Political stability and absence of violence / terrorism

This indicator reflects the perception of possibility of destabilizing the government or the possibility of overthrowing it by unconstitutional methods, including the threat of terrorism.

      The result was presented in the form of a percentage value on a scale from 1 to 100. The higher the rating value, the higher the position of the country in each of the indicators and overall in the effectiveness of public administration. The study assesses the quality of public administration in six areas:

  • Consideration of public opinion and accountability of government bodies.
  • Political stability and lack of violence.
  • Government performance
  • The quality of legislation.
  • Law supremacy
  • Controlling corruption

      Each of the six variables is scored based on measurements of data from a large number of secondary sources, as well as targeted research and perception measurements by risk assessment companies, higher education institutions, opinion research agencies, etc.

(Source: World Bank Governance Indicators)

Government efficiency

Assessment of the quality of public services, the quality of the work of civil servants, the degree of independence of civil servants from political pressure, the quality of policy formulation and implementation, the reliability of the government's commitment to the declared policy.

      The research methodology uses six indices (Worldwide Governance Indicators), reflecting various parameters of public administration:

  • Voice and Accountability of the population - the index includes indicators that measure various aspects of political processes, civil liberties and political rights. Indicators of this category measure the degree to which citizens can participate in the choice of government and other authorities, the degree of independence of the press, an assessment of the level of freedom of speech, freedom of association, and other civil liberties.
  • Political Stability and Absence of Violence - The index includes indicators that measure the stability of state institutions, the likelihood of sudden changes, political change, destabilization and overthrow of the government by unconstitutional methods or by using violence.
  • Government Effectiveness - the index includes indicators that measure the quality of public services, the quality of the development and implementation of internal public policy, the level of confidence in the internal policy pursued by the government, the quality of the functioning of the state apparatus and the work of civil servants, their competence, the degree of their independence from political pressure and so on.
  • Regulatory Quality - the index includes indicators that measure the government's ability to formulate and implement rational policies and legal acts that allow the development of the private sector and contribute to its development. With its help, measures are recorded that are contrary to the market economy, such as inadequate control of the level of prices and the banking sector, excessive regulation of business development, trade relations, and so on.
  • Rule of Law - the index includes indicators that measure the degree of confidence of various actors in the established legislative norms, as well as their compliance with these norms, in particular, the effectiveness and predictability of the legislative system, the level of crime and the attitude of citizens to crime, attitude towards the fulfillment of contractual obligations , the efficiency of the police, courts and so on.
  • Control of Corruption - the index includes indicators that measure the perception of corruption in society (corruption is understood as the use of public power for the purpose of extracting private gain), the degree of use of state power for personal gain, the existence of corruption at a high political level, the degree of participation of elites in corruption , the impact of corruption on economic development, and so on.
  • For each of the six indicators of the quality of public administration, the table provides a rating - from 0 to 100 scales, which indicates the country's position among all countries in the world. Accordingly, the lower the rating for a particular indicator, the worse the quality of public administration.

(Source: World Bank Governance Indicators)

Standard quality

An assessment of the government's ability to formulate and implement sound policies and regulations that enable and facilitate private sector development.

      Countries are ranked according to the following factors:

  • Household and Firm Surveys;
  • Commercial information providers;
  • Non-governmental organizations
  • Public sector organizations.

      It is built according to six control parameters:

  • Voice and responsibility
  • Political stability and lack of violence,
  • Government efficiency,
  • Quality of regulation,
  • Law supremacy
  • Fight against corruption.

(Source: World Bank Governance Indicators)

Law supremacy

Assessment of various actors confidence degree in norms established by society, as well as their compliance with these norms, in particular, the effectiveness of the enforcement of contracts, the work of the police, courts, the level of crime and the spread of violence.

      The Rule of Law Index is a combined indicator calculated on the basis of data obtained from expert sources and opinion polls in the countries covered by the study. The index is composed of 47 variables that characterize in detail the level of development of the legal environment and legislative practice in countries of the world at different levels of social and political development. All variables are combined into eight benchmarks:

  • Limiting the powers of government institutions.
  • Lack of corruption.
  • Order and safety.
  • Protection of fundamental rights.
  • Transparency of government institutions.
  • Compliance with laws.
  • Civil justice.
  • Criminal justice.

      A country score based on the aggregate in standard normal distribution units, that is, in the range of approximately -2.5 to 2.5.

(Source: World Bank Governance Indicators)

Reserved layoff cost

Notice period and severance pay due to job cuts.

      Notification period and severance pay due to job cuts (weekly wages, average for workers with 1, 5 and 10 years of work experience, with a minimum threshold of 8 weeks).

(Source: World Bank Ease of Doing Business Index)

Simplicity of business creation

Simplicity of starting a business (distance to border). The ranking of economies for ease of starting a business is determined by setting the distance to the frontiers for starting a business. This number is the simple average of the distance to boundaries for each of the component indicators. Doing Business records all the formal procedures or procedures that are normally applied in practice and that an entrepreneur must go through in order to start and formally operate an industrial or commercial business, as well as the time and costs required to complete these procedures and the minimum capital requirements.

      These procedures include obtaining all necessary licenses and permits and carrying out any necessary notifications, inspections prescribed for the company and employees with the relevant authorities. Several business and procedural assumptions are used to compare data across countries. Business: Limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the form of limited liability that is most common among domestic firms is chosen.

  • Starting a business - company registration, procedures, time, cost and minimum capital for starting a new business;
  • Working with building permits - procedures, time, cost of construction
  • Connections to the power supply system - time and cost;
  • Registration of commercial real estate;
  • Obtaining a loan (legal rights);
  • Investor protection (degree of information disclosure, amount of response
  • Payment of taxes (amount of taxes; time required to prepare tax returns);
  • International trade;
  • Enforcement of contracts;
  • Insolvency resolution.

(Source: World Bank Ease of Doing Business Index)

Ease of resolution of insolvency (bankruptcy)

Ease of bankruptcy resolution (distance to border). The ranking of an economy for ease of resolution of an insolvency problem is determined by establishing the distance to resolution of insolvency.

      These numbers represent a simple average of the distance to the bounds for the recovery rate and strength of the insolvency index. The rate of recovery is recorded as cents per dollar recovered by trusted creditors through reorganization, liquidation, or debt settlement (foreclosure or revenue administration). The calculation takes into account the result: whether a new business arises as a going concern or the assets are sold in parts. The costs of the proceedings are then deducted (1 cent for each percentage point in the value of the debtor's estate). Finally, the value lost as a result of the money remaining tied up during the insolvency proceedings, including the loss of value due to depreciation of furniture, is taken into account.

     Countries are ranked for ease of resolution by sorting their resolution scores. These scores are a simple average of the scores for the degree of recovery and the structural strength index of the insolvency.

(Source: World Bank Ease of Doing Business Index)

Ease of paying taxes

The indicator is not relevant at this time.

Government spending on education (% of GDP)

General government spending on education (current, capital and transfers).

      Government spending on education, total (% of GDP), is calculated by dividing total government spending for all levels of education by GDP and multiplying by 100. Aggregate figures are based on World Bank estimates. Education data are collected by the UNESCO Institute for Statistics from the official responses to its annual education survey. All data have been collated against the International Standard Classification of Education (ISCED) to ensure international comparability of study programs. The current version was formally adopted by UNESCO Member States in 2011. GDP data come from the World Bank. Base years reflect the academic year for which the data is reported. In some countries, the school year spans two calendar years (for example, September 2010 to June 2011);

(Source: UNESCO Statistics)

Government spending on education per student, secondary education

Average government spending (current, capital and transfers) per student at a given educational level.

      Calculated by dividing total public expenditure on secondary education by the average number of students, expressed as a percentage of GDP per capita.

(Source: UNESCO Statistics)

School life expectancy

The total number of years of schooling a child of a certain age can expect in the future.

      It is calculated as the sum of age indicators of primary and tertiary education enrollment. The portion of enrollment that is not distributed by age is divided by the school-age population for primary and higher education in which they attend and multiplied by the duration of that level of education. Then the result is added to the sum of the age indicators of enrollment.

(Source: UNESCO Statistics)

Assessment in Reading, Math and Science

A three-year international survey that assesses the performance of 15-year-old students in reading, mathematics and science.

      The data collected from assessment and reference questionnaires is analyzed and the results are published one year after assessment.

(Source: Organization for Economic Cooperation and Development International Student Assessment Program)

Student to teacher ratio, average

Average number of students per teacher in secondary school.

      Calculated by dividing the number of students at a given educational level by the number of teachers at the same educational level.

(Source: UNESCO Statistics)

Higher education

The ratio of the total number of students, regardless of age, to the population of the age group that officially corresponds to the specified level of education.

      Calculated by dividing the number of students enrolled in tertiary education, regardless of age, by the age group that officially qualifies for tertiary education, and multiplied by 100.

(Source: UNESCO Statistics)

Graduates in Science and Technology

The proportion of all graduates of higher education in science and technology.

