The Hamilton Index, 2026: China’s
Dominance in Advanced Industries
Is Growing
MEGHAN OSTERTAG | MAY 2026
China now produces nearly one-quarter of global output in the 10 advanced industries that make
up ITIF’s Hamilton Index, outpacing all other nations. America and the West must recognize that
China’s gains are coming at the expense of their techno-economic and national power.
KEY TAKEAWAYS
China now dominates advanced industry production globally, holding nearly one-quarter
of the global market across all 10 Hamilton industries combined, and leading production
in 7 of the 10 advanced industries.
China’s rise in advanced industry output has been unprecedented in speed and scale,
having grown from less than one-fifth of global output in 2012 (19 percent) to nearly
one-quarter in 2022 ( percent).
Overall, China overperforms relative to the size of its economy, with an LQ of
(meaning 36 percent above the global average). By comparison, America underperforms
with an LQ of just (12 percent below average).
America’s global market share in Hamilton industries grew marginally faster than China’s
from 2020 to 2022. But to match China’s overall LQ in 2022, . advanced-industry
output would have needed to be 56 percent higher—a margin of $ trillion.
OECD nations experienced a dramatic loss of industrial leadership over the last decade
for which data is available on trade in value added. Their combined share of advanced
industry output fell from 64 percent in 2012 to 58 percent in 2022.
Without stronger policy action, the United States and its allies across the West risk
suffering continued erosion of their advanced industrial base, which will leave them
increasingly vulnerable to techno-economic and national security coercion.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 2 | CONTENTS
CONTENTS
Key Takeaways ................................................................................................................. 1
Introduction ..................................................................................................................... 4
Methodology ..................................................................................................................... 4
Overall Findings ................................................................................................................ 7
Specialization Rankings ................................................................................................. 7
Top 10 Producers ........................................................................................................ 12
The China Juggernaut .................................................................................................. 15
The Fall of the OECD ................................................................................................ 18
The United States and OECD vs. China and the Rest of the World .................................. 19
Industry Profiles ............................................................................................................. 21
IT and Information Services .......................................................................................... 21
Computers, Electronics, and Optical Products ................................................................. 25
Chemicals ................................................................................................................... 29
Machinery and Equipment ............................................................................................ 33
Basic Metals ............................................................................................................... 37
Motor Vehicles ............................................................................................................ 41
Fabricated Metals ........................................................................................................ 45
Pharmaceuticals .......................................................................................................... 49
Electrical Equipment ................................................................................................... 53
Other Transportation Equipment .................................................................................... 57
Top 10 Producer Profiles ................................................................................................. 61
China ......................................................................................................................... 61
United States .............................................................................................................. 65
Germany ..................................................................................................................... 71
Japan ......................................................................................................................... 75
South Korea ................................................................................................................ 79
India .......................................................................................................................... 83
United Kingdom .......................................................................................................... 87
France ........................................................................................................................ 91
Taiwan ....................................................................................................................... 95
Italy ........................................................................................................................... 99
Other Producers ............................................................................................................ 102
Canada ..................................................................................................................... 102
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 3 | CONTENTS
Mexico ..................................................................................................................... 106
Vietnam .................................................................................................................... 109
Select Regional Groupings ............................................................................................. 113
EU-17 ...................................................................................................................... 113
EU-10 ...................................................................................................................... 115
The Commonwealth ................................................................................................... 117
The Quad.................................................................................................................. 119
Belt & Road Members ................................................................................................ 121
Appendices .................................................................................................................. 123
Appendix A: Hamilton Index Industries ........................................................................ 123
Appendix B: Country Groupings ................................................................................... 124
Appendix C: Hamilton Index Calculations ..................................................................... 125
Appendix D: Specialization Index Calculations .............................................................. 126
Endnotes ..................................................................................................................... 127
The Hamilton Index, 2026: Data Visualization Tools
This report is accompanied by three data visualization tools:
“The Hamilton Index, 2026: Industry Visualizations” (ITIF, May 2026),
“The Hamilton Index, 2026: Country Visualizations” (ITIF, May 2026),
“The Hamilton Index, 2026: Momentum Visualizations” (ITIF, May 2026),
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 4 | CONTENTS
INTRODUCTION
Advanced industries sit at the core of modern economic growth. They drive productivity gains
across the broader economy, support high-wage employment, and generate export revenues that
underpin strong currencies and favorable terms of trade. And because these sectors are deeply
embedded in global supply chains and characterized by scale, nations that secure leadership in
advanced industries tend to lock in durable advantages. Winning in innovation alone in these
industries is not enough; without domestic or allied production capacity, countries forfeit much
of the economic value of discovery, lose critical knowledge, and weaken the ecosystems that
translate research into commercial and strategic power. These industries are what the
Information Technology and Innovation Foundation (ITIF) calls “national power industries.”1
China’s rapid ascent into advanced industry production has fundamentally altered the global
landscape. It has not become more specialized in these advanced sectors over the past decade
(because the rest of its economy has also grown), but its absolute output and share of global
production in these advanced industries has grown steadily. Indeed, China has moved from a
peripheral manufacturer to a central player and, in some sectors, a global leader in advanced
industries. This shift poses a direct challenge to the United States and the broader Western
alliance bloc. As advanced industries increasingly underpin defense supply chains, digital
infrastructure, and economic growth, China’s gains are often coming at the expense of . and
allied capacity. The result is a more fragile industrial base, making the United States
increasingly vulnerable to the coercive pressures from China.
METHODOLOGY
To assess . and other nations’ performance, ITIF has examined changes in global shares of
value-added output in 10 advanced industry sectors aggregated into the Hamilton Index of
Advanced-Technology Performance: information technology (IT) and information services;
computers, electronics, and optical products; chemicals (not including pharmaceuticals);
machinery and equipment; basic metals; motor vehicles; fabricated metals; pharmaceuticals;
electrical equipment; and other transportation equipment. This report serves as the second
update of the Hamilton Index, following the first edition published in 2022 and the second
published in It is accompanied by three data visualization tools covering the entire
dataset, which are available on ITIF’s To conduct this analysis, ITIF uses value-added
data from the Organization for Economic Cooperation and Development’s (OECD’s) trade in value
added dataset, which covers the period from 1995 to ITIF’s analysis focuses on 39
countries included in that dataset. Because of problems with how Ireland’s output is reported, it
is not included in the analysis or in EU-wide aggregate
The 10 industries included in the Hamilton Index together accounted for nearly $12 trillion in
global production in 2022 (figure 1). The information technology (IT) and information services
industry (which includes software, Internet services, and data processing) is the largest of the
10, accounting for 20 percent of global advanced industry output.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 5 | CONTENTS
Figure 1: Global output from industries included in the Hamilton Index, 2022 ($ trillion, total)
The aggregate production of the 10 industries equaled percent of the global economy in
2022, the same as in 1995, rebounding from a nadir of percent in 2008, when advanced
industry production declined more than the overall gross domestic product (GDP). (See figure 2.)
However, the output of each individual industry has changed, with IT and information services’
share of the global economy growing 45 percent since 2002. The fact that the overall share of
advanced industry output in the global economy has not changed underscores the zero-sum
competition between nations.
Nations are, or at least should be, competing for a greater share of this fixed pie, as China has
shown itself to be. The United States, the world’s dominant techno-economic power for over 125
years, has allowed itself to stand on the sidelines of this global competition as China and the rest
of the world capture growing slices of market share, and is now at risk of losing this race—and a
loss would be catastrophic, turning the United States into a deindustrialized economy with weak
economic growth and innovation capabilities. Time is short. The first half of this decade was one
in which China proved its prowess in dominating advanced industries, moving from simply a
copier to an innovator. The second half of this decade will be the time for the United States to
demonstrate its willingness and ability to turn around . advanced industry fortunes because,
once China gains sufficient global market share, allied and . production risks being
permanently weakened.
This report is one of a series published by ITIF addressing the Chinese national techno-economic
power industry challenge and will demonstrate the decline in . advanced industry production
over the past 27 years and China’s rise as a global leader. Future reports in this series will lay out
in great detail the specific policy actions needed to better combat Chinese dominance.
IT & Info. Svcs., $
Mach. Equip., $
Motor Vehicles,
$
Fab. Metals,
$
Pharma.,
$
Elec. Equip.,
$
Other Transp.,
$. Elec., $
Chemicals, $
Basic Metals, $
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 6 | CONTENTS
Figure 2: Hamilton industry shares of the global economy, 1995–2022
Of course, global market shares of advanced industries cannot serve as the only metric of
national competitiveness because nations have different-sized economies. To assess nations’
relative performance in strategically important industries, ITIF uses an analytical statistic known
as a “location quotient” (LQ), which measures any region’s level of industrial specialization
relative to a larger geographic unit—in this case, a nation relative to the rest of the world.
