The complexity of an economy is related to the multiplicity of useful knowledge embedded in it. Because individuals are limited in what they know, the only way societies can expand their knowledge base is by facilitating the interaction of individuals in increasingly complex networks in order to make products. We can measure economic complexity by the mix of these products that countries are able to make.
The Observatory of Economic Complexity is a tool that allows users to quickly compose a visual narrative about countries and the products they exchange.
Some products, like medical imaging devices or jet engines, embed large amounts of knowledge and are the results of very large networks of people and organizations. These products cannot be made in simpler economies that are missing parts of this network’s capability set. Economic complexity, therefore, is expressed in the composition of a country’s productive output and reflects the structures that emerge to hold and combine knowledge.
Organisation: Observatory of Economic Complexity (OEC)
Most recent version: 2014