The KAM Knowledge Index (KI) measures a country's ability to generate, adopt and diffuse knowledge. This is an indication of overall potential of knowledge development in a given country. Methodologically, the KI is the simple average of the normalized performance scores of a country or region on the key variables in three Knowledge Economy pillars – education and human resources, the innovation system and information and communication technology (ICT).
The Knowledge Economy Index (KEI) takes into account whether the environment is conducive for knowledge to be used effectively for economic development. It is an aggregate index that represents the overall level of development of a country or region towards the Knowledge Economy. The KEI is calculated based on the average of the normalized performance scores of a country or region on all 4 pillars related to the knowledge economy - economic incentive and institutional regime, education and human resources, the innovation system and ICT.
For the purposes of calculating KI and KEI, each pillar is represented by three key variables (more on these variables):
The Economic Incentive and Institutional Regime
Tariff & Nontariff Barriers
Regulatory Quality
Rule of Law
Education and Human Resources
Adult Literacy Rate
Secondary Enrollment
Tertiary Enrollment
The Innovation System
Royalty and License Fees Payments and Receipts
Patent Applications Granted by the USPatent and Trademark Office
Scientific and Technical Journal Articles
These three variables are available in 2 forms: scaled by population and in absolute values. Thus, both KE and KIE are also available in "weighted" and "unweighted” forms. In innovation, absolute size of resources matters, as there are strong economies of scale in the production of knowledge and because knowledge is not consumed in its use.
RSS