Appendix A: Measurement of Key Concepts and Preliminary Index Structure
Share
The links between productivity and each of the 12 categories explained in this chapter are translated into pillars of the updated GCI and measured through variables and proxies detailed in Table 1 below.
In general, the objective of this framework is to measure current outcomes at pillar level, which are inputs for competiveness. Therefore we focus on measuring the current quality and quantity of each of the 12 pillars and on identifying bottlenecks and areas of strength. For example, in the infrastructure pillar we measure whether the current provision of transport, energy, and ICT infrastructures and connectivity meet the needs of a country’s economy by combining quantitative and qualitative measures.
Although they are relevant for policymaking, we tend to exclude input measures—such as expenditures, investment regimes, and partnership models—for two reasons. First, mixing input and output measures risks double counting. Second, ample evidence shows that input measures, including monetary investment, are poor indicators of either quantity or quality of the dimension measured.
There are, of course, some limitations: as is often the case, data gaps force us to rely on proxy measures to capture certain concepts. For instance, in the case of ICT infrastructure, we use ICT uptake among the population to approximate uptake among businesses.
The structure presented here is preliminary, as some of the indicators have yet to be tested and calibrated.
Table 1: Preliminary index structure
Indicator | Indicator description (Question and answers if derived from EOS) | Comments | Existing/ New* |
Type† | Main source(s) (if available) |
1st pillar: Institutions | |||||
A. Property rights | |||||
Property rights | In your country, to what extent is intellectual property protected? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Intellectual property protection | In your country, to what extent is intellectual property protected? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
B. Security | |||||
Business costs of crime and violence | In your country, to what extent does the incidence of crime and violence impose costs on businesses? [1 = to a great extent; 7 = not at all] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Homicide rate | Number of homicides per 100,000 population | New | Non-EOS | United Nations Office on Drugs and Crime | |
Business cost of organized crime | In your country, to what extent does organized crime (mafia-oriented racketeering, extortion) impose costs on businesses? [1 = to a great extent; 7 = not at all] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Index of terrorism incidence | Simple average of the number of terrorism-related casualties (injuries and fatalities) and the number of terrorist attacks, each normalized on a scale of 1 to 7 | New | Non-EOS | World Economic Forum’s calculations; National Consortium for the Study of Terrorism and Responses to Terrorism (START) | |
Reliability of police services | In your country, to what extent can police services be relied upon to enforce law and order? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
C. Undue influence and corruption | |||||
Irregular payments and bribes | Average score across the five components of the following Executive Opinion Survey question: In your country, how common is it for firms to make undocumented extra payments or bribes in connection with (1) imports and exports; (2) public utilities; (3) annual tax payments; (4) awarding of public contracts and licenses; (5) obtaining favorable judicial decisions? In each case, the answer ranges from 1 [very common] to 7 [never occurs] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Diversion of public funds | In your country, how common is illegal diversion of public funds to companies, individuals, or groups? [1 = very commonly occurs; 7 = never occurs] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Judicial independence | In your country, how independent is the judicial system from influences of the government, individuals, or companies? [1 = not independent at all; 7 = entirely independent) | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Favoritism in decisions of government officials | In your country, to what extent do government officials show favoritism to well-connected firms and individuals when deciding upon policies and contracts? [1 = show favoritism to a great extent; 7 = do not show favoritism at all] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
D. Checks and balances | |||||
Consistency of judicial system | In your country, to what extent can individuals, institutions (civil society), and businesses obtain justice through the judicial system in the face of arbitrary government decisions? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
World Press Freedom Index | The World Press Freedom Index aims to measure the freedom of information. It reflects the degree of freedom that journalists, news media, and Internet citizens enjoy in each country, and the efforts made by the authorities to respect and ensure respect for this freedom | New | Non-EOS | Reporters Without Borders | |
E. Public-sector performance | |||||
Burden of government regulation | In your country, how burdensome is it for companies to comply with public administration’s requirements (e.g., permits, regulations, reporting)? [1 = extremely burdensome; 7 = not burdensome at all] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Government Online Service Index | The Government Online Service Index assesses the quality of government’s delivery of online services | New | Non-EOS | United Nations, E-Government Development Database | |
