Knowledge Economic Index

The Knowledge Index (KI) is an economic indicator prepared by the World Bank Institute to measure a country's ability to generate, adopt and diffuse knowledge. Methodologically, the KI is the simple average of the normalized performance scores of a country or region on the key variables in three Knowledge Economy pillars – education and human resources, the innovation system, and information and communication technology (ICT).^[1][2]

The Knowledge Economy Index (KEI) takes into account whether the environment is conducive for knowledge to be used effectively for economic development. It is an aggregate index that represents the overall level of development of a country or region towards the Knowledge Economy. The KEI is calculated based on the average of the normalized performance scores of a country or region on all 4 pillars related to the knowledge economy - economic incentive and institutional regime, education and human resources, the innovation system and ICT.^[1][2]

• An economic and institutional regime to provide incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship;
• An educated and skilled population to create, share, and use knowledge well;
• An efficient innovation system of firms, research centers, universities, consultants and other organizations to tap into the growing stock of global knowledge, assimilate and adapt it to local needs, and create new technology;
• Information and communication technology to facilitate the effective creation, dissemination, and processing of information.