment (32) and Manufacturing n.e.c. (36_37); Manufacturing n.e.c (36_37) includes NAICS
3391 Medical Equipment and Supplies Manufacturing (33); Electricity, Gas & Water supply (
40_41) includes Recycling (37) and Sanitary & similar services (90); Financial intermediation (
65) includes Activities related to financial intermediation (67); Renting of machinery and
equipment and other business activities (71_74) does not include NAICS 5112 Software
publishing; Other Community and Personal Services (90_93) includes Private households with
employed persons (95) and excludes sanitary and similar services (90) and NAICS 5141
Information services.

Germany
• For trade indicators: data prior to 1991 are for western Germany only.

Denmark
• For all indicators: Aircraft and Spacecraft (353) is included in Railroad equipment and transport
equipment n.e.c. (352 + 359).

Finland
• For all indicators except trade indicators: data for 2001 are provisional.

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France
• For all indicators except trade indicators: Coke, refined petroleum products and nuclear fuel (23)
includes Mining and quarrying of energy producing materials (10_12); Non-metallic mineral
products (26) includes Mining and quarrying except energy producing materials (13_14) thus:
Total manufacturing (15_37) includes Mining and quarrying (10_14); Other business activities
(74) includes Sewage and refuse disposal (90); Other community, social and personal services
(90_93) includes Private households with employed persons (95).

Hungary
• For all indicators: Other Community and Personal Services (90_93) includes Private households
with employed persons (95).

Italy
• For all indicators: Real estate activities (70) include Renting of Machinery and equipment (71);
Computer and related activities (72) include Research and development (73).

Japan
• For all indicators: Rubber and Plastics (25) excludes plastics; Manufacturing n.e.c. (36_37)
includes plastics; Printing and publishing (22) does not include publishing/reproduction of
recorded media; Motor vehicles; Trailers and semi-trailers (34) include Motorcycles (3591);
Wholesale and Retail Trade and Repairs (50_52) does not include repairs - these are included in
related manufacturing sectors, for example, auto repairs are included in Manufacture of Motor
vehicles (34); Hotels and Restaurants (55) are included in Other Community, Social and Personal
Services (90_93); Education (80) and Health (85) consist of non-market activities (government
and private non-profit) only; Other Community, Social and Personal Services (90_93) includes
Hotels and Restaurants (55), scientific research institutes, market education and health and
Private Households with Employed Persons (95).

Korea
• For all indicators: Radio, TV and communications equipment (32) includes refrigerators, washing
machines, fans, heating apparatus, electric heat machinery tools (293).

Luxembourg
• For all indicators: Other business activities (74) include Research and development (73).

Mexico
• For all indicators except trade indicators: Wood and products of wood and cork (20) includes
Furniture (361); Electrical and optical equipment (30_33) does not include Medical, Precision
and Optical Instruments (33); Manufacturing n.e.c. (36_37) includes Medical, Precision and
Optical Instruments (33) and does not include Furniture (361); Other Community and Personal
Services (90_93) includes Private households with employed persons (95) and repair services
(part of 52).

Netherlands
• For all indicators except trade indicators: Radio, TV and communications equipment (32) includes
Medical, precision and optical instruments, watches and clocks (33).

New Zealand
• Data refer to fiscal years beginning on the 1st of April (i.e. 2000 represents April 2000 to March
2001).
• For all indicators: Other Community and Personal Services (90_93) includes Private Households
with Employed Persons (95).
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Norway
• For all indicators: Data for Tobacco products (16) and Coke, refined petroleum products and
nuclear fuel (23) are confidential and are not shown separately. Data for 2001 are provisional.

Poland
• For indicators using value added as underlying variable: the value of Financial intermediation
services indirectly measured (FISIM - formerly known as Imputed bank service charges) has been
deducted from the Value added of Financial Intermediation services (65_67). FISIM is therefore
also not included in total value added (01_99). Care should be taken when interpreting certain
indicators based on value added such as industry shares of total value added or labour productivity
of Financial Intermediation and related aggregates.