The LQ is calculated as an industry’s share of a country’s economy divided by the global
industry’s share of the global economy, or as a country’s share of global output in an industry
divided by the country’s overall share of the global economy. Either way, an LQ greater than 1
means the country’s share of global output in an industry is greater than the global average, and
an LQ less than 1 means a country’s share is less than the global average. For example, the .
motor vehicle industry’s output in 2022 was percent of global motor vehicle production,
while the . economy overall accounted for percent of global GDP. Thus, the . LQ in
the motor vehicles industry was percent divided by percent, or , meaning the
United States significantly underperformed in the industry. Its output was just 54 percent of the
level we would expect based on the size of the . economy.
Because LQ measures the importance of an industry relative to the size of a country’s economy, a
country’s LQ can decline even if its industries are expanding rapidly, provided the rest of the
economy is growing even faster.
% % Global Index, %
0%
2%
4%
6%
8%
10%
12%
14%
1995 2009 2022
Other Transportation
Electrical Equipment
Pharmaceuticals
Fabricated Metals
Motor Vehicles
Basic Metals
Machinery and Equipment
Chemicals
Computers and Electronics
IT and Information Services
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 7 | CONTENTS
OVERALL FINDINGS
Specialization Rankings
Fifteen countries overperformed in their composite Hamilton Index LQ in 2022, led by Taiwan
with an LQ of (the large majority of which was driven by the country’s semiconductor
industry, which is included under the computer and electronics industry). (See figure 3.) South
Korea, Singapore, and Japan, all technologically advanced East Asian nations, ranked second,
fourth, and seventh, respectively. These three nations have intensively focused on advanced
industry development over the past several decades—a strategy that has been reflected in their
LQs and global market shares in industries such as computers and electronics. European nations,
including Switzerland, Germany, Sweden, and Austria, rank 5th, 6th, 10th, and 11th,
respectively, leading in engineering and chemical-intensive industries.
While most developing nations underperformed with LQs significantly below 1, Vietnam stands
out as an outlier, ranking third overall with an LQ of . This marks a rapid rise in relative
performance, driven primarily by its growth in the computers and electronics industry. Other
developing nations that overperformed include Malaysia, India, Mexico, and Thailand.
The United States’ LQ was , meaning that as a share of GDP, . Hamilton industries’
value added was lower than the global average. For the United States to achieve an LQ of 1,
advanced industry output would have needed to be $370 billion greater in 2022, a 14 percent
increase. This would be equivalent to more than doubling the output of the computer and
electronics industry in the United States last year.
Some will argue that it’s acceptable or even normal for the . LQ to be this low because it is a
large economy and one in which the share of GDP that is globally traded is below average. But
LQ is not a measure related to trade; it’s a measure related to production. Moreover, there was a
small but positive correlation between national GDP and LQ in 2022 (), suggesting that the
. score should not be below average and, if anything, should be above average. The reality is
America’s low LQ reflects failure, not success.
The United States’ LQ was . For the United States to achieve an LQ of , advanced industry
output would have needed to be $370 billion greater in 2022, equivalent to more than doubling the
output of the computer and electronics industry last year.
China, which ranked eighth, has perhaps focused more than any other country on cultivating
advanced industries, becoming a top performer in several Hamilton industries, including basic
metals, machinery and equipment, and electrical equipment. Yet, over the past decade, China
experienced the largest decline in overall LQ among countries in the sample, falling by 21
percentage points. (See figure 4.) Importantly, this decline does not reflect a weakening of
China’s advanced industry production. China’s output in these industries grew by percent
annually over the previous decade—faster than the United States, OECD, or the global average.
Instead, it reflects China’s extraordinary economic growth, with GDP growing nearly 9 percent
annually over the same period, meaning the rest of the economy expanded even faster than
advanced industries did. As a result, advanced industries make up a slightly smaller share of
China’s economy even as China continues to capture growing global market share and remains a
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 8 | CONTENTS
dominant force in these sectors. China also continues to overperform in the Hamilton Index, with
its LQ being 36 percent higher than the world average.
Figure 3: Relative national performance in the composite Hamilton Index (2022 LQ)
Taiwan
South Korea
Vietnam
Singapore
Switzerland
Germany
Japan
China
Israel
Sweden
Austria
Malaysia
India
Mexico
Thailand
World
Denmark
Poland
Italy
Belgium
United States
Netherlands
Argentina
Turkey
Russia
France
Indonesia
United Kingdom
Brazil
Spain
South Africa
Canada
Philippines
Australia
Saudi Arabia
Pakistan
Egypt
Norway
Nigeria
Bangladesh
Hong Kong
Overperforming
Average
Underperforming
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Vietnam saw the largest increase in LQ, rising by 44 percentage points, followed by Taiwan and
Israel. Several developing nations saw a moderate rise in LQ, including Poland, Mexico, and
Turkey, while the United States, Canada, and Japan were among the nations that experienced
moderate declines.
Figure 4: Change in relative national performance in the composite Hamilton Index (LQ difference, 2013–2022)
Vietnam
Taiwan
Israel
Singapore
Poland
Russia
Mexico
Sweden
Turkey
Denmark
Netherlands
Italy
Spain
Brazil
Nigeria
Saudi Arabia
Switzerland
Argentina
Malaysia
Japan
France
Australia
Bangladesh
Belgium
Canada
United States
India
Pakistan
Indonesia
United Kingdom
South Korea
Austria
Thailand
Philippines
South Africa
Norway
Egypt
Germany
China
Overperforming
Underperforming
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For many countries that overperform on the LQ measure, that strong performance is driven by
one or two dominant industries. For example, nearly two-thirds of Taiwan’s and Vietnam’s
advanced industry output is from the computer and electronics industry. Countries such as these
dominate specific niches but have limited influence over the broader advanced industry
ecosystem. By contrast, countries with capabilities spread across multiple advanced industries
can exert influence over several supply chains, shaping multiple segments of global trade.
Figure 5 shows the specializations of the largest advanced industry producers using a normalized
Herfindahl-Hirschman Index ranging from 0 to 1, wherein 0 indicates an equal distribution of
output across all 10 Hamilton industries, while a 1 indicates complete concentration in a single
industry (a detailed explanation can be found in appendix D). An index score of 0 to
indicates that output is broadly distributed across industries, a score of to indicates
moderate specialization, and a score above indicates strong specialization.
Unsurprisingly, Taiwan is the most specialized among the top producers, with the majority of its
advanced industry output concentrated in a single industry. India, the United Kingdom, France,
Canada, the United States, and South Korea all exhibit moderate specialization, with about one-
third of advanced industry output originating from their largest sector. China’s relatively low
specialization score highlights the broad distribution of its advanced industry production across
the full range of Hamilton industries. Even China’s largest advanced industry by output, basic
metals, accounts for only 17 percent of its advanced industry output, significantly less than other
peer countries’.
China’s dominance differs structurally from that of the United States, and its breadth of
capability across industries poses a more systemic challenge. Rather than leading in a narrow set
of industries, China is simultaneously building strength across a number of critical sectors. This
broad-based industrial capacity enables China to shape multiple supply chains, creating dense
industrial ecosystems that reinforce its long-term technological and manufacturing leadership.
Figure 5: Specialization Index Rankings, 2022
Taiwan
India
UK
France
Canada
United States
South Korea
Germany
Italy
Japan
China
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And just like countries, some industries are more concentrated than others. For example, South
Korea, the country most specialized in chemical manufacturing, has an LQ of , the lowest
among the leading countries, while Taiwan leads in the computer and electronics industry with
an LQ of , the highest among the leading countries. In many industries, a high LQ is
reflective of the size of a nation’s economy, with smaller economies, such as those of Taiwan,
Israel, Mexico, and Indonesia, more likely to have a single industry that dominates each country’s
economy. But in other cases, it is because industries such as machinery, chemicals, and
electrical equipment are much broader and have wider arrays of subindustries.
Without IT and information services, the United States has failed to measurably increase its market
share in advanced industries over the past decade. The same cannot be said for China.
In terms of absolute production, China is far and away the leader in almost every industry,
capturing the largest share of the global market in 7 of 10 advanced industries and holding
nearly 25 percent of global market share across Hamilton Industries.
Table 1: Hamilton Index leaders by industry, 2022
Industry
Global Output
(Billions)
Leading
Producer
Leader’s
Share
Relative
Leader
Leader’s
LQ
IT and Information Services $2,333 USA % Israel
Computers and Electronics $1,551 China % Taiwan
Chemicals $1,347 China % South Korea
Machinery and Equipment $1,287 China % Japan
Basic Metals $1,197 China % China
Motor Vehicles $1,155 China % Mexico
Fabricated Metals $1,013 China % Indonesia
Pharmaceuticals $872 USA % Switzerland
Electrical Equipment $680 China % South Korea
Other Transportation $423 USA % Taiwan
Composite Hamilton Index $11,858 China % Taiwan
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Top 10 Producers
From 1996 to 2012, the United States was the leader in advanced industry output, holding the
largest slice of global market share in these 10 industries. However, China’s accession to the
World Trade Organization (WTO) in 2001 opened the floodgates to Chinese dominance. Since
2012, China has taken the lead from the United States, currently holding percent of global
market share, while the United States has fallen to percent. Advanced industries being the
zero-sum game that they are, the rise of China has been coupled with the decline of several other
once-dominant countries. Japan, which led the world in advanced industry market share in
1995, regressed to fourth by 2022, a decline of more than 18 percentage points. Germany,
while not declining as much as Japan, also fell by about 5 percentage points. The United
Kingdom, France, and Italy have also seen their shares of the global market fall over the past
27 years.
