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U.S. Knowledge-Intensive Services Industries Employ 18 Million and Pay High Wages

NSF 15-300 | October 2014| PDF format. PDF  
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by Derek Hill[1]

The commercial knowledge and technology-intensive (KTI) industries play a big role in the U.S. economy. The larger component of KTI industries—the knowledge-intensive (KI) services industries—employed 18 million workers and produced 22% of U.S. gross domestic product (GDP) in 2012. The smaller component—the high technology (HT) manufacturing industries—employed 2 million workers and produced 2% of GDP in 2012. Although smaller than KI services industries, HT manufacturing industries have a greater concentration of workers in S&E occupations and perform a larger proportion of U.S. research and development. Both KI services industries and HT manufacturing industries pay substantially higher wages than the private-sector average.

Three KI services industries (business, finance, and information) and six HT manufacturing industries (aircraft; communications; computers and office machinery; pharmaceuticals; semiconductors; and testing, measuring, and control instruments) classified by the Organisation for Economic and Cooperation and Development are discussed in this report.[2] (Note: Because various data sources used in this report classify industries differently, different numbers may be reported for KI and HT industries.)

KTI Industries in the U.S. Economy

In 2012, KTI industries produced $3.8 trillion in value-added output, nearly one-fourth of the U.S. GDP (figure 1, table 1). The three KI services industries contributed the largest part by far, producing 22% of the GDP. KTI industries perform three-fourths of U.S. business R&D, an important source of innovation and economic growth.[3] The six HT manufacturing industries alone performed nearly one-half of U.S. business R&D.


FIGURE 1. Share of U.S. GDP, employment, and business R&D performance, by selected industry: 2009 and 2012

FIGURE 1. Share of U.S. GDP, employment, and business R&D performance, by selected industry : 2009 and 2012.

GDP = gross domestic product; HT = high technology; KI = knowledge intensive.

NOTES: Employment consists of the nonagricultural workforce. Business R&D performance consists of domestic funding by companies' own internal funds and funds from other sources. HT manufacturing and commercial KI services industries are classified by the Organisation for Economic Co-operation and Development. HT manufacturing industries include computers and office machinery; communications; semiconductors; testing, measuring, and control instruments; aircraft; and pharmaceuticals. Commercial KI services industries include business, information, and financial services. Business R&D performance of commercial KI services industries consists of professional and technical services and information.

SOURCES: Bureau of Economic Analysis, Annual Industry Accounts, http://www.bea.gov/industry/index.htm#annual; Bureau of Labor Statistics, Current Employment Survey, http://www.bls.gov/ces/; and National Center for Science and Engineering Statistics, Business Research and Development and Innovation Survey, http://www.nsf.gov/statistics/srvyindustry/.

Figure 1 Source Data: Excel file

TABLE 1. Value-added output of selected U.S. industries and sectors: Selected years, 2000–12
(Billions of current U.S. dollars)
Industry or sector 2000 2003 2005 2007 2008 2009 2010 2011 2012
All sectors and industries 9,952 11,142 12,623 14,029 14,292 13,974 14,499 15,076 15,685
All private services 6,475 7,374 8,330 9,269 9,458 9,345 9,684 10,059 10,474
Commercial KI services 2,013 2,346 2,695 2,998 3,042 2,992 3,116 3,241 3,421
Business 834 937 1,089 1,282 1,363 1,294 1,347 1,435 1,488
Professional, scientific, and technical services 662 745 870 1,025 1,100 1,046 1,084 1,152 1,192
Management of companies and enterprises 171 192 218 258 263 248 263 284 296
Finance 762 902 1,019 1,080 1,042 1,094 1,157 1,159 1,242
Information 418 507 587 636 637 605 612 647 691
Other services 4,462 5,028 5,635 6,271 6,417 6,353 6,568 6,818 7,053
Education 86 106 120 138 148 163 166 174 180
Health care and social assistance 592 741 833 939 1,006 1,062 1,103 1,137 1,165
All others 3,784 4,181 4,682 5,195 5,263 5,127 5,299 5,507 5,709
Manufacturing 1,416 1,374 1,569 1,698 1,629 1,540 1,631 1,732 1,867
HT manufacturing 300 272 301 330 320 332 333 328 342
Aircraft 49 48 57 70 68 70 68 72 79
Communications 49 28 29 30 27 23 25 21 21
Computers and office machinery 40 28 30 30 31 28 20 20 18
Pharmaceuticals 34 52 50 52 44 56 50 47 47
Semiconductors 63 46 52 51 51 46 58 59 53
Testing, measuring, and control instruments 66 71 84 97 100 109 112 109 123
Other manufacturing 1,116 1,102 1,268 1,368 1,309 1,208 1,297 1,404 1,525
Other industries 846 958 1,138 1,302 1,350 1,172 1,217 1,291 1,318
Government 1,215 1,435 1,586 1,760 1,854 1,917 1,967 1,994 2,026

