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The Policy Implications of Economic Complexity

In recent years economic complexity has grown into an active field of fundamental and applied research. Yet, despite important advances, the policy implications of economic complexity remain unclear or misunderstood. Here I organize the policy implications of economic complexity in a framework grounded on 4 Ws: what approaches, focused on identifying target activities and/or locations; when approaches, focused on timing support for related and unrelated activities; where approaches, focused on the geographic diffusion of knowledge; and who approaches, focused on the role played by agents of structural change. The goal of this paper is to provide a framework that groups, organizes, and clarifies the policy implications of economic complexity to facilitate its continued use in regional and international development.

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