Extending Economic Complexity Index to a Ternary Complexity Index

26 Pages Posted: 20 Nov 2017  

Inga Ivanova

National Research University Higher School of Economics

Øivind Strand

Norwegian University of Science and Technology (NTNU)

Loet Leydesdorff

University of Amsterdam - Amsterdam School of Communication Research (ASCoR)

Date Written: November 16, 2017

Abstract

Economic complexity measures have been constructed on the basis of bilateral country-product network data. In this study, we submit a Ternary Complexity Index (TCI), which explicitly incorporates technological complexity as a third dimension, measured in terms of patents. TCI is based on Lotka-Volterra equations and thus the evolution of an innovation eco-system can be specified unambiguously. We perform model calculations based on empirical data and simulate the diachronic extensions. The results suggest that TCI improves on Hidalgo & Hausmann’ and Tacchella et al. measures as an indicator of future economic growth.

Keywords: economic complexity; metrics; triple helix; eco-system; simulation

JEL Classification: C6; O4

Suggested Citation

Ivanova, Inga and Strand, Øivind and Leydesdorff, Loet, Extending Economic Complexity Index to a Ternary Complexity Index (November 16, 2017). Available at SSRN: https://ssrn.com/abstract=3072335 or http://dx.doi.org/10.2139/ssrn.3072335

Inga Ivanova (Contact Author)

National Research University Higher School of Economics ( email )

20 Myasnitskaya St.
Moscow, 101000
Russia

Øivind Strand

Norwegian University of Science and Technology (NTNU) ( email )

N-6009 Ålesund
Ålesund
Norway

Loet Leydesdorff

University of Amsterdam - Amsterdam School of Communication Research (ASCoR) ( email )

PO Box 15793
Amsterdam, 1001 NG
Netherlands

HOME PAGE: http://www.leydesdorff.net

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