HT = high technology; KI = knowledge intensive.

NOTES: Reporting categories follow the data source. Value-added output is the amount contributed by the industry to the value of a good or service. HT manufacturing and KI services industries are classified by the Organisation for Economic Co-operation and Development. Data for HT manufacturing industries are from IHS Global Insight; data for all other industries are from the Bureau of Economic Analysis.

SOURCES: Bureau of Economic Analysis, GDP by Industry, http://www.bea.gov/industry/index.htm#annual, accessed 28 June 2013; IHS Global Insight, World Industry Service.

Table 1 Source Data: Excel file

KTI industries are major exporters. In 2011, commercial KI services exported nearly one-half of the $587 billion total in U.S. cross-border exports for all services, and in 2012, HT manufacturing industries exported nearly one-fourth of the $1,422 billion total in exports of nonpetroleum goods.[4]

KTI industries tend to be leaders in productivity growth. This is important because productivity—the ratio of production outputs to resource inputs—is a key source of economic growth and an indicator of development.[5] In most of the KI services industries for which data are available, labor productivity has grown considerably faster than in nonfarm business. Similarly, in several HT manufacturing industries, labor productivity has grown considerably faster than productivity in the manufacturing sector (figure 2).[6]


FIGURE 2. Labor productivity growth of selected U.S. HT manufacturing and KI services industries: 2000–11

FIGURE 2. Labor productivity growth of selected U.S. HT manufacturing and KI services industries: 2000-11.

SOURCE: Bureau of Labor Statistics, Labor Productivity and Costs, September 2012, http://www.bls.gov/lpc/.

Figure 2 Source Data: Excel file

Employment Characteristics

Employment

Employment in KTI industries represented 15% of the U.S. workforce in 2012 (figure 1). KI services employ far more workers (18.4 million) than are employed in the HT manufacturing industries (1.8 million) (table 2). Employment in each of the three KI services industries is much bigger than in HT manufacturing industries as a whole. Business services has the largest workforce (9.9 million), with nearly one-half employed in four advanced-technology industries: architectural and engineering, computer systems design, management and technical consulting, and scientific R&D. Financial services has the next-largest workforce (5.8 million), with over 80% employed in the credit intermediation and insurance industries. Information services has the smallest labor force (2.7 million), with 0.9 million collectively employed in four advanced technology industries: data processing, hosting, and related services; radio and television broadcasting; software publishers; and wireless telecommunications carriers. In contrast, the largest HT manufacturing industry employer in 2012 was aircraft (0.5 million), followed by the semiconductors and the testing, measuring, and control instruments industries, which employ about 0.4 million each.

