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The transition to the knowledge economy in advanced capitalist democracies: a new index for comparative research

Author

Listed:
  • Diessner, Sebastian
  • Durazzi, Niccolo
  • Filetti, Federico
  • Hope, David
  • Kleider, Hanna
  • Tonelli, Simone

Abstract

This article sets out to develop a new index capturing advanced capitalist democracies’ transition to the knowledge economy. Reviewing how the notion has evolved in the literature, the article proposes a definition of the knowledge economy based upon two key elements—technology and (high) skills. These are operationalized in six indicators and combined through Bayesian latent variable analysis to produce a new Knowledge Economy Index, covering twenty-two countries from 1995 to 2019. A descriptive exploration of the index provides important insights for the emerging body of work on the knowledge economy in comparative political economy. The index is the first to provide a comprehensive measure of the knowledge economy that accounts for both technology and skills across space and time. As such, it paves the way for future research examining the causes and consequences of the transition to the knowledge economy in advanced capitalist democracies.

Suggested Citation

  • Diessner, Sebastian & Durazzi, Niccolo & Filetti, Federico & Hope, David & Kleider, Hanna & Tonelli, Simone, 2025. "The transition to the knowledge economy in advanced capitalist democracies: a new index for comparative research," LSE Research Online Documents on Economics 127758, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:127758
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    File URL: https://researchonline.lse.ac.uk/id/eprint/127758/
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    References listed on IDEAS

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    1. Schöll, Nikolas & Kurer, Thomas, 2024. "How technological change affects regional voting patterns," Political Science Research and Methods, Cambridge University Press, vol. 12(1), pages 94-112, January.
    2. Niccolo Durazzi, 2023. "Engineering the expansion of higher education: High skills, advanced manufacturing, and the knowledge economy," Regulation & Governance, John Wiley & Sons, vol. 17(1), pages 121-141, January.
    3. Thelen,Kathleen, 2014. "Varieties of Liberalization and the New Politics of Social Solidarity," Cambridge Books, Cambridge University Press, number 9781107679566.
    4. Neil Lee & Andrés Rodríguez-Pose, 2013. "Innovation and spatial inequality in Europe and USA," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 1-22, January.
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    Cited by:

    1. Diessner, Sebastian & Durazzi, Niccolo & Filetti, Federico & Hope, David & Kleider, Hanna & Limberg, Julian & Tonelli, Simone, 2026. "Welfare state deservingness in the era of mass higher education," LSE Research Online Documents on Economics 140161, London School of Economics and Political Science, LSE Library.
    2. Sebastian Diessner & Niccolo Durazzi & Federico Filetti & David Hope & Hanna Kleider & Simone Tonelli, 2026. "Skill‐Biased Policy Change: Governing the Transition to the Knowledge Economy in Germany, Sweden and Britain," Regulation & Governance, John Wiley & Sons, vol. 20(2), pages 495-508, April.
    3. Martin B. Carstensen & Patrick Emmenegger & Cecilia Ivardi, 2026. "Problems and Solutions in the Knowledge Economy: Ideational Power in Slow‐Burning Crises," Regulation & Governance, John Wiley & Sons, vol. 20(2), pages 575-588, April.
    4. Diessner, Sebastian & Durazzi, Niccolo & Filetti, Federico & Hope, David & Kleider, Hanna & Tonelli, Simone, 2026. "Skill‐biased policy change: governing the transition to the knowledge economy in Germany, Sweden and Britain," LSE Research Online Documents on Economics 129273, London School of Economics and Political Science, LSE Library.
    5. Daniele Schilirò, 2025. "The Knowledge Economy and Innovation: A Glance at Their Relationship," Business and Management Studies, Redfame publishing, vol. 11(2), pages 1-16, December.

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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