AN ECO-SYSTEMS APPROACH TO CONSTRUCTING ECONOMIC COMPLEXITY MEASURES: ENDOGENIZATION OF THE TECHNOLOGICAL DIMENSION USING LOTKA–VOLTERRA EQUATIONS

Inga Ivanova (), Øivind Strand () and Loet Leydesdorff
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Øivind Strand: Norwegian University of Science and Technology (NTNU) Aalesund, Department of International Business, PO Box 1517, 6025 Aalesund, Norway

Advances in Complex Systems (ACS), 2019, vol. 22, issue 01, 1-21

Abstract: Economic complexity measures have been constructed on the basis of bipartite country-product network data, but without paying attention to the technological dimension or manufacturing capabilities. In this study, we submit a Ternary Complexity Index (TCI), which explicitly incorporates technological knowledge as a third dimension, measured in terms of patents. Different from a complexity indicator based on the Triple Helix model (THCI) or a measure based on patents and countries (PatCI), TCI — products, countries, and patents — can be modeled in terms of Lotka–Volterra equations and thus the further evolution of an innovation eco-system can be specified. We test the model using empirical data. The results of a regression analysis show that TCI improves on Hidalgo and Hausmann’s [The building blocks of economic complexity, Proc. Natl. Acad. Sci. 106 (26) (2009) 10570–10575] and Tacchella et al.’s [A new metrics for countries fitness and products complexity, Sci. Rep. 2 (2012)] complexity measures with respect to both the ranking of countries in terms of their complexity and in terms of the correlation with GDP per capita.

Keywords: Economic complexity; metrics; triple helix; eco-system; simulation (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0219525918500236

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