In the inaugural ceremony of the Desk of Economic Complexity, Dr. Hossein Raghfar, Associate Professor of Economics Department of Azzahra University, Dr.Ali Dini Torkamani, faculty member of Institute for Trade Studies and Research and Dr. Behrouz Shahmoradi faculty member of Economics of Science Department at NRISP gave lectures.
At the beginning of the meeting, Dr. Shahmoradi explained about the economic complexity as follows; the survey of the economic complexity approach began in 2006 by a team of MIT and Harvard University. The indicator suggests that a successful and optimal combination of knowledge and skills can lead to productive knowledge. He added: "The knowledge and skills of a person's brain alone cannot be a determining factor, but the diversity of knowledge and skills can lead to the development of countries."
He said about the difference between developed and developing countries: the product range of the developed countries is vast and varied, and on the other hand, their manufactured products have complexities that other countries cannot produce. But in the developing countries, general products that all countries are capable of producing are produced.
At the end of his lecture, he suggested the economic complexity approach to policymakers to improve the economic situation. He said: given the fact that this approach emphasizes on person-byte and the presence of knowledge and skills, firstly, it prevents from brain drain, and secondly, it creates the proper conditions for their return and can be effective in improving the economic situation. It will also be helpful to invite skilled people to fill the existing vacancies, if the appropriate conditions are being provided for their presence. In this way, we will be able to produce complex products by combining different person-bytes.
The next speaker, Dr. Raghfar referred to the global economic crisis in 2008 as well as the birth of new technologies and technologies in the world and said; these two factors have driven the economy in a different direction, so that the current purpose of knowledge in the knowledge economy is the knowledge that leads to income and is exchanged in the market.
He added that the global crisis of economy in 2008, revealed serious constraints on economic theories, because many of those theories were not able to predict the crisis. On the other hand, the various capacities created in the global markets due to the growth of technology have developed opportunities for creating new knowledge that their understanding requires new theories in economics. Today, we need to have new models for identifying and evaluating leading crises, and in this regard, we need new methods of modeling in the economy.
Dr. Dini Torkmani, as the last speaker of the meeting, said about the functioning of the economic complexity index as follows: in addition to measuring the variety of production and exports within a country, this index also expresses the degree of distinction between the product being produced and exported on a global scale. A better situation is when the degree of differentiation is higher, because it shows that higher scientific and technical knowledge have been spent on its production. For example, oil is a commodity that most countries are producing and is not a distinct commodity, while the Boeing or Airbus aircraft are special and distinct commodities. In this regard, the complexity index evaluates the degree of variation in domestic production with the degree of differentiation or degree of product outsourcing, and based on calculations, goods and countries are ranked on a global scale.
He added: "if a country has many natural resources or machineries and equipment, it does not mean that it is in a good condition in terms of economic complexity. Unless it can use the scientific and technical knowledge of exploiting, repairing, and reforming, first and foremost, to make fundamental changes to that technology.
At the end Dr. Dini Torkamani said; the existence of a strong national innovation system in any country will increase the degree of complexity of its economy. He added; it should be noted that the weak governing system does not allow the formation of this strong national innovation system.