Educational Services 63
Business Services 52
Government Services 50
Health and Social Services 50
Communications & other Utilities 35
Finance and insurance 32
Real Estate operators and insurance 26
Other services 29
At first glance, one might conclude that these are our knowledge-based industries. However, they are organized according to current SIC classifications that reflect "old economy" attitudes and perceptions. For example, goods producing and service sectors are separated. Nuala Beck points out that for economic information to be relevant we must organize our information to reflect the new realities.
The new economic structure organizes industries by strategic importance and rate of growth. An industry also includes both goods and services. If a particular service sector is demonstrating high growth, then goods producing sectors that supply components will also experience growth simply by association. Combining the two into one industrial division would provide a clearer picture about performance, and would be less likely to provide a misleading prognosis based on outdated information and assumptions.
Nuala Beck identifies four of these divisions (Computers and Semi-conductors, Health and Medicine, Communications and Transportation, and Instrumentation) as being high growth and strategic.
DEFINITION
Industries with high knowledge ratios (40+ percent) are knowledge-based. Combined into groups (e.g. computers) that reflect their primary goods and services, they form knowledge-based industrial divisions. Because they are characterized, in part, by high knowledge ratios, these specific divisions together are our "Knowledge Industries".
In this first section the industry is precisely defined by standard industrial classification codes and knowledge industry divisions. The assignment of the SIC code makes it possible to extract information at the firm or company level from the Business Register database, or from other Statistics Canada databases and publications. The data can then be consolidated by knowledge industry divisions or sectors for analysis.
SIC SIC Description 3361 Electronic Computing and Peripheral Equipment Industry 3362 Electronic Office, Store and Business Machine Industry 3369 Other Office, Store and Business Machine Industries 5744 Computer and Related Machinery, Equipment and Packaged Software, Wholesale 5791 Office and Store Machinery, Equipment and Supplies, Wholesale 5792 Service Machinery, Equipment and Supplies, Wholesale 5793 Professional Machinery, Equipment and Supplies, Wholesale 5799 Other Machinery, Equipment and Supplies n.e.c., Wholesale 7721 Computer Services 7722 Computer Equipment Maintenance and Repair 7731 Offices of Chartered and Certified Accountants 7739 Other Accounting and Bookkeeping Services 7751 Offices of Architects 7752 Offices of Engineers 7753 Other Scientific and Technical Services 7759 Other Scientific and Technical Services 7771 Management Consulting Services
Computers and Semiconductor Industry
This industry includes the following: computer equipment, semiconductors, software, and information services.
The codes correspond to segments of manufacturing, wholesale and services divisions of the Standard Industrial Classification. This group of codes was used to classify firms into the knowledge industry division of Computers.
SIC SIC Description 3371 Electrical Transformer Industry 3372 Electrical Switchgear and Protective Equipment Industry 3379 Other Electrical Industrial Equipment Industries 3911 Indicating, Recording and Controlling Instruments Industry 3912 Other Instruments and Related Products Industry 5793 Professional Machinery, Equipment and Supplies, Wholesale 5799 Other Machinery, Equipment and Supplies n.e.c., Wholesale
This industry includes optical instruments and lenses, engineering and scientific equipment, process controls, environmental consulting and equipment.
This is the most difficult industry to extract from current databases and publications. Much of the data available is provided only at the 2 or 3 digit SIC level. At those levels the data is included with other industrial divisions, such as computers and/or communications. Environmental consulting, for example would be included with Management Consulting Services in the Computer Industry.
For the purposes of this study, the Instrumentation Industry has not been included as a separate industry.
SIC SIC Description 3741 Pharmaceutical and Medicine Industry 6031 Pharmacies 6032 Patent Medicine and Toiletries Stores 8611 General Hospitals 8612 Rehabilitation Hospitals 8613 Extended Care Hospitals 8614 Mental (Psychiatric) Hospitals 8615 Addiction Hospitals 8616 Nursing Stations and Outpost Hospitals 8617 Children's (Paediatric) Hospitals 8619 Other Specialty Hospitals 8621 Homes for Personal and Nursing Care 8622 Homes for Physically Handicapped and/or Disabled 8623 Homes for Mentally Retarded 8624 Homes for Mentally Handicapped and/or Disabled 8625 Homes for Emotionally Disturbed Children 8626 Homes for Alcohol-Drug Addicts 8627 Homes for Children in Need of Protection 8628 Homes for Single Mothers 8629 Other Institutional Health and Social Services n.e 8631 Ambulance Services 8632 Drug Addiction and Alcoholism Treatment Clinics 8633 Health Rehabilitation Clinics 8634 Home Care Services (Including Home Nursing) 8635 Public Health Clinics-Community Health Centres 8639 Other Non-Institutional Health Services 8641 Child Day-Care and Nursery School Services 8642 Child Welfare Services 8643 Family Planning Services 8644 Sheltered Workshops 8645 Home-Maker Services 8646 Meal Services (Non-Commercial) 8647 Social Rehabilitation Services 8648 Crisis Intervention 8649 Other Non-Institutional Social Services 8651 Offices of Physicians, General Practice 8652 Offices of Physicians and Surgeons, Specialists 8653 Offices of Dentists, General Practice 8654 Offices of Dentists, Specialists 8661 Offices of Chiropractors and Osteopaths 8662 Offices of Nurses, Registered 8663 Offices of Nurses, Practical 8664 Offices of Nutritionists-Dietitians 8665 Offices of Physiotherapists-Occupational Therapists 8666 Offices of Optometrists 8667 Offices of Podiatrists and Chiropodists 8668 Offices of Denturists 8669 Offices of Other Health Practitioners n.e.c. 8671 Offices of Psychologists 8672 Offices of Social Workers 8679 Offices of Other Social Service Practitioners 8681 Medical Laboratories 8682 Radiological Laboratories 8683 Combined Medical and Radiological Laboratories 8684 Public Health Laboratories 8685 Blood Bank Laboratories 8689 Other Health Laboratories 8691 Health Care and Public Safety Promotion Associations and Agencies 8692 Health Care Standards Agencies 8693 Health Care Research Agencies 8694 Social Service Planning and Advocacy Agencies 8699 Other Health and Social Service Associations and Agencies
The industry includes medical care and diagnostics, pharmaceutical, surgical and medical instruments, surgical and medical supplies, drugs, and biomedicine.
