Today’s rapid advances in science and technology mean that economies have become more and more knowledge-based and globalised. These developments are mutually reinforcing; they encourage diffusion of new ideas and technologies and give rise to new forms of competition and co-operation. More than ever, it is essential to monitor trends and structural shifts in science, technology and industry. This book examines the knowledge-based economy, the challenge of globalisation, and economic performance and competitiveness of OECD countries under twelve main headings. It allows Member countries to compare their performance to that of other countries and to see how well prepared they are to meet future challenges and where greater efforts will be needed. This book mainly builds on the OECD’s most recent internationally comparable statistical data. It includes many standard indicators contained in previous editions (such as R&D intensity, import penetration and productivity measures) as well as a range of new indicators (such as intangible investments, computer penetration and electronic commerce activity) that better reflect innovative performance and related outputs of a knowledge-based economy. In addition to presenting some 45 topics in the form of over 120 graphs and the most important findings in the form of bullet points, this volume contains methodological notes on indicators and data sources. An annex presents OECD databases and the latest internationally comparable OECD statistics on science, technology and industry.