      It is calculated by dividing the number of students in science, mathematics, statistics, information and technology, manufacturing, mechanical engineering and construction by the number of all graduates of higher education and multiplied by 100.

(Source: UNESCO Statistics)

Tertiary inbound mobility

The number of international students studying in a given country.

      The number of foreign students studying in a given country as a percentage of the total enrollment in tertiary education in a given country.

(Source: UNESCO Statistics)

Researchers

Number of researchers engaged in research and development (R&D).

      The number of researchers engaged in research and development (R&D) is expressed per million.

(Source: UNESCO Statistics)

Gross Research and Development Expenditure (GERD)

The total expenditure on research and development over a given period.

      Total domestic R&D expenditure over a given period as a percentage of GDP (i.e. the sum of the gross value added of all resident producers in the economy, including distribution and transport, plus any product taxes and minus any subsidies not included in the cost of production).

(Source: UNESCO Statistics)

Global R&D companies, top 3 average spending

Average research and development expenditures of the world's top three companies.

      If there are fewer than three global companies registered in a country, this figure is either the average of the two listed companies or the total of one listed company each. A score of 0 is assigned to countries with no registered companies.

(Source: UNESCO Statistics)

Average score rating of the top 3 universities

The GPA of the top three universities in the country.

      If there are fewer than three universities listed in the QS Ranking of the World's Top 700 Universities, the sum of the listed universities is divided by three, which implies a score of 0 for non-listed universities.

(Source: UNESCO Statistics)

ICT Access Index

Access to information and communication technologies, including the Internet.

The ICT Access Index is a composite index that includes the following indicators:

  • number of home telephone subscribers per 100 inhabitants;
  • the number of mobile subscribers per 100 inhabitants;
  • Internet traffic (bit / s) for each Internet user;
  • Percentage of households with a computer;
  • Percentage of households with internet access;
  • The bandwidth of the international Internet channel per user (bit / s);
  • Share of the population using the Internet in the total population (%);
  • Population coverage by secondary education (%);
  • Coverage of the population with higher education (%).

(Source: International Telecommunication Union)

ICT use

Coverage of the population with LTE / WiMAX coverage.

The ICT Use Index is a composite index that includes eight ICT indicators (12.5% ​​each):

  • The number of organizations in the ICT sector (thousand units); (2) Added value of the ICT sector (billion sums); (3) Share of gross value added of the ICT sector in the country's GDP (%);
  • Investments in fixed assets of the ICT sector (billion sums);
  • Investment in fixed assets of the ICT sector, as a percentage of the total investment in fixed assets of the country (%);
  • The payroll number of employees of organizations in the ICT sector on average per year (thousand people);
  • The listed number of employees of organizations in the ICT sector on average per year, as a percentage of the total population employed in the economy;
  • Labor productivity in the ICT sector in terms of added value (mln. Sums).

(Source: International Telecommunication Union)

Electronic government services.

Assessment of the national websites of each country.

      All countries covered by this study are ranked based on a weighted index of assessments in three main components:

  • sub-index "Opportunity and quality of online services" is based on the following indicators:

- developing information services;

- improved information services;

- services for business;

- services with feedback;

  • sub-index "Development of telecommunications infrastructure" is based on indicators:

- the number of Internet users per 100 inhabitants;

- the number of fixed telephone lines per 100 inhabitants;

- the number of mobile communications contracts per 100 residents;

- the number of contracts for fixed Internet per 100 residents;

- the number of fixed broadband lines per 100 inhabitants;

  • sub-index "Human Capital" is built on the basis of indicators:

- literacy of the adult population;

- the number of those enrolled in educational institutions of primary, secondary vocational education and universities;

- expected years of study;

- the average number of full years of schooling for the population under 25.

(Source: UN Governance Network)

Electronic participation index

A survey of Internet services that determines the quality and degree of presence of e-government.

      Internet Usage Assessment:

- provision of information through ICT channels (e-information, e-Information);

- platforms for electronic consultation (e-consultation, e-Consultation);

- public participation in decision-making through

      ICT (e-decision-making, e-Decisions). The index ranges from 0 to 1, with 1 showing more active electronic participation.

(Source: UN Governance Network)

Power generation

Assessment of electricity production level, measured at the terminals of all generators of the station, including RES.

      Electricity consumption per capita (kWh) is the production of power plants and combined heat and power plants minus transmission, distribution and transformation losses and own use by heat and power plants, divided by the population in the middle of the year. Electricity consumption is equivalent to production minus own losses from use and transmission, distribution and transformation of power plants minus exports and imports. It includes consumption by auxiliary stations, losses in transformers, which are considered to be an integral part of these stations, and electricity generated by pumping units. Where data are available, it covers electricity generated by primary energy sources - coal, oil, gas, nuclear, hydropower, geothermal, wind, tidal and wave, and combustible renewable energy sources. Neither production data nor consumption data takes into account reliability of supply, including breakdowns, stress factors and frequency of outages.

(Source: Data from the International Energy Agency)

Logistics performance

A multidimensional assessment of the efficiency of logistics, the ease of supplying goods and the state of trade logistics at the national and international level.

      Assesses the following six factors:

  • efficiency of customs;
  • quality of infrastructure;
  • ease of organizing international transport;
  • competence in logistics;
  • the ability to track cargo;
  • adherence to delivery times.

Rated on a scale from 1 (worst) to 5 (best).

(Source: World Bank data)

Gross capital formation

The ratio of total gross capital formation in local currency to GDP expressed in local currency.

      The gross domestic product (GDP) on the expenditure side consists of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in stocks and net acquisitions of value) and net exports (exports net of imports) of goods and services.

(Source: Data from the International Monetary Fund)

GDP per unit of energy consumption

Purchasing power parity of gross domestic product (PPP $ GDP) per kilogram of oil equivalent of energy use.

       Energy consumption or total primary energy supply (TPES) is calculated as fuel production + receipts from other sources + imports - exports - international marine bunkers + / - stock changes. GDP per unit of energy consumption is the PPP of GDP per kilogram of energy consumption oil equivalent. PPP GDP is the gross domestic product converted to constant international dollars for a specific year using purchasing power parity measures. The international dollar has the same purchasing power in relation to GDP as the US dollar in the United States.

(Source: Data from the International Energy Agency)

Environmental performance

Assesses countries by policy category and covers both environmental health and ecosystem resilience.

      Score on 16 indicators from six policy categories. Each political category consists of one or more indicators. These 10 metrics include:

  • air pollution;
  • air quality;
  • water supply and sanitation;
  • water resources;
  • Agriculture;
  • the woods;
  • fishing;
  • heavy metals;
  • biodiversity and habitat;
  • climate and energy.

      For each indicator, the country receives points. The index ranges from 0 to 100, with 100 indicating the best result.

(Source: Data from the Center for Environmental Policy and Law at Yale University)

Environmental certificates according to ISO 14001

Displays a system that a company or organization can use to create an effective environmental management system.

      Within the framework of the standard, there are numerous elements of the ISO 14001 standard that must be adhered to by organizations seeking formal recognition for their EMS (Environmental Management System). The general requirements include the following 8 parameters:

  • Development of an environmental policy that reflects the commitment of the organization;
  • Appointment of the person (s) responsible for coordination in the EMS;
  • Determining how the organization interacts with the environment;
  • Identification of actual and potential impact on the environment;
  • Identification of environmental compliance requirements;
  • Establishing environmental goals, objectives and programs;
  • Monitoring and measuring progress towards achieving its goals;
  • Review the system and environmental performance, and continually improve the organization's environmental performance.

      The standard is easily integrated into existing safety management systems (AS / NZS 4801 or OHSAS 18001) and quality (AS / NZS ISO 9001).

(Source: Data from the Center for Environmental Policy and Law at Yale University and Columbia University)

Ease of obtaining a loan

Classification of economies by the ease of obtaining a loan.

      This distance is determined by the sum of the Legal Rights Index (range 0-10) and the Credit Information Depth Index (range 0-8). Doing Business assesses the legal rights of borrowers and lenders in secured transactions through one set of metrics and credit information through another set of metrics. The first set of indicators determines whether specific lending-facilitating features exist under applicable collateral and bankruptcy laws. The second set measures the volume and availability of credit information that can be obtained through credit bureaus or credit registries. Although Doing Business collects loan data for the public registry and private bureau, these figures are not included in the ranking.

Legal rights of borrowers and lenders:

      Data on the legal rights of borrowers and lenders is collected through interviews with financial lawyers and verified through analysis of laws and regulations, as well as relevant collateral and bankruptcy information from public sources. The research results are verified through additional interviews with respondents, as well as through interaction with third parties and the study of information from publicly available sources. To confirm the data, research is carried out through teleconferences or local visits in all countries.

Index of effectiveness of legal rights:

      The Legal Strength Index measures the extent to which collateral and insolvency (bankruptcy) legislation protects the rights of borrowers and lenders and thereby facilitates lending. For each country, first, it is determined whether there is a single system of secured transactions. Next, two scenarios, cases A and B, are used to determine how a non-ownership security interest is created, made public, and enforced in accordance with the law. Particular attention is paid to how the pledge registry works (if registration of a security interest is possible). The scenarios involve a secured borrower, ABC, and a secured lender BizBank.

