Economic Complexity: Measuring the Intangibles - Matthieu Cristelli, Andrea Tacchella & Luciano Pietronero

Economic Complexity: Measuring the Intangibles

By Matthieu Cristelli, Andrea Tacchella & Luciano Pietronero

  • Release Date: 2014-04-04
  • Genre: Finance

Description

New economic theories must be strongly data-driven in order to  provide a more concrete scientific grounding for Economics. 
In this perspective, we discuss two metrics for measuring intangible properties of the complexity of products and competitiveness of countries. The comparison of these measures with monetary figures, as the Gross Domestic Products or the Income per capita, uncovers new information to assess the hidden potential of growth and development of countries 
This work is intended as an introduction to both the scientific activity and business-oriented applications of the framework and methodologies presented. 
Economic complexity permits to acknowledge that Finance and Economics are two highly connected aspects of the same general problem and provides a framework to discuss, both from a conceptual and practical point of view, this bridge which is neglected by mainstream approaches.    
In a business-oriented perspective, this new thinking, recognizing that Economics and Finance effectively interact, can disclose new fundamental information about sectors, countries, patters of evolution of productive systems which must impact finance in the medium/long term.