This indicator represents the portion of a state’s total employment attributable to the knowledge- and technology-intensive (KTI) industries compared to the state’s total employment. KTI industries are those industries with high and medium-high R&D intensity, where research and development (R&D) intensity is defined as the ratio of R&D expenditures to production. They consist of nine manufacturing industries—chemicals and chemical products; pharmaceuticals; computer, electronic, and optical products; electrical equipment; other machinery and equipment; motor vehicles, trailers, and semi-trailers; air and spacecraft and related machinery; railroad, military vehicles, and other transport equipment; medical and dental instruments—and three services industries—information technology and other information services; software publishing; and scientific research and development. States seek to attract such industries because their relatively high compensation levels draw workers and increase state tax revenues.

For more details about KTI industries, see the “Technical Appendix” of the Indicators 2022 report “[2022] Production and Trade of Knowledge- and Technology-Intensive Industries.”

Data source: Census Bureau, American Community Survey, Public Use Microdata Sample.