Measuring the technological intensity of the industrial sector: A methodological and empirical approach

This paper contends that most definitions of what comprises a "high technology" industry are based on only one defining characteristic. It is argued that an adequate definition needs to be based on a multi-dimensional view of technology and a methodological approach is suggested for classifying industrial sectors into "technological profiles" on the basis of the various aspects of technology that they embody. Based on this methodology, an empirical study based on sub-branches of Israeli industry (at the 3 digit SIC level) is presented. Using cluster analysis and analysis of variance it is shown that the technological profiles have similar industrial, and not just technological, characteristics. The policy implications of these findings point to the need for a definition of "high technology" that caters to the policy needs and objectives for which it is being defined.