1. RESPONDING TO THE ECONOMIC CRISIS
1.6. Business R&D by technology intensity
Manufacturing industries can be grouped into four
categories according to their research and develop-
Manufacturing industries are classified according
ment (R&D) intensity: high, medium-high, medium-
to technology intensity using the ISIC Rev. 3 break-
low and low technology. In the OECD area since the
down of activity. The classification is based on a
early 1990s, high-technology industries had on aver-
ranking which uses data on R&D expenditure
age stronger growth of R&D expenditure than other
divided by value added, and R&D expenditure
manufacturing industries, particularly in the mid-
divided by production for 12 OECD countries
1990s and up to the bursting of the Internet bubble
during the period 1991-99.
after 2000.
High-technology: Pharmaceuticals (ISIC 2423),
In 2006, OECD area high-technology industries
Office, accounting and computing machinery
accounted for more than 52% of total manufacturing
(ISIC 30), Radio, television and communication
R&D. They accounted for over 67% of total manufac-
equipment (ISIC 32), Medical, precision and optical
turing R&D in the United States and for 45% and 42%
instruments, watches and clocks (ISIC 33).
in the European Union and Japan, respectively.
Medium-high-technology: Chemicals excluding
Manufacturing R&D expenditure is highly skewed
pharmaceuticals (ISIC 24 less 2423), Machinery
towards high-technology industries in Finland,
and equipment not elsewhere classified (ISIC 29),
Hungary, Ireland and the United States (more than
Electrical machinery and apparatus not elsewhere
two-thirds of manufacturing BERD). Medium-high-
classified (ISIC 31), Motor vehicles, trailers and
technology industries account for around 60% of man-
semi-trailers (ISIC 34), Railroad equipment and
ufacturing BERD in the Czech Republic and Germany.
transport equipment not elsewhere classified
Australia, Greece and Norway are the only OECD
(ISIC 352 plus 359).
countries in which medium-low and low-technology
industries account for more than 30%. This indicator
does not take into account the fact that in some coun-
tries, the ranking of industries by R&D intensity might
be different from that of the OECD average.
Source
Technology classification
OECD, ANBERD Database, June 2009.
Medium-low-technology: Coke, refined petroleum
products and nuclear fuel (ISIC 23), Rubber and Going further
plastics products (ISIC 25), Other non-metallic
OECD, (2002), Frascati Manual: Proposed Standard Practice
products (ISIC 26), Basic metals and fabricated
for Surveys on Research and Experimental Development,
metal products (ISIC 27-28), Building and repairing
OECD, Paris, www.oecd.org/sti/frascatimanual.
of ships and boats (ISIC 351).
OECD (2009), Research and Development in Industry 
Low-technology: Food products, beverages and
ANBERD 1990-2007, OECD, Paris.
tobacco (ISIC 15-16), Textiles, textile products,
leather and footwear (ISIC 17-19), Wood and prod-
Figure notes
ucts of wood and cork (ISIC 20), Pulp, paper, paper
products, printing and publishing (ISIC 21-22),
The EU aggregate includes Austria, Belgium, the Czech
Manufacturing not elsewhere classified and recy-
Republic, Denmark, Finland, France, Germany,
cling (ISIC 36-37).
Hungary, Italy, the Netherlands, Poland, Spain,
Sweden and the United Kingdom.
OECD SCIENCE, TECHNOLOGY AND INDUSTRY SCOREBOARD 2009 � OECD 2009
32
1. RESPONDING TO THE ECONOMIC CRISIS
1.6. Business R&D by technology intensity
Changes in R&D over the business cycle by technological intensity, OECD 1988-2006
Average annual real growth rate in percentage
High-technology Medium-high technology Medium-low and low-technology
%
12
10
8
6
4
2
0
-2
-4
-6
-8
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
1 2 http://dx.doi.org/10.1787/742253324386
Business R&D in the manufacturing sector by technological intensity, 2006
As a percentage of manufacturing BERD
High-technology Medium-high technology Medium-low and low-technology
%
100
90
80
70
60
50
40
30
20
10
0
1 2 http://dx.doi.org/10.1787/742334876661
OECD SCIENCE, TECHNOLOGY AND INDUSTRY SCOREBOARD 2009 � OECD 2009
33
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