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An Eco-Systems Approach To Constructing Economic Complexity Measures: Endogenization Of The Technological Dimension Using Lotka–Volterra Equations

Author

Listed:
  • INGA IVANOVA

    (Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics (NRU HSE), 20 Myasnitskaya St., Moscow 101000, Russia)

  • ØIVIND STRAND

    (Norwegian University of Science and Technology (NTNU) Aalesund, Department of International Business, PO Box 1517, 6025 Aalesund, Norway)

  • LOET LEYDESDORFF

    (Amsterdam School of Communication Research (ASCoR), University of Amsterdam, PO Box 15793, 1001 NG Amsterdam, The Netherlands)

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.

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  • Inga Ivanova & Øivind Strand & Loet Leydesdorff, 2019. "An Eco-Systems Approach To Constructing Economic Complexity Measures: Endogenization Of The Technological Dimension Using Lotka–Volterra Equations," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-21, February.
    • Handle: RePEc:wsi:acsxxx:v:22:y:2019:i:01:n:s0219525918500236
    DOI: 10.1142/S0219525918500236
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