Efficiency of legal framework in settling disputes | In your country, how efficient are the legal and judicial systems for companies in settling disputes? [1 = extremely inefficient; 7 = extremely efficient] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Efficiency in provision of public goods and services | In your country, how efficient is the government in providing public goods and services? [1 = extremely inefficient; 7 = extremely efficient] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Effectiveness of law-making bodies | How effective is the legislative process in your country? [1 = not effective at all – it is deadlocked; 7 = extremely effective] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Government ensuring policy stability | In your country, to what extent does the government ensure a stable policy environment for doing business? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
F. Corporate ethics and governance | |||||
Ethical behavior of firms | In your country, how do you rate the corporate ethics of companies (ethical behavior in interactions with public officials, politicians, and other firms)? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Strength of auditing and accounting standards | In your country, how strong are financial auditing and reporting standards? [1 = extremely weak; 7 = extremely strong] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Efficacy of corporate boards | In your country, to what extent is management accountable to investors and boards of directors? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Extent of conflict of interest regulation index | The extent of conflict of interest regulation index measures the protection of shareholders against directors’ misuse of corporate assets for personal gain | New | Non-EOS | World Bank/IFC, The Doing Business project | |
Extent of shareholder governance index | The extent of shareholder governance index measures shareholders’ rights in corporate governance by distinguishing three dimensions of good governance: shareholders’ rights and role in major corporate decisions; governance safeguards protecting shareholders from undue board control and entrenchment; and corporate transparency on ownership stakes, compensation, audits, and financial prospects | New | Non-EOS | World Bank/IFC, The Doing Business project | |
Pillar 2: Infrastructure and connectivity | |||||
A. Transport infrastructure | |||||
Road quality index | The road quality index will combine different measures of quality and connectivity of the domestic road network | New | Non-EOS | World Economic Forum's calculations | |
Quality of roads | In your country, how do you assess the quality of the roads? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Air Connectivity Index | Based on a gravity-like model, the Air Connectivity Index captures the full range of interactions among all network nodes, even when there is no direct flight connection between them | New | Non-EOS | Arvis, J. F. and B. Shepherd. 2011. The Air Connectivity Index: Measuring Integration in the Global Air Transport Network. June. | |
Quality of air transport infrastructure | In your country, how do you assess the quality of air transport? [1 = extremely underdeveloped – among the worst in the world; 7 = extensive and efficient – among the best in the world] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Liner Shipping Connectivity Index | The Liner Shipping Connectivity Index captures how well countries are connected to global shipping networks. It is based on five components of the maritime transport sector: number of ships, their container-carrying capacity, maximum vessel size, number of services, and number of companies that deploy container ships in a country’s ports | New | Non-EOS | United Nations Conference on Trade and Development | |
Quality of port infrastructure | In your country, how do you assess the quality of seaports (for landlocked countries, assess access to seaports) [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Quality of railroad infrastructure | In your country, how would you assess the quality of the railroad system? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
B. Energy infrastructure | |||||
Electrification rate | Share of population with access to electricity | New | Non-EOS | World Bank/International Energy Agency | |
Quality of electricity supply | In your country, how reliable is the electricity supply (lack of interruptions and lack of voltage fluctuations)? [1 = extremely unreliable; 7 = extremely reliable] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
C. ICT infrastructure | |||||
Mobile-cellular telephone subscriptions | Number of mobile-cellular telephone subscriptions per 100 population | Existing | Non-EOS | International Telecommunication Union | |
Fixed-broadband Internet subscriptions | Number of fixed-broadband Internet subscriptions per 100 population | Existing | Non-EOS | International Telecommunication Union | |
Wireless-broadband subscriptions | Number of wireless-broadband subscriptions per 100 population. This covers satellite broadband, terrestrial fixed wireless broadband, and active mobile-broadband subscriptions to the Internet | New | Non-EOS | International Telecommunication Union | |
Internet users | Percentage of individuals using the Internet | Existing | Non-EOS | International Telecommunication Union | |
Pillar 3: Macroeconomic stability | |||||
Debt coverage ratio | General government gross debt as a percentage of government revenue | New | Non-EOS | World Economic Forum’s calculations; International Monetary Fund, World Economic Outlook | |
