Archive | September 2013

In order to get some sense of which high-tech industries have a more relevant role in the growth of a country, I compile the following table with data gathered from the United Nations Industrial Development Organization. Although is a reduced sample for only the United States, it can be observed that the industry of medical, precision and optical instruments (ISIC code 3300) and the pharmaceutical industry (ISIC code 2423) added more value than computers and telecommunications industries year by year. The United Nations define value added as:

“the value of output less the value of intermediate consumption; it is a measure of the contribution to GDP made by an individual producer, industry or sector.”

INDSTAT4-Rev.3 contains time series data on five selected data items for the period covering 2006 – 2010. The data are arranged at the 3- and 4-digit level of ISIC (Revision 3) pertaining to the manufacturing sector, which comprises 151 manufacturing categories

[1] INDSTAT4-Rev.3, 2011. United Nations Industrial Development Organization.

Young High-Tech Firms Outpace Private Sector Job Creation (prweb.com)

September 1, 2013

in Economic Indicators, English, Technology
1 Comment

Product Life Cycles and R&D Intensity by Sector (L. Kamran Bilir, 2013)

L. Kamran Bilir (2013), in an effort to explain how patent law enforcing and product life cycle length affect multinationals’ decision process, created a table (Table below) where the product life cycle length and the R&D Intensity is compared. Normally the product lifecycle is determined by the average retail duration of individual product varieties, however the approach used by Bilir consider the economic durability of an embedded technology. Bilir used the length of time in which a given patent continues to be cited by subsequent patents, considering that if it is still being cited it keeps a certain economic value. Regarding the relationship between the life cycle and the R&D intensity, reasoning would suggest that an industry with a short product cycle length would invest more in R&D in order to be up to date with competition. This R&D intensity and product life cycle length will drive a more complex and dynamic market. Given the values below, the product life cycle length with Bilir approach and the R&D intensity have a weak correlation (-0.297554). However, its sign is still aligned with the the inference above; allowing to maintain the initial assumption.