Figure 6: Top 10 producers’ historical shares of global output in Hamilton industries, 1995–2022
China’s dominance is even more evident when the IT and information services industry is
removed from the equation. IT and information services is the largest advanced industry in the
United States by a large margin (it made up 32 percent of . advanced industry output in
2022), but it is one of the smallest in China, making up just 7 percent of its output.
When excluding IT, China became the world’s largest producer of advanced industries in 2010,
surpassing the United States, and its share has continued to grow rapidly. By 2022, it held
nearly 29 percent of the global market share. The United States, on the other hand, has seen its
share of these nine industries fall rapidly and then stagnate. Between 2000 and 2011, .
market share declined from a high of percent to a low of percent, and in the years
since, it has hovered between 17 and 19 percent. (See figure 7.) Without IT and information
0%
5%
10%
15%
20%
25%
30%
1995 2000 2005 2010 2015 2020
China
United States
Germany
Japan
South Korea
India
United Kingdom
France
Taiwan
Italy
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 13 | CONTENTS
services, the United States has failed to measurably increase its market share in advanced
industries over the past decade. The same cannot be said for China.
Later in this report, each country is assessed on its LQ in each industry based on whether it is
overperforming or underperforming and whether it has improved or regressed since 2013. Both
measures taken together are important because having industries that are overperforming but
also regressing is not a sign of a strong advanced economy, but rather of a weakening one, while
industries that are underperforming but also improving exemplify a developing economy. Figure 8
shows the two extremes, the number of industries that are both overperforming and improving,
which will be referred to as strong and growing industries, and underperforming and regressing,
which are weak and declining, for the top 10 performers in this Hamilton Index. The countries
are organized by the number of industries that are strong and growing relative to those that are
weak and declining. South Korea leads the top producers with four strong and growing industries
and only one, IT and information services, that is weak and declining. Italy and Taiwan also have
four strong and growing industries, but have two and three weak and declining sectors,
respectively. These three countries are also the only 3 in the top 10 to have more strong and
growing industries than weak, declining ones.
The United States and China have the same number of industries that are strong and growing:
just one. However, where they differ is the number of weak industries they have. China has just
two industries that fit this classification, whereas the United States has seven. The United
Kingdom performs the worst with eight industries that are weak and declining and only one that
is strong and growing.
Figure 7: Top 10 producers’ historical shares of global output in Hamilton industries minus IT, 1995–2022
0%
5%
10%
15%
20%
25%
30%
35%
1995 2000 2005 2010 2015 2020
China
United States
Japan
Germany
South Korea
India
Taiwan
Italy
Mexico
Russia
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 14 | CONTENTS
Figure 8: Numbers of comparatively strong and weak industries in the top 10 producer nations
Looking at the value added of these industries, the one industry in which the United States
overperformed and improved was the IT and information services industry, with an output of over
$800 billion. (See figure 9.) However, the value of industries in which the United States
underperformed and regressed was much higher, at $ trillion. Aside from the United States,
weak and regressing industries outvalued strong and improving industries only in France and the
United Kingdom.
Figure 9: Value-added output by comparatively strong and weak industries in the top 10 producer nations
0 1 2 3 4 5 6 7 8 9
South Korea
Taiwan
Italy
Japan
China
Germany
India
United States
France
United Kingdom
Overperforming, improving
Underperforming, regressing
$0 $300B $600B $900B $1,200B $1,500B
United States
China
Japan
South Korea
Germany
India
Taiwan
Italy
France
United Kingdom
Overperforming, improving
Underperforming, regressing
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 15 | CONTENTS
The China Juggernaut
If there is one takeaway from the past 27 years of advanced industry analysis it is that China is
not a normal competitor. Its output across all advanced industries has grown at rates unmatched
by any other nation, making it the leader in almost every industry.
China’s share of global advanced industry output has increased by over 21 percentage points,
from percent in 1995 to nearly 25 percent in 2022. In every advanced industry, China’s
output has increased by at least 1,750 percent, with the average increase over 2,200 percent.
Compare that with the United States, where output, on average, increased by just 200 percent.
As previously discussed, advanced industry output as a share of GDP has been stable over the
27-year period analyzed in this report, meaning that when one country gained market share,
other countries lost it. China’s market share in every advanced industry has grown threefold or
more over the past 27 years, leaving it with more than a quarter of global market share in several
industries, including fabricated and basic metals, chemicals, machinery, and electrical
equipment. (See figure 10.)
Figure 10: China’s global market shares in Hamilton industries, 1995–2022
China leads the world in 7 out of the 10 Hamilton industries and therefore leads the United
States. Excluding IT and information services, other transportation, and pharmaceuticals, China
holds a greater share of the global market than the United States does. Figure 11 shows the ratio
of China’s global market share in 2022 to the United States’ share, meaning that industries with
a value greater than one are industries in which China holds a larger share of the global market.
Though the United States is close to China’s market share in some industries, such as computers
and electronics and chemicals, in other industries, such as basic metals, China has a clear and
definitive lead.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1995 2000 2005 2010 2015 2020
Basic Metals
Electrical Equipment
Machinery and Equipment
Chemicals
Fabricated Metals
Motor Vehicles
Hamilton Index
Computers and Electronics
Pharmaceuticals
Other Transportation
IT and Information Services
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 16 | CONTENTS
Figure 11: Ratio of Chinese to . global market share in Hamilton industries, 2022
In the years immediately after its accession to the WTO and up to 2011, China’s advanced
industries underwent their most rapid growth in history, with output in these sectors increasing
by up to 34 percent annually in some years and by 18 percent on average. Since then, China’s
growth has cooled moderately, but it is still one of the fastest-growing advanced industry
economies in the world. Overarching industrial strategies, such as the Made in China 2025 Plan,
and sector-specific industrial policies have led advanced industries in China to continue growing
at unprecedented speed. For example, China’s fabricated metals industry output increased by
over 9 percent annually between 2018 and 2022, while output for the rest of the world grew by
just 2 percent.
Overall, China’s output in Hamilton industries has increased by over 26 percent since 2018,
while the rest of the world’s output has grown by only percent. When removing IT and
information services, an industry in which the United States and OECD perform strongly, the
picture is even grimmer. China’s output increased by percent; the rest of the world’s output
increased by only percent.
Looking more closely, China’s output has increased faster than the United States’ in seven
Hamilton industries. Figure 12 shows the change in China’s output in advanced industries
divided by the change in . output. Industries with a value of 1 or more are industries in which
China’s output has grown faster than the United States’. In all but IT and information services,
other transportation, and pharmaceuticals, China’s output has grown at a greater rate than the
United States’, with industries such as basic metals and machinery and equipment growing six
times more than that of the United States.
Basic Metals
Electrical Equipment
Machinery and Equipment
Motor Vehicles
Fabricated Metals
Chemicals
National Performance
Computers and Electronics
Pharmaceuticals
Other Transportation
IT and Information Services
. share > Chinese share
. share < Chinese share
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 17 | CONTENTS
Figure 12: Change in China’s output as a share of the change in . output in Hamilton industries, 2013–2022
To appreciate the enormity of the gap between the United States and China, consider that, in
order to match the advanced-industry share of China’s economy, the United States would have
needed to increase its output by nearly $ trillion in 2022, a 56 percent increase. An increase
of this kind would have required almost doubling output in IT and information services,
quadrupling output in computers and electronics, or increasing pharmaceutical output by a
factor of six.
But it is also worth noting that since 2020—the final year covered in the previous Hamilton
Index—growth in advanced industry market share has been slightly stronger in the United States
than in China. China’s share increased by percentage points over this period, while the
United States’ rose by percentage points. This difference is too small to suggest that this is
a canary in the coal mine for a slowdown in China’s industrial growth, but it may indicate that
the economic challenges China has faced since the COVID-19 pandemic—including deflationary
pressures, declining property values, and high unemployment—are beginning to affect overall
industrial growth.
Figure 13: Nominal change in output from 2018 to 2022, China vs. the rest of the world
Machinery and Equipment
Basic Metals
Electrical Equipment
Fabricated Metals
Motor Vehicles
Chemicals
National Performance
Computers and Electronics
Other Transportation
Pharmaceuticals
IT and Information Services
. share > Chinese share
. share < Chinese share
%
%
%
%
Hamilton Output (-IT)
Hamilton Output
China
Rest of the World
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 18 | CONTENTS
The Fall of the OECD
China’s rise as the leader in advanced industries meant that OECD nations that were once
leaders were now followers, and the OECD as a whole no longer had the economic power it once
did. Between 1995 and 2022, OECD nations’ market share in advanced industries fell from 86
percent to 58 percent, a 28 percentage-point decline. Put another way, in 1995, more than 8
out of every 10 dollars of value added in advanced industries originated in the OECD; now that
figure is down to less than 6. China’s gains in global market share across all Hamilton industries
were strongly correlated with the OECD’s losses, with a correlation coefficient of .