Government budget balance | General government budget balance, calculated as general government revenue minus total expenditure, as a percentage of GDP | Existing | Non-EOS | International Monetary Fund, World Economic Outlook | |
Gross national savings | Public- and private-sector savings as a percentage of nominal GDP | Existing | Non-EOS | International Monetary Fund, World Economic Outlook | |
Inflation | Annual percent change in consumer price index | Existing | Non-EOS | International Monetary Fund, World Economic Outlook | |
Foreign debt | Gross external debt position (current US$) or total external debt stocks (disbursed and outstanding debt, current US$) as a percentage of GNI. The external debt position includes both public and private debt | New | Non-EOS | World Bank and International Monetary Fund, Quarterly External Debt Statistics | |
Hysteresis indicator | Variable that takes on a value of 1 whenever a financial crisis is ongoing; a value of 7 when there is no financial crisis; and a value between 1 and 7 when a country is recovering from a financial crisis: a value of 2.2 in the year after the end of the crisis, of 3.4 in the second year after the crisis, 4.6 in the third year, and 5.8 in the fourth year. In the fifth year after the end of the crisis, the recovery is deemed complete and the value is 7 (i.e., no crisis) | Proxy measure of the hysteresis phenomenon at play during and after a financial crisis that translates into deleveraging and de-skilling | New | Non-EOS | World Economic Forum’s calculations; International Monetary Fund, World Economic Outlook |
Pillar 4: Health | |||||
Years of life lost (YLLs): Non-communicable diseases | YLLs are years lost due to premature mortality caused by non-communicable diseases, communicable diseases, and injuries. YLLs are calculated by subtracting the age at death from the longest possible life expectancy for a person at that age | New | Non-EOS | Institute for Health Metrics and Evaluation | |
YLLs: Communicable diseases | New | Non-EOS | Institute for Health Metrics and Evaluation | ||
YLLs: Injuries | New | Non-EOS | Institute for Health Metrics and Evaluation | ||
Years lived with disability (YLDs): Non-communicable diseases | YLDs are years lived in less than ideal health due to a condition. YLDs are measured by taking, for each condition, the prevalence of that condition multiplied by the disability weight for that condition. Disability weights reflect the severity of different conditions and are developed through surveys of the general public | New | Non-EOS | Institute for Health Metrics and Evaluation | |
YLDs: Communicable diseases | New | Non-EOS | Institute for Health Metrics and Evaluation | ||
YLDs: Injuries | New | Non-EOS | Institute for Health Metrics and Evaluation | ||
Infant mortality | Number of infants dying before reaching one year of age per 1,000 live births in a given year | Proxy measure of the overall quality of the healthcare system | Existing | Non-EOS | World Bank, World Development Indicators Database |
Pillar 5: Education | |||||
A. Skills of the current workforce | |||||
Primary attainment rate | Educational attainment is defined as the highest grade completed within the most advanced level attended in the education system of the country where the education was received. Cumulative attainment rate is the sum of the percentage of population aged 25 years and older that have the specified level of education | Proxy measures of the level of education of the current workforce | New | Non-EOS | United Nations Educational, Scientific and Cultural Organization (UNESCO) |
Secondary attainment rate | New | Non-EOS | United Nations Educational, Scientific and Cultural Organization (UNESCO) | ||
Tertiary attainment rate | New | Non-EOS | United Nations Educational, Scientific and Cultural Organization (UNESCO) | ||
Extent of staff training | In your country, to what extent do companies invest in training and employee development? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum | |
B. Skills of the future workforce | |||||
School life expectancy (SLE): | Number of years a person of school entrance age can expect to spend within the specified level of education | Proxy measures of the level of education of the future workforce | New | Non-EOS | United Nations Educational, Scientific and Cultural Organization (UNESCO) |
Primary level | |||||
SLE: Secondary level | New | Non-EOS | United Nations Educational, Scientific and Cultural Organization (UNESCO) | ||
SLE: Tertiary level | New | Non-EOS | United Nations Educational, Scientific and Cultural Organization (UNESCO) | ||
Quality of the education system | This indicator will capture the overall quality of the education system and the extent it teaches the relevant skills | New | EOS | World Economic Forum, Executive Opinion Survey | |
Quality of vocational training | In your country, how do you assess the quality of vocational training [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Classroom connectivity | This indicator will capture the concept of a "flipped classroom"—that is, the idea that reverses the traditional educational arrangement by delivering instructional content, often online, outside of the classroom and moves activities, including those that may have traditionally been considered homework, into the classroom | New | EOS | World Economic Forum, Executive Opinion Survey | |
Encouragement to creativity | This indicator will measure the extent to which the education system encourages and forms the students' creativity | New | EOS | World Economic Forum, Executive Opinion Survey | |
Pillar 6: Goods market efficiency | |||||
A. Domestic competition | |||||
