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DIGITALENTREPRENEURSHIP
LANDSCAPESINDEVELOPINGASIA
INSIGHTSFROMTHEGLOBALINDEXOFDIGITAL
ENTREPRENEURSHIPSYSTEMS
ErkkoAutio,YothinJinjarak,évaKomlósi,DonghyunPark,LászlóSzerb,
andMónikaTiszberger
NO.720
ADBECONOMICS
April2024
WORKINGPAPERSERIES
ASIANDEVELOPMENTBANK
ADBEconomicsWorkingPaperSeries
DigitalEntrepreneurshipLandscapesinDevelopingAsia:InsightsfromtheGlobalIndexofDigital
EntrepreneurshipSystems
ErkkoAutio,YothinJinjarak,évaKomlósi,
DonghyunPark,LászlóSzerb,
andMónikaTiszberger
No.720|April2024
TheADBEconomicsWorkingPaperSeries
presentsresearchinprogresstoelicitcommentsandencouragedebateondevelopmentissuesinAsiaandthePacific.Theviewsexpressed
arethoseoftheauthorsanddonotnecessarilyreflecttheviewsandpoliciesofADBor
itsBoardofGovernorsorthegovernmentstheyrepresent.
ErkkoAutio(erkko.autio@imperial.ac.uk)isaprofessor
andChairinTechnologyVenturingatImperialCollege
BusinessSchool.évaKomlósi(komlosieva@ktk.pte.
hu)isaresearchfellow,LászlóSzerb(szerb.laszlo@
ktk.pte.hu)isaprofessor,andMónikaTiszberger
(tiszbergerm@ktk.pte.hu)isanassociateprofessorat
theUniversityofPécs.YothinJinjarak(yjinjarak@adb.
org)isasenioreconomistattheEastAsiaDepartment
andDonghyunPark(dpark@)isaneconomic
advisorattheEconomicResearchandDevelopment
ImpactDepartment,AsianDevelopmentBank.
ASIANDEVELOPMENTBANK
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?2024AsianDevelopmentBank
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Somerightsreserved.Publishedin2024.
ISSN2313-6537(print),2313-6545(electronic)
PublicationStockNo.WPS240095-2
DOI:
/10.22617/WPS240095-2
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ABSTRACT
Digitalizationtransformshowentrepreneurspursueopportunities.Tounderstandthistransformativeimpactonentrepreneurship,wepresenttheGlobalIndexofDigitalEntrepreneurshipSystems(GIDES),acompositeindicatordevelopedtoassesstheperformanceofthedigitalentrepreneurialecosystematthenationallevel.Toaddressexistingconceptualgaps,GIDESconcurrentlymonitorsthegeneral,structuralanddigitalframeworkcontextssupportingdigitalentrepreneurship.Thedigitalframeworkconditions,describingthegenerallevelofdigitalizationoftheeconomy,affectentrepreneurialactivitythroughtheirimpactongeneralandsystemicframeworkconditions.Unliketraditionalentrepreneurshipormostentrepreneurialecosystemmeasures,GIDEStakesasystemicapproachutilizingthePenaltyforBottleneck(PFB)algorithmtospotbottlenecksconnectingelementsthatcouldpotentiallydegradeoverallsystemperformance.WithGIDES,weprovideameasureofthedigitaltransformationofentrepreneurshipforpolicymakerswhowanttoimprovethequalityandproductivitypotentialoftheentrepreneurialresourceallocationdynamicintheircountries.Forillustration,GIDESprofilesthedigitalentrepreneurshipsystemsof113countries,withaspecialfocuson21
indevelopingAsia.
Keywords:entrepreneurship,digitalization,digitalentrepreneurshipecosystem,
compositeindicator,GIDES,Asiandevelopingcountries
JELcodes:L26,O32,O33,O57
1.Introduction
Digitaltechnologyisradicallyreshapingourworld.Therearestudiesmeasuringcountries’progressindigitization,helpingunderstandtheirpositionintheneweraofdigitalcompetition(e.g.,DEDI,DESI,orNRI
1
).Whileacknowledgingthevalueofthesestudies,itisessentialtostressthatdigitaltechnologiesdirectlytransformentrepreneurshipbychangingthelandscapeofopportunitiesandhowentrepreneurspursuethem.Theintegrationofthesetechnologiesleadstothedigitaltransformationofbusinesses,promptingthemtotransformtheiroperations,enablingthemtoadapttoenhancecompetitiveness,efficiency,andcustomersatisfaction(Fitzgeraldetal.2014,Liuetal.2011,Nambisanetal.2019,Vial2019).Thistransformationisembodiedindigitalentrepreneurship(DE),whichreferstobusinessesthattakeadvantageofdigitaltechnologiesintheiroperations(DavidsonandVaast2010,Hulletal.2007,Nambisan2017).Inlightoftheabove,itmakessensethatDEhasrecentlybecomeanewfocusin
entrepreneurshipresearch(Kollmannetal.2022,Krausetal.2018).