TABLE 2. Employment of selected U.S. industries and sectors: Selected years, 2000–12
(Thousands of persons)
Industry or sector 2000 2003 2005 2007 2008 2009 2010 2011 2012
Total (nonfarm) businesses 131,881 130,100 133,747 137,645 136,852 130,876 129,917 131,497 133,739
All private industries 111,091 108,517 111,943 115,427 114,343 108,321 107,427 109,411 111,822
All private services 86,442 86,701 89,753 93,194 93,008 89,764 89,676 91,363 93,411
Commercial KI services 17,901 17,498 17,907 18,737 18,764 18,023 17,782 18,042 18,413
Business 8,498 8,290 8,784 9,526 9,704 9,376 9,314 9,600 9,901
Professional, scientific, and technical services 6,702 6,603 7,025 7,659 7,800 7,509 7,441 7,666 7,892
Accounting and bookkeeping 866 815 849 936 951 914 887 899 913
Advertising and related services 497 430 446 471 462 422 408 422 430
Architectural and engineering services 1,238 1,227 1,311 1,432 1,439 1,325 1,275 1,294 1,323
Computer systems design services 1,254 1,117 1,195 1,372 1,440 1,423 1,449 1,536 1,620
Legal services 1,066 1,142 1,168 1,175 1,162 1,125 1,114 1,116 1,122
Management and technical consulting services 673 718 824 953 1,002 995 999 1,065 1,121
Other professional and business services 462 494 524 574 584 566 576 592 609
Scientific R&D services 515 539 577 602 620 616 621 628 638
Specialized design services 132 121 131 143 141 124 113 114 116
Management of companies and enterprises 1,796 1,687 1,759 1,866 1,905 1,867 1,872 1,934 2,008
Finance 5,773 6,021 6,063 6,179 6,077 5,844 5,761 5,769 5,835
Credit intermediation 2,548 2,792 2,869 2,866 2,733 2,590 2,550 2,554 2,579
Securities, commodity contracts, investments 805 758 786 849 864 811 801 811 814
Insurance carriers 2,317 2,367 2,303 2,354 2,367 2,333 2,304 2,300 2,337
All others 104 103 105 110 113 109 107 104 104
Information 3,631 3,188 3,061 3,032 2,984 2,804 2,707 2,673 2,678
Data processing, hosting, and related services 316 280 263 268 260 249 243 246 250
Motion picture and sound recording 383 376 378 381 371 358 370 362 372
Publishing (except Internet) 1,035 925 904 901 880 796 759 749 738
Software publishers 261 239 238 255 264 258 261 271 286
Radio and television broadcasting 253 238 239 237 233 215 210 210 211
Cable and other subscription programming 91 86 89 89 86 85 80 74 74
Wired telecommunications carriers 922 762 690 665 666 635 603 585 581
Wireless telecommunications carriers 186 190 191 203 201 187 170 166 159
All others 446 331 308 289 286 279 272 283 292
Other services 68,541 69,203 71,846 74,458 74,244 71,741 71,894 73,321 74,998
Education 2,390 2,695 2,836 2,941 3,040 3,090 3,155 3,250 3,347
Health 10,858 11,817 12,314 12,947 13,290 13,543 13,777 14,026 14,302
All others 55,293 54,691 56,696 58,569 57,914 55,108 54,962 56,045 57,349
Manufacturing 17,263 14,509 14,227 13,879 13,406 11,847 11,528 11,726 11,919
HT manufacturing 2,496 2,004 1,983 1,989 1,981 1,863 1,805 1,817 1,821
Aircraft 517 442 455 489 507 492 478 487 497
Communications 239 149 141 128 127 121 117 115 110
Computers and office machinery 302 224 205 186 183 166 158 157 159
Pharmaceuticals 274 292 288 295 291 284 277 270 271
Semiconductors 676 461 452 448 432 378 369 383 384
Testing, measuring, and control instruments 488 435 441 443 441 422 406 404 400
Other manufacturing 14,767 12,505 12,244 11,890 11,425 9,984 9,723 9,910 10,098
Other industries 7,386 7,307 7,963 8,354 7,929 6,710 6,223 6,322 6,492
Government 20,790 21,583 21,804 22,218 22,509 22,555 22,490 22,086 21,917

HT = high technology; KI = knowledge intensive.

NOTES: Reporting categories follow the data source. HT manufacturing and commercial KI services industries are classified by the Organisation for Economic Co-operation and Development.

SOURCE: Bureau of Labor Statistics, Current Employment Statistics, http://www.bls.gov/ces/, accessed 15 July 2013.

