EXPERT OPINION
Intelligence Capital Index
Intelligence Capital Index (Apr 2017)
Kai L. Chan, PhD
ABOUT
Table 1 below lists the 24 variables that
In a global knowledge economy, education
comprise the ICI according to six aspects:
and creativity are paramount to being
(1) Quantity of education; (2) Quality of
competitive. The Intelligence Capital Index
education; (3) Average cognitive skills; (4)
(ICI) is a way to gauge the ability ABOUT
of countries
Elite cognitive skills; (5) Creativity and
to capitalise on the knowledge economy by
In a global knowledge economy,
education
and for creativity
paramount
to Attractiveness
being competitive.
The
and (6)
and
assessing their
environments
education, are complexity;
to talent.
creativity
talent to
attraction.
Intelligence Capital Index
(ICI) is and
a way
gauge the ability of openness
countries
to capitalise on the knowledge
The ICI is a barometer of a nation’s stock of
economy by assessing their environments for education, creativity and talent attraction.
What determines the knowledge capacity
“smarts”. It measures which nations are most
of a which
nation is nations
not its average
capability,
but to expand
likely
to
expand
the
frontier
of
knowledge
The ICI is a barometer a nation’s stock of “smarts”. It measures
are most
likely
rather the talents of its brightest. The future
and/or introduce the technologies and
the
and/or of introduce
the economy.
technology and
innovations
of the knowledge
software
engineers, university
professors, economy.
innovations
the knowledge
Kai frontier
L. Chan, of
PhD knowledge
etc. of a country are not drawn from the pool
Hitherto, most assessments of a country’s
www.KaiLChan.ca
Hitherto, most assessments
of a base
country’s
knowledge
base have
been who
focused
on average
the quantity
of students
fall on the
of the of
knowledge
have been
focused on the
spectrum, to
but average
rather by those
excelling performance
in
quantity are
of education
and, when
outputs
education and, when outputs
considered,
it is
invariably limited
scholastic
their domains. That is, it is the Einsteins that
are considered, it is invariably limited to
(in the form of standardised test results). But this view of quantity and of averages is misguided when
expand the frontier of knowledge – although
average scholastic performance (in the form
considering the intelligence
capital of
country.
they do so within the framework of society
of standardised
test a results).
But this view
(i.e. averages cannot be ignored, even if they
of quantity and of averages is misguided
In contrast to alternative
measures
of the human
capital
and
the ICI has
several the
distinguishing
are secondary
for expanding
frontier of
when
considering
intelligence
capital
of a talent,
the
knowledge
economy).
country.
features: (i) It adjusts for quality in education outcomes; (ii) It measures the progression of cognitive
Moreover, quantity measures of education
In contrast to alternative measures of
skills through the human
life cycle; (iii) It considers the distribution
of cognitive skills with an emphasis
are meaningless without adjusting for quality
human capital and talent, the ICI has
on the top performers; several
and (iv)
It includes
an external
channel
for human
capital
– a (migration)
degree from Oxford
or Princeton
has acquisition.
distinguishing
features:
(i) It adjusts
a lot more gravity than from an unknown
for quality in education outcomes; (ii) It
(1) Quantity of education;
(2) Quality
of education;
(3)
Average
educational skills; (4) Elite educational
university.
measures
the progression
of cognitive
skills
Creativity
should to
be talent.
part and parcel of any
through
the
human
life
cycle;
(iii)
It
considers
skills; (5) Creativity and complexity; and (6) Attractiveness and openness
measure of human capital. Rote learning
the distribution of cognitive skills with an
and memorisation
are becoming
even less of
emphasis
on the that
top performers;
(iv) ICI
It according
Table 1 below lists the 24
variables
comprise and
the
to six aspects:
(1) Quantity
valuable in an era when computers and
includes an external channel (migration) for
education; (2) Quality of human
education;
(3) Average educational skills;
(4) Elite educational skills; (5)
robots are readily available. Indeed, creativity
capital acquisition.
INTELLIGENCE CAPITAL INDEX
Creativity and complexity; and (6) Attractiveness and openness to talent.
Table 1: Intelligence Capital Index indicators and weights
#
QUANTITY (10%)
QUALITY (20%)
AVG SKILLS (10%)
ELITE SKILLS (20%)
CREATIVITY (20%)
ATTRACT (20%)
th
1
Primary ER*
Top 500 uni
Avg TIMMS (Gr4)*
95 TIMMSS (Gr4)*
Creativity index
Migrant (%)*
th
2
Secondary ER*
Nobel + Fields
Avg PISA (15yo)*
95 PISA (15yo)*
Complexity index
Skilled labour (%)
3
Tertiary ER
Nobel + Fields/cap*
Avg GMAT (20-34)
700+ GMAT (20-34)
R&D as % GDP
GFCI score
4
Yrs of schooling
Avg PIAAC (18+)
Top PIAAC (18+)
QOL index
5
Expected yrs school
6
GMAT takers/cap*
Weights are inversely proportional to the number of indicators in the aspect. Indicators with an asterisk (*) have 1/2 weight within aspect.
What determines the knowledge capacity of a nation is not its average capability, but rather the talents
of
The future software engineers, university professors, etc. of a country are not drawn
62 its brightest.
world monitor
from the pool of students who fall on the average of the spectrum, but rather by those excelling in their
domains. That is, it is the Einsteins that expand the frontier of knowledge – although they do so within