The OECD’s market share declined in every Hamilton industry, but these losses were not
distributed evenly. The largest declines for the OECD came in basic metals, where the bloc’s
market share fell by 44 percentage points, and in electrical equipment, which declined by 42
percentage points. However, the losses in the basic metals industry appear to have mitigated over
the past two years, as the OECD has begun to regain market share (4 percentage points) since
2020. Although not a large jump, the gain represents the first time since 1995 that the OECD’s
market share in basic metals has increased for two years in a row. In fact, basic metals is the
only industry in which the OECD has increased its market share since 2020. Perhaps
unsurprisingly, China ceded market share in this industry between 2020 and 2022. Notably,
China still leads the world, controlling 42 percent of the basic metals market.
Figure 14: OECD’s global market share in Hamilton Industries, 1995–2022
It would be one thing if China’s performance in advanced industries were proportional to the size
of its own economy, but over the period from 1995 to 2022, that was not the case. China made
a concerted effort to overperform in these industries, recognizing their importance from a
geopolitical and economic standpoint, perhaps before many other leading countries. And these
0%
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1995 2000 2005 2010 2015 2020
IT and Information Services
Pharmaceuticals
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Fabricated Metals
National Performance
Machinery and Equipment
Computers and Electronics
Chemicals
Electrical Equipment
Basic Metals
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 19 | CONTENTS
efforts largely succeeded. In 2022, China’s value-added output was 36 percentage points more
than the global average, while the OECD’s was 2 percentage points less than the global average.
The United States and OECD vs. China and the Rest of the World
The growth of China, while coupled with the decline of the West, has also occurred alongside
another geopolitical trend: the rise of the Global South and the developing world. Through
programs such as the Belt and Road Initiative, China has leveraged large-scale infrastructure
investment worldwide to entrench trade dependencies, reinforce strategic partnerships, and
cultivate export markets. Not every non-OECD country takes part in the Belt and Road Initiative;
however, the initiative is just an example of how China has used its economic and political power
to strengthen the economies of historically economically weaker countries.
The global market share of non-OECD countries increased by percentage points between
1995 and 2022, but most of that increase was driven by China’s growth. Excluding China from
the calculation, non-OECD countries still experienced a sizeable increase in market share, rising
by percentage points. (See figure 15. The bloc of non-OECD countries without China is
shown as WXOECD (-CHN).)
Most of the industries that non-OECD economies, excluding China, excelled in include traditional
heavy manufacturing industries, such as basic and fabricated metals and electrical equipment.
These industries saw their market shares increase between 7 and percentage points.
However, the industry in which the bloc experienced the greatest increase was computers and
electronics, where its global market share rose by 14 percentage points, driven by Vietnam’s
growth as a hotspot for electronics manufacturing.
Figure 15: Global market shares of Hamilton industries for the United States, OECD, China, and non-OECD
countries, 1995–2022
United States
China
OECD (-USA)
WXOECD (-CHN)
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INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 20 | CONTENTS
In terms of LQ, both China and non-OECD countries have seen their LQs improve since 1995,
though non-OECD nations still underperformed relative to the world average as of 2022 (figure
16). Between 1995 and 2022, non-OECD nations, excluding China, saw their LQ increase by 7
points, while China’s increased by 12 points. In comparison, OECD and the United States
declined in relative performance, with their LQs falling by 9 and 3 points, respectively, further
demonstrating the shift from Western world dominance to closer parity in advanced industry
production between developed and developing nations.
In 1995, more than 8 out of every 10 dollars of value added in advanced industries originated in
OECD; now that figure is down to less than 6.
Figure 16: Net performance in Hamilton industries since 1995 (scaled to 2022 output)
China’s growth as a leader in advanced manufacturing and its ability to capture large swaths of
market share over the past 27 years have meant that many developing nations have not been
able to become strong advanced manufacturing hubs when they otherwise may have. However,
the tensions around China have driven companies toward China-Plus-One or China-Plus-Many
strategies, in which they diversify manufacturing by opening operations in other countries with
lower labor costs. These strategies may mean that non-OECD countries will see a greater increase
in market share in the near future.
USA
$
CHN
$
OECD (-USA)
$
WXOECD (-CHN)
$
Overperforming
Underperforming
Im
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rovin
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R
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in
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Q
LQ Change, 1995–2022
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 21 | CONTENTS
INDUSTRY PROFILES
IT and Information Services
IT and information services includes several IT services subindustries, such as software
development (including artificial intelligence (AI)), cloud computing, Internet services, and data
processing and hosting. It is strategically important due to its high wages and international trade
volume and is recognized as a key driver of innovation, as seen in the AI industry in recent years.
The industry has grown substantially over the past 27 years, with output rising 592 percent in
nominal . dollars from 1995 to 2022, making it the largest advanced industry in the world
since 2003. The industry also grew by more than two times global GDP over the same period:
229 percent. Unlike most other advanced industries, the IT and information services industry is
concentrated in the OECD, accounting for 74 percent of global market share. However, the
OECD’s dominance in this industry has declined slightly, falling from a peak of 90 percent
in 2003.
The United States leads as the top individual nation, holding 35 percent of global market share
in the industry, up from 24 percent in 1995. . dominance in IT and information services has
been driven by the emergence and growth of key technology companies, including Amazon,
Google, Meta, and, more recently, leading AI firms such as OpenAI and Anthropic. (See figure
17.) Considering the United States’ continued dominance in AI through 2026, it is likely the
United States will maintain its leadership in the industry for the next several years. The next
highest-ranking nations are China ( percent), India (7 percent), and Germany ( percent).
The EU, not including Ireland, has seen its share fall by 6 percentage points since 1995 as its
reliance on . and Chinese information systems has grown.
Figure 17: Top 10 producers’ historical shares of global output in IT and information services, 1995–2022
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1995 2000 2005 2010 2015 2020
United States
China
India
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United Kingdom
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South Korea
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 22 | CONTENTS
Countries that saw the greatest growth in their global market share of the IT industry over the 27-
year period include the United States, which increased its lead by percentage points, China
( percentage points), and India ( percentage points). Non-OECD countries collectively saw
their global market share increase by more than 13 percentage points, to percent, as of
2022. Conversely, Japan, which led the world in this industry through 1996, experienced a 22
percentage-point decline, the largest among any nation. The United Kingdom also saw its share
fall by over 5 percentage points.
The OECD’s dominance in the IT services industry has declined slightly, falling from a peak of 90
percent in 2003 to 74 percent in 2022. The market share of non-OECD countries increased to
percent in 2022.
Looking at relative performance, Israel leads the world with an LQ of , driven by high
investment and technology crossover from its well-funded military and defense industry. Other
strong relative performers include India (LQ of ), Sweden (), the United States (),
France (), Switzerland (), the Netherlands (), and Germany (). Several
European nations make up the top 10, with others, including Belgium, Austria, Denmark, and
Spain, performing well, with LQs of or higher. Collectively, the EU boasts an LQ of , not
far behind the United States, which it targets with nontariff attacks such as substantial fines on
. tech firms. The EU has recently reignited rhetoric pushing for “digital sovereignty”—a costly
mission that is sure to damage European firms and consumer connectivity more than improve
European technology production.
China has an LQ of , the lowest of all its advanced industries, putting it on par with other
developing and low-income nations, including Argentina, Russia, and Malaysia. Despite its high
global market share, China’s output in this industry is relatively low relative to the size of its
economy. It is likely that, as China continues to invest more in AI development and pushes
toward digital and technological sovereignty, China’s LQ in this industry will increase. It has
already begun elevating national champions such as start-up DeepSeek and Alibaba, both of
which have developed high-level AI tools. Lagging nations include Pakistan, Egypt, Indonesia,
and Mexico, which have LQs of or lower. (See figure 18.)
As well as having the highest LQ, Israel has experienced the greatest growth in LQ over the past
decade, increasing by 102 percentage points from 2013 to 2022. Other highly improved nations
include Poland (48 points increase), Singapore (34 points), Argentina (33 points), and India (20
points). The . LQ increased by 6 points over this period, rising slowly but steadily each year,
while China’s LQ declined by 2 points. Nigeria experienced the greatest decline in its LQ, with a
fall of 38 points, just slightly more than the next-greatest decline, Japan. This coincides with the
substantial decline in Japan’s global market share over the same period.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 23 | CONTENTS
Figure 18: Relative performance in IT and information services (2022 LQ)
Israel
India
Sweden
United States
France
Switzerland
Netherlands
Germany
United Kingdom
Poland
Singapore
Japan
Belgium
World
Canada
Australia
Austria
Nigeria
Denmark
Spain
Italy
South Korea
South Africa
Brazil
Norway
Taiwan
Turkey
Argentina
Russia
Malaysia
China
Philippines
Thailand
Bangladesh
Saudi Arabia
Vietnam
Pakistan
Egypt
Indonesia
Mexico
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 24 | CONTENTS
Figure 19: Net change in relative performance in IT and related services (LQ difference, 2013–2022)
Israel
Poland
Singapore
Argentina
India
Russia
Turkey
Taiwan
Canada
Spain
United States
Belgium
Thailand
Brazil
China
France
Mexico
Austria
Vietnam
Egypt
Indonesia
Netherlands
Pakistan
Saudi Arabia
Germany
Bangladesh
South Korea
Australia
United Kingdom
Italy
Philippines
Sweden
Denmark
Malaysia
Switzerland
Norway
South Africa
Japan
Nigeria
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 25 | CONTENTS
Computers, Electronics, and Optical Products
The computers, electronics, and optical products industry includes the production of displays,
electronic hardware, and semiconductors. As such, it’s a fiercely contested industry today.