Table 2 Source Data: Excel file

S&E workforce intensity

KTI industries have a highly skilled workforce as measured by S&E workforce intensity—defined as the percentage of the workforce in S&E occupations. The S&E workforce intensities of HT manufacturing industries (26%) and commercial KI services industries (16%) are significantly higher than the average S&E workforce intensity of private industries (4%) (table 3).

TABLE 3. Average salaries and S&E workforce intensity, by selected industry and broad occupation category: 2004 and 2012
(Dollars)
All occupations S&E occupations Non-S&E occupations S&E workforce
intensity (%)a
Industry 2004 2012 2004 2012 2004 2012 2004 2012
All private industries 37,000 45,000 68,000 83,000 35,000 43,000 3.9 4.4
Commercial KI services 53,000 68,000 70,000 86,000 50,000 65,000 12.8 15.8
Business 57,000 73,000 71,000 87,000 54,000 69,000 18.7 21.4
Finance 48,000 62,000 66,000 83,000 47,000 60,000 4.7 5.4
Information 49,000 64,000 70,000 84,000 46,000 60,000 11.8 16.6
HT manufacturing 56,000 70,000 79,000 95,000 48,000 61,000 25.8 26.4
Aircraft 56,000 71,000 77,000 96,000 49,000 62,000 25.8 24.4
Communications 55,000 75,000 77,000 98,000 48,000 64,000 25.2 30.9
Computers and office machinery 69,000 90,000 87,000 98,000 57,000 83,000 38.5 43.1
Pharmaceuticals 54,000 64,000 72,000 84,000 49,000 59,000 20.0 20.4
Semiconductors 51,000 64,000 80,000 97,000 43,000 55,000 22.1 23.4
Testing, measuring, and control instruments 56,000 71,000 79,000 94,000 48,000 62,000 27.6 28.0
All other industries 37,000 41,000 63,000 78,000 33,000 40,000 1.9 2.5

HT = high technology; KI = knowledge intensive; S&E = science and engineering.

a Percentage of workforce in S&E occupations.

NOTES: HT manufacturing and commercial KI services industries are classified by the Organisation for Economic Co-operation and Development. S&E occupations include biological, agricultural, and environmental scientists; computer scientists; life scientists; mathematicians; physical scientists; social scientists; engineers; and S&E postsecondary teachers. Salary estimates are in current dollars and are rounded to the nearest thousand.

SOURCE: Bureau of Labor Statistics, Occupational Employment Survey, special tabulations, July 2013.

Table 3 Source Data: Excel file

S&E workforce intensity varies widely among individual KI services and HT manufacturing industries. Business services has the highest S&E workforce intensity among the KI services industries, with about one in five employees working in an S&E occupation in 2012 (table 3). Within business services, S&E workforce intensity is highest in computer systems design (53%), scientific R&D (44%), and architectural and engineering (33%) (table 4). Information services has the next highest S&E intensity (17%). Software publishers (46%) and data processing, hosting, and related services (38%) have the highest S&E intensities within this industry sector.

