Of Sweden's traditional basic industries, forest products still play a major role in the economy. The engineering industry (excluding shipyards) has expanded and today accounts for nearly half of manufacturing, but the fastest-growing manufacturing sector is in pharmaceuticals, which remains rather small in terms of output and employment. In manufacturing sectors, there has been a shift from production based on domestic raw materials toward more differentiated production that requires highly developed professional expertise, and in some cases, state-of-the-art technology. Sweden is among the world's biggest spenders on industrial research and development in relation to national output (3% of GDP in 1989). About 80% of R&D expenditures are related to transportation and telecommunications equipment, pharmaceuticals and machinery. A small number of industrial groups also account for most R&D spending, with ABB, Ericson, Volvo, Saab-Scania, Astra and Kabi-Pharmacia among the leaders.