      In some countries, the legal regime for secured transactions may be such that only one scenario exists, either A or B (but not both). Both cases investigate the same set of legal rules in relation to the use of the subject of a pledge represented by movable property.

      Some assumptions are made about the secured borrower (ABC) and the lender (BizBank):

  • ABC is a domestic limited liability company;
  • The company employs up to 50 employees;
  • ABC's headquarters and only base of operations are located in the city, which is the largest business center in the country. For 11 countries, information is also collected for the second largest city;

      ABC and BizBank are 100% domestic companies.

Scripts also use certain background information. In case A, as collateral for the loan, ABC grants BizBank a non-proprietary security interest in one of the categories of movable assets, such as machinery or inventory. ABC wants to retain ownership and ownership of the collateral. In countries where the law does not permit the granting of non-proprietary liens over movable property, ABC and BizBank use a fiduciary title transfer (or other similar mechanism to replace non-proprietary liens).

      In case B, ABC provides BizBank with a business pledge, an enterprise pledge, floating pledge or any other pledge giving BizBank a security right over the aggregate of ABC's movable assets (or the maximum possible amount of ABC's movable assets). ABC retains ownership and ownership of these assets.

      The Legal Strength Index covers the functional equivalents of collateral for movable property (e.g., finance lease or retention of title) in only the first component to assess how integrated or unified the legal framework for secured transactions is.

      The Legal Efficiency Index covers 10 aspects that relate to legal rights under collateral law and 2 aspects that relate to bankruptcy law. For each of the following statutory characteristics, one point is assigned:

      The country has an integrated or unified legal framework for secured transactions, which covers the creation, publicity and enforcement of 4 functional equivalents of protected interests in movable property: transfer of ownership to a trustee; financial leasing; assignment or transfer of receivables; and sale with retention of title.

      The law allows an enterprise to grant a non-ownership security right in a specific category of movable assets (such as accounts receivable, tangible movable property, and inventories) without requiring a specific description of the security.

      The law permits an enterprise to grant non-ownership liens on virtually all of its movable assets without requiring a specific description of the collateral.

      Collateral rights may extend to future and subsequently acquired assets and may automatically relate to assets derived from the use of the original assets, to income derived from those assets and to the assets that replace them.

      All types of debts and obligations can be secured between the parties, and a general description of debts and obligations is allowed in the pledge agreement and in the registration documents.

      The country has a pledge registry or an institution for registering pledge security for movable property provided by all types of entities (incorporated and non-incorporated enterprises), which are geographically centralized, and with an electronic database ordered by the names of debtors.

      The pledge registry is an information base that only notifies about the existence of a security interest (but does not publish the underlying documents) and does not make a legal analysis of the transaction. The registry also discloses functional equivalents of security interests.

      The pledge registry has been modernized to allow secured borrowers (or their representatives) to register, search, edit, or terminate the security interest electronically.

      In the event of a default by a debtor outside bankruptcy proceedings, payments to secured creditors are made first (for example, before general tax and employee claims are met).

      In the event of a liquidation of a company, payments to secured creditors are made first (for example, until general tax and employee claims are met).

Secured creditors are subject to an automatic suspension or moratorium on their enforcement of debt collection when a supervised reorganization is initiated against the debtor, but the law protects secured creditors by providing clear grounds for exemption from automatic suspension or moratorium (for example, if movable property is not used to reorganize or sell a business as a whole or if the existence of movable property is in danger) and sets a deadline for an automatic suspension or moratorium.

      The law allows the parties to prescribe in pledge agreement that the creditor has the right to enforce his pledge right out of court; the law allows property to be sold at public or private auctions, and allows the secured creditor to obtain assets as debt repayment.

      The index takes values ​​in the range from 0 to 12, while higher values ​​of the index indicate a greater efficiency of the collateral and bankruptcy legislation in terms of expanding access to credit.

      Each year, the Effectiveness Index tracks changes in secured transactions and insolvency. Depending on the impact on the data, some of the changes are classified as reforms and are included in the 2017/18 Doing Business Reform Executive Summary to indicate the implementation of significant changes. Reforms fall into two categories - those that make it easier to do business and those that make it harder to do business. The Legal Rights Efficiency Index uses the following criteria for reform recognition.

      Any changes to laws and regulations that have any impact on a country's score regarding the existence of a legal regime for secured transactions that governs the creation, publicity and enforcement of non-proprietary security interests and their functional equivalents. Each year, new laws and amendments are assessed based on whether they make it easier for small and medium-sized enterprises to obtain loans, allowing for maximum flexibility in the choice of assets that can be used as collateral. Recommendations, model rules, principles and case law are excluded in this context.

      Reforms affecting the Legal Strength Index include changes or new secured transactions, the insolvency or civil code, and the creation or modernization of any of the pledge registry functions that are measured by the indicators. For example, the adoption of a law that provides for the creation of a pledge registry and, in fact, the creation of such a pledge registry, which is geographically centralized, uniform for all types of movable property, as well as for all types of entities (incorporated and non-incorporated enterprises), with data ordered by the debtor's names, will be counted as a reform, with an increase of 1 point, which will therefore be reflected in the report.

Credit information:

      Credit information exchange data is collected in two stages. The first involves surveying banking supervisors and examining publicly available information resources to confirm the availability of credit reporting service providers such as credit bureaus or credit registries. At the second stage, if necessary, a detailed survey of these structures themselves is carried out, which makes it possible to find out the form of organization of credit reporting service providers and the legislative and other norms applied to them. The results of the study are verified through additional interviews with respondents from organizations that provide credit reporting services, as well as through interaction with third parties and the study of information from publicly available sources. Teleconferences or local visits are conducted to validate research findings.

Credit Information Depth Index:

      The Credit Information Depth Index assesses rules and practices regarding the coverage, volume and availability of credit information that can be obtained either through a credit bureau or through a credit registry.

      For each of the following 8 characteristics of a credit bureau or credit registry (or both), one point is awarded:

      The data is disseminated both by companies and by individuals.

      Both positive credit information (for example, the original loan amount, outstanding loan amounts and the schedule for repayment) and negative information (for example, late payments, and the number and amount of loan defaults) are disseminated.

      In addition to data received from financial institutions, data received from retailers and utilities is also disseminated.

       Retrospective data for at least the last 2 years are disseminated. Credit Bureaus and credit registries that disseminate negative information more than 10 years after the default has been paid, or delete data on defaults immediately after they have been settled, receive a score of 0 for this indicator.

      Data are disseminated on loans that amount to less than 1% of per capita income.

      According to the law, borrowers have the right to access data about them, contained in the largest credit bureau or register in the country. Credit bureaus and registries that charge borrowers more than 1% of per capita income so that borrowers can verify their identity receive a score of 0 on this indicator.

      Banks and other financial institutions have access to the credit information of borrowers online (for example, via internet platforms, through a system-to-system link, or both).

      Borrower credit assessments, provided by a credit bureau or registry, are offered as an add-on service to help banks and other financial institutions assess the creditworthiness of borrowers.

      The index ranges from 0 to 8, with higher values ​​indicating that more credit information can be obtained from either the credit registry or credit bureau to facilitate lending decisions. If a credit bureau or credit registry is not operational or reaches less than 5% of the adult population, the overall credit depth index score is 0.

      In Lithuania, for example, both a credit register and a credit information bureau operate, which cover more than 5% of the adult population. Both disseminate data to both companies and individuals (1 point). Although the credit registry does not disseminate data on the timeliness of loan repayment, the credit bureau disseminates all positive and negative credit information (1 point). While the credit registry does not disseminate data from retailers and utilities, the credit bureau does (1 point). Both disseminate data for a period of time spanning at least the last 2 years. Both the credit registry and the credit bureau distribute loan data below 1% of per capita income (1 point). Borrowers have the right to access their data, both in the credit bureau and in the credit register, without being charged once a year (1 point). Both instances provide their users with access to databases via Internet platforms (1 point). Although the credit registry does not offer the possibility of obtaining a credit score, the credit bureau does offer this service (1 point). Adding all the scores for the listed indicators, Lithuania gets 8 points on the index of the depth of credit information.

Credit Bureau Coverage:

      The coverage of credit bureaus reflects the number of individuals and companies that are included in the bureau's database as of January 1, 2018, along with information about their loan history over the past 5 years. In addition, it reflects the number of individuals and companies that have no history of obtaining loans over the past 5 years, but whose credit information was requested by lenders from the bureau in the period from January 2, 2017 to January 1, 2018. This number is expressed as a percentage of the adult population (population aged 15 to 64 in 2017, according to World Bank World Development Indicators). A credit bureau is a private company or non-profit organization that maintains a database on the creditworthiness of borrowers (individuals or legal entities) in the financial system and facilitates the exchange of credit information among lenders. (Many bureaus carry out banking and general financial supervision in practice, although this is not their primary function.) Credit Bureaus that do not directly facilitate the exchange of information between banks and other financial institutions are excluded from this indicator. In the absence of a bureau, the coverage rate is 0.0%.

