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9.b.1 Proportion of Medium and High-tech Industry Value Added in Total Value Added

Target 9.b: Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Custodian Organization: United Nations Industrial Development Organization (UNIDO)

Tier Classification: Tier I

To facilitate the implementation of the global indicator framework, all indicators are classified by the IAEG-SDGs (Inter-Agency and Expert Group on Sustainable Development Goals Indicators) into three tiers on the basis of their level of methodological development and the availability of data at the global level, as follows:

Tier I: Indicator is conceptually clear, has an internationally established methodology and standards are available, and data are regularly produced by countries for at least 50 per cent of countries and of the population in every region where the indicator is relevant.

Tier II: Indicator is conceptually clear, has an internationally established methodology and standards are available, but data are not regularly produced by countries.

Tier III: No internationally established methodology or standards are yet available for the indicator, but methodology/standards are being (or will be) developed or tested.

Source: United Nations Statistical Division

Definition: The proportion of medium and hig-tech industry (MHT hereafter) value added in total value added of manufacturing (MVA hereafter) is a ratio value between the value added of MHT industry and MVA.
Concepts: The value added of an industry (industry value added) is a survey concept that refers to the given industry’s net output derived from the difference of gross output and intermediate consumption.
Manufacturing sector is defined according to the International Standard Industrial Classification of all
Economic Activities (ISIC) revision 3 (1990) or revision 4 (2008). It refers to industries belonging to sector D in revision 3 or sector C in revision 4.
Technology classification is based on research and development (R&D) expenditure relative to value added otherwise referred as R&D intensity. Data for R&D intensity are presented in a report (Galindo-
Rueda and Verger, 2016) published by the OECD in 2016, which also proposes a taxonomy for industry groups with different ranges of R&D expenditure relative to their gross value added. MHT industries have traditionally been defined exclusively to manufacturing industries. However, there have been recent efforts (Galindo-Rueda and Verger, 2016) to extend the definition to non-manufacturing industries as well. Nevertheless, medium-high and high technology sectors also in new paper are primarily represented by manufacturing industries.

Rationale: Industrial development generally entails a structural transition from resource-based and low technology activities to 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: Value added by economic activity should be reported at least at 3-digit ISIC for compiling MHT values.

Source: United Nations Statistical Division

Data Source: Data for this indicator was primarily collected from the United Nations Statistics Division’s Open SDG Data Hub. National level data is provided to the United Nations Statistics Division by the respective nation, unless otherwise noted. To learn more about the data used in this portal, visit the about page.

Data is accurate as of October 31, 2018.

 
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9.b.1 Proportion of Medium and High-tech Industry Value Added in Total Value Added in the Sustainable Development Goals

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9. Build resilient infrastructure, promote sustainable industrialization and foster innovation
9. Build resilient infrastructure, promote sustainable industrialization and foster innovation

9. Build resilient infrastructure, promote sustainable industrialization and foster innovation

Investments in infrastructure – transport, irrigation, energy and information and communication technology – are crucial to achieving sustainable development and empowering communities in many countries. It has long been recognized that growth in productivity and incomes, and improvements in health and education outcomes require investment in infrastructure.

Inclusive and sustainable industrial development is the primary source of income generation, allows for rapid and sustained increases in living standards for all people, and provides the technological solutions to environmentally sound industrialization.

Technological progress is the foundation of efforts to achieve environmental objectives, such as increased resource and energy-efficiency. Without technology and innovation, industrialization will not happen, and without industrialization, development will not happen.

Related 9.b.1 Proportion of Medium and High-tech Industry Value Added in Total Value Added Targets

9.b
Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities