Measuring R&D Intensity for Technological Classification of Knowledge Based Manufacturing Industries

Industries are generally classified into different groups on some parameter in order to compare the performance between the groups of homogeneous units, be it firms or industries. Many empirical research studies in the area of innovation management, knowledge management and intellectual capital are undertaken on some industries, without any rationale for the choice of the industry. Developing a framework for undertaking research studies in knowledge based industries would help the researchers to focus more on strategies, models and developing metrics for innovation, intellectual capital and knowledge management. OECD Classification is the only available classification for knowledge based manufacturing industries and this is based on the Research & Development (R&D) intensity of firms. Therefore an attempt is made in this study to develop a framework for industrial classification of knowledge based manufacturing industries in India.