A New Indicator of Technological Capabilities for Developed and Developing Countries (Arco)

This paper devises a new indicator (ArCo) of technological capabilities that aims at accounting for developed and developing countries. Building on similar attempts as those devised by UN Agencies, including the UNDP Human Development Report's Technology Achievement Index (TAI) and UNIDO's Industrial Performance Scoreboard, this index takes into account a number of other variables associated with technological change.Three main components are considered: the creation of technology, the technological infrastructures and the development of human skills. Eight sub-categories have also been included. ArCo also allows for comparisons between countries over time. A preliminary attempt to correlate ArCo to GDP is also presented.

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