TABLE 4. Average salaries and S&E workforce intensity for selected U.S. commercial KI services industries, by broad occupation: 2004 and 2012 (Dollars)
All occupations S&E occupations Non-S&E occupations S&E workforce
intensitya
Service industry 2004 2012 2004 2012 2004 2012 2004 2012
Business services 57,000 73,000 71,000 87,000 54,000 69,000 18.7 21.4
Accounting, tax preparation, bookkeeping, and payroll services 49,000 60,000 66,000 71,000 48,000 60,000 3.8 2.7
Advertising, public relations, and related services 51,000 65,000 61,000 74,000 50,000 64,000 3.5 3.6
Architectural, engineering, and related services 56,000 73,000 71,000 88,000 50,000 65,000 29.5 33.3
Computer systems design and related services 70,000 85,000 72,000 86,000 68,000 83,000 48.3 52.5
Legal services 61,000 77,000 58,000 70,000 61,000 77,000 1.2 1.4
Management of companies and enterprises 55,000 73,000 69,000 83,000 53,000 72,000 11.7 12.9
Management, scientific, and technical consulting services 59,000 74,000 69,000 86,000 57,000 72,000 18.4 17.9
Other professional, scientific, and technical services 34,000 46,000 48,000 69,000 33,000 45,000 5.9 4.2
Scientific R&D services 67,000 85,000 77,000 93,000 60,000 78,000 40.0 44.1
Specialized design services 48,000 59,000 61,000 74,000 48,000 58,000 3.6 4.7
Financial services 48,000 62,000 66,000 83,000 47,000 60,000 4.8 5.4
Activities related to credit intermediation 44,000 52,000 61,000 85,000 43,000 50,000 3.4 6.0
Agencies, brokerages, and other insurance-related activities 46,000 56,000 60,000 73,000 45,000 55,000 2.3 2.7
Depository credit intermediation 38,000 50,000 60,000 78,000 37,000 49,000 3.2 3.4
Insurance and employee benefit funds 50,000 69,000 69,000 89,000 na 68,000 na 7.8
Insurance carriers 49,000 64,000 64,000 80,000 48,000 62,000 7.7 9.5
Monetary authorities—central bank 50,000 81,000 70,000 90,000 46,000 79,000 14.7 21.5
Nondepository credit intermediation 48,000 58,000 67,000 86,000 47,000 56,000 4.6 5.2
Other financial investment activities 71,000 95,000 75,000 93,000 71,000 95,000 7.1 5.3
Other investment pools and funds 58,000 79,000 na 91,000 na 77,000 na 8.9
Securities and commodity contracts intermediation and brokerage 74,000 95,000 77,000 99,000 73,000 94,000 6.9 6.8
Securities and commodity exchanges 76,000 99,000 74,000 na 77,000 na 16.2 na
Information services 49,000 64,000 70,000 84,000 46,000 60,000 11.8 16.6
Cable and other program distribution 41,000 na 57,000 na 40,000 na 6.5 na
Cable and other subscription programming 46,000 56,000 58,000 77,000 45,000 55,000 7.8 4.7
Data processing, hosting, and related services 53,000 68,000 na 79,000 75,000 61,000 29.0 38.0
Internet publishing and broadcasting 63,000 na 67,000 na 61,000 na 29.2 na
Internet service providers and Web search portals 61,000 na 65,000 na 59,000 na 36.9 na
Motion picture and video industries 40,000 61,000 69,000 86,000 39,000 61,000 1.7 2.3
Newspaper, periodical, book, and directory publishers 41,000 52,000 62,000 72,000 40,000 51,000 4.4 3.9
Other information services 38,000 72,000 64,000 88,000 37,000 68,000 5.2 23.7
Other telecommunications 50,000 65,000 61,000 79,000 48,000 61,000 14.7 20.2
Radio and television broadcasting 46,000 57,000 62,000 72,000 45,000 56,000 2.8 3.1
Satellite telecommunications 53,000 57,000 73,000 90,000 50,000 53,000 11.6 12.8
Software publishers 75,000 91,000 77,000 91,000 72,000 91,000 48.3 45.9
Sound recording industries 45,000 61,000 56,000 73,000 45,000 60,000 3.8 3.2
Telecommunications resellers 52,000 na 68,000 na 49,000 na 16.1 na
Wired telecommunications carriers 54,000 63,000 71,000 81,000 51,000 59,000 16.3 16.5
Wireless telecommunications carriers (except satellite) 47,000 60,000 68,000 86,000 43,000 56,000 13.7 15.4

na = not available.

KI = knowledge intensive; S&E = science and engineering.

a Percentage of workforce in S&E occupations.

NOTES: Reporting categories follow the data source. Commercial KI services industries are classified by the Organisation for Economic Co-operation and Development and include health, education, business, information, and financial services. S&E occupations include biological, agricultural, and environmental scientists; computer scientists; life scientists; mathematicians; physical scientists; social scientists; engineers; and S&E postsecondary teachers. Salary estimates are in current dollars and are rounded to the nearest thousand.

SOURCE: Bureau of Labor Statistics, special tabulations, July 2013, of the Occupational Employment Survey.

