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Knowledge4Policy
Knowledge for policy
Economics of Industrial Research and Innovation

The project aims at providing EU policy-makers, academia, and other institutional and economic actors with robust empirical scientific-sound evidence and analysis on the contribution of private-sector R&D to sustainable competitiveness and "prosperity" in the EU.

  • Page | Last updated: 15 May 2026
Economic Complexity
IRI

Background & Objectives

“In January 2019 the JRC started a novel institutional activity to use the data-driven approach and diagnostic tools offered by the Economic Complexity framework to help addressing policy relevant challenges in territorial development and industrial innovation and competitiveness. Economic Complexity is a natural continuation of earlier evolutionary, development. and institutional economics. It interprets the economy as an interconnected ecosystem by shifting the focus from aggregate quantities - like the Gross Domestic Product, that reveal how much countries or regions produce - to a more granular view on what they actually do (e.g., which products they export, or in which technologies they innovate). This approach leverages high-quality trade and patent data as well as advanced techniques from machine learning, network science, and complex dynamical systems to provide a nuanced understanding of a country's economic sophistication and capabilities. By doing so, it allows to address quantitatively research questions that are traditionally tackled either qualitatively or with ad hoc quantitative measures, therefore lacking generalisation or replicability. The focus is to provide highly relevant inputs, which complement the more conventional analyses on competitiveness and innovation across the JRC.

Led by Unit B6 (Industrial Strategy, Skills and Technology Transfer) and in collaboration with Unit B5 (Circular Economy and Sustainable Industry), today this activity  analyses competitiveness and innovation under the perspective of Economic Complexity, addressing  questions policy relevance from three angles:

  • (1) Assessment of the competitiveness of European industries,
  • (2) Identification of innovation potential and industrial strategies to boost competitiveness, prosperity, and sustainability
  • (3) Assessment of diversification capabilities  and specialisation potential in strategic technologies.

These areas are closely intertwined via the necessary resources (data, algorithms, techniques) and outputs: industry is a central part of the innovation system, and it is at the same time a driver and an outcome of innovation, which is crucial to deliver economic growth while setting Europe on a low-carbon transition”

Main outputs

Infographics
Workshops

Infographics

Workshops

For each of the county members of the European Union we provide a factsheet to inform policy about country and regional innovation and industrial capabilities in specific sectors.

The project contains one annual workshop in order to validate and exchange between the scientific community and our activities. 

Green Complexity

 

Publications

 

Green Complexity

Publications

The characteristics of the Economic complexity framework make it potentially especially powerful in addressing the challenges of Europe’s Green Deal.

List of publications from the team providing relevant background to the project and technical explanation of the analysis provided.