World Monitor Magazine April 2017 - Page 66

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