Portugal
• For all indicators except trade indicators: Coke, refined petroleum products and nuclear fuel (23)
includes Mining and quarrying of energy producing materials (10_12); Non-metallic mineral
products (26) includes Mining and quarrying except energy producing materials (13_14), thus:
Total manufacturing (15_37) includes Mining and quarrying (10_14); Aircraft & Spacecraft
(353) is included in Railroad equipment and transport equipment n.e.c. (352+359); Other
Community and Personal Services (90_93) includes Private households with employed persons
(95).

Spain
• For all indicators: Other Community and Personal Services (90_93) includes Private households
with employed persons (95).

Sweden
• For all indicators: Other Business Activities (74) includes Research and Development (73).

United Kingdom
• For all indicators: Other Community and Personal Services (90_93) includes Private households
with employed persons (95).

United States
• For indicators based on value added: Grand Total (01_99) includes a statistical discrepancy which
is the difference between the expenditure-based GDP actually shown and the aggregate of the
value added by industry. Financial intermediation services indirectly measured (FISIM - formerly
known as Imputed bank service charges) are allocated (to intermediate inputs) by activity, and
hence deducted from Value added by activity.
• For all indicators: Agriculture, Forestry and Fishing (01_05) includes veterinary activities;
Electricity, Gas and Water supply (40_41) includes sanitary and similar services (90); Wholesale
and Retail trade (50_52) includes restaurants; Hotels and Restaurants (55) does not include
restaurants; Public administration and defence (75) includes public education services; Education
(80) includes private education services only; Health and social work (85) does not include
veterinary activities; Other Community and Personal Services (90_93) does not include sanitary
and similar services (90).

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 ANNEX 3. CLASSIFICATION OF MANUFACTURING INDUSTRIES BASED ON
TECHNOLOGY

The following notes appear in the edition 2003 of the OECD Science, Technology and Industry Scoreboard.

Technological effort is a critical determinant of productivity growth and international

competitiveness. However, since it is not spread evenly across the economy, analyses of industry
performance and structural change attach much importance to technological criteria. Methodological
work carried out at the OECD is used to determine these criteria.

In the past, a technology classification based on ISIC Rev. 2 industry classifications was widely used.
The methodology uses three indicators of technology intensity reflecting, to different degrees,
“technology-producer” and “technology-user” aspects: i) R&D expenditures divided by value added;
ii) R&D expenditures divided by production; and iii) R&D expenditures plus technology embodied in
intermediate and investment goods divided by production. These indicators were evaluated for 1990
and for the aggregate of the ten OECD countries for which a measure of embodied technology was
available, using 1990 USD purchasing power parities (see T. Hatzichronoglou, “Revision of the
High-Technology Sector and Product Classification”, STI Working Paper 1997/2).

Following the adoption of ISIC Rev. 3 (NACE Rev. 1 in Europe) for collecting and presenting data on
industrial activity both in national accounts (in the context of SNA93/ESA95) and industrial surveys,
the 2001 Scoreboard used ISIC Rev. 3 R&D expenditure and output data to develop an updated
technology classification based on an evaluation of R&D intensities for 13 OECD countries for the
period 1991-97. In the absence of updated ISIC Rev. 3 input-output tables (required for estimating
embodied technology), only the first two indicators could be calculated. This edition extends the
analysis to cover the period 1991-99, although for only 12 OECD countries.

The division of manufacturing industries into high-technology, medium-high-technology,

medium-low-technology and low-technology groups was made after ranking the industries according
to their average over 1991-99 against aggregate OECD R&D intensities. Industries classified to higher
categories have a higher average intensity for both indicators than industries in lower categories. Also
considered were: i) temporal stability: for adjacent years, industries classified to higher categories
have a higher average intensity than those in lower categories (see Annex Table 1.2); and ii) country
median stability: industries classified to the higher categories have a higher median intensity than
those in lower categories.

