Medium and high-tech industry (% manufacturing value added)

Definition: The proportion of medium and high-tech industry value added in total value added of manufacturing

Description: The map below shows how Medium and high-tech industry (% manufacturing value added) varies by country. The shade of the country corresponds to the magnitude of the indicator. The darker the shade, the higher the value. The country with the highest value in the world is Singapore, with a value of 0.80. The country with the lowest value in the world is Cambodia, with a value of 0.00.

Source: United Nations Industrial Development Organization (UNIDO), Competitive Industrial Performance (CIP) database

See also: Country ranking, Time series comparison

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Development Relevance: Industrial development generally entails a structural transition from resource-based and low technology activities to medium and high-tech industry (MHT) activities. A modern, highly complex production structure offers better opportunities for skills development and technological innovation. MHT activities are also the high value addition industries of manufacturing with higher technological intensity and labour productivity. Increasing the share of MHT sectors also reflects the impact of innovation

Limitations and Exceptions: Value added by economic activity should be reported at least at 3-digit ISIC for compiling MHT values. Missing values at country level are imputed based on the methodology from Competitive Industrial Performance Report (UNIDO, 2017. Conversion to USD or difference in ISIC combinations may cause discrepancy between national and international figures. For additional information please see UNIDO (2017): http://stat.unido.org/content/publications/volume-i%252c-competitive-industrial-performance-report-2016

Statistical Concept and Methodology: The indicator is calculated as the share of the sum of the value added from medium and high-tech industry economic activities to manufacturing value added. The medium and high-tech industry is defined using OECD classification as the following by International Standard Industrial Classification of All Economic Activities (ISIC) Revision 3 and Revision 4 Division respectively: ISIC Rev. 3 (24, 29, 30, 31, 32, 33, 34, 35 excluding 351). Manufacturing value added is the value added of manufacturing industry, which is Section C of ISIC Rev.4, and Section D of ISIC Rev.3. Data can be found in UNIDO INDSTAT4 Database by ISIC Revision 3 and ISIC Revision 4 respectively. Data are collected using General Industrial Statistics Questionnaire which is filled by NSOs and submitted to UNIDO annually. Data for OECD countries are obtained directly from OECD. Country data are also collected from official publications and official web-sites. For additional information please see Table B.2.2 in Appendix B of UNIDO (2017): http://stat.unido.org/content/publications/volume-i%252c-competitive-industrial-performance-report-2016

Periodicity: Annual