Documents/GII2013/5: Business Sophistication/Sub-Pillar 5.3: Knowledge Absorption

Sub-Pillar 5.3: Knowledge Absorption

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The rationale behind sub-pillars 5.3 on knowledge absorption (an enabler) and 6.3 on knowledge diffusion (a result) -- two sub-pillars designed to be mirror images of each other -- is precisely that together they will reveal how good countries are at absorbing and diffusing knowledge. Sub-pillar 5.3 includes four statistics that are linked to sectors with high-tech content or are key to innovation: royalty and license fees payments as a percentage of total services imports;16 high-tech imports (net of re-imports) as a percentage of total imports; imports of communication, computer and information services as a percentage of total service imports;17 and net inf lows of foreign direct investment (FDI) as a percentage of GDP.

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