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Points to note:

- This classification confirms that of the 2001 Scoreboard and also confirms the classification
of “Medical, precision and optical instruments” (ISIC Rev. 3, Division 33) as a high-technology
industry. This sector’s R&D intensity continues to rise, and its inclusion complements the definition of
the ICT sector (see Measuring the Information Economy, OECD, 2002) which includes some of its
sub-divisions (notably 3312 and 3313).

- The cut-off points are clear except possibly the distinction between the medium-low- and
low-technology groups.

- The low-technology group consists of relatively aggregate sectors, owing to limited detailed
R&D expenditure data across countries. The few cases in which R&D intensities are available for
more detailed (2-digit) breakdowns confirm the allocation of these industries to low technology.

- The classification concerns the OECD area as a whole. For individual countries, allocation to
the technology groups may differ. Also, at national level, finer technology classifications may be
generated from more detailed underlying data.

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 1
Annex 1.1. Classification of manufacturing industries based on technology
1999 1991

R&D divided by production R&D divided by value added R&D divided by production R&D divided by value added

Aggregate Median Aggregate Median Aggregate Median Aggregate Median

ISIC Rev. 3 2 2 2 2
intensity intensity intensity intensity intensity intensity intensity intensity
High-technology industries
Aircraft and spacecraft 353 10.3 10.4 29.1 27.5 13.9 12.9 34.7 32.1
Pharmaceuticals 2423 10.5 10.1 22.3 25.8 9.4 8.7 20.6 19.7
Office, accounting and computing machinery 30 7.2 4.6 25.8 15.1 10.9 6.4 29.4 15.2
Radio, TV and communciations equipment 32 7.4 7.6 17.9 22.4 7.9 8.2 17.0 21.5
Medical, precision and optical instruments 33 9.7 5.6 24.6 11.9 6.6 6.1 15.6 12.5

Medium-high-technology industries
Electrical machinery and apparatus, n.e.c. 31 3.6 2.3 9.1 6.7 4.2 2.6 9.3 5.9
Motor vehicles, trailers and semi-trailers 34 3.5 2.8 13.3 11.7 3.7 3.0 14.3 11.9
Chemicals excluding pharmaceuticals 24 excl. 2423 2.9 2.2 8.3 7.1 3.4 2.8 9.8 8.0
Railroad equipment and transport equipment, n.e.c. 352 + 359 3.1 2.8 8.7 7.9 2.9 2.1 7.6 5.4
Machinery and equipment, n.e.c. 29 2.2 2.1 5.8 5.3 1.9 2.0 4.6 4.7

Medium-low-technology industries
Building and repairing of ships and boats 351 1.0 1.0 3.1 2.9 0.9 0.9 2.8 2.6
Rubber and plastics products 25 1.0 1.1 2.7 3.0 1.0 0.6 2.6 1.5
Coke, refined petroleum products and nuclear fuel 23 0.4 0.3 1.9 2.7 1.2 0.7 5.4 3.8
Other non-metallic mineral products 26 0.8 0.6 1.9 1.3 1.0 0.6 2.4 1.5
Basic metals and fabricated metal products 27-28 0.6 0.5 1.6 1.4 0.7 0.6 2.0 1.6

Low-technology industries
Manufacturing, n.e.c.; Recycling 36-37 0.5 0.5 1.3 1.2 0.5 0.4 1.2 0.9
Wood, pulp, paper, paper products, printing and publishing 20-22 0.4 0.1 1.0 0.3 0.3 0.1 0.8 0.3
Food products, beverages and tobacco 15-16 0.3 0.3 1.1 1.0 0.3 0.3 1.1 1.1
Textiles, textile products, leather and footwear 17-19 0.3 0.4 0.8 1.0 0.2 0.3 0.7 0.7

