The Policy Implications of Economic Complexity

Abstract: In recent years economic complexity has grown into an active field of fundamental and applied research. Yet, despite important advances, the policy implications of economic complexity remain unclear or misunderstood. Here I organize the policy implications of economic complexity in a framework grounded on 4 Ws: what approaches, focused on identifying target activities and/or locations; when approaches, focused on timing support for related and unrelated activities; where approaches, focused on the geographic diffusion of knowledge; and who approaches, focused on the role played by agents of structural change. The goal of this paper is to provide a framework that groups, organizes, and clarifies the policy implications of economic complexity to facilitate its continued use in regional and international development.