TounderstandDE,itisnecessarytoconsidernotonlytheentrepreneurbutalsotheenvironment(Zaheeretal.2019).Theentrepreneurialecosystem(EE)approachhasgainedwideinterestinentrepreneurshipresearchoverthelastdecade(García-Lilloetal.2023).EEconsistsofinterrelatedactorsandcontextualfactorsinfluencingentrepreneurship(ácsetal.2014,StamandvandeVen2021).Itisacomplex,self-organizingsystemwithheterogeneouscomponents,non-linearinteractions,and
openboundaries,andwithasensitivitytoinitialconditionsandshocks(Roundyetal.
1DigitalEcosystemDevelopmentIndex(DEDI)byKatzandCallorda(2018);DigitalEconomyandSocietyIndex(DESI)bytheEuropeanCommission(2023);NetworkReadinessIndex(NRI)byDuttaandLanvin(2022).
2
2018).However,SussanandAcs(2017)identifiedagapintheconceptualizationofentrepreneurshipinthedigitalage,pointingoutthattheconceptofEE,whileemphasizingawiderangeofspatialcontexts,doesnotintegratethedigitalcontext.Consequently,theconceptofdigitalentrepreneurialecosystem(DEE)hasemerged,whichintegratesDEandEEconcepts,emphasizingthatthepresenceofDEinaneconomydependsontheentrepreneurialcontext.AcomprehensivereviewbyBejjanietal.(2023)definesDEEas“complexanddynamicsystemscomposedofheterogeneousactorsthatexploitdigitaltechnologiesforvalueco-creationwhilerelyingondigitalinfrastructurethatsupportsgovernancemechanisms,facilitatesaccesstoresources,enablesthedevelopmentof
complementarities,andovercomesspatialboundaries.”(p.8).
TheliteraturedistinguishesthreeperspectivesontherelationshipbetweenDEandEE(Bejjanietal.2023).SomestudiesdefineDEEasadistinctconcept,offeringanexplicitdefinitionandoftenaconceptualmodel(e.g.,Eliaetal.2020,Song2019,SussanandAcs2017).OthersextendtheEEconcepttoincludetheimpactofdigitaltechnologiesinvariouscontextswithoutexplicitlylabelingthemasDEEs(e.g.,Autioetal.2018).The
thirdgroupusesdifferenttermstodescribetheinteractionbetweendigitalizationand
ecosystems(e.g.,“digitalplatform”),indicatingalackofconsensusoninterpretingtheseecosystemsinadigitalcontext.Thisconceptualdiversityseemstobemoreofabarrier
toprogressinmeasurement.
AlthoughEEsfollowauniqueevolutionarypath(Necketal.2004),fromabroaderperspective,commonstructuresandfeaturesthatallowtheircomparativestudycanbeidentified(Szerbetal.2019).GiventheinterrelatednessofEEcomponents,their
measurementrequiresasystemicapproach.Currentmeasuresofcountry-level
3
entrepreneurship,however,oftenfocuson“count”and“prevalence”indices,overlookingthesystemdynamicsanddiverseproductivitypotentialofentrepreneurialactivities.
2
SomepromisingframeworksforprofilingEEexist,buttheyalsolackasystemicapproachandtransparentmethodologicalexplanations.
3
Inaddition,allthesemeasuresfailtocapturethestructuralelementsofEEsintheiroperationalization(Autioetal.2018b).
4
TheGlobalEntrepreneurshipIndex(GEI/GEDI)employsasystemicapproach,wheretheEEcomponentsareconsideredto“co-produce”system-leveloutcomes.
5
ThisisoperationalizedthroughthePenaltyforBottleneck(PFB)algorithm,whichpenalizesstrongEEcomponentsforweakcomponents—orbottlenecks—inbothcomponent-and
index-levelperformance.
