Economic Complexity Index

The Economic Complexity Index is a holistic measure of the productive capabilities of large economic systems, usually cities, regions, or countries, based on the accumulated knowledge reflected in the diversity and sophistication of their local economic activities. It was developed by Cesar Hidalgo of the MIT Media Lab and Ricardo Hausmann of Harvard University Kennedy School of Government, who published the original formulation in the Proceedings of the National Academy of Sciences in 2009. Beyond describing an economy, the index is used as a forecasting tool for future economic growth and income, and research has found it to outperform conventional predictors such as governance quality and World Economic Forum competitiveness rankings, while also correlating inversely with income inequality: economies with more knowledge intensive production tend to distribute income more equally. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/