Table 4 Source Data: Excel file

Computers and office machinery manufacturing has the highest S&E workforce intensity among the HT manufacturing industries (43%) (table 3), followed by communications (31%). Pharmaceuticals ranks the lowest at 20%.

Wages

U.S. commercial KTI industries pay much higher wages than other industries (figure 3, table 3). The average salaries of KI services industries and HT manufacturing industries in 2011 were similar and were more than $20,000 higher than the private-sector average. However, average salaries vary widely among individual HT manufacturing and commercial KI services industries (tables 3, 4).


FIGURE 3. Average annual salaries for selected U.S. industries and broad occupations: 2012

FIGURE 3. Average annual salaries for selected U.S. industries and broad occupations: 2012.

HT = high technology; KI = knowledge intensive; S&E = science and engineering.

NOTES: As classified by the Organisation for Economic Co-operation and Development, HT manufacturing industries include computers and office machinery; communications; semiconductors; testing, measuring, and control instruments; aircraft; and pharmaceuticals. Commercial KI services industries include business, information, and financial services. S&E occupations include biological, agricultural, and environmental scientists; computer scientists; life scientists; mathematicians; physical scientists; social scientists; engineers; and S&E postsecondary teachers. Salary estimates are in current dollars and are rounded to the nearest thousand.

SOURCE: Bureau of Labor Statistics, Occupational Employment Survey, special tabulations, July 2013.

Figure 3 Source Data: Excel file

The wage premium in commercial KTI industries is due, in part, to the high concentration of workers in S&E occupations. In the private sector, S&E workers earn an average of $83,000, close to double the salary of non-S&E workers (figure 3, table 3). However, this is not the whole story. Non-S&E workers in commercial KTI industries earn at least $18,000 more than those in other industries.

Business services pays the highest average salary ($73,000) among commercial KI services industries (table 4). Within this category, average salaries are highest in computer systems design and related services and in scientific R&D ($85,000). The average salary in information services is $64,000, with the software publishers industry commanding the highest salary ($91,000) in this category. Among the HT manufacturing industries, computers and office machinery pay by far the highest salary ($90,000) (table 3).

Employment and Output Trends

KTI industries tended to have faster growth in output per unit of labor (labor productivity) than other industries between 2000 and 2011. In general, higher labor productivity growth is consistent with more modest or negative job growth. KTI industries exhibited more modest or negative job growth compared with other industries between 2000 and 2012. The value-added output of commercial KI services industries grew 70% in this period and employment expanded by 3% (500,000 jobs) (table 1, 2). Employment in business services grew 17% (1.4 million jobs), coinciding with the move by U.S. companies to reduce costs and leverage the expertise of specialized companies by contracting out many of their services. Employment in information services contracted by 26% (-950,000 jobs), coinciding with rapid technological progress and increased international competition that affected both traditional industries (e.g., publishing) and HT industries (e.g., broadband and cellular phone service).

In the HT manufacturing industries, the three ICT industries—communications, semiconductors, and computers and office machinery—had collective steep declines in output and employment with a loss of 600,000 jobs (table 1, 2). The sharp fall in employment and output in the ICT manufacturing industries coincided with U.S.-based multinational corporations moving their production facilities to China and other countries. In the three other HT manufacturing industries—aircraft, pharmaceuticals, and testing, measuring, and control instruments—combined value-added output grew 67%. Employment trends varied, with stable employment in aircraft and pharmaceuticals and a loss of 90,000 jobs in testing, measuring, and control instruments.

Data Sources and Availability

Data presented here are from the Bureau of Economic Analysis's (BEA's) GDP by Industry Data and from the Bureau of Labor Statistics' (BLS's) Current Employment Statistics (CES) and Occupational Employment Survey (OES). Data from BEA and CES are publicly available at http://www.bea.gov/industry/gdpbyind_data.htm and http://www.bls.gov/ces/, respectively. Data from the OES are special tabulations provided to the National Center for Science and Engineering Statistics by BLS, and publicly available data from the May 2004 survey can be found at http://www.bls.gov/oes/tables.htm. Data on U.S. business R&D are from Business Research and Development and Innovation: 2008–10 (available at http://www.nsf.gov/statistics/nsf13332/).

