TRANSITION REPORT 2014 Innovation in Transition

Annex 5.2. Key prerequisites for knowledge-based growth

 

Table A.5.2.1

Key prerequisites for knowledge-based growth
Composite factors Individual factors Description

Institutions

Institutions

Public institutions (75% – property rights, ethics and corruption, undue influence, government efficiency, security) and private institutions (25% – corporate ethics, accountability).

Macroeconomic

environment

Macroeconomic environment

Government budget balance, gross national savings, inflation, government debt, country’s credit rating.

Markets

Goods market efficiency

Competition (67% – domestic competition and foreign competition) and quality of demand conditions (33%)

Labour market efficiency

Efficiency (50%) and efficient use of talent (50%)

Financial market development

Efficiency (50%) and trustworthiness and confidence (50%)

Market size

Summarises information about domestic market size and foreign market size.

Intensity of local competition*

In your country, how intense is the competition in the local market? (1 = not intense at all; 7 = extremely intense)

Proclivity to trade*

Imports and exports as a percentage of GDP (hard data; simple average rescaled to 1-7)

Prevalence of foreign ownership*

How prevalent is foreign ownership of companies in your country? (1 = very rare; 7 = highly prevalent)

Days to start business*

Number of days required to start a business (hard data; rescaled to 1-7)

Access to technology

Availability of latest technologies

In your country, to what extent are the latest technologies available? (1 = not available at all; 7 = extremely available)

ICT availability/use

Internet users, broadband internet subscriptions, internet bandwidth, mobile broadband subscriptions, mobile telephone subscriptions, fixed telephone lines.

FDI and technology transfer

To what extent does FDI bring new technology into your country? (1 = not at all; 7 = to a great extent)

Absorptive capacity

Secondary enrolment

Gross secondary education enrolment rate (hard data; rescaled to 1-7)

Quality of the educational system

How well does the educational system in your country meet the needs of a competitive economy? (1 = not well at all; 7 = extremely well)

Extent of staff

training

In your country, to what extent do companies invest in training and employee development? (1 = not at all; 7 = to a great extent)

“Brain drain”

Does your country attract talented people from abroad? (1 = not at all; 7 = attracts the best and brightest from around the world). Does your country retain talented people? (1 = The best and brightest leave to pursue opportunities in other countries. 7 = The best and brightest stay and pursue opportunities in this country.)

Tertiary enrolment

Gross tertiary education enrolment rate (hard data; rescaled to 1-7)

Creative capacity

“Brain drain”

Does your country attract talented people from abroad? (1 = not at all; 7 = attracts the best and brightest from around the world). Does your country retain talented people? (1 = The best and brightest leave to pursue opportunities in other countries. 7 = The best and brightest stay and pursue opportunities in this country.)

Tertiary enrolment

Gross tertiary education enrolment rate (hard data; rescaled to 1-7)

Availability of scientists and

engineers

In your country, to what extent are scientists and engineers available? (1 = not at all; 7 = widely available)

Quality of scientific research institutions

In your country, how would you assess the quality of scientific research institutions? (1 = extremely poor – among the worst in the world; 7 = extremely good – among the best in the world)

University-industry research collaboration

In your country, to what extent do business and universities collaborate on research and development (R&D)? (1 = do not collaborate at all; 7 = collaborate extensively)

Intellectual property protection

In your country, how strong is the protection of intellectual property, including anti-counterfeiting measures? (1 = extremely weak; 7 = extremely strong)

Venture capital availability

In your country, how easy is it for entrepreneurs with innovative but risky projects to find venture capital? (1 = extremely difficult; 7 = extremely easy)

* These variables are also represented in the composite goods market efficiency indicator, but they are nevertheless also introduced separately to increase their weight in the markets indicator.

Source: Veugelers (2011)