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Knowledge Systems Equations: Total Knowledge Index

The composite index (KNTOTALINDEX) consists of five sub-indices, of which the first four contains national actors and institutions only. The fifth one, international transfer index (KNEXTINDEX), attempts to capture the impact of global knowledge flows through a measure of the country’s openness to the international system. The first four sub-indices - human capital (KNHCINDEX), information infrastructure (KNICTINDEX), innovation systems (KNINNOVINDEX) and governance and business environment (KNENVINDEX) – will be described below. The external index (KNEXTINDEX) is given a somewhat lower weight in the total index than the other four sub-indices which are equally weighted to a total of 90% of the total index. KNEXTINDEX itself is constructed from two equally weighted components of international trade and foreign direct investment.

Total Knowledge Index