ThesehighlightthenecessityforfurtherdevelopmentoftheDEEconcept.However,therearealreadysomenoteworthymeasurementmethodsforstudyingEE,whichprovideapromisingstartingpointfordeterminingthetransformativeeffectsofdigitalizationonentrepreneurship.TheaimofthisresearchwastocreatetheGlobalIndexofDigitalEntrepreneurshipSystems(GIDES).Toovercometheoutlinedconceptualgaps,thisnational-levelcompositeindicatorisbasedonatheoreticalframeworkmodelthat
seekstoreflectthecomplexityofDEthroughaconcurrentassessmentofthegeneral,
structural,anddigitalcontexts.Moreover,toeliminatetheindicatedmeasurement
2Thesemeasuresare:(i)PreferenceforSelf-employment,EuropeanCommission;FlashEurobarometer354(EntrepreneurshipintheEUandbeyond)
http://ec.europa.eu/public_opinion/flash/fl_354_en.pdf;
(ii)TotalEarly-stageEntrepreneurialActivity(TEA),GlobalEntrepreneurshipMonitor,
/;
and(iii)Start-upRanking,StartupR,
/
(accessed9November2023).
3Theframeworksare:(i)KauffmanFoundation’sEEinitiative(Bell-MastersonandStangler2015);and(ii)EEMeasurementFramework(Stam2015,2018).
4StartupGenome'sGlobalStartupEcosystemIndex
(/)
rankscity-level
ecosystemsbasedontheirperformance,butdoesnotexamineecosystemsateitherthestand-uporscale-upstage.
5Detaileddescriptionoftheindexmethodologyofferedbyácsetal.(2014).
4
deficiencies,GIDESoffersasystemicperspectiverootedintheconceptofNationalSystemsofEntrepreneurship(ácsetal.2014),andutilizesthePFBalgorithmtoidentifyelementshinderingDEEperformance.Inaddition,ecosystemindicesarenottypicallytestedforrobustness,eventhoughcompositeindexcreationhasseveral,notnecessarilyobjective,decisionpoints.Therefore,ouraimisnottherobustnessoftheanalysisitself,butwealsoaddthoseresultstosupporttheindicator.GIDESisusefultoidentifypotential
priorityareasforpolicyintervention.
Thestructureofthispaperisasfollows:section2laysaconceptualgroundworkfortheimpactofdigitalizationonentrepreneurship;section3introducesthestructureofGIDES,explainsitscalculation,andtherobustnessanalysis;andsection4delvesinto
thefindings.Theconcludingsectionsummarizesthestudy’skeytakeaways.
2.TheoreticalBackground
2.1NationalSystemsofEntrepreneurship(NSE)
TounderstandthelevelofDEatacountrylevel,weutilizetheconceptofNationalSystemsofEntrepreneurship(ácsetal.2014).Accordingtothat,thepursuitofentrepreneurialopportunitybyindividualsdrivesaresourceallocationdynamicatthenationallevelthatallocatesresourcestowardeconomicuses.Thisisnotafrictionlessprocess,asstartinganewbusinessentailsopportunitycosts,sincethehumanandfinancialresourcesallocatedforentrepreneurialopportunitypursuitcannotbesimultaneouslydeployedforalternativepurposes(McMullenandShepherd2006).Inanycountry,theentrepreneurialresourceallocationdynamicisshapedbyamyriadof
individual-leveldecisionsthatmayallocateresourcestoeitherlow-orhigh-productivity
5
uses,includinglow-productivityusessuchassubsistenceentrepreneurshiporhigh-
productivityusessuchasinnovative,high-growthentrepreneurship.Acoreassumptioninourtheorizingisthatthisresourceallocationdynamicultimatelycontributes(ordoesnot)tothecountry’sTotalFactorProductivity(TFP)(ácsetal.2014).Thisdynamicisshapedbytwokeyconstraints.First,iftheopportunityperceivedbytheentrepreneurturnsouttobeofhighquality,resourceswillhavebeenpushedtowardhighlyproductiveuses,andtheassociatedprofitpotentialensuresthattheentrepreneurwillpersistinthepursuitofopportunity.Alternatively,iftheopportunityturnsouttobeoflowquality,andiftheentrepreneurperceiveshigherearningspotentialinalternativeoccupationalpursuits,theywillabandontheperceivedopportunity.Thenetoutcomeofthesetwomechanismsisthatahigh-qualityentrepreneurialdynamicshouldallocateresourcestowardproductive
usesandthushelpdriveTFPandeconomicdevelopment(ácsetal.2014).
