| AeA's
High-Tech Industry Definition
Explanation of High-Technology Industry Definition
AeA uses 45 SIC codes to define the high-technology
industry. We recognize that these 45 SIC codes do not comprehensively cover the entire
high-tech industry as the structure of the SIC system is limited. In an effort to produce
solid statistics, AeA's definition consists of SIC codes that fall into three broad
categories -- high-tech manufacturing, communications services, and software and
computer-related services. It does not include broad categories if the high-tech portion
does not represent a clear majority. Also, AeA's definition does not include many
"related" industries, such as biotechnology, engineering services, and research
and testing services.
Other industry groups not covered in AeA's definition of
the high-tech industry include wholesale and retail trade of high-tech goods. The
biotechnology industry also is not included because current U.S. government statistics do
not allow us clearly to identify which portion is "bio" and which is
"tech." The matter is further complicated because there is no clear consensus on
the definition of the biotechnology industry.
The U.S. government's SIC codes do not capture temporary
high-tech workers, as the SIC codes place all temporary employees together under SIC 7363,
help supply services. However, a study by the National Association of Temporary and
Staffing Services found that on any given day in 1997, there were nearly 2.5 million
people working as temporary employees. The study found that technical workers, which
include computer programmers and computer systems analysts, comprised 14 percent of the
temporary help industry payroll in 1997. However, this category also includes other
temporary workers, such as designers, editors, and illustrators. Present data allow us to
assume only that there are tens of thousands of high-tech temporary workers nationally,
but they are not included in our statistical analysis. (Return to Top of Page)
Background on the SIC System
The development of good data on the high-tech industry is
limited by the deficiencies in the official tools the government uses to define the U.S.
economy. The U.S. government uses the SIC codes to classify businesses by industry and to
calculate the economic activity of these industries within the U.S. economy. For example,
the computers and office equipment industry is classified under SIC code 357 and
communications equipment under SIC code 366. However, the SIC codes (originally published
in 1941 and most recently refined in 1987) do not capture many new growth industries,
particularly in the technology sector. This is largely because many of these industries
did not exist when the SIC codes were revised. The present SIC codes used by the
government describe the industrial and agricultural economy of the 1940s, but do not
capture fully the dynamic U.S. economy as it enters the 21st century. For example, the
1987 SIC codes do not isolate the nascent Internet services industry, a major source of
new jobs in the United States
The U.S. government will implement a more flexible
classification system in 1997. The new system, known as the North American Industrial
Classification System (NAICS), will address some of the above-mentioned problems. For
example, it will include a new "information" sector that will cover the software
publishing industry and online services, which under the current SIC codes fall under the
broad categories of software and computer-related services (737) or communications
services (48). Unfortunately, the new NAICS system does not address the issue of temporary
workers, who all will remain lumped under one category. The new NAICS system will
harmonize the U.S. system with Canada and Mexico. This will allow analysts to better
measure market size and flow of goods among the North American Free Trade Agreement
countries. When the new system is fully in place, AeA will re-evaluate its present
definition.
For more information about the Standard Industrial
Classification (SIC) or the North American Industrial Classification System (NAICS)
click here. (Return to Top of Page)
List of 45 SIC Codes
AeA uses 45 SIC codes that fall into three general
groupings -- high-tech manufacturing, communications services, and software and
computer-related services -- to define the U.S. high-technology industry
HIGH-TECH MANUFACTURING
Computers and Office Equipment
3571 Electronic Computers
3572 Computer Storage Devices
3575 Computer Terminals
3577 Computer Peripherals
3578 Calculating and Accounting Machines
3579 Office Machines
Consumer Electronics
3651 Household Audio and Video Equipment
3652 Phonographic Records and Prerecorded Tapes and Disks
Communications Equipment
3661 Telephone and Telegraph Apparatus
3663 Radio and TV Broadcast and Communications Equipment
3669 Other Communications Equipment
Electronic Components and Accessories
3671 Electron Tubes
3672 Printed Circuit Boards
3675 Electronic Capacitors
3676 Electronic Resistors
3677 Electronic Coils, Transformers, and Inductors
3678 Electronic Connectors
3679 Other Electronic Components
Semiconductors
3674 Semiconductors and Related Devices
Industrial Electronics
3821 Laboratory Apparatus
3822 Environmental Controls
3823 Process Control Instruments
3824 Fluid Meters and Counting Devices
3825 Instruments to Measure Electricity
3826 Laboratory Analytical Instruments
3829 Other Measuring and Controlling Devices
Photonics
3827 Optical Instruments and Lenses
3861 Photographic Equipment and Lenses
Defense Electronics
3812 Search and Navigation Systems, Instruments, and Equipment
Electromedical Equipment
3844 X-Ray Apparatus and Tubes and Related Irradiation Apparatus
3845 Electromedical and Electrotherapeutic Apparatus
COMMUNICATIONS SERVICES
4812 Radiotelephone Communications
4813 Telephone Communications
4822 Telegraph and Other Message Communications
4841 Cable and Other Pay Television Services
4899 Other Communications Services
SOFTWARE AND COMPUTER-RELATED SERVICES
Software Services
7371 Computer Programming Services
7372 Prepackaged Software
7373 Computer Integrated Systems Design
Data Processing and Information Services
7374 Computer Processing and Data Preparation
7375 Information Retrieval Services
7376 Computer Facilities Management Services
Rental, Maintenance, and Other Computer-Related
Services
7377 Computer Rental and Leasing
7378 Computer Maintenance and Repair
7379 Other Computer-Related Services
(Return to
Top of Page)
This page was last updated on 08/11/05.
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