Building a Technological Change Index for Developed and Developing Countries: A New Multidimensional Measure

Year 2025, Volume: 12 Issue: 1, 306 - 328, 31.03.2025

Kadir Göçeri , Selçuk Koç

https://doi.org/10.30798/makuiibf.1532315

Abstract

In the economics literature, many indicators are used as proxy variables for technological change. However, most of these indicators generally overlook the complex and multidimensional nature of technological change. In this context, we develop a new composite indicator by applying multivariate statistical methods to determine the level of technological development. This new index, called the Technological Change Index (TCI), reflects various dimensions of technology, including infrastructure, access and use, innovation, and impact. It has been calculated using 13 normalized indicators. Each indicator belonging to these dimensions was weighted using Principal Component Analysis (PCA), and the leading factors contributing to technological change were identified. The main purpose of building this index is to determine the level of technological change in countries and, thus, to reveal the gaps in technological development across the world. The scores of the TCI, which cover a total of 46 developed and developing countries, provide useful insights for researchers and policymakers focusing on development issues.

Keywords

Technological Change, Economic Development, Principal Component Analysis

Ethical Statement

Ethics Committee approval was not required for this study. The authors declare that the study was conducted in accordance with research and publication ethics. The authors confirm that no part of the study was generated, either wholly or in part, using Artificial Intelligence (AI) tools. The authors declare that there are no financial conflicts of interest involving any institution, organization, or individual associated with this article. Additionally, there are no conflicts of interest among the authors. Contribution Rate Declaration: This paper is a revised version of selected parts of a PhD thesis, prepared by the first author and supervised by the second author.

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