Average salaries are rounded to the nearest $1,000. Average salaries for all occupations for individual industries are from OES special tabulations and the May 2004 survey. To calculate average salaries for categories of industries, such as commercial KI services industries, total wages were divided by employment. Salaries of S&E occupations for individual industries are from OES special tabulations. Salaries of S&E occupations for industry categories were calculated by total wages divided by employment. Average salaries or employment for a few individual industries in these categories were not available and were excluded from the calculations of average salaries of these industry categories.

Definitions

High-technology (HT) manufacturing industries: Manufacturing industries identified by the Organisation for Economic Cooperation and Development (OECD) that spend a large proportion of their revenues on R&D and make products that contain or embody technologies developed from R&D. These are aircraft; communications (including semiconductors); computers and office machinery; pharmaceuticals; and testing, measuring, and control instruments. This report separately examines communications and semiconductors.

Knowledge-intensive (KI) services industries: Service industries identified by OECD that incorporate advanced technology, either in their services or in the delivery of their services. Three of these—business, finance, and information services (including computer software and R&D)—are generally commercially traded. The others—education and health services—are publicly regulated or provided and remain relatively more location bound. Each KI services industry is a collection of specific industries. Examples of business service industries are accounting, architecture and engineering, scientific R&D, computer systems design, and legal services.

S&E occupations: Occupations include biological, agricultural, and environmental scientists; computer scientists; life scientists; mathematicians; physical scientists; social scientists; engineers; and S&E postsecondary teachers.

Value added: The amount contributed by the industry to the value of a good or service. It excludes purchases of domestic and imported supplies and inputs from other industries or countries. Value-added output is expressed in current dollars unless otherwise noted.

Notes

[1] Derek Hill, National Center for Science and Engineering Statistics, National Science Foundation, 4201 Wilson Boulevard, Suite 965, Arlington, VA 22230 (dhill@nsf.gov; 703-292-7805).

[2] National Science Board (NSB). 2014. Science and Engineering Indicators 2014. NSB 14-01. Arlington, VA: National Science Foundation. Available at http://www.nsf.gov/statistics/seind14/.

[3] National Science Foundation, National Center for Science and Engineering Statistics (NSF/NCSES). 2013. Business Research and Development and Innovation: 2008–10. Detailed Statistical Tables NSF 13-332. Arlington, VA. Available at http://www.nsf.gov/statistics/nsf13332/.

[4] Data on cross-border exports of U.S. service industries are from Bureau of Economic Analysis, U.S. international services statistics, http://www.bea.gov/international/international_services.htm. In these data, U.S. cross-border exports of commercial KI services industries are the sum of the finance; insurance; telecommunications; and business, professional, and technical services categories. Data on U.S. exports of nonpetroleum exports are from the Census Bureau, Foreign Trade, U.S. International Trade in Goods and Services—Annual Revision for 2012, http://www.census.gov/foreign-trade/Press-Release/2012pr/final_revisions/#notice_goods. Data on U.S. HT exports are from IHS Global Insight World Trade Service, http://www.ihs.com/products/global-insight/industry-analysis/commerce-transport/world-trade.aspx. The value of exports (and imports) is measured on a gross basis, which is not compatible with the value-added measure of industry output. Trade data are based on a classification of goods or services themselves, not the industry that produces them.

[5] Organisation for Economic Cooperation and Development (OECD). 2001. Measuring Productivity: Measurement of Aggregate and Industry-Level Productivity. OECD Manual. Paris: OECD Publications. Available at http://www.oecd.org/std/productivity-stats/.

[6] For more information on Bureau of Labor Statistics measures of industry-level labor productivity, see http://www.bls.gov/lpc/iprhours11.htm and http://www.bls.gov/Spotlight/2013/productivity/.


National Science Foundation, National Center for Science and Engineering Statistics
U.S. Knowledge-Intensive Services Industries Employ 18 Million and Pay High Wages
Arlington, VA (NSF 15-300) [October 2014]


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