Credit registry coverage:

      The coverage indicator of the credit register reflects the number of individuals and companies that are included in the bureau's database as of January 1, 2018, along with information about the history of their loans over the past 5 years. In addition, it reflects the number of individuals and companies that do not have a credit history for the last 5 years, but whose credit information was requested by lenders in the registry between January 2, 2017 and January 1, 2018. This number is expressed as a percentage of the adult population (population aged 15 to 64 in 2017, according to World Bank World Development Indicators). A credit registry refers to a database that is administered by the public sector, usually a central bank or banking department, that collects information about the creditworthiness of borrowers (individuals or legal entities) in the financial system and facilitates the exchange of credit information between banks and financial institutions (while their main the task is to promote banking supervision). In the absence of a state register, the coverage indicator is 0.0%.

Reforms

      The Credit Information Depth Index tracks changes each year in the coverage, volume, and availability of credit information, which can be obtained from either the credit bureau or the credit registry. Depending on the impact on the data, certain changes are classified as reforms and are included in the Doing Business Reform 2017/2018 Briefs to indicate the implementation of significant changes. Reforms are divided into two types: those that make it easier to do business and those reforms that make it harder to do business. The credit information depth index uses three criteria for reform recognition.

      First, all changes in laws, regulations and practice that have any effect on a country's credit reporting index score are classified as reforms. Examples of reforms affecting the index include measures to disseminate positive credit information in addition to negative information, disseminate data obtained from retailers and utilities, or the introduction of credit ratings from bureaus and registries as an additional service. Any change that improves a given country's score in any of the eight index points is considered reform. Some reforms can affect more than one point. For example, the introduction of a new credit bureau with coverage of more than 5% of the adult population, which disseminates information about companies and individuals, as well as positive and negative information, and provides banks and other financial institutions with access to credit information of borrowers online, is an increase of 3 points in the index. While the adoption of the bill, which guarantees borrowers the right to access their data contained in the country's largest credit bureau or registry, represents a reform with an increase of 1 point in the index.

      Second, changes that increase the coverage of the largest credit bureau or registry in the country to more than 5% of the adult population can also be classified as reforms. According to the methodology of the Obtaining loans indicator, if a credit bureau or registry covers less than 5% of the adult population, the credit information depth index is 0. The impact of the reform will depend on the characteristics of a country's credit reporting system and its eight-point score. Expansion of coverage that does not reach the 5% threshold of the adult population is not classified as a reform, but the impact is still reflected in the updated statistics.

      Third, sometimes the credit information index considers legislative changes as reforms, even though they have no impact on the current data. This option is generally used in relation to legislative changes of exceptional value, such as the adoption of legislation on the operation of credit bureaus or laws on the protection of personal data.

(Source: Doing Business Rating, World Bank)

Domestic credit to the private sector

Financial resources provided to the private sector by financial corporations.

      Domestic credit to the private sector refers to financial resources provided to the private sector by financial corporations, for example, through loans, purchases of non-equitable securities, and trade loans and other receivables that create a claim for payment. In some countries, these requirements include the provision of loans to state-owned enterprises. Financial corporations include monetary authorities and depository banks, as well as other financial corporations where data is available (including corporations that do not accept transferable deposits but have liabilities such as time and savings deposits). Examples of other financial corporations are finance and leasing companies, lenders, insurance corporations, pension funds, and foreign exchange companies.

(Source: Statistical data of the World Bank)

Loan portfolio of microfinance organizations

Consolidated loan balances.

      This study examines the impact of both institutional factors and macroeconomics on the financial performance of MFIs. Drawing on microfinance information exchange data and cross-country data on macroeconomics, finance, and institutions, we use three stages of least squares and Hausman-Taylor to account for endogeneity. We find that institutional factors affect the financial performance of an MFI, in particular profitability, operating costs and portfolio quality. In addition, GDP and the share of domestic credit in GDP have a positive impact on the financial performance of MFIs. Therefore, policies to improve institutional quality at the country level are necessary to ensure the sustainability of MFIs.

(Source: Data from International Monetary Fund)

Ease of protecting minority investors

Regulation of the conflict of interests of shareholders from abuse of corporate assets for personal purposes.

Shareholder Rights Index For each question included in the Shareholder Rights Index, a country receives 0 points if the answer is no, 1 point if the answer is yes

The index includes 10 components:

  • Is shareholder approval required to sell 51% of the buyer's assets?
  • Do shareholders who own 10 percent of the buyer's shareholding have the right to call a shareholders meeting?
  • Does the buyer have to obtain the consent of the shareholders every time he issues new shares?
  • Do shareholders automatically receive a pre-emptive right each time a buyer issues new shares?
  • Can shareholders appoint and remove an external auditor?
  • When the rights associated with a certain class of shares change, is the consent of the owners of this class of shares required?
  • Assuming the buyer is a limited liability company, is the approval of the members of that company required to sell 51% of the buyer's assets?
  • Assuming that the buyer is a limited liability company, are the members of that company, who own 10% of the assets, entitled to call a meeting of members?
  • Assuming the buyer is a limited liability company, do all or nearly all of the company's members have to approve the new member?
  • Assuming the buyer is a limited liability company, should members of the company first offer their share to other members before they can sell it to outside parties?

Management structure development index

      For each question included in the management structure development index, a score of 0 is assigned if the answer is no, 1 - if yes. The index includes 10 components:

  • Is it prohibited for the same person to simultaneously hold the positions of CEO and chairman of the board of directors?
  • Should the board of directors include independent and non-executive members?
  • Can shareholders remove from office members of the company's board of directors without giving a reason before the end of their term?
  • Should the board of directors include an independent audit committee?
  • Should a potential buyer of the company send a formal offer to all shareholders when acquiring 50 percent of the company?
  • Does the buyer have to pay the declared dividend within the statutory deadline?
  • Is the subsidiary prohibited from acquiring shares in the parent company (the company that owns the controlling interest)?
  • Assuming that the buyer is a limited liability company, should it have a mechanism to resolve conflicts among its members?
  • Assuming that the buyer is a limited liability company, should a prospective buyer of the company send a formal offer to all of its members when acquiring 50 percent of the company?
  • Assuming the buyer is a limited liability company, does the buyer have to distribute the profits within the statutory timeframe?

Corporate Transparency Index

      For each question included in the corporate transparency index, a score of 0 is assigned if the answer is no, 1 - if yes. The index includes 10 components:

  • Should the buyer disclose / provide information on direct and indirect participation in the properties equal to 5%?
  • Should the buyer disclose information about the board members, in particular their main employment and management positions at other companies?
  • Does the buyer have to disclose information about managers' compensation?
  • Do I need to send a notice of the meeting 21 days before the general meeting?
  • Do the shareholders owning 5% of the buyer's shares have the right to put issues on the agenda of the general meeting of shareholders?
  • Should the buyer's annual financial statements be reviewed by an external auditor?
  • Should the buyer publicly publish audit reports?
  • Assuming that the buyer is a limited liability company, do members need to meet at least once a year?
  • Assuming that the buyer is a limited liability company, does its members, who own 5% of the authorized capital, have the right to include issues on the agenda of the general meeting?
  • Assuming that the buyer is a limited liability company that is larger than the statutory size, is it required to audit its annual financial statements by an external auditor?

Shareholder Governance Index

      The shareholder governance index is the sum of the indices of shareholder rights, the level of governance structure, and corporate transparency. The index ranges from 0 to 10, with higher values ​​indicating greater protection of shareholder rights in corporate governance.

Reforms

      Each year, the Protect Minority Investors indicator tracks developments related to the regulation of stakeholder transactions and corporate governance. Depending on their impact on the data, some of the changes are classified as reforms and are included in the “2017/18 Doing Business Reform Summary” section to mark the introduction of significant changes. Reforms fall into two categories - those that make it easier to do business and those that make it harder to do business. The following criteria are used when taking into account reforms according to the indicator “Protection of minority investors”.

      All legislative and regulatory changes are classified as reforms if they affect the score given to a country on any of the 48 questions in the six indicators related to the protection of minority investors. The amendment must be mandatory, which means that failure to comply allows shareholders to sue or sanction a regulatory body, such as the registering authority, the capital market regulator, or the Securities and Exchange Commission. The guidelines, model rules, principles, recommendations and obligations to explain in case of non-compliance are not considered. When a change exclusively affects companies that are listed on the stock exchange, it will only be flagged if the stock exchange has 10 or more stock listings. If a country does not have a stock exchange, or its stock exchange has less than 10 stock lists, the change will only be considered when it affects the interests of companies, regardless of whether their shares are listed on the stock exchange or not.

