The instrumental factors are provided by a number of reputable organisations. The majority of the indices are publicly available and regularly updated.
In the following descriptive list we mark those that have been updated since the first GIPI survey and the ones that were added in the following manner:
Δ - Updated since GIPI4
Administrative and Economic Regulation
The analysis is based on summary indicators of product market regulation that measure the degree to which policies promote or inhibit competition. These are broadly divided in economic and administrative regulation barriers. The former include tariffs, regulatory barriers, discriminatory procedures, barriers to foreign ownership, public ownership and involvement in business operation by the state as well as barriers to competition such as antitrust exemptions and legal hurdles; the latter mainly reflect the country’s licenses and permits system, communication and simplification of rules and procedures as well as sector specific and overall administrative burdens.
The ease of doing business index is developed by the World Bank and ranks economies on the simple average of country percentile rankings on each of 10 key areas – starting a business, dealing with licences, employing workers, registering property, obtaining credit, investors’ protection, paying taxes, cross-border trading, enforcement of contracts and closing a business. Each indicator set studies a different aspect of the business environment and country rankings vary, sometimes significantly, across indicator sets.
The annual Corruption Perceptions Index (CPI) ranks 180 countries by their perceived levels of corruption, as determined by expert assessments and opinion surveys. The data is gathered from sources spanning the last 3 years, each providing a ranking of countries. The index reflects the views of business people and analysts from around the world, including experts who are residents in the countries evaluated. The surveys used in compiling the CPI ask questions that relate to the misuse of public power for private benefit. The sources do not distinguish between administrative and political corruption or between petty and grand corruption.
The Index of Economic Freedom measures 183 countries against a list of 50 independent variables divided into 10 broad factors of economic freedom. The higher the score on a factor, the greater the level of government interference in the economy and the less economic freedom a country enjoys. The factors are trade policy, fiscal burden of government, government intervention in the economy, monetary policy, capital flows and foreign investment, banking and finance, wages and prices, property rights, regulation and informal market activity.
The Economic Freedom of the World Index, which ranks 141 countries, is a joint venture involving seventy-one research institutes in seventy-one countries around the world. The purpose of the index is to bring the often forgotten topic of economic freedom into mainstream public debate. The index is divided into 5 components: size of government (Expenditure, Taxes and Enterprises); legal structure and security of property rights; access to sound money; freedom to trade internationally and regulation of credit, labour and business
The Economist Intelligence Unit has developed an indicator of operational risk that monitors 150 countries and is updated every quarter or if certain events require it. The index is comprised of 10 indicators that have different weightings allocated according to their importance from a business point of view. The underlying categories are: macroeconomic; foreign trade and payments; financial; tax policy; legal and regulatory; security; political stability; government effectiveness; labour market; and infrastructure
The World Competitiveness Scoreboard presents the overall ranking for the 58 countries and regional economies covered by the World Competitiveness Yearbook. The economies are ranked from the most to the least competitive and performance can be analyzed on the basis of time-series. The main factors underlining the index are economic performance, government efficiency, business efficiency and infrastructure
The report in 2007 ranks a record 131 economies accounting for more than 98% of world GDP. The Global Competitiveness Index rankings are drawn from a combination of publicly available hard data and the results of the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum, together with its network of partner institutes (leading research institutes and business organizations) in the countries covered by the Report.
The Human Development Report is published annually by the United Nations Development Programme. It is calculated for the 182 countries for which data is available and is the base used to determine whether a country is developed, developing or underdeveloped. The report ranks country using the Human development Index, which measures the average achievements in a country in three basic dimensions of human development: a long and healthy life (measured by life expectancy), knowledge and education (measured by the adult literacy rate) and a decent standard of living (measured by the natural logarithm of GDP per capita at purchasing power parity in USD).
This instrumental factor measures the present and future composition of a country’s workforce in terms of skills. It represents the ratio of people that take tertiary education degrees as opposed to all of the country’s population at graduation age thus indicating the availability of people with higher education degrees as a share of the overall work force.
The Global Financial Centres Index is a ranking of the competitiveness of financial centres based on over 18 thousand financial centre assessments from an online questionnaire together with 102 indices. It is published twice a year. The ranking is an aggregate of indices from five key areas: people, business environment, market access, infrastructure and general competitiveness.
The Total Tax Rate measures the amount of taxes payable by the business in the second year of operation, expressed as a share of commercial profits. The total amount of taxes is the sum of all the different taxes payable after accounting for deductions and exemptions. The taxes withheld (such as sales tax or value added tax) but not paid by the company are excluded. The taxes included can be divided into five categories: profit or corporate income tax; social security contributions and other labour taxes paid by the employer; property taxes; turnover taxes and other small taxes (such as municipal fees and vehicle and fuel taxes).
