Economic complexity and knowledge economy: diffusion of the knowledge as a factor for economic growth

Abstract

The purpose of the paper is the establishment of relationships between economic complexity and knowledge economy. The main method is correlation analysis, namely a pairwise correlation test. Another characteristic of the chosen approach is the employment of Economic Complexity Index (ECI) and Knowledge Economy Index (KEI). The main finding is a strong and statistically significant correlation between the economic complexity index and the knowledge economy. Additionally, strong and statistically significant results were confirmed between economic complexity, institutions, and innovative system. Aspects of economic complexity were defined. Also, a new direction is the implementation of the pairwise correlation tests for Economic Complexity Index, Knowledge-Economy Index and pillars of the latter. The obtained results can be used for the formation of economic strategies, planning and regulation.