Dependingonhowcountry-levelframeworkconditionsregulatethisresourceallocationprocess,theprocessmaybemoreorlesseffectiveincontributingtothecountry’sTFP.Empiricalstudiesshowthatacountry’sframeworkconditionsforentrepreneurshipplayakeyroleinregulatingthequalityofentrepreneurialresourceallocationdynamic(AudretschandBelitski2017,AutioandFu2015,Rodríguez-Pose2020).Favorableentrepreneurialframeworkconditionsreducebarrierstostartabusiness
byloweringrisksandfacilitatingresourceaccess(AutioandAcs2010).
Therealizationoftheimportanceofhowsystem-levelframeworkconditionsshape
thequalityoftheentrepreneurialdynamictriggeredtheconceptofEEinentrepreneurship
6
research(Autioetal.2018b).
6
AlthoughthereisnouniversaldefinitionforEEs,mostdefinitionsechothenotionofnaturalecologicalecosystems,inthesensethattheyareconsideredregionalcommunitiesofstakeholders,embeddedinagiveneconomic,social,andinstitutionalcontext,thatgenerateasystem-leveloutcomeanalogoustothe“ecosystemservice”generatedbynaturalecosystems(Acsetal.2017,Necketal.2004,Roundyetal.2018,StamandVandeVen2021).Asanovelformofregionalclusters,EEsfacilitatebusinessmodelinnovationandknowledgetransfer,andhelpnewbusinessesaccesstheresourcestheyneedtostartupandscaleup(Autioetal.2018b).Atthenationallevel,NationalSystemsofEntrepreneurshiparecomposedofregional
EEspluscountry-levelframeworkconditionsofentrepreneurship.
2.2DigitalContext
Digitaltechnologieshaveatransformativeimpactonentrepreneurialopportunitiesbyenablingoftenradicalnewwaysforentrepreneurialbusinessestoorganizeforthecreation,delivery,andcaptureofcustomervalue(AutioandRannikko2017,Yooetal.2010).Thisphenomenonhasbeenlargelydrivenbytherapidandwidespreadadoptionofpubliccloudtechnologiesandtheemergenceofan“applicationeconomy”withthenow-universaladoptionofsmartphonesandapplicationstherein.Digitalartifacts,platforms,andinfrastructuresblurfunctional,organizational,andgeographical
boundaries,challengingestablishedbusinesspractices(Hausbergetal.2019).
6FollowingAutioetal.(2018b),wedefineanEEasprimarilyaregional-levelphenomenon,astheregionalcommunityofstakeholderswhocollectivelyfacilitateentrepreneurialstand-up,start-up,andscale-upinagivenregion.Atthenationallevel,weusetheterm:“nationalsystemsofentrepreneurship”todescribethebroaderconstellationofcountry-levelfactorsthatshapethecountry’sentrepreneurialresourceallocationdynamic(ácsetal.2014).
7
Autioetal.(2018b)observedthatdigitalizationshapesentrepreneurshipandEEsthroughthecreationofnoveldigitalaffordances,whichallowentrepreneurstoperformentirelynewfunctionsanddiscovernewwaysoforganizing.Throughthecreationofdigitalaffordances,digitaltechnologiescanenhanceinteractionsandcoordinationbetweenindividualsandorganizations,therebyopeningnewopportunitiesforvaluecreation,delivery,andcapture—i.e.,businessmodelinnovation(AmitandZott2001).Thefirm’sbusinessmodeldefineshowitengageswithitsvariousstakeholdersforvalueco-creatinginteractions.Digitalaffordanceshelpenhance,extend,andenrichthevalueco-creationpotentialofsuchinteractions.Insodoing,digitalizationpotentiallyhelpsboost
theproductivitypotentialoftheentrepreneurialresourceallocationdynamicincountries.
DigitalizationplaysanimportantroleinfosteringregionalEEsandnationalentrepreneurshipsystemsbyactingasoneofthelinkingmechanismsbetweentheirconstituentelements.ThisrecognitionhaspromptedtheconceptofDEE(Rautetal.,2021).Primarilyaregionalphenomenon,theDEEisdefinedasanopen,looselyconnected,demand-driven,self-organized,andparticipatoryenvironmentinwhicheachparticipantisproactiveandsensitivetotheirownutilityandgain(ChangandWest2006).Itdescribesasysteminwhichparticipants(actors,institutions,andorganizations)andtheirrelationshipsaremutuallysupportivetoincreasetheirutility,gainadvantage,andfacilitateknowledgetransfer(Audretschetal.2023,Lietal.2012).TheDEEfocusesonnewtechnologicalprocessesattheintersectionofbusinessanddigitalsystems(Autioet
al.2018a,Nambisan2017).