This industry has nearly tripled in output since 1995, growing by 198 percent globally, making it
worth over $ trillion. However, this has still been less than the growth of global GDP, which
has grown 229 percent. This industry is highly concentrated in South and Southeast Asia, where
industry leaders such as Huawei, Taiwan Semiconductor Manufacturing Corporation (TSMC),
Samsung, and LG are located, all of which dominate their respective markets. However, China
stands out as the clear leader among these countries. Controlling nearly 25 percent of the global
market share, China has become the global leader in electronics manufacturing through
concerted national development plans designed to empower national leaders, such as Huawei
and SMIC, the leading Chinese semiconductor manufacturer. In its “Made in China 2025” Plan,
China has provided these firms with substantial subsidies and explicitly pushed for technological
sovereignty, encouraging Chinese firms to purchase only domestically produced hardware and
capital, thereby further driving China’s dominance.
China’s rise has been coupled with the United States’ fall. The United States has gone from the
global leader to second place, declining from 30 percent of global market share to percent.
Behind the United States are Taiwan ( percent), South Korea ( percent), Japan (
percent), Vietnam ( percent), and Germany ( percent). The EU has also lost significant
market share, most of which can be attributed to the EU-17—the original members of the EU
that joined before 2004. The EU held percent of global market share in 2022, a fall from
percent in 1995.
Controlling nearly 25 percent of the global market share, China has become the global leader in
electronics manufacturing through concerted national development plans.
China’s global market share has increased by nearly 21 percentage points since 1995, the most
of any country in the Hamilton Index and three times more than the next closest country. Other
countries that have experienced high levels of growth include Taiwan ( percentage points),
Korea ( percentage points), Vietnam ( percentage points), and Singapore ( percentage
points). Non-OECD countries collectively have seen their global market share increase by
percentage points, while the OECD has declined by the same amount, leaving OECD nations to
hold percent of global market share. Like IT services, Japan has experienced a sizeable fall
from grace, with its global market share falling by percentage points.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 26 | CONTENTS
Figure 20: Top 10 producers’ historical shares of global output in computers and electronics, 1995–2022
Taiwan is the leader in relative performance in computer and electronic manufacturing with an
LQ of , meaning its production in this industry is nearly 12 times larger than expected
based on the size of its economy. Taiwan is the world’s largest manufacturer of advanced logic
chips, led by Other countries with leading LQs include Vietnam (), Singapore
(), South Korea (), Malaysia (), and Israel (). In contrast, the United States is
underperforming in this industry with an LQ of , along with several European nations,
including Germany (), Austria (), Denmark (), and the Netherlands ().
Taiwan underwent the most dramatic increase over the past decade. Its LQ in this industry
increased by 329 percentage points, a dramatic increase reflective of its transformation into one
of the largest electronics exporters in the Vietnam also grew significantly over this period
(302 percentage points), followed by Singapore (227 points), and Israel (65 points). Both the
United States and China LQ fell over this period by 15 and 52 points, respectively.
Geopolitically, the Belt and Road Initiative overperforms in this industry with an LQ of , a
decrease of 8 percentage points since 2013. At the same time, the OECD and the EU have both
seen a decline in relative performance in this industry over the same time period, with OECD and
the EU declining by 3 percentage points each, giving them LQs of and , respectively,
in 2022.
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INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 27 | CONTENTS
Figure 21: Relative performance in computers and electronics (2022 LQ)
Taiwan
Vietnam
Singapore
South Korea
Malaysia
Israel
Switzerland
Thailand
China
Mexico
Japan
Philippines
World
United States
Germany
Austria
Denmark
Netherlands
Sweden
Italy
United Kingdom
Russia
Poland
Indonesia
France
Pakistan
Australia
India
Canada
Belgium
Brazil
Norway
Turkey
Argentina
Spain
Bangladesh
South Africa
Egypt
Nigeria
Saudi Arabia
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 28 | CONTENTS
Figure 22: Net change in relative performance in computers and electronics (LQ difference, 2013–2022)
Taiwan
Vietnam
Singapore
Israel
Mexico
Malaysia
South Korea
Austria
Russia
Poland
Italy
Australia
Saudi Arabia
Nigeria
Turkey
Bangladesh
Egypt
Japan
Spain
Germany
Canada
France
Belgium
Netherlands
Pakistan
Norway
South Africa
Brazil
Denmark
Sweden
India
United Kingdom
Switzerland
United States
Argentina
Indonesia
Thailand
China
Philippines
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 29 | CONTENTS
Chemicals
The chemicals industry includes both specialty chemicals and commodity chemicals, though it
does not include any products made by the pharmaceutical industry. This sector produces
critical inputs to national power industries such as electronics and defense industries.
Globally, this industry has grown by 211 percent in nominal . dollars since 1995, but at a
slower pace than global GDP, which has grown by 229 percent. The industry’s value-added
output in 2022 reached $ trillion. This industry is highly concentrated between the United
States and China, with the two countries collectively making up over half the global market.
China leads the world with 28 percent of global market share, followed by the United States,
which holds 23 percent. However, it was once the United States that led this industry by a large
margin, holding 24 percent of global market share while China held just 4 percent. OECD, which
once controlled 82 percent of the global market in 1995, held 52 percent as of 2022.
Outside the two leaders, this industry is widely dispersed across other nations, with Germany, the
third-largest chemical manufacturer, holding 4 percent of the global market, followed by Japan
( percent) and South Korea ( percent). Japan lost the largest slice of global market share
over the 27-year period, losing percentage points. The EU and the Quad, which includes
Australia, Japan, India, and the United States, both declined by about 14 percentage points,
sizable losses largely driven by declines in the United States, Japan, and Germany. Saudi Arabia,
India, and Russia all increased their global market share by about 1 percentage point.
Figure 23: Top 10 producers’ historical shares of global output in chemicals, 1995–2022
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1995 2000 2005 2010 2015 2020
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South Korea
Rest of the World
Saudi Arabia
India
France
Russia
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 30 | CONTENTS
The picture is quite different when it comes to industrial specialization. In 2022, the nation with
the highest LQ was South Korea, at . Other high-ranking countries were Saudi Arabia (),
Thailand (), Singapore (), Argentina (), and China (). While it still
overperforms, China’s LQ has fallen over the past decade from a high of in 2013. Similarly,
the United States, which underperforms in the chemical industry with an LQ of , has also
seen its LQ decline since 2008, albeit more moderately, falling from in 2013.
It was once the United States that led this industry by a large margin, holding 24 percent of global
market share while China held just 4 percent.
Looking at the change in relative performance, Singapore saw the largest increase in LQ over the
period from 2013 to 2022, rising by 39 percentage points. The Philippines (35 percentage
points), Turkey (34 percentage points), Saudi Arabia (25 percentage points), and Brazil (22
percentage points) also experienced significant increases in LQ. By contrast, Israel (76 points),
Mexico (47 points), Taiwan (38 points), and India (33 points) all experienced a substantial
decline in LQ over the 10-year period.
Geopolitically, both the Belt and Road Initiative and the collective non-OECD nations
overperformed in chemical production. On the other hand, the OECD moderately underperforms,
with an LQ of , a marked decline from 1995, when its LQ reached 1. Similarly, the EU has
an LQ of , down from in 1995.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 31 | CONTENTS
Figure 24: Relative performance in chemicals (2022 LQ)
South Korea
Saudi Arabia
Thailand
Singapore
Argentina
China
Philippines
Belgium
Taiwan
Malaysia
Vietnam
Switzerland
Turkey
World
Germany
Egypt
Japan
United States
Mexico
Brazil
Indonesia
Netherlands
Russia
Denmark
Poland
South Africa
India
Spain
Austria
France
Pakistan
Canada
Sweden
Italy
Israel
United Kingdom
Norway
Australia
Bangladesh
Nigeria
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 32 | CONTENTS
Figure 25: Net change in relative performance in chemicals (LQ difference, 2013–2022)
Singapore
Philippines
Turkey
Saudi Arabia
Brazil
Russia
Switzerland
Denmark
Thailand
Norway
Nigeria
Poland
Japan
France
Bangladesh
Spain
United States
Austria
Italy
Australia
South Korea
Argentina
Canada
Pakistan
United Kingdom
Vietnam
Sweden
Germany
Malaysia
China
Indonesia
South Africa
Belgium
Egypt
Netherlands
India
Taiwan
Mexico
Israel
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 33 | CONTENTS
Machinery and Equipment
The machinery and equipment industry comprises machine tools and mechanical systems,
including agricultural machines, engines, turbines, and industrial machines.