“European Judicial Systems: Facts and Figures” was first published in December 2004 by the European Commission of the Efficiency of Justice (CEPEJ). It was the result of an experimental exercise, based on a Pilot Scheme (Questionnaire) for evaluating judicial systems designed to obtain comparable, objective quantitative and qualitative figures concerning the organisation and functioning of judicial systems. One of the sections of the report is devoted to public prosecutors. The numbers quoted in GIPI reflect the number of prosecutors per 100, 000 inhabitants in each country
Another section of “European Judicial Systems: Facts and Figures” was dedicated to judges and court staff. In general a judge is defined as a person entrusted with the task of delivering or participating in a judicial decision. The definition must be placed in the context of the European Convention of Human Rights and the case-law of the European Court of Human Rights (ECHR). In particular: “the judge decides, according to the law and following an organised proceeding, or any issue within his/her jurisdiction.” Professional judges are described in the explanatory note of the evaluation of the scheme as “those who have been trained and who are paid as such (and where their main function is to work as a judge)”. The figures in GIPI reflect the number of such professional judges per 100, 000 inhabitants for each country.
Recommendation 94 (12) on the independence, efficiency and role of judges states that the remuneration of judges should be guaranteed by law and commensurate with the dignity of their profession and burden of responsibilities. The Consultative Council of European Judges confirmed the fact that an adequate level of remuneration is necessary to guarantee that a judge can operate freely, without the pressure aimed at influencing their decision and or their behaviour (CCJE, Opinion (2001) No. 1:14). The figures used for GIPI reflect the average gross annual salaries for the judges in the different countries and are given in euro.
“European Judicial Systems: Facts and Figures” by CEPEJ has a whole section dedicated to the courts. The figures in GITI reflect the number of courts per 100, 000 inhabitants. Because of the different definitions of a court in the different countries the figures taken were the number of court locations per 100, 000 inhabitants regardless of the number of judges or panels of judges that work in these locations.
This and the next four factors are derived from the Fraser Institute’s Economic Freedom of the World (EFW) index (see above for details). It is an answer to the question “Is the judiciary in your country independent from political influences of members of government, citizens or firms?” No – heavily influenced (=1) or Yes – entirely independent (=7).
This index is derived from the Economic Freedom of the World (EFW) index. It is an answer to the question: “The legal framework in your country for private businesses to settle disputes and challenge the legality of government actions and/or regulations is inefficient and subject to manipulation (=1) or is efficient and follows a clear, neutral process (=7)”
This index is derived from the Economic Freedom of the World (EFW) index. It is an answer to the question: “Property rights, including over financial assets are poorly defined and not protected by law (=1) or are clearly defined and well protected by law (=7)”
This index is also a part of the Economic Freedom of the World survey but it is based on the World Bank’s Doing Business estimates for the time and capital required to collect a debt (assumed to be 200% of the country’s per-capita income). Two ratings from 0 to 10 were structured and averaged to obtain the index – the time cost, measured in number of calendar days from the filing of the lawsuit to the day of payment and the capital cost, measured as percentage of the debt
Legal system & property rights is one of the 5 fundamental sub-indices or sections used in the Economic Freedom of the World Index. Legal system and property rights is the weighted average of several indicators, some of which were used as separate instrumental factors for GIPI due to their importance for the overall index. The indicators are as follows: judiciary independence, impartial courts, protection of property rights, military interference in rule of law and the political process, integrity of the legal system, legal enforcement of contracts and regulatory restrictions of the sale of real property. It was established that despite the fact that some of those ratings are less important, the overall legal structure and security of property rights is pivotal for the purposes of GIPI
Royalty and license fees are given in current (Mar 2008) US dollars per $1 million gross domestic product. They are defined as payments and receipts for the authorized use and proprietary rights of intangible, non-produced and non-financial assets such as trademarks, copyrights, patents, franchises and industrial processes, and for the use of produced originals of prototypes such as manuscripts and films.
The International Property Rights Index (IPRI) is a measure of both physical and intellectual property rights. The latest (2008) survey is carried across a hundred and fifteen countries that account for 96% of world GDP and is separated into three key areas: Legal and Political Environment, Physical Property Rights and Intellectual Property Rights. Data is obtained from various sources including expert surveys in most of the appraised countries.
The Innovation Index was developed by the Economist Intelligence Unit in 2007. It is designed as a measure of the adoption of new technology for various countries and the interaction between the business and scientific sector. Among the measures used for the composition of this index are the number of patents granted and higher education enrolment rates.
