|Topic||Data provider||Variables||Basis of classification||Coverage||Methodology|
|Knowledge-intensive (KI) service and high-technology (HT) manufacturing industries||IHS Global Insight, World Industry Service database (proprietary)||Production, value added||Industry basis using International Standard Industrial Classification (ISIC)||KI services—business, financial, communications, health, and education services
HT manufacturing—aircraft and spacecraft, pharmaceuticals, office and computer equipment, communications, and scientific and measuring equipment
|Uses data from national statistical offices in developed countries and some developing countries, and estimates by IHS for some developing countries|
|Trade in commercial KI services (new for 2012)||World Trade Organization||Exports and imports||Product basis using Extended Balance of Payments Services Classification||KI services—business, financial, communications, and royalties and fees||Uses data from national statistical offices, International Monetary Fund, and other sources|
|Trade in HT goods||IHS Global Insight, World Trade Service database (proprietary)||Exports and imports||Product basis using Standard International Trade Classification (SITC)||Aerospace, pharmaceuticals, office and computing equipment, communications equipment, and scientific and measuring instruments||Uses data from national statistical offices and estimates by IHS Global Insight|
|U.S. trade in advanced-technology products||U.S. Census Bureau||Exports and imports||Product basis using Harmonized Commodity Description and Coding System, 10 technology areas classified by U.S. Census||Advanced materials, aerospace, biotechnology, electronics, flexible manufacturing, information and communications, life science, nuclear technology, optoelectronics, and weapons||Data collected from automated reporting by U.S. customs|
|Globalization of U.S. multinationals||U.S. Bureau of Economic Analysis (BEA)||Value added, employment, and inward and outward direct investment||Industry basis using North American Industrial Classification System (NAICS)||Commercial KI services—business, financial, communications
HT manufacturing—aerospace, pharmaceuticals, office and computer equipment, communications, and scientific and measuring equipment
|BEA annual surveys of U.S. multinationals and U.S. subsidiaries of non-U.S. multinationals|
|U.S. industry innovation activities||NSF, Business R&D and Innovation Survey||Innovation activities||U.S. businesses with more than five employees||Industries classified on industry basis using NAICS||Survey of U.S. located businesses with more than five employees using nationally representative sample|
|U.S. Patent and Trademark Office (USPTO) patents||The Patent Board||Patent grants||Inventor country of origin, technology area as classified by the Patent Board||More than 400 U.S. patent classes, inventors classified according to country of origin and technology codes assigned to grant||Source of data is USPTO|
|Triadic patent families||Organization for Economic Co-operation and Development (OECD)||Patent applications||Inventor country of origin and selected technology area as classified by OECD||Broad technology areas as defined by OECD, inventors classified according to country of origin||Sources of data are USPTO, European Patent Office, and Japanese Patent Office|
|U.S. trademarks (new for 2012)||USPTO||Trademark applications||Applicant country of origin, trademark class as determined by USPTO||45 trademark goods/services classes; trademarks, applicants classified by country of origin||Source of data is USPTO|
|Venture capital||Dow Jones Venture source (new for 2012)||Investment, technology area, country of investor origin||Technology areas as classified by Dow Jones classification system||27 technology areas, investment classified by venture firms' country of location||Data collected by analysts from public and private sources, such as public announcements of venture capital investment deals|
The data and indicators reported here permit the tracing and analysis of broad patterns and trends that shed light on the broadening and shifting distribution of global knowledge- and technology-intensive capabilities. The industry-level production and trade data used in this chapter derive from a proprietary IHS Global Insight database that assembles data from the United Nations and the Organisation for Economic Co-operation and Development to cover 70 countries in a consistent way. IHS estimates some missing data for some of the developing countries.
Two measures of industry activity—value added and trade volume—are expressed in current dollars. Value added is the amount contributed by an economic entity—country, industry, or firm—to the value of a good or service. It excludes purchases of domestic and imported supplies as well as inputs from other countries, industries, or firms.
Value added is an imperfect measure. It is credited to countries or regions based on the reported location of the activity, but globalization and the fragmentation of supply chains mean that the precise location of an activity is often uncertain. Companies use different reporting and accounting conventions for crediting and allocating production performed by their subsidiaries or companies in foreign countries. Moreover, the value added of a company's activity is assigned to a single industry based on the largest share of the company's business. However, a company classified as manufacturing may include services, and a company classified in a service industry may include manufacturing or may directly serve a manufacturing company. Thus, value-added trends should be interpreted as broad and relatively internally consistent indicators of the changing distribution of where economic value is generated.
Data on exports and imports represent the market value of products in international trade. This measure is not comparable with the value-added measure of industry production. Exports and imports are credited to the country where the product was "substantially transformed" into final form, but for exports produced in multiple economies, the assigned country may not be the location with the highest value added.
Production of HT goods feeds both domestic and foreign markets. A broad measure of domestic use is provided by adding domestic sales to imports and subtracting exports. However, use so defined encompasses two types of economic activity, consumption of final goods and capital investment for further production (intermediate goods). Available data series do not permit the examination of these two types of activity separately.
Patterns of the world's use of HT manufactures have changed considerably over the past decade. The U.S. share of domestic use, as defined above, fell from 30% in 2000 to 19% in 2010 (figure
The Chinese trend underscores the difficulty of teasing out final consumption from use as intermediate goods. The strong rise in the Chinese trend is considered by many observers to reflect the rising flow of intermediate goods—often previously produced in China—from other Asian manufacturing centers into China, where they undergo further assembly before being exported to final consumers.
