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Exactly. These phenomena are notoriously non-linear. IMHO, the best way to calculate a good index is to model (usually log-transformed) the relationship betwee
by olihb 15y ago
Exactly. These phenomena are notoriously non-linear.
IMHO, the best way to calculate a good index is to model (usually log-transformed) the relationship between the venture capital dollars and the population (or overall investment, number of degree awarded by year, money invested in R&D, etc.), then take the ratio between the expected value and observed value. The resulting index is less sensible to scale issues.
- begemot 15y agoThere is an index that tries to measure innovation called the Global Innovation Index (http://en.wikipedia.org/wiki/Global_Innovation_Index_%28INSEAD%29 http://en.wikipedia.org/wiki/Global_Innovation_Index_%28INSE...), interestingly Israel comes in at 14th, you'd think they would be number one if this article is to be believed.
- chacham15 15y agoBy that same logic, you would say that Israel innovates more than the US since it appears below Israel on that list.
- begemot 15y agoWhat logic? What are you talking about? The US is above Israel on every sub-index. Besides it is obvious that it is relative to population because in absolute terms the US would far outstrip any competitors.
- yummyfajitas 15y agoThese phenomena are also highly correlated with particular cities. Instead of comparing Israel to the US or India, compare Haifa or Tel Aviv to the Valley, NY, Bangalore or Pune. I'd be surprised if Haifa/Tel Aviv came out ahead of the Valley, but I'm definitely interested to know how they compare to NY.