      Reforms affecting the Minority Investor Protection Indicator data include enacting or amending company law, the commercial code, securities law, the civil procedure code, court rules, adjudication by the highest judicial authority, or issuance of stock exchange rules. These changes should have an impact on the rights and obligations of issuers, company management, directors and shareholders in connection with the conclusion of interested-party transactions or, in general, affect the aspects of corporate governance studied by the indicator. For example, in one country, interested party transactions must be approved by the board of directors, including board members with a personal financial interest in the transaction. The country is adopting a law stipulating that interested-party transactions must now be approved by the general meeting of shareholders, with shareholders with a conflict of interest barred from voting. Such a law would increase the country's score by 2 points in the relevant section of the transaction disclosure index and thus would be noted in the report.

(Source: Doing Business Rating, World Bank)

Market capitalization

The cost of the object, calculated based on the current market (exchange) price.

      Market capitalization can be estimated based on the following indicators, the assessment of the value of an enterprise, land plot, securities and other property, by calculating the reduced amount of expected income, taken over the entire period of its intended use.

      Capitalization may be insufficient, sufficient or excessive, depending on the ratio between the economic capital of the company and the capital of the company, which actually exists at the current time.

(Source: Statistical data of the World Bank)

Venture capital deals

Venture capital by investment location.

      Venture funds contribute to the development of competitiveness and efficiency of the innovation sector of Uzbekistan's economy, as well as contribute to the development of investment mechanisms to strengthen technology clusters, technology parks and business incubators. Venture capital investments are intended to finance new (start-ups) or growing companies whose activities are associated with a high degree of risk. A venture capital fund is a collective investment vehicle based on the formation of a common fund by investors (source: International Monetary Fund data).

Trade, competition and market size

The average efficiency ratio of the rates applied, weighted by the share of imports of goods corresponding to each partner country.

      The weighted average tariff is an average indicator of the effectiveness of the rates applied, weighted by the share of imports of goods corresponding to each partner country. Data are classified using the harmonized trading system at six or eight digits. Tariff data have been compared with the International Trade Classification (SITC) version of code 3 to identify commodity groups and imports. Effectively applied tariff rates at the six- and eight-digit product level are averaged across the products in each product group. When the effectively applied rate is not available, the most favored nation rate is used instead. To the extent possible, specific rates have been converted to their equivalent advalorem rates and included in the calculation of weighted average rates.

(Source: Statistical data of the World Bank)

Local competition

The intensity of local competition.

      The usual answer to a survey question is: How strong is the competition in the local market?

[1 = not very strong; 7 = extremely strong].

(Source: Data from the World Economic Forum)

The scale of the domestic market

Domestic market size measured by GDP.

      Market capacity calculation methods:

There are 3 basic methods for determining the capacity of a target market: the bottom-up capacity method, the top-down capacity method, and the market capacity calculation based on actual sales. Let's consider each of the methods for assessing market capacity in more detail.

Each method has a universal rule: if the market is divided into several segments or sub-markets, then it is sometimes easier to calculate the capacity of each sub-market and then add up to obtain the capacity of the entire market.

Bottom-up method

The bottom-up method is the most common method for calculating market volume. It determines the market capacity in terms of the current level of demand. The market capacity according to the “bottom-up” method is equal to the sum of all expected purchases of goods by the target audience for the billing period (in practice, it is customary to calculate the annual market capacity).

Calculation formula

      If you want to estimate the size of your target market using the bottom-up method, then the following 3 formulas for calculating market size will come in handy:

  • Market size in quantitative terms (in thousand units) - Market capacity for period N (thousand units) = Number of target market audience (in thousand people) * rate of consumption of goods for period N (in units)
  • Market size in monetary terms (in thousand soums) - Market capacity for period N (thousand soums) = Number of target market audience (in thousand people) * rate of consumption of goods for period N (in pieces) * average cost of 1 units of products on the market (in sum.)
  • Market size in volume terms (in thousand liters) - Market capacity for period N (volume units - thousand liters) = Number of target market audience (in thousand people) * rate of consumption of goods for period N (in pieces) * average volume of 1 package of goods (in units of volume - liter)

Top-down method

      The method involves determining the size of the market based on the data of internal sales of all market players for the billing period (if it is impossible to cover all players, it is enough to take only large ones, accounting for 80-90% of market sales).

      The formula for calculating market capacity in a top-down approach is as follows:

Market capacity = The sum of the sales of all companies in the market, expressed in selling prices to the buyer (i.e. not shipping prices, but retail prices).

      Information can be obtained as a result of a survey of major market players, as a result of open reports published by players in some markets.

Method from real sales

      This estimate is currently used by many research companies such as ACNielsen. The essence of the method is tracking sales of certain categories of goods by real customer receipts, which represent real purchases of the audience.

      In this method, only large chain stores are used, with which agreements are concluded for the provision of data, and these stores are used as a representative sample. As a result, the data obtained can be extrapolated to the entire country.

      In this method of determining the volume of the market, it is impossible to isolate a separate audience, but it is possible to realistically estimate: how many pieces of certain types of goods, at what prices, in what volume were sold on the market during the billing period. A universal technique allows you to analyze information over time.

(Source: Data from the International Monetary Fund)

Employment in knowledge-intensive industries

The total number of people in categories 1 to 3 as a percentage of the total employed people, according to the International Standard Classification of Occupations (ISCO).

      Categories include:

  • ISCO-08: 1 managers, 2 specialists and 3. technical workers and associate specialists (2008-17);
  • ISCO-88: 1 legislators, senior officials and managers, 2. specialists, 3. technicians and associates (2008-17);
  • ISCO-68: 1. specialists, technical personnel and related workers (category 0 excluded Armed Forces), 2. administrative and managerial workers, 3 office and related workers (2017-15).

(Source: Data from the International Labor Organization)

Firms offering formal training

Percentage of firms offering formal training programs for their full-time permanent employees in the sample of firms included in the World Bank Business Survey in each country.

      Firms offering formal training (% of total firms)

      The surveys carried out by the Enterprise Analysis Department follow a global methodology. Private contractors conduct business surveys on behalf of the World Bank. Due to the delicate survey questions concerning business-government relations and bribery-related topics, the World Bank is hiring private contractors rather than any government agency or government-affiliated organization / agency to collect data. The confidentiality of respondents and the confidential information they provide is essential to maximize survey participation, integrity and confidence in the quality of the data. Surveys are usually conducted in collaboration with business organizations and government agencies that promote job creation and economic growth, but confidentiality is never compromised. Business owners and top managers provide an answer to a survey of enterprises. Sometimes the respondent engages accountants and HR managers in interviews to answer questions in the survey and sales sections. Typically, 1200-1800 interviews are conducted in large countries, 360 in medium-sized countries, and for small countries 150 interviews. The manufacturing and service sectors are the main business sectors of interest. This corresponds to firms classified with ISIC codes 15-37, 45, 50-52, 55, 60-64 and 72 (ISIC Rev.3.1). Official (registered) companies with 5 or more employees are subject to interview. The firm's services include construction, retail, wholesale, hotels, restaurants, transportation, storage, communications and IT. Firms with 100% state / state ownership are not eligible to participate in the survey of enterprises. Occasionally, in some surveyed countries, surveyed companies include other sectors such as education or health-related businesses. In each country, a survey of enterprises in cities / regions of main economic activity is carried out. Some countries conduct other surveys that differ from the usual business survey methodology. Examples include:

  • informal polls - polls of informal (unregistered) enterprises,
  • micro-surveys - surveys of registered firms employing less than five people,
  • Financial Crisis Assessment Surveys - short telephone surveys to assess the impact of the 2008-09 global financial crisis.

      Enterprise Surveys uses two tools: the business questionnaire and the service questionnaire. While many of the questions overlap, some of them only apply to one type of business. For example, retailers don't ask about manufacturing and non-manufacturing workers. Typical Business Surveys topics include firm characteristics, women's participation, access to finance, annual sales, resource / labor costs, labor force composition, bribery, licensing, infrastructure, trade, crime, competition, capacity utilization, land and permits., taxation, informality of the relationship between business and government, innovation and technology and performance indicators. More than 90% of the questions objectively define the characteristics of the country's business environment. The remaining questions assess the respondents' views on what impedes firm growth and performance. Data collection mode - personal interviews.

(Source: Enterprise Research, World Bank Data)

R&D performed by a business enterprise

Gross research and development expenditure by businesses as a percentage of GDP. The definition of GERD is given in the indicator.

      R&D performed by a business enterprise (as a percentage of GDP Gross R&D expenditure) performed by a business enterprise as a percentage of GDP. Total domestic expenditure on research and development over a given period as a percentage of GDP. “Internal R&D expenditure” is all R&D expenditure carried out within a statistical unit or sector of the economy during a specified period, regardless of the source of funds.

(Source: UNESCO Statistics)

Gross expenditure on research and development carried out by business enterprises

Gross R&D funded by commercial enterprises as a percentage of total gross R&D expenditure. The definition of GERD is given in the indicator.