The TOP500, an organization composed of computer scientists and industry specialists, has been tracking the world's fastest performing supercomputers since 1993. It provides an annual update with information, including the origin, performance, type of application, and technology of high-performance supercomputers. According to the November 2010 report, China was ranked for the first time as having the world's fastest supercomputer at the National Supercomputing Center in Tianjin. The Tianjin supercomputer uses existing component technology from the United States and other countries with energy-saving technology developed in China.* A second Chinese supercomputer was ranked third, giving China 2 slots in the top 10 supercomputers. The United States was ranked second, and had 4 other supercomputers in the top 10. In 2005, TOP500 had ranked the United States first, and 6 other U.S. supercomputers were ranked in the top 10. China's highest ranking in that year was 26th. The United States continues to dominate in the number of supercomputers ranked in the top 500 and in the number of high-performance supercomputers. China's share of high-performance supercomputers has increased rapidly, from 1% in 2008 to 9% in 2010 (figure
Agriculture, construction, mining, and utilities are not classified as either manufacturing or service industries and are not categorized by their level of technology or knowledge intensity. However, these industries depend on or use science and technology. For example, agriculture relies on breakthroughs in biotechnology, construction uses knowledge from materials science, mining depends on earth sciences, and utilities rely on advances in energy science.
The United States ranks second in construction, mining, and utilities, and third in agriculture as measured by share of global value added among the five major economies—United States, EU, Japan, China, and the Asia-8 (table
Several studies have attempted to estimate more precisely the geographic contribution of the global value chain involved in the production of several electronic goods. These studies essentially show that the largest returns accrue to the firms and countries that harbor special design, engineering, and marketing expertise. Because value-added data are not readily available at the product or firm level, these studies estimate the cost of direct labor, inputs, design, marketing, and distribution and retail (table
A study of Apple's iPad estimates that the United States receives 33% of the retail price of the iPad, almost all of it (30%) consisting of Apple's gross profit (figure
China, the location of final assembly, receives an estimated 2% share of the iPad's price (figure
Because final assembly of the iPad and other electronic goods manufactured by foreign multinationals yields little value for China, observers claim that bilateral trade statistics are misleading. The large U.S. trade deficit with China in electronic goods is due in part to crediting China for the entire shipping cost of these goods, even though much of the value of these goods derives from imported parts and components from other Asian countries, the EU, and the United States.
A study by Xing (2010) estimates that crediting exports to countries on the basis of their value-added contribution would lower the value of China's exports of Apple iPhones to the United States in 2009 from an estimated $2 billion to less than $100 million. The remaining $1.9 billion would be credited to countries that supply components to China—South Korea, Japan, Germany, and others.
Trade data are based on a classification of goods or services themselves, not the industry that produces them. Data on product trade are recorded at the exporting country's ports of exit and the importing country's ports of entry. Because many imported products are assessed an import duty and these duties vary by product category, a customs agent for the receiving country inspects or reviews the shipment to make the final determination of the proper product code and country of origin. The customs agent assigns a product trade code according to the Harmonized System.*
The value of products entering or exiting a country's ports may include the value of components, inputs, or services classified in different product categories or originating from countries other than the country of origin.
Data on international product trade assign products to a single country of origin. For goods manufactured with international components, the country of origin is determined by where the product was "substantially transformed" into its final form.
The America Invents Act, Public Law 112-29, 125 Stat. 283, signed into law on September 16, 2011, is the most significant reform of U.S. patent law since 1952. The act aims to foster innovation and improve productivity by making the U.S. patent system more compatible with the systems in other countries. Supporters of the act believe it will reduce a growing backlog of U.S. patent applications, reverse a decline in U.S. patent quality, decrease the number of patents for frivolous inventions, and diminish the amount of expensive and time-consuming patent litigation. Economists and legal scholars who have studied the U.S. patent system have advocated reforms such as those in the new law (see Jaffe and Lerner  and Burk and Lemley )
The America Invents Act has three major provisions:
The number of Chinese patent grants grew exponentially during the 2000s. Chinese patents granted to domestic residents rose more than 10-fold from 6,000 in 2002 to 65,000 in 2009 (table
India and Russia show divergent trends in patenting activity by domestic and foreign inventors. A minority of India's patents are granted to domestic investors, with their share falling from 40% in 2002 to 25% in 2006 (table
A number of economies pledged an estimated $194 billion in late 2008 and early 2009 for clean energy and low carbon energy projects as part of their stimulus programs undertaken in response to the global economic recession (figure
Progress was slow in 2009 with governments spending an estimated $20.3 billion (10%) of the total $194 billion in stimulus commitments. The pace accelerated in 2010 with 38% of the stimulus funding commitments (an estimated $74.5 billion) being spent, largely by the United States, China, Germany, and South Korea. Disbursement of stimulus spending commitments in 2009–10 is estimated at $94.8 billion. The majority of this funding has gone to energy efficiency, renewables, smart grid, and R&D. Energy efficiency has received an estimated $35.5 billion (37% share) followed by $20.2 billion (21%) allocated to renewables. R&D and the smart grid have each received $17–$18 billion.
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Science and Engineering Indicators 2012 Arlington, VA (NSB 12-01) | January 2012