Which are the World’s most Complex Capabilities?

18 ديسمبر 2024

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IMAGE: LOREM IPSUM
In the rapidly evolving landscape of innovation, understanding which capabilities are the most complex can reveal the strategic advantages and potential growth pathways for economies worldwide.

ديسمبر 2024 ・ minutes reading time

 

Not all innovation capabilities are created equal. Some are widespread and easier to develop, while others are rare and require highly diversified ecosystems to thrive. Economists assess the complexity of these capabilities by considering their rarity and the diversity of countries that possess them. Understanding the complexity of innovation capabilities is crucial for determining their potential impact on an economy's ability to innovate and grow.

 

The complexity spectrum

The complexity of economic capabilities varies significantly across industries, with primary sector activities like mining or agrifood industries being relatively simpler. These sectors are often more accessible to countries with lower levels of accumulated knowledge and diversity. However, goods and services, particularly in manufacturing, span a much broader complexity range.

Scientific capabilities typically fall in the intermediate range of complexity. These fields, like manufacturing and services, show diversity in complexity but generally require more specialized knowledge. Complexity in science often grows as the need for sophisticated equipment increases. For instance, theoretical physics requires minimal infrastructure, whereas applied physics demands advanced lab equipment, resulting in larger, more complex teams for experiments.

Technological capabilities are the most complex of all, with nearly all technological fields ranking among the top 60% in complexity. This is particularly true for fields like electronics, semiconductors, and audiovisual technology, which require highly specialized knowledge and infrastructure predominantly found in highly diversified economies.

Complexity over time

The complexity of certain capabilities has evolved, reflecting shifts in accumulated knowledge, technological advancements, and changing global demands. Capabilities that once required lower levels of expertise have become more intricate, as new innovations and specialized infrastructure have redefined what it takes to compete in advanced industries. This is the case for engineering scientific capabilities and audiovisual technological capabilities. The first ones have increased their complexity in almost 100 positions in the last decade. The second have surpassed electronic technologies at the top of the complexity spectrum.

Meanwhile, some fields have remained stable or even simplified, shaped by different trajectories of technological development and market forces. The production of animal and vegetable oils, fats and waxes have remained on the lower end of the complexity spectrum.

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Disclaimer: The short posts and articles included in the Innovation Economics Themes Series typically report on research in progress and are circulated in a timely manner for discussion and comment. The views expressed in them are those of the authors and do not necessarily reflect those of WIPO or its Member States. ​​​​​​​

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