Extent of market dominance | In your country, how do you characterize corporate activity? [1 = dominated by a few business groups; 7 = spread among many firms] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Effectiveness of anti-monopoly policy | In your country, how effective are anti-monopoly policies at ensuring fair competition? [1 = not effective at all; 7 = extremely effective] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Competition in professional services | To be determined | New | EOS | World Economic Forum, Executive Opinion Survey | |
Competition in public services | To be determined | New | EOS | World Economic Forum, Executive Opinion Survey | |
Cost required to start a business | Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law | Proxy measures of the barriers to the free entry and exit of actors to and from the market | New | Non-EOS | World Bank/IFC, The Doing Business project |
Time required to start a business | Number of days required to start a business | Existing | Non-EOS | World Bank/IFC, The Doing Business project | |
Bankruptcy proceedings costs | The average cost of bankruptcy proceedings. The cost of the proceedings is recorded as a percentage of the estate’s value | New | Non-EOS | World Bank/IFC, The Doing Business project | |
Strength of insolvency framework index | The Strength of insolvency framework index evaluates the adequacy and integrity of the legal framework applicable to liquidation and reorganization proceedings. It is based on four other indexes: the Commencement of proceedings index, the Management of debtor’s assets index, the Reorganization proceedings index, and the Creditor participation index | New | Non-EOS | World Bank/IFC, The Doing Business project | |
Total tax rate | This variable is a combination of profit tax (% of profits), labor tax and contribution (% of profits), and other taxes (% of profits) | Existing | Non-EOS | World Bank/IFC, The Doing Business project | |
Distortive effect of taxes and subsidies | In your country, to what extent do government subsidies distort competition? [1 = distort competition to a great extent; 7 = do not distort competition at all] | New | EOS | World Economic Forum, Executive Opinion Survey | |
B. Foreign competition | |||||
Prevalence of non-tariff barriers | In your country, to what extent do non-tariff barriers (e.g., health and product standards, technical and labeling requirements, etc.) limit the ability of imported goods to compete in the domestic market? [1 = strongly limit; | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
7 = do not limit at all] | |||||
Trade tariffs | Trade-weighted average tariff rate. An applied tariff is a customs duty that is levied on imports of merchandise goods. This indicator is calculated as a weighted average of all the applied tariff rates, including preferential rates that a country applies to the rest of the world. The weights are the trade patterns of the importing country's reference group | Existing | Non-EOS | International Trade Centre | |
Complexity of tariffs index | The Complexity of tariffs index measures the complexity of a country’s tariff regime based on three criteria: tariff dispersion, the prevalence of tariff peak and specific tariffs, and the number of distinct tariffs | New | Non-EOS | International Trade Centre | |
Burden of customs procedures | In your country, how efficient are customs procedures (related to the entry and exit of merchandise)? [1 = extremely inefficient; 7 = extremely efficient] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Pillar 7: Labor market efficiency | |||||
A. Flexibility and matching | |||||
Redundancy costs | This variable estimates the cost of advance notice requirements, severance payments, and penalties due when terminating a redundant worker, expressed in weekly wages | Existing | Non-EOS | World Bank/IFC, | |
The Doing Business project | |||||
Hiring and firing practices | In your country, to what extent do regulations allow flexible hiring and firing of workers? [1 = not at all; | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
7 = to a great extent] | |||||
Cooperation in labor-employer relations | In your country, how do you characterize labor-employer relations? [1 = generally confrontational; 7 = generally cooperative] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Flexibility of wage determination | In your country, how are wages generally set? [1 = by a centralized bargaining process; 7 = by each individual company] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Ease of finding skilled employees | In your country, to what extent can companies find employees with the skills required to meet their needs? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Ease of hiring foreign labor | In your country, how restrictive are regulations related to the hiring of foreign labor? [1 = highly restrictive; 7 = not restrictive at all] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Active labor market policies | This index will measure the quality of active labor market policies | New | EOS | World Economic Forum, Executive Opinion Survey | |
B. Use of talent and reward | |||||
Pay and productivity | In your country, to what extent is pay related to employee productivity? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Reliance on professional management | In your country, who holds senior management positions? [1 = usually relatives or friends without regard to merit; 7 = mostly professional managers chosen for merit and qualifications] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Female participation in labor force | This measure is the percentage of women aged 25–64 participating in the labor force | These indicators measure the incentives for and the actual participation of the population in the labor force | New | Non-EOS | International Labour Organization |