Globally, this sector grew by 157 percent in nominal . dollars, though slower than the rate of
global GDP growth—229 percent—while total value added output in this industry reached $
trillion in 2022. OECD nations lost significant market share in this industry, falling from holding
89 percent of the global market in 1995 to just 56 percent in 2022.
Looking at individual countries, China leads the world and has done so for nearly a decade and a
half. China holds over one-third of global market share, followed, not closely, by the United
States, which holds just percent. Other high-ranking nations are Japan ( percent),
Germany (9 percent), Italy ( percent), and South Korea ( percent).
China’s growth in this industry is unmatched, having captured 29 percentage points of global
market share over the past 27 years. This rapid growth has led to a corresponding increase in the
Belt and Road Initiative’s global market share, of which China is a part. Japan has suffered the
greatest decline in market share, losing percentage points, while other OECD countries,
such as Germany ( percentage points), the United States ( percentage points), the United
Kingdom ( percentage points), and France ( percentage points) have also lost market
share.
Figure 26: Top 10 producers’ historical shares of global output in machinery and equipment, 1995–2022
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1995 2000 2005 2010 2015 2020
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United States
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Germany
Italy
South Korea
India
United Kingdom
Netherlands
Canada
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 34 | CONTENTS
Despite its loss of substantial market share, Japan leads the world in industrial specialization
with an LQ of . In fact, its LQ has actually increased since 1995, from , due in part to
the decline in Japan’s GDP over this period. Germany also exhibits high industrial specialization
with an LQ of , followed by South Korea (), Austria (), China (), and Sweden
(). The United States performs poorly in this industry, as much of the heavy manufacturing
activity that used to occur in the United States has been offshored. Other developed nations that
perform poorly include Belgium (), Canada (), the United Kingdom (), and
Australia ().
China leads the world in machinery and equipment, and has done so for nearly a decade and a half.
The Netherlands experienced the largest percentage-point increase in its LQ from 2013 to 2022,
rising by 54 percentage points. Other nations that experienced high growth include Sweden (52
percentage points), Japan (50 percentage points), South Korea (27 percentage points), and
Vietnam (25 percentage points). The United States and several other developed nations declined
over this period, including the aforementioned poor performers, while China’s LQ fell by just 5
percentage points.
Looking at this data with a geopolitical lens, the OECD, when excluding the United States,
actually overperforms in this industry with an LQ of , and, relatedly, the EU (excluding
Ireland) also overperforms with an LQ of . Alliances and trade organizations that include the
United States, such as the United States-Mexico-Canada Agreement (USMCA), the Quad, and
AUKUS (which includes Australia, the United Kingdom, and the United States), all underperform
with LQs of or lower.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 35 | CONTENTS
Figure 27: Relative performance in machinery and equipment (2022 LQ)
Japan
Germany
South Korea
Austria
China
Sweden
Italy
Singapore
Netherlands
Denmark
Switzerland
Taiwan
World
Thailand
Mexico
India
Argentina
Turkey
Poland
South Africa
Belgium
Brazil
United States
Vietnam
Canada
United Kingdom
Israel
Spain
Malaysia
France
Pakistan
Russia
Norway
Australia
Indonesia
Philippines
Saudi Arabia
Egypt
Nigeria
Bangladesh
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 36 | CONTENTS
Figure 28: Net change in relative performance in machinery and equipment (LQ difference, 2013–2022)
Netherlands
Sweden
Japan
South Korea
Vietnam
Italy
Mexico
Israel
Singapore
Poland
Malaysia
Turkey
Indonesia
Taiwan
Saudi Arabia
Brazil
Pakistan
Nigeria
India
Bangladesh
Thailand
Switzerland
Spain
Egypt
Australia
Russia
Austria
Philippines
Canada
Belgium
South Africa
China
Argentina
France
United Kingdom
United States
Germany
Denmark
Norway
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 37 | CONTENTS
Basic Metals
The basic metals industry comprises metals commonly used in industrial production, including
copper, aluminum, and iron. The sector is strategically important because of its applications
across several downstream power industries.
Globally, this industry grew by 253 percent between 1995 and 2022, faster than global GDP,
which grew by 229 percent. Total value-added output in this industry reached $ billion
globally. China and other non-OECD nations have become the leading producers of basic metals,
controlling 66 percent of the global market share; meanwhile, the market share of OECD nations
fell by 44 percentage points over this period, from 78 percent to 34 percent.
Individually, China leads the world in basic metal production by a wide margin, holding 42
percent of the global market share, up from percent in 1995. Other leading producers are
the United States (10 percent), Japan ( percent), India ( percent), Russia ( percent),
and South Korea (3 percent). Lagging nations in this industry largely include developed nations
that are concentrated in more high-tech industries, such as Denmark, Israel, Singapore, and
Switzerland.
China’s growth in this industry, driven by its push for domestic industrialization and increased
manufacturing output following its WTO accession, has come at the expense of almost every
other nation. . market share in this industry declined by percentage points, while Japan
( percentage points), Germany ( percentage points), Italy ( percentage points), and
France ( percentage points) also experienced declines. India and Russia each saw their global
market share increase by about percentage points.
Figure 29: Top 10 producers’ historical shares of global output in basic metals, 1995–2022
0%
10%
20%
30%
40%
50%
60%
1995 2000 2005 2010 2015 2020
China
United States
Japan
India
Russia
South Korea
Brazil
Germany
Mexico
Italy
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 38 | CONTENTS
When it comes to industrial specialization, the trends are quite similar. China leads the world
with an LQ of , once again reflecting its absolute leadership in the industry, followed by
Russia (LQ of ), South Korea (), Japan (), and India (). Once again,
developed nations tend to underperform in this industry, with Spain, Norway, France, the United
States, and Australia among a slew of countries with an LQ of or below. However, Nigeria
has the lowest LQ of .
China and other non-OECD nations have become the leading producers of basic metals, controlling 66
percent of the global market share.
Over the decade from 2013 to 2022, Brazil experienced the greatest increase in LQ, with it
increasing by 50 percentage points, more than double the next-most-improved nation of Russia
(37 percentage points). Very few other nations saw their LQ increase over this decade, with
Norway (14 percentage points), Italy (12 percentage points), Canada (7 percentage points), and
Spain (6 percentage points) among the select few.
Despite its leading LQ, China actually exhibited one of the largest declines in relative
performance, with its LQ falling 19 percentage points. In fact, China’s LQ fell 110 percentage
points between 2002 and 2022, as the growth of China’s economy still outpaced its basic
metals industry. South Korea, India, and Taiwan also overperform in this industry but have seen
their LQ fall over the past 10 years.
Unsurprisingly, with so many OECD nations underperforming, the OECD collectively
underperforms with an LQ of , having declined by nearly 40 percentage points since 1995.
Conversely, non-OECD nations perform far above average, with an LQ of . The EU has also
seen a substantial decline in relative performance, with its LQ declining from in 1995 to
in 2022.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 39 | CONTENTS
Figure 30: Relative performance in basic metals (2022 LQ)
China
Russia
South Korea
Japan
India
Taiwan
Vietnam
Brazil
Mexico
Argentina
World
Austria
Egypt
Turkey
South Africa
Belgium
Sweden
Indonesia
Bangladesh
Italy
Canada
Thailand
Germany
Poland
Pakistan
Malaysia
Spain
Norway
France
United States
Philippines
Australia
Netherlands
Switzerland
United Kingdom
Singapore
Israel
Denmark
Saudi Arabia
Nigeria
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 40 | CONTENTS
Figure 31: Net change in relative performance in basic metals (LQ difference, 2013–2022)
Brazil
Russia
Norway
Italy
Canada
Spain
Belgium
France
Mexico
Denmark
Poland
Philippines
Israel
Japan
Nigeria
Saudi Arabia
United Kingdom
Vietnam
Switzerland
Australia
United States
Thailand
Argentina
Bangladesh
Netherlands
Sweden
Singapore
Malaysia
Indonesia
Turkey
Pakistan
Taiwan
China
Austria
South Africa
Germany
India
South Korea
Egypt
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 41 | CONTENTS
Motor Vehicles
The motor vehicle industry includes car and truck assemblers and suppliers, as well as motor
vehicle parts manufacturing. It has become a more innovative sector due to new developments in
electric vehicles (EVs), self-driving cars, and software-defined vehicles.
The sector grew more slowly than the nominal global GDP between 1995 and 2022, with value-
added output increasing by 161 percent to $ trillion, while global GDP grew by 229 percent.