      R&D performed by a business enterprise (as a percentage of GDP Gross R&D expenditure) performed by a business enterprise as a percentage of GDP. Total domestic expenditure on research and development over a specified period as a percentage of GDP. “Internal R&D expenditure” is all R&D expenditure carried out within a statistical unit or sector of the economy during a specified period, regardless of the source of funds.

(Source: UNESCO Statistics)

Women with higher education

Percentage of employed women with advanced degrees out of the total employed. Employed includes all persons of working age who, for a certain short period, have been in one of the following categories: (1) paid work (whether at work or work, but not at work); or (2) self-employment (at work or in a company, but not at work). Data are disaggregated by educational attainment, which refers to the highest level of completed education classified according to the International Standard Classification of Education (ISCE). Data for Canada is based on Table 282-0004 estimates from the country's Labor Force Survey.

      The number of working women with higher education, % of the total number of employed (25 years +). Percentage of employed women with a scientific degree out of the total employed. The group of employed persons consists of all persons of working age who, for a certain short-term period, were in one of the following categories:

  • had a paid job;
  • were self-employed (whether at work or in an enterprise, but not at work).

      Data are disaggregated by educational attainment, which refers to the highest educational attainment classified according to the International Standard Classification of Education (ISCED).

 (Source: Data from the International Labor Organization)

Cooperation between universities and industries in the field of science

Collaboration between universities and industry researchers has a huge impact on research careers and curriculum development. The collaboration brings new perspectives on research funds, real-world problems and research challenges, and new ingredients in curriculum development. Collaboration also creates innovation and delivers national economic benefits. The article presents the mechanism of scientific cooperation between the university and industry.

      The average response to a survey question is: To what extent do businesses and universities collaborate on research and development (R&D)? [1 = not cooperate at all; 7 = actively cooperate] † a | 2017.

(Source: Data from the World Economic Forum)

Cluster development state

Collaboration between universities and industry researchers has a huge impact on research careers and curriculum development. The collaboration brings new perspectives on research funds, real-world problems and research challenges, and new ingredients in curriculum development. Collaboration also creates innovation and delivers national economic benefits. The article presents the mechanism of scientific cooperation between the university and industry.

      The usual answer to a survey question about the role of clusters in the economy: In your country, how widespread are well-developed and deep clusters (geographic concentrations of firms, suppliers, manufacturers of related goods and services and specialized institutions in a particular area) [1 = does not exist; 7 = widespread in many areas].

(Source: Data from the World Economic Forum)

R&D: foreign funding

Percentage of gross R&D spending financed abroad, that is, foreign-funded as a percentage of total gross R&D spending in the country.

      Gross R&D expenditure financed by the business enterprise (percent of GDP). Gross R&D expenditure financed by business enterprises as a percentage of total gross R&D expenditure.

(Source: UNESCO Statistics)

Joint venture / strategic alliances

Thomson Reuters data on joint ventures / strategic alliances, for each transaction, with details of the country of origin of the partner firms, among others. This series is in line with the request for deals with joint ventures / strategic alliances from January 1, 2017 to December 31, 2017, with a total of 6,896 deals announced in 2017, with headquarters in 113 participating countries.

      Each country participating in each company in the transaction (n countries per transaction) receives a score of 1 / n for the transaction (assuming that all country ratings add up to 6,896). Data are given per billion PPP GDP.

(Source: Data from the World Economic Forum)

Family of patent peers

A “family of patents” is a collection of related patent applications filed in one or more countries or jurisdictions to protect the same invention. Families of patents containing applications filed in at least two different offices are a subset of patent families where protection of the same invention is requested in at least two different countries. In this report, “patent family data” refers to patent applications filed by residents with at least two IP Offices, scaled by PPP $ GDP (billions). A “patent” is a set of exclusive rights granted by law to applicants for inventions that are new, non-obvious and commercially applicable. A patent is valid for a limited period of time (usually 20 years) during which patent holders can use their inventions commercially on an exclusive basis. In return, applicants are required to disclose their inventions to the public in such a way that others skilled in the art can reproduce the invention.

      A family of patents for which the first named or equivalent applicant is a resident of the respective state or region. Patent data covers applications and grants classified by technology field. The International Application Series distinguishes four subcategories:

  • patents issued by residents of a country in that country;
  • patents issued in a country by non-residents of that country;
  • general patents registered in or naming a country;
  • patents granted outside the country by its residents.

     The data on patents granted distinguishes between patents granted to residents and non-residents. A patent protects the invention to the patent holder for a limited period, usually 20 years.

(Source: Data from WIPO and the International Monetary Fund)

Intellectual property payments

Expenses for the use of intellectual property i.e. payments.

      Intellectual property fees and charges are payments and receipts between residents and non-residents for the authorized use of property rights (such as patents, trademarks, copyrights, industrial processes and designs, including trade secrets and franchises), as well as for use through licensing agreements for originals or prototypes produced (for example, copyright for books and manuscripts, computer software, cinematographic works and sound recordings) and related rights (for example, live performances and television, cable or satellite broadcasting).

(Source: Statistics of the World Trade Organization)

Import of high-tech products

The number of high-tech products imported overseas.

      The import of goods for information and communication technologies includes the following five directions:

  • computers and peripheral equipment;
  • communication equipment;
  • consumer electronic equipment;
  • electronic components;
  • other information and technological goods (other).

      Software is generally excluded as there is a preference for recording it as part of a service (not a high technology product, but an ICT product) as much as possible. However, it is difficult to completely exclude embedded software from certain types of high-tech products, such as video game consoles. Thus, we can conclude that the import of high-tech goods and products is: the import of high-tech goods as a percentage of total imports is calculated for each country by dividing the value of imports of high-tech goods by the total value of imports of goods. The result is then multiplied by 100 to be expressed as a percentage. High-tech products are defined in accordance with the 2011 OECD Guide to Measuring the Information Society for the Harmonized System (HS) 2007 and adapted to HS12 by UNCTAD in collaboration with UNSD (United Nations Statistics Division). This new listing consists of 93 products defined at the 6-digit level of the 2012 HS release. The technical note is available online at: http://unctad.org/en/PublicationsLibrary/tn_unctad_ict4d02_en.pdf. The data were downloaded from COMTRADE in accordance with the declared classification (HS92, 96, 02, 07, 12) and combined into UNCTAD ICT groups.

(Source: Eurostat Indicators for High-Tech Industries and Knowledge)

Import of ICT services

Import of ICT goods.

      Import of services related to telecommunications, computers and information (% of the total)

      The imports of ICT services are determined by the purchase of the following services:

  • communications, computer, information and other services cover international communications;
  • computer data; news service transactions between residents and non-residents;
  • construction services;
  • royalties and licensing fees;
  • various business, professional and technical services;
  • personal, cultural and recreational services;
  • production services for material resources owned by others;
  • and maintenance and repair services and government services not elsewhere classified.

(Source: Statistics of the World Trade Organization)

Direct foreign investments

The value of foreign direct investment made by non-resident investors in the reporting economy.

      The internationally recognized definition of FDI (Foreign Direct Investment) (from the Sixth Edition of the IMF (International Monetary Fund) Balance of Payments Manual [2009]) includes the following seven components:

  • equity investments, including investments related to equity, which cause control or influence;
  • investments indirectly influencing or controlled by the enterprise;
  • investments of joint ventures;
  • debt (other than the selected debt);
  • return investment.

      The direct investment relationship framework provides criteria for determining whether cross-border ownership leads to a direct investment relationship based on control and influence. Unlike other types of international investment, foreign direct investment is designed to provide continued interest or effective management control over an enterprise in other countries. An ongoing interest in an investment venture usually includes the establishment of warehouses, production facilities and other permanent or long-term organizations abroad. Direct investment can take the form of new investment when an investor starts a new venture in a foreign country by building new production facilities; a joint venture where an investor enters into a partnership agreement with a foreign company to create a new venture; or mergers and acquisitions, where the investor acquires an existing business abroad. The IMF proposes that investments account for at least 10 percent of voting shares to be accounted for as FDI. In practice, many countries set a higher threshold. Many countries do not report income reinvested and the definition of long-term loans differs from country to country.

(Source: Statistics of the World Trade Organization)

Business researchers

Full-time researchers in the entrepreneurship sector.

Business researchers, % per thousand population.

(Source: UNESCO Statistics)

Patent applications by origin

Number of patent applications.

      Number of patent applications filed with the national or regional patent office (per billion $ PPP in GDP) Intellectual property (IP) is the product of the human mind. IP objects include inventions, literary and artistic works, symbols, names and images used for commercial purposes. Legal systems allow IP objects to be protected, for example, through patents, copyright and trademarks, which enable people to seek recognition or receive financial rewards for their inventions or works. By balancing the interests of inventors and the general public, the IP system fosters an environment for creativity and innovation to flourish.

(Source: Data from WIPO and the International Monetary Fund)

PCT international applications by origin

Number of international patent applications.

      Number of international patent applications filed by residents under a Patent Cooperation Treaty (per billion $ GDP PPP). An application abroad is understood as an application filed by a resident of that country in a foreign office.