Male participation in labor force | This measure is the percentage of men aged 25–64 participating in the labor force | New | Non-EOS | International Labour Organization | |
Salary tax wedge | This indicator reflects the tax wedge for an average country-specific industrial worker and is defined as the difference between the salary costs of a single “average worker” to his/her employer and the amount of net income (take-home pay) that the worker receives | New | Non-EOS | Egger, P. and N. Strecker. 2015. “A Tour of Income Tax in the World, 1980–2012.” Mimeo. | |
Pillar 8: Financial market efficiency | |||||
A. Efficiency and depth | |||||
Availability of financial services | In your country, to what extent does the financial sector provide the products and services that meet the needs of businesses? [1 = not at all; 7 = to a great extent] | Measures of the depth of the banking sector in its capacity to provide credit to private sector, pooling risks, and selecting the most productive investments | Existing | EOS | World Economic Forum, Executive Opinion Survey |
Domestic credit to private sector | Domestic credit to private sector refers to financial resources provided to the private sector by financial corporations, such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable, that establish a claim for repayment | New | Non-EOS | The World Bank, World Development Indicators Database | |
(% of GDP) | |||||
Financing of SMEs | In your country, to what extent can small- and medium-sized enterprises (SMEs) access the finance they need for their business operations through the financial system? | New | EOS | World Economic Forum, Executive Opinion Survey | |
[1 = not at all; 7 = to a great extent] | |||||
Venture capital availability | In your country, how easy is it for start-up entrepreneurs with innovative but risky projects to obtain equity funding? [1 = extremely difficult; 7 = extremely easy] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Bank overhead costs | Operating expenses of a bank as a share of the value of all assets held. Total assets include total earning assets, cash and due from banks, foreclosed real estate, fixed assets, goodwill, other intangibles, current tax assets, deferred tax assets, discontinued operations, and other assets | Proxy measure of the cost-efficiency of the banking sector in providing financial services | New | Non-EOS | World Bank, Global Financial Development Database |
Depth of credit information index | The Depth of credit information index measures rules and practices affecting the coverage, scope, and accessibility of credit information available through either a public credit registry or a private credit bureau | Measure of the availability of credit information as a means to reduce asymmetries and improve capital allocation | New | Non-EOS | World Bank/IFC, |
The Doing Business project | |||||
Financing through the local equity market | In your country, to what extent can companies raise money by issuing shares and/or bonds on the capital market? [1 = not at all; 7 = to a great extent] | Measures of the size and liquidity of the equity market, to proxy the extent to which companies can leverage it to finance their operations | Existing | EOS | World Economic Forum, Executive Opinion Survey |
Market capitalization of listed companies (% of GDP) | Market capitalization (also known as market value) is the share price multiplied by the number of shares outstanding. Listed domestic companies are the domestically incorporated companies listed on the country's stock exchanges at the end of the year. Listed companies do not include investment companies, mutual funds, or other collective investment vehicles | New | Non-EOS | World Bank, World Development Indicators Database | |
Money supply (% of GDP) | Money and quasi money comprise the sum of currency outside banks; demand deposits other than those of the central government; and the time, savings, and foreign currency deposits of resident sectors other than the central government. This definition of money supply is frequently called M2; it corresponds to lines 34 and 35 in the International Monetary Fund's (IMF) International Financial Statistics (IFS) | Proxy measure of the depth and breadth of services offered by the financial sector | New | Non-EOS | World Bank, World Development Indicators Database |
B. Stability | |||||
Soundness of banks | In your country, how do you assess the soundness of banks? [1 = extremely low—banks may require recapitalization; 7 = extremely high—banks are generally healthy with sound balance sheets] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Bank nonperforming loans | Bank nonperforming loans to total gross loans are the value of nonperforming loans divided by the total value of the loan portfolio | New | Non-EOS | World Bank, World Development Indicators Database | |
Bank Z-score | The Z-score compares the buffer of a country's banking system (capitalization and returns) with the volatility of those returns | New | Non-EOS | World Bank, Global Financial Development Database | |
Regulation of securities exchanges | In your country, to what extent do regulators ensure the stability of the financial market? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Stock price volatility | Stock price volatility is the average of the 360-day volatility of the national stock market index | New | Non-EOS | World Bank, Global Financial Development Database | |
Pillar 9: Technology adoption | |||||
Availability of latest technologies | In your country, to what extent are the latest technologies available? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Firm-level technology absorption | In your country, to what extent do businesses adopt new technology? [1 = not at all; 7 = adopt extensively] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
