Appendix: Current Indicator Formulations1
National Orientation (NO): Evidence that a nation is taking directed action to achieve technological competitiveness. Evidence of such action could be manifested at the business, government, or cultural levels, or any combination of the three.
Formula: SNO = [SQ1+S(Q2+Q3)/2+SQ4+SF1V96]/4
Q1 = To what extent does
this country's government evidence a deliberate strategy to promote high
technology-intensive production for export?
Q2 = To what extent do this country's basic cultural values associate
technology and technological change with desirable social development?
Q3 = How closely do influential groups (e.g., unions, trade associations,
religious organizations) in this country associate technology with desirable
social development? For instance, one could imagine some groups not being
favorably disposed toward introduction of more technologies. Or, some
societies may emphasize redistributive measures, such as land reform,
over technology-intensive industrial development?
Q4 = Please rate the presence of an "entrepreneurial spirit" in this
country. That is, to what extent are its citizens, especially the business
community, predisposed toward innovative action and economic risk-taking?
F1V96 = The Frost and Sullivan 5-year investment risk assessment index
for 1996.2
Socioeconomic Infrastructure (SE): The social and economic institutions that support and maintain the physical, human, organizational and economic resources essential to the functioning of a modern, technology-based industrial nation.
Formula: SSE = [SQ5+SQ10+SHMHS93]/3
Q5 = Please give us your
judgment of the mobility of capital in this country.
Q10 = To what extent are foreign-owned firms encouraged to do business
in this country?
HMHS93 = Harbison-Myers Human Skills Index for 1993. The formula for the
index is W493+4*W693.
W493 = The percentage of students enrolled in secondary education in 1993.
The percentage is based on the number of individuals in school vs. the
total number of individuals who could be enrolled as defined by UNESCO.
W693 = The percentage of students enrolled in tertiary education in 1993.
The percentage is based on the number of individuals in school vs. the
total number of individuals who could be enrolled as defined by UNESCO.
Technological Infrastructure (TI): The institutions and resources that contribute to a nation's capacity to develop, produce, and market new technology.
Formula: STI = [S(Q7+Q8)/2+SQ9+SQ11+SEDP96+SS&E93]/5
Q7= To what extent is this
country capable of replenishing and increasing its supply of qualified,
graduate-level (post-baccalaureate) scientists and engineers via local
(indigenous) training and educational institutions?
Q8 = How would you characterize this country's contribution to the
international pool of significant scientific and technical knowledge?
Q9 = Measures of research and development activity are available for
most countries (see data table for example). To what extent do R&D
activities in this country relate to industrial enterprise?
Q11 = The acquisition of "technological mastery" (the ability to make
effective use of technological knowledge) is critical to development of
technology-intensive products. To what degree has this country achieved
technological mastery in high tech production?
EDP96 = Electronic data processing equipment purchases for 1996 as obtained
from the Elsevier Yearbook of World Electronics Data 1996.
S&E93 = The raw number of scientists and engineers engaged in research
and experimental development as defined in the UN Statistical Yearbook,
1993.
Productive Capacity (PC): The physical and human resources devoted to manufacturing products, and the efficiency with which those resources are used.
Formula: SPC = [S(Q6+Q12+Q13)+SA2696/2]/1.5
Q6 = Please rate the quantity
and quality of skilled manufacturing labor available in this country.
Q12 = To what extent does a system of indigenous producers of components
for technology-intensive products exist?
Q13 = Please rate indigenous industrial management capabilities to
develop, produce, and market technology-intensive products.
A2696 = The value of total electronics production for 1996 as obtained
from the Elsevier Yearbook of World Electronics Data 1996.
Technological Standing (TS): The current world market share in high technology products, reflecting not only current export market share statistics but also current manufacturing capability.
Formula: STS = [SQ14i+SX95+SA294]/3
Q14i = Please characterize
the present overall technology-intensive production in this country.
X95 = The value of high tech exports as drawn from the United Nations
Statistical Office trade statistics for 1995. High tech exports were defined
in accord with the U.S. Department of Commerce's DOC3 definition, excluding
missiles and ordinance. It includes STIC Revision 2 codes 51, 52, 54,
58, 712, 713, 714, 716, 718, 75, 76, 772, 776, 792, 87, and 88.
A294 = The value of electronics exports in 1994 as obtained from the Elsevier
Yearbook of World Electronics Data.
Technological Emphasis (TE): The extent to which a country emphasizes high tech products in its export mix.
Formula: STE
= [SRCP95+SAIS94]/2
RCP95 = The ratio of high tech exports for 1995 to total exports for 1995.
The formula for RCP95 = X95/XCT95.
X95 = The value of high tech exports in 1995 as reported by the UN Statistical
Office.
XCT95 = The total exports of a country in 1995 as reported by the UN Statistical
Office.
AIS94 = The ratio of electronic exports for 1994 to total exports for
1994. The formula for AIS94 = (A294/(XCT94), where XCT94 = total exports
of a country in 1994.
A294 = The value of electronics exports in 1994 as reported by Elsevier
Yearbook of World Electronics Data.
Rate of Technological Change (RTC): An indicator that captures the speed with which a country is expanding its export market share in high tech products.
Formula: SRTC = [SRDX+SDAEX+SQ14Delta]/3
RDX = ((X95-X94)/X94)*.510+((X94-X93)/X93)*.306)+((X93-X92)/X92)*.184
XYY = The value of high tech exports for the year YY specified as drawn
from the UN statistical office.
DAEX = ((A294-A293)/A293)*.510+((A293-A292)/A292)*.306+((A291-A90)/A290)*.184
A2YY = The value of electronics exports for the year YY specified as drawn
from Elsevier Yearbook of World Electronics Data.
Q14Delta = (Q14i96-Q114i93)/Q14i93
Q14i96 = Please characterize the present overall technology-intensive
production in this country. The answers are drawn from the 1996 survey.
Q14i93 = Please characterize the present overall technology-intensive
production in this country. The answers are drawn from the 1993 survey.
1.Indicator formulae are written in "S-scores," which means that each indicator and its components are based on a 0 - 100 scale. Depending on the component, three classes of scaling are used:
• Absolute: for questionnaire
items on a 1-5 scale, subtract 1 and multiply by 25 to obtain a 0-100
scale.
• Absolute 0; Relative 100: for other items there is a true 0 minimum
(e.g., high tech exports cannot be negative) and a relative maximum (i.e.,
divide by the highest national value).
• Relative 0; Relative 100: for the remaining items, add the most negative
country value to the raw scores, then divide by the highest national value
to obtain 0-100 scaling.
2.Two digit numbers at the end of statistical variables (e.g., F1V96) represent the year from which the data are drawn.