Identifying the Level of Productive Knowledge in Iran 2025 using Economic Complexity Approach

Economic complexity approach is based on this idea that commodities produced in an economy represent the level of productive knowledge required for making it. Assuming that countries do no produce any output unless they have knowledge and skill to produce it, this approach computes the accumulation of productive knowledge available in the national economies.
This article uses economic complexity approach to identify the level of productive knowledge in Iran’s economy. To this end, we use data on exports to countries included in Iran Vision 2025 during 2005 to 2014. We apply both ubiquity and diversification components in economic complexity index (ECI) in order to rank the region’s products and economies. The findings indicate that Israel and Turkey are of the high levels of complexity in the region under the study while Iran ranks 17th among 19 countries. Finally, Yemen and Turkmenistan rank 18th and 19th in the region.