The new paradigm of economic complexity

• DOI: 10.1016/j.respol.2021.104450
• Publication Date: 2021-12-20T18:43:16Z
• Authors: Pierre-Alexandre ...; Tom Broekel; Dario Diodato; Elisa Giuliani; Ricardo Hausmann; Neave O'Clery; David Rigby
• Keywords: Complex systems; Policy; Economic complexity; Geography; 9. Industry and infrastructure; 0502 economics and business; 05 social sciences; 8. Economic growth; 1. No poverty; VDP::Samfunnsvitenskap: 200; [SHS] Humanities and Social Sciences; Innovation; Article

Economic complexity offers a potentially powerful paradigm to understand key societal issues and challenges of our time. The underlying idea is that growth, development, technological change, income inequality, spatial disparities, resilience are the visible outcomes hidden systemic interactions. study economic seeks structure these interactions how they shape various socioeconomic processes. This emerging field relies heavily on big data machine learning techniques. brief introduction has three aims. first summarize theoretical foundations principles complexity. second briefly review tools metrics developed in literature exploit information encoded economy find new empirical patterns. final aim highlight insights from improve prediction political decision-making. Institutions including World Bank, European Commission, Forum, OECD, range national regional organizations have begun embrace its analytical framework. We discuss policy implications this field, particular usefulness building recommendation systems for major public investment decisions complex world.