(Source: Data from WIPO and the International Monetary Fund)

Utility Model Applications by Origin

Number of utility model applications filed by residents with the patent office of their country.

      Number of utility model applications filed by residents with the patent office of their country (per billion $ GDP in PPP).

(Source: Data from WIPO and the International Monetary Fund)

Scientific and technical publications

Number of scientific and technical journal articles.

      Number of scientific and technical journal articles (per billion $ PPP GDP). Technical cooperation contributions are accepted primarily in the form of donor donation of human resources or human resource activities (e.g. training or advice).

(Source: Data from WIPO and the International Monetary Fund)

Cited documents with index H

An author level indicator that attempts to measure both the performance and the impact of citing a scientist's or scientist's publications.

      This index, H, is derived from the number of citations taken from articles published in a given year divided by the number of articles published that year. The index reflects both the number of publications and the number of links per publication.

(Source: Rating of educational institutions SCImago)

Growth rate of GDP per capita.

GDP growth rates per employed person.

      This economic indicator consists of the following concepts. Gross Domestic Product (GDP) is the sum of the gross value added of all resident producers in a country, plus any taxes on products and minus any subsidies not included in the cost of products. It is calculated without taking into account deductions for depreciation of fixed assets or for the depletion and degradation of natural resources.

      Employed is defined as persons above the nationally established working age (different in each country, but usually close to 15 years) who have worked or worked during a specified reporting period. Includes persons who worked for remuneration or profit (or for remuneration in kind); persons who have been temporarily absent from work for reasons such as illness, maternity leave or parental leave, leave, training or industrial dispute; and unpaid family workers who worked for at least one hour, although in many countries a higher hour limit is used in the definition. The employment measure is intended to cover persons working in both the formal and informal sectors and in households.

      Output is measured as value added, which is the total value of output minus the value of intermediate inputs such as raw materials, semi-finished goods, purchased services and energy costs. Value added, called gross domestic product (GDP) in national accounts, is compensation for the input of services from capital (including depreciation) and labor directly involved in production. Effort is measured as the number of people employed, also known as total employment.

(Source: Conference Board Total Economy Database ™)

New business density

The number of new companies.

      New business entry density, which is the number of newly registered limited liability corporations per calendar year, normalized for the working age population.

      It is a valuable metric that quantifies the impact of regulatory, policy and macroeconomic institutional changes on new business registrations, a vital component of a dynamic private sector. Data includes all limited liability corporations regardless of size. Partnerships and sole proprietorships are excluded from the analysis due to differences in their definition and regulation around the world. Data on the number of general or closed firms are not included due to the heterogeneity in how these entities are defined and measured. To facilitate cross-country comparability, the Entrepreneurship Database uses a single unit of measurement, source of information and the concept of entrepreneurship that is applicable and available in a diverse sample of participating countries. The data collection process includes telephone interviews and e-mails with commercial registries in 139 countries. The main sources of information for this study are national business registers. In a limited number of cases where the business registry was unable to provide data - most often due to the lack of digitized registration systems - the Business Database uses other alternative sources such as statistical agencies, tax and labor agencies, chambers of commerce, and private providers or publicly available data. The units of measure are private companies in the formal sector with limited liability.

 (Source: Doing Business Rating, World Bank)

General expenses for computer software

The cost of purchased or rented packaged software.

      This eliminates the cost of in-house software development and custom software development. Data are a combination of actual figures and estimates. Data are presented as a percentage of GDP.

(Source: IHS Global Insight Database, Information and Communication Technology; International Monetary Fund, World Economic Outlook Database.)

ISO 9001 quality certificates

International standard that specifies requirements for a quality management system.

      The requirements of ISO 9001 are broadly divided into eight clauses (called ISO 9001 clauses), five of which contain mandatory requirements for a QMS: general quality management system requirements (clause 4), management responsibility (clause 5), resource management (clause 6). “Product implementation” (clause 7) and “Measurement, analysis and improvement” (clause 8). All elements of these five clauses are required, with the exception of the “Product implementation” section, which allows the company to exclude parts that do not apply. Clauses 1 through 3 do not contain requirements, but instead relate to the scope of the standard, references for better understanding of the standard, and terms and definitions.

      Quality management system. This section discusses the general requirements for the QMS, as well as all the requirements for documentation. It also includes requirements for the necessary Quality Manual, document control and record control. Management responsibility. The Management Responsibility section sets out the requirements for customer commitment and commitment, as well as important quality policies and objectives. The elements of planning in the QMS are considered, as well as the need to determine responsibility, authority and communication in the company. Finally, requirements for management review, including mandatory inputs and outputs for the review, are included. Resource management. The resource brief covers the management requirements for the provision of resources, including infrastructure, work environment, and human resources. The importance of competence, awareness and training is emphasized. Product implementation. This section is the only part of the structure in which a company can decide to exclude requirements sections (for example, exclude design requirements if your company is not doing design work). Requirements relate to planning a product (or service), starting with the definition and analysis of product requirements, design, development and procurement, which leads to the ability to create and deliver a product or service. The final requirements relate to the control of any equipment used to monitor or measure a product or service.

      Measurement, analysis and improvement. The last section is about how you know how your QMS works and improves. The Monitoring and Measurement section outlines the requirements for customer satisfaction assessment, internal audit, and product and process monitoring. This section focuses on how to control a nonconforming product as it will happen in any business, and how you will analyze and improve it, including corrective and preventive actions.

(Source: UN and Organization for Economic Cooperation and Development Statistics)

High-tech and medium-tech products

High-tech and medium-high-tech results as a percentage of total output based on the Organization for Economic Co-operation and Development (OECD) economic intensity classification, based on the International Standard Industrial Classification ISIC Revision 4. and ISIC. ISIC data were preferred; when data is not available or reported for a given country, ISIC Revision 3 data was used.

      High-tech and mid-tech products are defined as a percentage of the total output based on the classification of the following items: aerospace products, computer-office machines, electronics and telecommunications products, pharmaceutical products, scientific instruments, electrical machines, chemical and non-electrical machines.

(Source: UN and Organization for Economic Cooperation and Development Statistics)

Proceeds from intellectual property

Intellectual Property Use Fees.

There are three methods for valuing intellectual property: valuation, market and income valuation.

  • Cost-based valuation takes into account both the historical cost of creating the asset and the cost of recreating it, taking into account current rates.
  • Market valuation evaluates comparable market transactions, whether sales or purchases, of similar assets to arrive at conclusions about value.
  • Income-based valuation examines the stream of income related to intellectual property based on historical income and expected future income.

(Source: Statistics of the World Trade Organization)

High-tech export

Export of high-tech products.

      High-tech exports minus re-exports (% of total trade). The goods are classified in the following sectors: aerospace; computers and office equipment; electronics; telecommunications; pharmacy; scientific instruments; electric cars; chemistry; non-electric machines; and weapons.

(Source: Statistics of the World Trade Organization)

Export of ICT services

Export of telecommunication, computer and information services.

      Exports of information and communications technology goods include computers and peripheral equipment, communications equipment, consumer electronic equipment, electronic components and other information and technology goods (others). Software is generally excluded as there is a preference for recording it within the service (not an ICT product, but an ICT product) as much as possible. However, it is difficult to exclude embedded software entirely from certain types of ICT goods, such as game consoles (see, for example, the discussion on page 30 of the OECD guide below). Exports of ICT goods as a percentage of total exports of goods is calculated for each country by dividing the value of exports of ICT goods by the total value of exports of goods. The result is then multiplied by 100 to be expressed as a percentage. ICT goods are defined in accordance with the 2011 OECD Guide to Measuring the Information Society for the Harmonized System (HS) 2007 and adapted to HS12 by UNCTAD in collaboration with UNSD (United Nations Statistics Division). This new listing consists of 93 products defined at the 6-digit level of the 2012 HS release.

(Source: Statistics of the World Trade Organization)

Direct foreign investments

Net direct investment outflow.

Foreign investors have standard criteria when assessing the possibility of investing abroad their capital. These criteria include the following:

  • Political factors - political stability, business philosophy of the government, and so on.
  • Economic factors - high rates of economic growth, stability of the exchange rate, real interest rate, liquidity of the stock and bond market, the strength of the banking system, the volume of foreign exchange reserves, macroeconomic stability.
  • Incentives for foreign investors - the level of taxation, tax incentives, property rights, etc.

Other factors are education and workforce skills, business opportunities, local competition, etc.

(Source: World Bank Statistics)

Number of trademark applications by origin.

Number of trademark applications issued to residents.

      Number of trademark applications issued to residents at the national or regional office (per billion $ GDP in PPP). The number of trademark applications is based on the total number of classes of goods and services cited in resident trademark applications filed at that national or regional office in 2019.

       The data refer to the number of classes of trademark applications - the number of classes specified in resident trademark applications and includes all applications filed at both the national office and the regional office, where applicable. Data are determined at PPP $ GDP (billions). A "trademark" is a mark used by the owner of certain products or providers of certain services to distinguish them from products or services of other companies. A trademark can be composed of words and / or word combinations such as slogans, names, logos, pictures and images, letters, numbers, sounds and moving images, or a combination of these.

