A Framework for Measuring a Knowledge Based Economy and Society

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A Framework for Measuring a Knowledge Based
Economy and Society

• Sheridan Roberts

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Approaches to KBE/S measurement

• Statistical indicators within the context of a
  descriptive framework
• suite-of-indicators
• A KBE/S index
• possibly attractive but presents statistical
  difficulties
• Direct measurement of knowledge
• very challenging
• the next stage maybe?

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Why create a KBE/S framework?

• We thought it important to present measures of
  the knowledge based economy and society
• it is useful to bring the available information
  together
• to do that, a presentation framework is needed
• A framework provides a structure and logic for
  statistical content
• it is developed in the context of theory and
  empirical evidence, it is unbiased and
  comprehensive
• we hope, in time, that it will be widely accepted
• We call our framework a descriptive framework
• in contrast to a conceptual framework

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Basis of the KBE/S framework

• Work done by many others in determining what
  characteristics of a KBE are important to
  economic growth
• Asia-Pacific Economic Co-operation (APEC)
• OECD Growth Project
• many others who have compiled statistics
• Ours differs somewhat from other frameworks
• it explicitly includes society (though not
  comprehensively)
• it considers the economic and social impacts of a
  KBE/S

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Structure of the KBE/S framework

• Three core dimensions
• Innovation and entrepreneurship
• Human capital
• Information and communications technology
• Two supporting dimensions
• a Context dimension
• an Economic and social impacts dimension

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Structure of the framework (ctd)

• Each dimension is described in terms of
  characteristics
• a characteristic further describes the dimension
  and splits it into understandable elements
• characteristics are dimension-specific but are
  based on familiar concepts e.g. supply-demand
• the set of characteristics within a dimension is
  not mutually exclusive
• neither is it intended to provide a comprehensive
  description of each dimension

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Structure of the framework (ctd)

• Indicators are quantitative measures of
  characteristics
• an indicator is defined as a single figure or a
  small data set
• Ideally an indicator should be
• relevant to the characteristic it is measuring
• supported by relevant and timely data
• sensitive to what it is measuring
• intelligible
• available for several periods, including recent
  ones
• available for other countries

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Example

• Dimension
• Human capital
• One characteristic from the dimension
• Stock of skilled people
• One indicator of this characteristic
• Highest completed level of educational attainment
  of the population, by age and sex

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Simplified framework structure
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Simplified framework structure
Information and communications technology



Innovation entrepreneurship
Human capital

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Simplified framework structure
Information and communications technology



Innovation entrepreneurship
Human capital

Economic and social impacts
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Simplified framework structure
Information and communications technology



Innovation entrepreneurship
Human capital

Numerous context influences
Economic and social impacts
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Status of the project

• Publication of a printed Discussion Paper
• contains the rationale, previous work, framework
  structure and indicators
• slight differences to paper submitted to
  conference
• Parallel release of Web version
• with hot links to data sources for statistical
  indicators
• sources show detail such as
• organisation responsible for the data
• scope
• data detail outputs, classifications, concepts
• frequency and history
• data availability

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From here?

• The aim of the Discussion Paper is to stimulate
  discussion!
• Comments are sought on all aspects
• theoretical and empirical basis
• structure and choice of dimensions
  characteristics
• range of indicators proposed including priorities
• dissemination possibilities
• comprehensive compendia
• thematic publications
• frequent summary releases in paper or via Web

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Related work

• The project was undertaken within the new economy
  statistics area of the ABS
• Related statistics include ICT supply/demand,
  RD, HRST, innovation, biotechnology
• Other ABS work of interest
• ICT satellite account investigations
• ICT and firm level performance project (OECD)
• social statistics frameworks and indicators
• Measuring Australias Progress includes
  economic, social and environmental aspects of
  progress
• Other Australian work e.g. Australia as a modern
  economy some statistical indicators

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For more information

• The ABS website has theme pages on Science and
  innovation and Information technology
• they contain updates on our work including the
  KBE/S framework and dissemination project
• they contain links to latest releases and related
  sites
• they tell you how to get on our emailing list
• Email me sheridan.roberts_at_abs.gov.au
• Thank you!