How to Measure Knowledge Economy

Abstract

The paper’s primary goal is to analyse the development of Knowledge Economy (KE) measurement methods ranging from those based on national income to indices identifying and combining the relevant indicators. The paper focuses on four current global and European KE level indices: Global Innovation Index (GII), Global Knowledge Index (GKI), European Innovation Scoreboard (EIS), and Digital Economy and Society Index (DESI), highlighting persistent significant differences in the perception of the very essence of KE, as there is no clear interdisciplinary definition of the initial concept of knowledge, leading to further problems with ambiguous and insufficiently specific definitions and measurement of KE. Tacit aspects of knowledge are rarely part of KE definitions or measurements, excluding a large part of the knowledge system from KE measurements. The results of the analysis show that the set of KE indicators used by the individual KE indices is heterogeneous, with the set of intersecting indicators having different weights in terms of importance. Frequent interventions in the indices by their authors were observed, such as changes in index methodology, the indicators used, main pillars (subindices), etc. Despite the high heterogeneity in the approach to measuring KE, we identified the pillars, which can be viewed as the core pillars of KE. These include, for example the level of ICT, R&D, human resources, innovation, patents, and education.