PolicyconclusionssuggestthatinthecontextofaDEE,astrongerandmore
dynamiceconomyrequiresnotonlythedevelopmentofdigitalphysicalinfrastructure,but
8
alsothebalanceddevelopmentofallelementsofregionalEEsandnational-levelsystemsofentrepreneurship.Thedevelopmentofthedigitaleconomyisinfluencedbyregulationsthatcreateafavorablebusinessenvironment,specificskillsthathelppeopleand
businessestouseadvanceddigitaltechnologies,andeffectiveinstitutionsthatsupport
digitalization(WorldBank2016).Adaptability,absorptivecapacity,andthediffusionofdigitaltechnologysolutionsandtoolsplayakeyroleinthestrengthofthedigital
entrepreneurialecosystem.
Thesmoothfunctioningoforganizationsinthedigitalerarequiresallactorstohaveanuancedunderstandingofthecurrentstateofsocietaldigitalization.Moreover,toadvanceprogresstowardadigitalentrepreneurialeconomy,policymakersneedreliablemetricstomonitorandharnesstheproductivitypotentialofdigitaladvancesforeconomicandsocietalwelfare(Autioetal.2019,BrownandMason2014).Wenextlayoutthe
GIDESmethodologydevelopedtoadvancesuchanunderstanding.
3.TheGlobalIndexofDigitalEntrepreneurshipSystems
3.1IndexStructure
GIDESisacompositeindicatordesignedtomonitorthedigitalizationofsocietyandtheeconomy,withafocusonentrepreneurialprocesses.Thelogicbehindtheindexistousemeasuresofdigitalconditionsasweightstoadjusttheeffectofinstitutionalandcontextualcountry-levelframeworkconditionsthatshapethequalityofentrepreneurialresource
allocationdynamic.
Thecountry-levelframeworkconditionsforentrepreneurship,encapsulatedinthe
eightpillarsoftheindex(Figure1),regulatethequalityofthecountry’sentrepreneurial
9
dynamicintwoways:(i)byshapingresourceallocationtrade-offstowardentrepreneurshipversusalternativeoccupationalpursuits(GeneralFrameworkConditions[GFCs]);(ii)byregulatingtheavailabilityofexternalresourcestothispursuit(SystemicFrameworkConditions[SFCs]).GFCscapturethegeneralcontextforentrepreneurialactivityinacountryandincludepillarsas(i)cultureandinformalinstitutions;(ii)formalinstitutions,regulation,andtaxation;(iii)marketconditions;and(iv)physicalinfrastructure.Alltheseconditionshavebeenshowntoshapeentrepreneurialactivity(Autioetal.2013;deSoto2000;Djankovetal.2002,2003,2006;Seung-Hyunetal.2007;Wennbergetal.2013).SFCsareresource-relatedconditionsthatdirectlyaffectacountry'sentrepreneurialdynamicsandinclude:(i)humancapital(Marveletal.2016,Shane2003,Ungeretal.2011);(ii)knowledgecreationanddissemination(AudretschandLehmann2005,Iftikharetal.2022,QianandAcs2013);(iii)finance(Charfeddine
andZaouali2022);and(iv)networkingandsupport(KooandCho2011,Zhaoetal.2022).
Inpractice,businessesneedmanydifferentresourcestogrowsuccessfully.SFCshaveadifferentimpactonthethreestagesofentrepreneurialdevelopment:stand-up,start-up,andscale-up.Theseresourcesarenotsubstitutableagainstoneanother.Therefore,the
SFCshavetocometogethertohelp“co-produce”thesystemoutcomes.
High-qualitydataonacountry’sframeworkconditionsforentrepreneurshipiscrucialtobetterunderstandhowagivencountrycouldenhancethequalityofitsentrepreneurialresourceallocationdynamic,andconsequently,theabilityofthisdynamic
tocontributetowardthecountry’sTFP.