The industry is highly concentrated among a few key car manufacturing nations, including China
( percent), Germany ( percent), the United States ( percent), and Japan (
percent). The latter three nations are home to the largest and most well-known car brands,
including Ford and General Motors in the United States, Nissan and Honda in Japan, and BMW
and Volkswagen in Germany. China, on the other hand, has become well known in recent years
for its collection of EV companies that have come to dominate the global EV industry, including
industry giant BYD. It is the growth of China’s EV industry, spurred largely by generous subsidies
from federal and local governments, that has propelled China to the lead in global market share.
Mexico, which holds percent of global market share, ranks fifth. It has seen its global market
share triple over this period, despite having no domestic car manufacturing companies; rather, it
is a key offshoring location for American brands.
Figure 32: Top 10 producers’ historical shares of global output in the motor vehicles industry, 1995–2022
China’s global market share has increased by percentage points since 1995, with the
largest jump occurring in 2009, when the Chinese government began heavily subsidizing its EV
Over the same period, Japan’s market share declined by percentage points, the
United States’ market share by percentage points, and Germany’s market share by
percentage points. South Korea’s market share increased by 1 percentage point, while India’s,
0%
5%
10%
15%
20%
25%
30%
1995 2000 2005 2010 2015 2020
China
Germany
United States
Japan
Mexico
South Korea
India
United Kingdom
Italy
France
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 42 | CONTENTS
which has become one of the largest car manufacturers by unit in the world, increased by 3
percentage points. The OECD, which held over 88 percent of the global market share in 1995,
has seen its share fall to just 60 percent in response to the growth of China and India.
When it comes to relative performance, Mexico is the leader by a good margin with an LQ of
, meaning Mexico’s output of motor vehicles is 294 percent more than would be expected
based on the size of its economy. Other nations with high industrial specializations include
Germany (), South Korea (), Japan (), and Sweden (), which is home to Volvo.
China overperforms in industrial specialization, with an LQ of , while the United States’ LQ
of highlights its weakness in this industry.
China’s booming EV industry, which has received substantial subsidies from federal and local
governments, has propelled it to the lead in global market share. It controls over 25 percent of the
global market share.
Mexico’s LQ increased the most (143 percentage points) over the previous decade due to the
growing practice of offshoring American automobile production to Mexico, where labor and
capital costs are lower. Germany (65 percentage points), Sweden (61 percentage points), Nigeria
(40 percentage points), and Argentina (28 percentage points) experienced the next greatest
increases in industrial specialization. The United States’ LQ declined by 2 percentage points
over this period; however, comparing the .’s 1995 LQ to 2022, the United States’ relative
performance fell by nearly 40 percentage points, demonstrating the trough the . auto industry
found itself in during and after the Great Recession. Conversely, China’s LQ declined by 29
points from 2013 to 2022, but increased by 38 percentage points from 1995 to 2022.
Geopolitically, the OECD overperforms in motor vehicle production, with an LQ of , up 2
percentage points since 2002. The EU-10 (the 10 nations that joined after 2004) is highly
specialized in this industry with an LQ of , while the broader EU-27 has an LQ of .
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 43 | CONTENTS
Figure 33: Relative performance in motor vehicles (2022 LQ)
Mexico
Germany
South Korea
Japan
Sweden
Thailand
China
Malaysia
Poland
India
Argentina
World
Austria
Spain
South Africa
Indonesia
Turkey
Italy
Brazil
United Kingdom
Taiwan
Pakistan
United States
France
Canada
Belgium
Nigeria
Russia
Netherlands
Vietnam
Australia
Philippines
Egypt
Denmark
Israel
Saudi Arabia
Switzerland
Norway
Singapore
Bangladesh
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 44 | CONTENTS
Figure 34: Net change in relative performance in motor vehicles (LQ difference, 2013–2022)
Mexico
Germany
Sweden
Nigeria
Argentina
Japan
Italy
Spain
India
Netherlands
Turkey
Malaysia
South Africa
Russia
Pakistan
Australia
Saudi Arabia
Bangladesh
France
Vietnam
Norway
Israel
Denmark
United States
Singapore
United Kingdom
Switzerland
Egypt
Taiwan
Philippines
Austria
Poland
South Korea
Thailand
Belgium
Canada
China
Brazil
Indonesia
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 45 | CONTENTS
Fabricated Metals
The fabricated metals sector includes the manufacturing of metal parts. It’s a strategically
important industry, as its products often act as intermediate goods for manufacturers in other
advanced and national power industries.
Internationally, this industry grew by 159 percent between 1995 and 2022, slower than global
GDP, which grew by 229 percent. In 2022, value-added output in this industry exceeded $1
trillion. China shot to the top of this industry ahead of the United States in 2016 and now holds
percent of global market share. Conversely, the United States held percent of the
global market share in 2022, a marked decline from 1995, when the . market share was
percent. The OECD’s share of this industry has also declined considerably, with its global
market share falling from percent in 1995 to percent in 2022.
Behind China and the United States are Germany, with percent of the global market; Italy,
with percent; Indonesia, with 4 percent; and Japan, with 4 percent. Several developed
nations lag behind in this industry, with the Netherlands, Austria, Sweden, Israel, and Belgium
among those each controlling less than 1 percent of global market share.
Many nations in the top 10 lost market share over the 27-year period, with Germany’s market
share falling by percentage points, Italy’s by percentage points, Japan’s by
percentage points, and France’s by percentage points.
Figure 35: Top 10 producers’ historical shares of global output in fabricated metals, 1995–2022
0%
5%
10%
15%
20%
25%
30%
35%
1995 2000 2005 2010 2015 2020
China
United States
Germany
Italy
Indonesia
Japan
South Korea
France
United Kingdom
India
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 46 | CONTENTS
With several OECD countries in the top 10, it’s unsurprising that the OECD still holds the
majority of global market share. However, this share has fallen substantially, from percent
to percent. Conversely, the Belt and Road Initiative saw its global market share increase
from percent in 1995 to just over 50 percent in 2022, a threefold increase. While much of
this growth was driven by China, whose market share increased from 2 percent to nearly 27
percent, Indonesia, Russia, and Poland saw their market shares rise by 3 percentage points,
percentage points, and percentage points, respectively.
China shot to the top of the fabricated metals industry ahead of the United States in 2016 and now
holds percent of global market share.
The picture looks quite different when considering industrial specialization. Indonesia leads the
world with an LQ of , meaning its output of fabricated metals is 216 percent above what
would be expected based on its economy’s size. Behind Indonesia are Poland (), Italy
(), South Korea (), Austria (), and Taiwan (). China also overperforms in this
industry with an LQ of , while the United States and most European nations underperform.
Lagging nations include Singapore, the Philippines, Bangladesh, and Nigeria, all of which have
an LQ below .
Since 2013, Indonesia has experienced the greatest increase in LQ, increasing from in
2013 to in 2022, a 99 percentage-point increase. Other countries with a large boost to
their LQ include Poland (65 points), China (28 points), Italy (26 points), and Russia (25 points).
The . LQ declined over this period, falling 16 percentage points.
Looking at industrial specialization from a geopolitical perspective, the EU-10 highly
overperforms, with an LQ of , up 29 points over the previous decade. The broader EU-27
also overperforms, but to a lesser extent, with an LQ of , down 6 percentage points over the
same period. The OECD, dragged down by the United States’ low LQ, underperforms with an LQ
of .
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 47 | CONTENTS
Figure 36: Relative performance in fabricated metals (2022 LQ)
Indonesia
Poland
Italy
South Korea
Austria
Taiwan
Germany
China
Switzerland
Turkey
Sweden
Vietnam
World
Spain
Japan
Israel
Netherlands
France
Malaysia
Denmark
Mexico
Belgium
Russia
Thailand
Argentina
United Kingdom
United States
Canada
South Africa
India
Australia
Brazil
Egypt
Pakistan
Saudi Arabia
Norway
Singapore
Philippines
Bangladesh
Nigeria
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 48 | CONTENTS
Figure 37: Net change in relative performance in fabricated metals (LQ difference, 2013–2022)
Indonesia
Poland
China
Italy
Russia
Malaysia
Mexico
Japan
Thailand
Egypt
Spain
Taiwan
Turkey
Nigeria
Bangladesh
Saudi Arabia
Philippines
Netherlands
Austria
Vietnam
Pakistan
Brazil
South Africa
Australia
South Korea
Argentina
Sweden
Denmark
Switzerland
Canada
Israel
United States
India
Belgium
France
Norway
United Kingdom
Singapore
Germany
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 49 | CONTENTS
Pharmaceuticals
The pharmaceutical industry includes medicinal chemicals and botanical products. It is a
strategically important sector given that much of it is high wage, traded across borders, and a key
driver of innovation.
The output of the pharmaceutical industry increased by 312 percent from 1995 to 2022, more
than global GDP, which increased by 229 percent over the same period. In 2022,
pharmaceutical output was $872 billion. The OECD nations have lost market share, from 84
percent in 1995 to 71 percent in 2022; however, this decline was much more moderate than is
apparent in other industries.