Research and Development expenditure is measured as a percentage of a country’s GDP and is considered an important indicator to the country’s approach to the issue; it is defined by the OECD as “creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications”. R%D covers basic research, applied research and experimental development and reflects both public and private expenditure.
This instrumental factor reflects the number of applications filed for a registration of a trade mark with a national or a regional office measured per million people of population. Trade mark is defined as a distinctive sign that identifies goods or services as those produced by a specific person or enterprise; it provides exclusive right for its owner to use it to identify goods or services or to authorize its use by other people and/or enterprises.
The international trade mark system administered by WIPO offers a trade mark owner the possibility of having a mark protected in up to 85 countries by filing one application, in one language (English, French or Spanish), with one set of fees, in one currency (Swiss Francs). Applicants wishing to use the Madrid system must apply for trade mark protection in a relevant national or regional trade mark office before seeking international protection. The data for this instrumental factor represents the number of applications filed in such offices by the country of origin.
An international registration under the Madrid system produces the same effects as an application for registration of the mark in each of the contracting parties (countries) designated by the applicant. If protection is not refused by the trade mark office of a designated contracting party, the status of the mark is the same as if it had been registered by that office. In other words, the system provides a cost-effective and efficient way for trade mark holders to secure protection for their marks in multiple countries through the filing of a single application. Applicants must state in which countries (that are members of the Madrid system) they wish protection of their trade mark but countries could be added afterwards in accordance to changes in business needs. This instrumental factor shows the number of countries that were designated in registrations originally and subsequently.
The data for this instrumental factor is obtained from the World Intellectual Property Organisation and reflects the number of national and regional patent applications per million citizens for each country.
The data for this instrumental factor is obtained from the World Intellectual Property Organisation and reflects the number of granted applications (from residents and non-residents) for each country.
The data for this instrumental factor is obtained from the World Intellectual Property Organisation and reflects the number of patents in force for each country.
The International Intellectual Property Alliance makes recommendations for countries to be placed in several watch lists according to how serious a problem copyright piracy is for them: e.g. the countries that are most affected by copyright piracy are listed in the Priority Watch List, the countries less affected on the Watch List, etc. This instrumental factor reflects IIPA’s recommendation whether a country should be moved from a higher to a lower priority watch list or vice versa.
This measure was added as complementary to the ccTLD registration ranking. It measures the market penetration of the generic Top Level Domain (gTLD) that is most common - .com. The data is obtained from Nominet – the organisation responsible for the management of the .uk registry.
<a href=“http://www.wipo.int/ipstats/en” target=”_blank” title=“Industrial Design Registrations – WIPO Δ
The World Intellectual Property Organisation provides annual statistics obtained from Intellectual Property offices around the world. This instrumental factor represents the registrations made by the IP office in each of the countries surveyed. The figures are a sum of both direct registrations at IP offices and ones via the WIPO administered Hague System for International Registration of Industrial Designs. The numbers provided by the WIPO are based on information from IP offices annually.
This instrumental factor represents the applications received by the IP office in each of the countries surveyed. The figures are a sum of both direct applications at IP offices and ones via the WIPO administered Hague System for International Registration of Industrial Designs. The numbers provided by the WIPO are based on information from IP offices annually.
This statistic is provided by the World Intellectual Property Organisation and considers the number of complainants in domain name disputes in every country surveyed. The index could be interpreted as an indicator to both the adaptability of a country’s legal framework to a relatively new area for intellectual property and its citizens’ trust in the judicial system
This statistic is provided by the World Intellectual Property Organisation and considers the number of respondents in domain name disputes.
This instrumental factor comes from the annual European Commission survey: “Report on Community Customs Activities on Counterfeit and Piracy”. It reflects the number of procedures undertaken by the customs authorities in the countries surveyed; these procedures target goods not only at points of entry and exit (import/export procedures) but also include anti smuggling procedures and ones aimed at intercepting counterfeit goods while in transit or warehoused in the relevant country.
This factor comes from the same survey and reflects the overall number of intercepted counterfeit goods.
Graduates in Social Science, Business and Law (as % of total graduates) – World Bank
This factor provides a more detailed outlook of the qualified work force available in the surveyed countries. It represents the share of graduates in social science, business and law as percentage of all tertiary education graduates, which is an indicator of the availability of graduates with the education most relevant to the legal sector. It is compiled by the World Bank and is regularly updated.
