Economic complexity is a measure of an economy’s ability to produce a wide variety of goods that require a diverse range of knowledge inputs. It’s not just about how much a country produces, but how sophisticated and knowledge-intensive its products are.
The Economic Complexity Index (ECI) measures the relative knowledge intensity of an economy, while the Product Complexity Index (PCI) looks at the complexity of individual products. Together, these metrics provide insight into the capabilities and technological know-how embedded in an economy’s output.
In this visualization, countries are ranked by their ECI, which reflects how much diverse and specialized knowledge their economies can combine to create more complex and high-value products. Countries with high complexity scores, such as Japan, Switzerland, and South Korea, tend to have more diverse economies and a higher capacity for innovation. On the other hand, countries with lower complexity scores, like Sudan and Congo, rely more heavily on exporting simple, raw materials.
**How is Economic Complexity Measured?**
Here, we combine three different types of data to create a fuller picture of economic complexity:
Trade Data (ECI Trade): This traditional measure is based on the complexity of products a country exports.
Patent Data (ECI Technology): This looks at the technological innovation of a country, capturing the complexity of its patents and inventions.
Research Publication Data (ECI Research): This measure captures the complexity of a country’s academic output and research capabilities.
By incorporating patent and research data alongside trade, we gain a better understanding of a country’s long-term potential for economic growth. Research has shown that these combined complexity measures provide a better forecast for future economic growth than just looking at trade data alone.
To explore more about economic complexity and how it relates to future economic growth, visit OEC.world.
![[OC] Visualizing Economic Complexity: The World's Most and Least Complex Economies](https://www.byteseu.com/wp-content/uploads/2024/10/di5amg99fcsd1-1536x1536.png "[OC] Visualizing Economic Complexity: The World’s Most and Least Complex Economies")
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Source:Â [OEC Economic Complexity Ranking](https://oec.world/en/rankings/eci/hs6/hs96?tab=ranking)
**What is Economic Complexity?**
Economic complexity is a measure of an economy’s ability to produce a wide variety of goods that require a diverse range of knowledge inputs. It’s not just about how much a country produces, but how sophisticated and knowledge-intensive its products are.
The Economic Complexity Index (ECI) measures the relative knowledge intensity of an economy, while the Product Complexity Index (PCI) looks at the complexity of individual products. Together, these metrics provide insight into the capabilities and technological know-how embedded in an economy’s output.
In this visualization, countries are ranked by their ECI, which reflects how much diverse and specialized knowledge their economies can combine to create more complex and high-value products. Countries with high complexity scores, such as Japan, Switzerland, and South Korea, tend to have more diverse economies and a higher capacity for innovation. On the other hand, countries with lower complexity scores, like Sudan and Congo, rely more heavily on exporting simple, raw materials.
**How is Economic Complexity Measured?**
Here, we combine three different types of data to create a fuller picture of economic complexity:
Trade Data (ECI Trade): This traditional measure is based on the complexity of products a country exports.
Patent Data (ECI Technology): This looks at the technological innovation of a country, capturing the complexity of its patents and inventions.
Research Publication Data (ECI Research): This measure captures the complexity of a country’s academic output and research capabilities.
By incorporating patent and research data alongside trade, we gain a better understanding of a country’s long-term potential for economic growth. Research has shown that these combined complexity measures provide a better forecast for future economic growth than just looking at trade data alone.
To explore more about economic complexity and how it relates to future economic growth, visit OEC.world.