The United States is the leader in global market share, led by world-leading companies such as
Amgen, Moderna, Pfizer, and Eli Lilly. In 2022, . global market share was percent, a
moderate increase from 1995, when it was percent, although down from a high of 34
percent reached in 2002. China is in second place, holding percent of global market share,
followed by Switzerland ( percent), Germany ( percent), Japan ( percent), and India
( percent). Lagging nations are nearly all developing countries, such as South Africa, Saudi
Arabia, the Philippines, and Malaysia, which all have less than 1 percent of the global market.
Figure 38: Top 10 producers’ historical shares of global output in pharmaceuticals, 1995–2022
China has experienced the most dramatic rise in market share in pharmaceuticals, increasing by
percentage points. This massive increase has been catalyzed by China’s concerted effort to
become the world leader in pharmaceutical production. In 2025, China conducted about 1,000
0%
5%
10%
15%
20%
25%
30%
35%
40%
1995 2000 2005 2010 2015 2020
United States
China
Switzerland
Germany
Japan
India
United Kingdom
Denmark
Belgium
France
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 50 | CONTENTS
more clinical trials for pharmaceuticals than did the United States, demonstrating its increase in
not just pharmaceutical manufacturing but also pharmaceutical Switzerland also
increased its global market share in this industry by percentage points, while Germany lost 3
percentage points in market share and Japan experienced the greatest decline, seeing its share
fall by percentage points.
In terms of industrial specialization, the story is different. Switzerland led the world in 2022 with
an LQ of , followed by European nations Denmark (), Belgium (), and Sweden
(). Argentina, the United States, and South Korea also overperform with LQs above 1.
Notably, the OECD overperforms in this industry with an LQ of , while non-OECD nations
underperform collectively, with an LQ of . Many of the lagging countries are developing
nations, such as the Philippines, Malaysia, Saudi Arabia, and Nigeria, all of which had LQs
below . China had an LQ of , which, while close to the world average, was still
underperforming.
China experienced the most dramatic increase in pharmaceutical market share, rising by
percentage points. This massive increase has been catalyzed by China’s concerted effort to become
the world leader in pharmaceutical production.
Looking at the change in industrial specialization, Denmark saw the largest increase in LQ since
2013, rising by 141 percentage points. This is more than triple that of the second-fastest
grower, Belgium, which saw its LQ grow by 45 percentage points. By contrast, Singapore saw the
largest decline in LQ, falling by 181 percentage points, with the steepest declines occurring
between 2018 and 2022. Other nations that saw large declines were India (54 percentage
points), Argentina (54 percentage points), and Israel (120 percentage points).
The OECD’s LQ increased by 10 percentage points over this same period, unsurprisingly given
the growth of several OECD nations. Conversely, the LQ of the Commonwealth Nations of
Australia, Canada, New Zealand, and the United Kingdom fell by 12 points, largely driven by the
large decline in the United Kingdom. Despite several highly specialized countries, the EU also
saw its LQ decline, falling by 12 percentage points over the previous decade.
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 51 | CONTENTS
Figure 39: Relative performance in pharmaceuticals (2022 LQ)
Switzerland
Denmark
Belgium
Sweden
Singapore
Argentina
United States
South Korea
World
Netherlands
China
Germany
United Kingdom
India
Japan
Austria
Spain
Italy
France
Israel
Brazil
Mexico
Bangladesh
Egypt
Vietnam
Russia
Thailand
Turkey
Taiwan
Indonesia
Pakistan
Poland
Canada
Norway
South Africa
Australia
Philippines
Malaysia
Saudi Arabia
Nigeria
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 52 | CONTENTS
Figure 40: Net change in relative performance in pharmaceuticals (LQ difference, 2013–2022)
Denmark
Belgium
Netherlands
Switzerland
South Korea
Russia
Indonesia
Sweden
Turkey
Thailand
Norway
Nigeria
Canada
Saudi Arabia
United States
Brazil
Taiwan
Malaysia
South Africa
Pakistan
Bangladesh
Vietnam
Australia
Egypt
Poland
Mexico
United Kingdom
Italy
China
Philippines
Austria
France
Spain
Germany
Japan
India
Argentina
Israel
Singapore
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 53 | CONTENTS
Electrical Equipment
The electrical equipment industry includes an array of electrical products, including batteries,
electrical cables, relays, switchgears, and household appliances.
Globally, this sector has grown more slowly than GDP, rising 142 percent in nominal . dollars
since 1995, compared with 229 percent over the same period. Still, the sector was valued at
$680 billion dollars in 2022. The OECD, which was once the overwhelming leader in this
industry and held over 89 percent of the global market share, has seen its dominance decline
over the 27-year period. In 2022, the OECD controlled just percent of the global market
share.
China is the leader in the industry in terms of market share, controlling percent. The next
closest country to China is the United States, which held only percent of the market share
in 2022. Japan (8 percent), Germany ( percent), South Korea ( percent), and India (
percent) are also leaders in the industry; however, their market influence pales in comparison
with China. The EU-27 (excluding Ireland), which once held nearly 30 percent of the global
market share, has seen its share fall to 18 percent.
China has been the leader in this industry since 2007, when it passed Japan to become the
largest producer of electrical equipment. Over the period from 1995 to 2022, China’s global
market share increased from percent to percent, a total of percentage points.
Meanwhile, Japan suffered the greatest loss in market share, falling 26 percentage points from
the world leader to third place. Though not as dramatic, the German and . market shares also
fell by and percentage points, respectively.
Figure 41: Top 10 producers’ historical shares of global output in the electrical equipment industry, 1995–2022
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1995 2000 2005 2010 2015 2020
China
United States
Japan
Germany
South Korea
India
Italy
Mexico
Indonesia
France
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 54 | CONTENTS
Although not an absolute frontrunner in the industry, South Korea leads in the industrial
specialization of electrical equipment, with an LQ of . Other high relative performers include
Vietnam (), China (), Japan (), and Austria (). The United States significantly
underperforms in this industry, with an LQ of just in 2022, while most lagging nations are
developed, less industrialized countries such as Norway (), Singapore (), and Australia
(). Nigeria has almost no electrical equipment manufacturing activity.
China is the leader in electrical equipment in terms of market share, controlling percent. The
next closest country is the United States, which held only percent of the market share in 2022.
Vietnam experienced the greatest increase in relative performance, increasing by 109 percentage
points since 2013. The other nations with the fastest percentage point growth in their LQs over
this period were Poland (77 percentage points), Malaysia (37 percentage points), and Mexico
(36 percentage points). In aggregate, OECD nations saw a 7 percentage-point decline in their
LQs. Among the nations whose LQs declined are Belgium (22 percentage points), Germany (26
percentage points), China (32 percentage points), Switzerland (36 percentage points), and
Austria (42 percentage points).
Geopolitically, the EU-10 saw the greatest increase in industrial specialization, with its LQ
increasing by 45 points from to . Conversely, the EU-17, which comprises countries
with relatively more jobs in the knowledge economy than in manufacturing, saw its LQ fall by 7
points, from to .
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 55 | CONTENTS
Figure 42: Relative performance in electrical equipment (2022 LQ)
South Korea
Vietnam
China
Japan
Austria
Germany
Thailand
Poland
Taiwan
Mexico
Indonesia
Italy
Turkey
World
Switzerland
Malaysia
India
Sweden
Egypt
Brazil
Spain
Netherlands
Denmark
Saudi Arabia
France
United States
South Africa
Pakistan
Argentina
United Kingdom
Russia
Bangladesh
Philippines
Belgium
Canada
Israel
Norway
Singapore
Australia
Nigeria
Overperforming
Average
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 56 | CONTENTS
Figure 43: Net change in relative performance in electrical equipment (LQ difference, 2013–2022)
Vietnam
Poland
Malaysia
Mexico
South Korea
Japan
Thailand
Turkey
Egypt
Saudi Arabia
Italy
Denmark
Spain
Bangladesh
Brazil
Nigeria
United Kingdom
Russia
Netherlands
Pakistan
Australia
Canada
Israel
Taiwan
Argentina
United States
Sweden
France
Philippines
Singapore
South Africa
India
Indonesia
Norway
Belgium
Germany
China
Switzerland
Austria
Overperforming
Underperforming
INFORMATION TECHNOLOGY & INNOVATION FOUNDATION | MAY 2026 PAGE 57 | CONTENTS
Other Transportation Equipment
The other transportation sector includes all rail, air, and sea transportation equipment.
Between 1995 and 2022, the global other transportation industry’s output increased by 183
percent, reaching $423 billion. However, this growth was slower than the global GDP, which
grew by 229 percent. The OECD controlled the vast majority of the global market share in this
industry, holding nearly 71 percent.
Other transportation is one of the few industries wherein the United States holds a clear majority
over China. Largely due to its dominance in the aviation industry, led by defense and commercial
manufacturers such as Boeing, Lockheed Martin, and Pratt & Whitney, the United States
controls percent of the global market share, more than twice China’s percent. Other
leading nations are France ( percent), Germany ( percent), and Russia ( percent).
Japan, which was once second in the world behind the United States, controlled percent of
global market share, down from 16 percent in 1995.
Though China controls a much smaller share of the global market than the United States, its
power in this industry is evident. China’s market share has increased from per