FDI and technology transfer | To what extent does foreign direct investment (FDI) bring new technology into your country? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
FDI stock | Cumulated value of greenfield investments, as a percentage of GDP | New | Non-EOS | Financial Times FDImarket | |
Local supplier quality | In your country, how do you assess the quality of local suppliers? [1 = extremely poor quality; 7 = extremely high quality] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Pillar 10: Market size | |||||
Domestic market size index | Sum of gross domestic product plus value of imports of goods and services, minus value of exports of goods and services, normalized on a 1–7 (best) scale | Existing | Non-EOS | International Monetary Fund, World Economic Outlook | |
Exports as a percentage of GDP | Exports of goods and services as a percentage of gross domestic product | Existing | Non-EOS | International Monetary Fund, World Economic Outlook | |
Potential market | To be determined | New | Non-EOS | ||
Pillar 11: Innovation ecosystem | |||||
Quality of scientific research institutions | In your country, how do you assess the quality of scientific research institutions? [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Number of researchers in R&D per capita | Researchers in R&D are professionals engaged in the conception or creation of new knowledge, products, processes, methods, or systems and in the management of the projects concerned. Postgraduate PhD students (ISCED97 level 6) engaged in R&D are included | New | Non-EOS | World Bank, World Development Indicators Database | |
Availability of scientists and engineers | In your country, to what extent are scientists and engineers available? [1 = not at all; 7 = widely available] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Number of scientific and technical journal articles per capita | Scientific and technical journal articles refer to the number of scientific and engineering articles published in the following fields: physics, biology, chemistry, mathematics, clinical medicine, biomedical research, engineering and technology, and earth and space sciences | New | Non-EOS | World Bank, World Development Indicators Database | |
PCT patent applications | Number of applications filed under the Patent Cooperation Treaty (PCT) per million population | Existing | Non-EOS | Organisation for Economic Co-operation and Development (OECD) | |
Cooperation and Interaction | Average score across the four components of the following Executive Opinion Survey question: In your country, to what extent do people collaborate and share ideas (1) inside the company; (2) between domestic companies; (3) between domestic and international companies; and (4) between companies and universities/research institutions. In each case, the answer ranges from 1 [not at all] to 7 [to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Encouragement to idea generation | In your country, to what extent do companies encourage employees to generate new ideas? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Diversity in patents applicants | To be determined | New | Non-EOS | ||
Diversity in company workforce | In your country, to what extent do companies seek diversity of the workforce (e.g. gender, ethnicity, social group, age, religion, culture, sexual orientation, disabilities)? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Pillar 12: Innovation implementation | |||||
Capacity to commercialize new products | In your country, to what extent do companies turn ideas into commercially successful new products, services, or business models? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Charges for the use of intellectual property | Charges for the use of intellectual property are payments and receipts between residents and nonresidents for the authorized use of proprietary rights and for the use, through licensing agreements, of produced originals or prototypes and related rights | New | Non-EOS | World Bank, World Development Indicators Database | |
Post-incubation performance | Availability and performance of incubators as a tool to support commercialization of new innovative business ideas | New | Non-EOS | UBI Global | |
Attitudes toward entrepreneurial risk | In your country, to what extent do people have an appetite for entrepreneurial risk? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Companies embracing disruptive ideas | In your country, to what extent do companies embrace risky or disruptive business ideas? [1 = not at all; 7 = to a great extent] | New | EOS | World Economic Forum, Executive Opinion Survey | |
Willingness to delegate authority | In your country, to what extent does senior management delegate authority to subordinates? [1 = not at all; 7 = to a great extent] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Extent of marketing | In your country, how successful are companies in using marketing to differentiate their products and services? [1 = not successful at all; 7 = extremely successful] | Existing | EOS | World Economic Forum, Executive Opinion Survey | |
Buyer sophistication | In your country, on what basis do buyers make purchasing decisions? [1 = based solely on the lowest price; 7 = based on sophisticated performance attributes] | Existing | EOS | World Economic Forum, Executive Opinion Survey |
* Existing: indicator included in the current GCI methodology; New: new indicator considered for inclusion in the updated GCI methodology.
† EOS = Executive Opinion Survey; Non-EOS = other sources.