Visa Restrictions Index – Henley & Partners Δ
The Henley Visa Restrictions Index is a global ranking of 193 countries according to the travel freedom their citizens enjoy. The score on the ranking represents the number of countries and territories which can be entered without a visa by a citizen of the respective country.
Global Peace Index – Institute for Economics and Peace Δ
The Global Peace Index (GPI) is an endeavour to measure countries’ and regions’ peacefulness. Factors such as internal violence and crime are weighed up with external factors such as military expenditures and wars to produce a comprehensive ranking of peacefulness for individual countries.
City GDP Figures – Brookings Institution Δ
This is a ranking of cities and/or their metropolitan areas by GDP. The list is largely based on projections and approximations as it is difficult to be exact when identifying GDP values. Depending on the methodology used, the rankings and values can vary and it is worth noting that some cities include larger urban areas which may result in lower per capita GDP estimates, whereas cities with a large portion of the working population living in metro areas, may have higher per capita GDP estimates as a result.
Global Connectedness Index – DHL Δ
Global Connectedness refers to the depth and breadth of a country’s integration with the rest of the world, as manifest by its participation in international flows of products and services, capital, information, and people. The focus on actual flows is motivated by the sense that while connectivity or the technical potential for connectedness has improved a great deal thanks to changes in transportation and communications technologies, actual levels of flows significantly lag that potential. By focusing the index itself on actual flows, enablers of connectedness (such as the political variables covering tariffs, embassies, and so on, included in many other globalization indexes) may be analyzed separately in relation to the index (since they are not mixed into the index along with the actual flows).
Telecommunication Infrastructure Index – United Nations Δ
The telecommunication infrastructure index has been compiled and used by the UN for its E-Government Survey. This indicator combines several important measures that provide an overlook of a country’s ICT infrastructure – estimated Internet users, main fixed telephone lines, mobile subscribers, number of personal computers and total fixed broadband. All measures are adjusted for population (per 100 inhabitants)
Global Information Technology – WEF Δ
The survey ranks 142 countries according to how well they leverage ICT to boost their economic competitiveness and improve their social environment. To derive the IT Competitiveness score this study uses 10 composite measures (or pillars as WEF calls them), comprising a range of quantitative and qualitative data, and grouped into four sub-indices: Environment (encompasses two pillars: political & regulatory environment and business & innovation environment); Readiness (the next three pillars: infrastructure & content, affordability and skills); Usage (three more pillars: individual, business and government usage); and Impact (the last two pillars: economic impacts and social impacts).
Foreign Direct Investment Inflows – UNCTAD Δ
This factor measures the foreign direct investment inflows a country has received. Foreign direct investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest in and control by a resident entity in one economy (foreign direct investor or parent enterprise) of an enterprise resident in a different economy (FDI enterprise or affiliate enterprise or foreign affiliate). Such investment involves both the initial transaction between the two entities and all subsequent transactions between them and among foreign affiliates.
GDP per Person Employed – World Bank Δ
This measure by the World Bank uses GDP converted to 1990 constant international US dollars at PPP rates divided by total current employment in the economy. GDP per person employed is an important measure of a country’s overall productivity. Higher productivity implies increased capital formation, higher living standards and lower probability of future inflation or tax hikes.
Global Innovation Index – INSEAD Δ
The Global Innovation Index gauges the innovation friendliness of 142 economies, which account for 95% of the world’s population and 99% of the world’s Gross Domestic Product. It is constructed of two sub-indices, the Innovation Input Sub-Index and the Innovation Output Sub-Index, each built around composite measures (or pillars). Data is gathered from more than 30 sources, covering a large spectrum of innovation drivers and results, and privileging hard data over qualitative assessments.
Global Power City Index – Institute for Urban Strategies Δ
The GPCI survey ranks 40 major global cities using indicators of the following six main categories: Economy, R&D, Cultural Interaction, Liveability, Ecology and Natural Environment, and Accessibility. These evaluations are also fed through the perspective of four global actors who lead global activity in their cities, namely: Researchers, Managers, Artists and Visitors, along with one local actor: Residents. In essence the GPCI explores the ability of the major world cities to attract creative people and outstanding companies and it encourages people to reconsider their views on the attractiveness of cities as a result.