Asathirdlayerinourmodel,thedigitalframeworkconditionsdescribethegeneral
levelofdigitalizationoftheeconomy,asitaffectsentrepreneurialactivitythroughits
10
impactongeneralandsystemicframeworkconditions.Foreachpillar,wehavecalculatedanappropriatedigitalweightreflectingthedigitalconditionsinthecountryrelevanttothatpillar.Foreachpillar,wecalculateanon-digitalizedversionandadigitallyweightedversion.ThedigitalizedversionsofpillarswecallDigitalFrameworkConditionsfor
entrepreneurship.
Figure1:StructureoftheGlobalIndex
ofDigitalEntrepreneurshipSystemsIndex
Source:AdaptedfromAutioetal.2020.
AnearlierversionoftheGIDESmethodology,theEuropeanIndexofDigitalEntrepreneurshipSystems(EIDES),wasdevelopedasapartofa3-yearresearchproject(2018–2020)fortheEuropeanCommission’sJointResearchCentre.
7
GIDEShasthe
sameindexstructure,butitsindicatorsethasbeenadjustedaccordingtodataavailability.
7EIDES(Autioetal.,2018b,2019,and2020)wasthefirstattempttomeasureboththeframework(physical)anddigitalconditionsforentrepreneurialstand-up,start-up,andscale-upinthe27EuropeanUnioncountriesandtheUnitedKingdom.
11
3.2IndexOperationalization
InGIDES,bothGFCsandSFCsareoperationalizedasindexpillarsconsistingofsetsofindividualvariables.Eachpillarvalueisobtainedbycalculatingthearithmeticmeanofthenormalizedindividualvariables.Eachframeworkconditionisrepresentedbyasinglepillarvalue.GIDEScalculatesdistinctpillarvaluesforSFCsacrossthethreeentrepreneuriallifecyclestages(stand-up,start-up,andscale-up).Thus,theindex
consistsofatotalof16pillars:4forGFCsand4foreachofthethreestagesofSFCs.
Eachindexpillarismatchedwithacorrespondingdigitalweight.Themeasuresofthedifferentdigitalconditions(oneforeachpillar)arecalculatedasthearithmeticmeanoftheirconstituentvariablesafternormalization.Thus,theindexofferstwopillarvaluesforeachgeneralandsystemicframeworkcondition:adigitalizedvalueanda
non-digitalizedvalue.
Tocapturesystemdynamics,twomethodologicalstepsfollowedwhen
aggregatingindividualpillarvaluesintothreesub-indices:EqualizationofPillarAverages
andthePFBalgorithm(ácsetal.2014).Theequalizationstepadjuststhescalesofeachpillartohavethesameaveragevalue,whilethebottleneckalgorithmintroducesnon-substitutabilityacrosspillarsandpenalizesforgapsandvariancesamongindividualpillarvalues.Thesub-indices,representinggeneralandsystemicframeworkconditionsinbothdigitalandnon-digitalversions,arecalculatedasarithmeticmeansofequalizedandbottleneck-penalizedpillarvalues.TheoverallGIDESvalueisthearithmeticmeanofthemeasuresforgeneralandsystemicframeworkconditions.Thefulldetailsofthesesteps
areexplainedinAppendix1.
8
Thisapproachprovidesanaccuraterepresentationof
8Theappendixesareavailableat
/10.22617/WPS240095-2.
12
nationaldigitalentrepreneurialecosystems.Itallowsfordifferentiationbetweendigitalandnon-digitaldynamicsandprovidesinsightsintogeneralframeworkconditions,
digitalization,andthethreesub-dynamicsoftheoverallentrepreneurialdynamic.
GIDESconsistsof103individualindicators.ThedescriptionofalltheindicatorsusedintheGIDEScalculationcanbefoundinAppendix2.ThedatausedforGIDEScalculationweremostlythelatestavailablebetweenJuneandAugust2021,coveringyears2019,2020,or2021formostindicators.GIDESscoresrangetheoreticallyfrom0
(low)to100(high).
3.3RobustnessAnalysis
Inacompositeindicatoranalysis,thecompilationofthefinalindexinvolvesaseriesofchoices.Theaimoftherobustness(oruncertainty)analysisistoexaminetheextenttowhichthefinalindexvalueissensitivetochoicesmadeduringtheindexcompilationwhenitcomestochoicessuchastheselectionofindividualindicatorsandtheweightingofdifferentcomponentsoftheindex(Saisanaetal.2005,VanRoyandNepelski2016).Assuch,the
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