Total manufacturing 15-37 2.6 2.2 7.2 6.5 2.5 2.0 7.0 5.7

1. Based on data for 12 OECD countries: United States, Canada, Japan, Denmark, Finland, France, Germany, Ireland, Italy, Spain, Sweden, United Kingdom
2. Aggregate R&D intensities calculated after converting countries' R&D expenditures, value added and production using GDP PPPs

Source: OECD: ANBERD and STAN databases, May 2003

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 1
Annex 1.2. R&D intensity for aggregate of 12 OECD countries, 1991-1999

mean intensity
ISIC 1991 1992 1993 1994 1995 1996 1997 1998 1999
1991-1999
Rev.3
Aircraft and spacecraft 353 13.9 13.9 13.5 13.9 16.2 14.8 12.8 10.7 10.3 13.3
Pharmaceuticals 2423 9.4 10.1 10.8 10.9 10.6 10.3 11.0 11.1 10.5 10.5
Office, accounting and computing machinery 30 10.9 10.4 9.3 8.8 7.5 9.1 10.4 8.9 7.2 9.2
Radio, TV and communciations equipment 32 7.9 8.3 7.9 7.8 7.7 8.2 8.0 8.6 7.4 8.0
Medical, precision and optical instruments 33 6.6 6.8 7.1 7.7 7.7 7.4 8.0 8.0 9.7 7.7
Electrical machinery and apparatus, n.e.c. 31 4.2 4.0 4.0 3.8 4.0 3.9 3.9 4.0 3.6 3.9
Motor vehicles, trailers and semi-trailers 34 3.7 3.4 3.5 3.4 3.5 3.7 3.5 3.3 3.5 3.5
Chemicals excluding pharmaceuticals 24 excl. 242 3.4 3.3 3.4 3.1 2.8 3.1 2.7 3.1 2.9 3.1
Railroad equipment and transport equipment, n.e.c. 352 + 359 2.9 2.4 2.4 2.7 2.6 3.2 3.5 3.0 3.1 2.9
Machinery and equipment, n.e.c. 29 1.9 2.0 2.0 2.1 2.0 2.1 2.1 2.1 2.2 2.1
Building and repairing of ships and boats 351 0.9 1.0 1.0 0.9 0.9 1.0 0.8 1.0 1.0 1.0
Rubber and plastics products 25 1.0 1.0 0.9 1.0 0.8 0.9 0.9 0.9 1.0 0.9
Coke, refined petroleum products and nuclear fuel 23 1.2 1.2 1.1 1.0 0.9 0.8 0.7 0.9 0.4 0.9
Other non-metallic mineral products 26 1.0 0.9 0.9 0.9 0.8 0.9 0.9 0.9 0.8 0.9
Basic metals and fabricated metal products 27-28 0.7 0.7 0.7 0.6 0.6 0.7 0.7 0.6 0.6 0.6
Manufacturing, n.e.c.; Recycling 36-37 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.6 0.5 0.5
Wood, pulp, paper, paper products, printing and publishing 20-22 0.3 0.3 0.3 0.3 0.3 0.4 0.3 0.4 0.4 0.3
Food products, beverages and tobacco 15-16 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.3 0.3
Textiles, textile products, leather and footwear 17-19 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Total manufacturing 15-37 2.5 2.5 2.5 2.4 2.4 2.6 2.6 2.6 2.6 2.5
High-technology industries 9.4 9.5 9.3 9.3 9.2 9.3 9.5 9.3 8.7 9.3
Medium-high-technology industries 3.1 3.0 3.1 3.0 2.9 3.1 2.9 3.0 3.0 3.0
Medium-low-technology industries 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.8 0.7 0.8
Low-technology industries 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.3

1. R&D intensity defined as direct R&D expenditures as a percentage of production (gross output), calculated after converting countries' R&D expenditures and production using GDP PPPs

Source: OECD: ANBERD and STAN databases, May 2003

31