      Trademark registration procedures are governed by the laws and procedures of national and regional IP offices. Trademark rights are limited by the jurisdiction of the IP office that registers the trademark. Trademarks can be registered by filing an application with the appropriate national or regional office or by filing an international application through the Madrid System. A resident trademark application is an application filed with an IP office or office acting on behalf of the state or jurisdiction in which the applicant resides.

      For example, an application filed with the Japanese Patent Office (JPO) by a resident of Japan is considered a resident application for Japan. Likewise, an application filed by an applicant residing in any of the EU Member States, such as France, is filed with the Office for Harmonization in the Internal Market (OHIM) and is considered a resident application for that Member State (France).

(Source: Data from WIPO and the International Monetary Fund)

Industrial designs by origin

The number of projects contained in industrial design applications.

      Number of designs in industrial design applications filed with a national or regional office (per billion PPP $ GDP)

      Number of projects in industrial design applications filed with national or regional office (billions of PPP)

       This indicator refers to the number of projects in industrial design applications filed with a specific national or regional office. The data refer to the number of industrial design applications - the number of designs contained in applications and includes designs contained in industrial design applications filed at both the national office and the regional office, where applicable. “Number of Resident Projects” is the number of projects contained in applications filed with the IP office or with an office acting on behalf of the State or jurisdiction in which the applicant resides.

(Source: Data from WIPO and the International Monetary Fund)

ICT and business model creation

Business model creation and ICT.

      This indicator reflects the extent to which ICT allows the creation of new business models [1 = does not allow at all; 7 = pretty much].

      The calculation of this indicator includes 5 main parameters, each of which is summed up from the set of the following criteria:

  • Human capital systems: talent pool with relevant ICT skills, as well as awareness and soft skills that provide a competitive advantage in the labor market;
  • Infrastructure systems: ubiquitous ICT connectivity, access to electricity and transport, infrastructure to support innovation and technology adoption by SMEs;
  • Social systems: networks of trust and recognition for workers and employers, social safety nets and measures to minimize possible negative consequences of employment using ICT;
  • Financial systems: efficient and accountable systems to ensure timely payments, access to finance to support innovation and entrepreneurship;
  • Regulatory Systems: An enabling environment that creates employment opportunities and increases labor market flexibility while protecting workers' rights.

(Source: Data from the World Economic Forum)

ICT and organizational model building

Creation of ICT and organizational model.

      In a given country, to what extent ICTs contribute to the creation of new organizational models within companies (e.g. virtual teams, teleworking, teleworking)

[1 = not conducive at all; 7 = pretty much].

(Source: Data from the World Economic Forum)

Export of cultural and creative services.

Indicator of export of cultural and creative services.

      Exports of creative services are calculated (% of total exports), as well as the following 4 parameters:

  • transaction value in thousands of euros;
  • percentage of the country's total trade;
  • percentage of the country's total trade;
  • percentage of the total trade in cultural goods.

(Source: Statistics of the World Trade Organization)

National feature films

      Number of feature films released in the country (per million population aged 15-69). A film that is 60 minutes or longer, based on a work of fiction, is an animation or documentary. It is intended for commercial display in cinemas.

      Feature films made exclusively for television broadcasting, as well as news and commercials are excluded. For Cambodia and Cameroon, this indicator covers only feature films in video format; for Slovenia, feature films of 75 minutes or longer.

(Source: UNESCO Statistics)

Global entertainment and media market

Consumer and ad spend data by entertainment and media segment.

Global entertainment and media market (per thousand people aged 15-69)

      The Global entertainment and media outlook (the Outlook) is a single comparable source of five-year forecast and data on consumer and advertising spending collected over a 5-year period, and commentary on 13 entertainment and media segments in 61 countries.

      Data and clear online data feed functionality make it easy to view, compare and contrast costs, create charts and graphs. The Outlook covers segments such as book publishing, business to business, entertainment, Internet access, online advertising, magazine publishing, music, newspaper publishing, outdoor advertising, radio, television advertising, license fees, and video games. The estimates and rankings of global media spending in the 60 countries surveyed in The Gaze report are based on advertising and consumer digital and non-digital data expressed in millions of US dollars at average exchange rates.

(Source: Data from PricewaterhouseCoopers (a global network of professional consulting and audit firms) and the World Bank)

Printing and publishing products

Production of printed and publishing products.

      Publishing, printing and playing recorded media as a percentage of total production.

      Publishing, printing and reproduction of the recorded medium (ISIC Rev. 3 22 code) as a percentage of the total production (ISIC rev.3 D code).

      Printing is interconnected with other industries. To some extent, it can be considered an indicator of economic development. This is evidenced by the fact that the dynamics of changes in sales of printed paper in general coincides with the dynamics of growth in the gross domestic product (GDP).

(Source: UN Statistics)

Export of creative goods

Export of creative goods.

      The total value of exports of creative goods minus re-exports (in current US dollars) in the total turnover "Total turnover" is defined as the sum of the total imports of G code goods and SOX commercial services (excluding government goods and services not elsewhere classified), plus the total exports of G code goods and SOX commercial services (excluding government goods and services not elsewhere classified) divided by 2. According to the sixth edition of the IMF Balance of Payments Manual, the item “Goods” covers the total volume of goods, net export of goods for trade and non-monetary gold. The category “commercial services” is defined as being equal to “services” minus “government goods and services not elsewhere classified”.

(Source: UNESCO Statistics)

Typical Top-Level Domains (gTLDs)

A top-level domain (TLD) maintained by the Internet Assigned Numbers Authority (IANA) for use on the Internet.

      Generic top-level domains (per thousand population aged 15-69). A generic top-level domain (gTLD) is one of the categories of top-level domains (TLDs) maintained by the Internet Assigned Numbers Authority (IANA) for use on the Internet. Typical TLDs can be unlimited (com, info, net and org) or limited, i.e. is used based on the fulfillment of the eligibility criteria (biz, name, and pro). Of these, statistics cover the five generic domains biz, info, org, net and com. Generic .name and .pro domains and sponsored domains (arpa, aero, asia, cat, coop, edu, gov, int, jobs, mil, museum, tel, travel and xxx) are not included. Country code top-level domains are also not included (see Indicator 7.3.2).

  The statistics represent the total number of registered domains (i.e. net amounts by December, existing domains + new registrations - expired domains). Data is collected based on a random sample of 4% of the total population of domains extracted from the root zone files (complete list of active domains) for each TLD. The geographic location of a domain is determined by the registration address for the domain name registrar, which is returned from a whois query. This registration data is analyzed by country and postal code and then aggregated to any number of geographic levels such as county, city, or country / economy. Initial reliable data were determined per thousand people of the population aged 15-69 years. For confidentiality reasons, only normalized values ​​are reported; the relative positions are retained, but the values ​​are not.

(Source: ZookNIC Intelligent Domain Name Management Data)

Country Code Top Level Domains (ccTLDs)

A top-level domain (TLD) maintained by the Internet Assigned Numbers Authority (IANA) for use on the Internet.

      Country Code Top Level Domains (ccTLDs) (per thousand population aged 15-69). Country Code Top Level Domain (ccTLD) is one of the categories of top-level domains (TLDs) maintained by the Internet Assigned Numbers Authority (IANA) for use on the Internet. Country Code TLDs are two-letter domains specifically designed for a specific economy, country or autonomous territory (there are 324 ccTLDs in different alphabets / characters).

      The statistics reflect the total number of registered domains (i.e. net totals by December, existing domains + new registries - expired domains). The data is collected from the registry responsible for each ccTLD and represents the total number of domain registrations in the ccTLD. Each ccTLD is assigned to the country with which it is associated, not to the registrar's registration address. ZookNIC reports that for the ccTLDs it covers, 85-100% of domains are registered in the same country; the only exceptions are ccTLDs, which are licensed for worldwide commercial use. For confidentiality reasons, only normalized values ​​are reported, the relative positions are retained, but the value is not.

(Source: Data from Intelligent Domain Name Management ZookNIC and the Department of Economic and Social Affairs of the UN Secretariat)

Annual changes on Wikipedia

Data extracted from internal sources of the Wikipedia Foundation.

      Annual edits of Wikipedia by country (per million population 15-69 years).

      Countries are only included if the number of pages edited in a given period exceeds 100,000 (100 matching entries in 1: 1,000 sample from magazines). Editing pages by bots is not included. Also, all IP addresses that occur more than once in a given day are discarded for that day. A few erroneous rejections are taken for granted. Data are calculated per million people in the population aged 15-69 years.

(Source: Data from the Wikipedia Foundation and the Department of Economic and Social Affairs of the UN Secretariat

Uploading videos to YouTube

The number of videos uploaded to YouTube.

      Total number of YouTube video uploads by country, based on population ages 15 to 69.

(Source: Data from YouTube video hosting and the Department of Economic and Social Affairs of the UN Secretariat, ComScore)

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