SIC SIC Description 3351 Telecommunication Equipment Industry 3352 Electronic Parts and Components Industry 3359 Other Communication and Electronic Equipment Industries 3381 Communications and Energy Wire and Cable Industry 4511 Scheduled Air Transport Industry 4512 Non-Scheduled Air Transport, Chartered, Industry 4513 Non-Scheduled Air Transport, Specialty, Industry 4521 Airport Operations Industry 4522 Aircraft Rental Industry 4523 Aircraft Servicing Industry 4529 Other Service Industries Incidental to Air Transport 4811 Radio Broadcasting Industry 4812 Television Broadcasting Industry 4813 Combined Radio and Television Broadcasting Industry 4814 Cable Television Industry 4821 Telecommunication Carriers Industry 4839 Other Telecommunication Industries 4841 Postal Service Industry 4842 Courier Service Industry 5741 Electrical Wiring Supplies and Electrical Construction Material, Wholesale 5742 Electrical Generating and Transmission Equipment and Supplies, Wholesale 5743 Electronic Machinery, Equipment and Supplies (Except Computer and Related 5744 Computer and Related Machinery, Equipment and Pack 5749 Other Electrical and Electronic Machinery, Equipment and Supplies Wholesale 5951 Photographic Equipment and Supplies, Wholesale 5952 Musical Instruments and Accessories, Wholesale 9611 Motion Picture and Video Production 9612 Motion Picture and Video Distribution 9613 Motion Picture Laboratories and Video Production Facilities 9614 Sound Recording Services 9619 Other Motion Picture, Audio and Video Services 9621 Regular Motion Picture Theatres 9622 Outdoor Motion Picture Theatres 9629 Other Motion Picture Exhibition 9631 Entertainment Production Companies and Artists 9639 Other Theatrical and Staged Entertainment Services 9641 Professional Sports Clubs 9642 Professional Athletes and Promoters on Own Account
The industry includes telecommunications services, guided missiles and space equipment, radio and microwave communications, and entertainment.
CONSOLIDATION
In the previous chapter the knowledge ratio for each industry was estimated using an assigned knowledge ratio and the estimated number of employed workers for each firm and organization in Nova Scotia. The same process was performed to create a knowledge ratio for each of our knowledge industries. Combined with data from CANSIM the following estimates of employment in Nova Scotia were computed.
Sector Estimated Knowledge Percent
Knowledge Employed Ratio of KI
Workers Workers Employment
Computers 3385 5197 65.13 6.62%
Health 21437 39786 53.88 50.68%
Communications 13780 33520 41.11 42.70%
Totals 38602 78503 49.17 20.72%
Total Employment 378900
The Health sector is the most important, having about 50% of total knowledge industry employment.
The Communications sector is second, with about 43% of total knowledge industry employment.
The Computer industry is third with about 7% of total knowledge industry employment.
The overall Knowledge Ratio for the industry is 49.17, and the industry represents about 21% of total employment in Nova Scotia.
Sector Estimated Knowledge Percent
Knowledge Employed Ratio of KI
Workers Workers Employment
Computers 4029 6106 65.98 7.61%
Health 22174 42119 52.65 52.63%
Communications 13341 31963 41.74 39.86%
Totals 39544 80188 49.31 21.62%
Total Employment 370900
The Health sector continues to be the most important, having about 52% of total knowledge industry employment (an increase over 1990).
The Communications sector is second, with almost 40% of total knowledge industry employment (a decrease over 1990).
The Computer industry is third with about 8% of total knowledge industry employment (an increase over 1990).
Overall, the Knowledge Ratio remains at about 49%, an the relative share of total Nova Scotia employment has increased by 1% over 1990.
Sector Estimated Knowledge Percent
Knowledge Employed Ratio of KI
Workers Workers Employment
Computers 4266 6329 67.40 8.56%
Health 21760 41410 52.55 56.03%
Communications 10416 26171 39.80 35.41%
Totals 36442 73910 49.31 20.56%
Total employment 359400
The Health sector is the most important, having about 56% of total knowledge industry employment (an increase over 1991).
The Communications sector is second, with about 35% of total knowledge industry employment (a decrease over 1991).
The Computer industry is third with about 9% of total knowledge industry employment (an increase over 1991).
Overall, Health and Computer show a two year trend of an increasing share of total employment in Knowledge Industries. Communications shows a declining trend in KI employment. The overall knowledge ratio and share of Nova Scotia employment remains stable. Note that total employment has declined significantly over the three year period.
ANALYSIS
As shown in the previous chapter, about 28% of all workers in Nova Scotia are knowledge workers. Knowledge industries employ about 20% of all workers, half of which are knowledge workers. In other words 10% of all workers are employed as knowledge workers in knowledge industries.
The above figure illustrates the relative importance of each sector of Nova Scotia's Knowledge Industries. It is dominated by Health and Communications. Health is increasing its share, while Communications share is declining. The Computer, while small in comparison is increasing in importance.
While the Computer Industry is relatively small, it has the largest concentration of knowledge workers. The above figure shows the percentage of knowledge workers employed in each knowledge industry sector. The Computer Industry ranks the highest, followed by Health and Communications.
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