Innovation Cities Global Index – 2thinkNow
The Index is the most comprehensive city ranking and scoring. Each city was selected from 1,540 cities based on basic factors of health, wealth, population, geography. The selected 445 cities had data extracted the city benchmarking data program on 162 indicators. Each of the benchmarking data were scored by analysts using best available qualitative analysis and quantitative statistics (see City Benchmarking Data to purchase city data). Where data was unavailable, national or state estimates were used. Data was then trend balanced against 21 global trends, by analysts. For the final index had a zeitgeist (analyst confidence) factor added, and score reduced to a 3 factor score for Cultural Assets, Human Infrastructure and Networked Markets. For city Classification, these scores were competitively graded into 5 bands (Nexus, Hub, Node, Influencer, Upstart)
Sustainable Economic Development – Boston Consulting Group (BCG) Δ
The Sustainable Economic Development Assessment, or SEDA is an assessment of the socioeconomic development, or level of well-being, of 150 nations across a range of dimensions. The main purpose of SEDA is to measure how well a country translates its wealth, or income, into the overall well-being of its population. It is also meant to assess a country’s progress in converting recent GDP growth into improved well-being, as well as its ability to sustain that growth into the future. The SEDA framework thus provides a basis for countries to benchmark themselves as they try to gain the most well-being out of their growth.
Number of International Association Meetings – WEF Δ
This index is derived from the World Economic Forum’s Travel and Tourism Competitiveness Index. The number of international fairs and exhibitions is one of the factors used to compile a sub index reflecting a country’s cultural resources. It measures the fairs and exhibitions that were held within a country annually by taking the average for the period 2007-2009 (so it is not always a whole number). It is an important indicator of a country’s overall attractiveness and flow of visitors.
Open Government – World Justice Project (WJP) Δ
This factor is one of nine indices created by the World Justice Project for the Rule of Law Index, a comprehensive analysis designed to assess the extent to which countries adhere to the rule of law, not just in theory but in practice. It examines practical situations and uses a set of over 400 variables drawn from a general poll (with more than 97,000 participants) and a qualified questionnaire (with more than 2,500 legal experts) evenly distributed among the 97 countries surveyed. Open Government measures the extent to which laws are stable, publicised and accessible, official information is available on request as well as public participation and the right to petition the government.
Regulatory Enforcement – WJP Δ
This factor is another one of nine indices created by the World Justice Project for the Rule of Law Index (see Open Government). Regulatory Enforcement measures the extent to which government regulations are effectively applied and enforced without improper influence, due process is respected in administrative proceedings and they are conducted without unreasonable delay, and whether the government does not expropriate without adequate compensation.
Global Enabling Trade Report – WEF Δ
This factor ranks 132 individual economies and measures the extent to which they have developed the institutions, policies, and services that facilitate free flow of goods over borders and to destination. The structure of this index reflects the main enablers of trade, breaking them into four sub-indexes: market access, which measures the extent to which the country’s policy framework welcomes foreign goods and enables access to foreign markets for its exporters; border administration efficiency; transport and communications infrastructure; and business environment, which measures the overall regulatory and security environment.
Global Skills Index – Hays Recruiting & Oxford Economics Δ
This factor is based on an aggregation of thousands of individual data points by Oxford Economics, which combine into a standard model for assessing the key drivers that contribute to labour market friction and to skills shortages in any given country. The index combines seven components: education flexibility; labour market participation; labour market flexibility; talent mismatch; overall wage pressure; wage pressure in high-skill industries; and wage pressure in high-skill occupations
Prosperity Index – Legatum Institute Δ
The Legatum Prosperity Index™ offers a unique insight into how prosperity is forming and changing across the world. Traditionally, a nation’s prosperity has been based solely on macroeconomic indicators such as a country’s income, represented either by GDP or by average income per person (GDP per capita), which disregards the quality of everyday life and the prospect of being able to build an even better life in the future. The Prosperity Index is distinctive in that it is a measurement of prosperity that combines established theoretical and empirical research on the determinants of wealth and wellbeing. It combines 89 variables, split into 8 categories: economy; entrepreneurship & opportunity; governance; education; health; safety & security; personal freedom; and social capital
Human Freedom – Fraser Institute Δ
The Human Freedom project focuses on creating a comprehensive index of human freedom, which includes economic freedom and is based on the “negative” definition of freedom – in other words, the absence of barriers or coercion that prevent individuals from acting as they might wish. The index of freedom is a combination of economic freedom measures from Fraser Institute’s Economic Freedom of the World Index (see above) with newly developed measures of civil or personal freedoms. The economic freedom index and the personal freedom index each receive half the weight in the overall index. The personal freedom sub-index uses 34 variables covering 123 countries divided into four categories: Security and Safety; Freedom of Movement; Freedom of Expression; and Relationship Freedoms.
Total European Granted Patents – European Patent Office (EPO) Δ
This factor measures the number of patents granted by the European Patent Office for the period 2003-2012. Scores represent the total patents granted according to the country of residence of the applicant.