Development of a Framework for Measuring the Knowledge Economy
Steps towards establishing a framework to measure the knowledge economy are spearheaded by the Ministry of Statistics and Programme Implementation (MoSPI).
Gross Domestic Knowledge Product (GDKP)
There is a need for developing a refined methodology for GDKP. This new metric is expected to:
- Provide an accurate representation of the contributions from knowledge-driven sectors.
- Highlight the role of innovation and intellectual assets in India's economic growth.
Current Measures of Knowledge Production
- Currently, expenditures on Intellectual Property Products (IPP) are recorded under Gross Fixed Capital Formation (GFCF), a key indicator of knowledge production.
Revisions and Collaborations
- Ongoing efforts to revise the base year for indicators such as Gross Domestic Product (GDP), Consumer Price Index (CPI), and Index of Industrial Production (IIP) are already underway.
- The ministry is collaborating with other ministries to compile satellite accounts, aiming to explore the feasibility of developing a satellite account to measure the knowledge base.
