The Ministry of Statistics and Programme Implementation had a session on “Conceptual Framework of Gross Domestic Knowledge Product (GDKP) Measurement” recently.
GDKP– Seeks to capture the contribution of knowledge-driven sectors, innovation, and intellectual assets to economic growth.
It acknowledges that GDP, while important, doesn't fully reflect the value of knowledge and its impact on society.
NITI Aayog – It is not a new idea and it was discussed in 2021 when NITI Aayog presented a concept note.
However, at that time, the National Statistical Commission and the Ministry of Statistics and Programme Implementation (MoSPI) raised concerns.
The concerns were about the lack of a clear methodology for data collection and calculation, as well as the subjective nature of the concept.
Significance – The government recognizes the increasing importance of the knowledge economy and the need for a metric that reflects this.
Informed decisions – By developing a robust framework for measuring GDKP, policymakers hope to better understand the drivers of knowledge-based growth and make informed decisions.
Current status – MoSPI is now actively working on developing this framework.
They recently held a session on the "Conceptual Framework of Gross Domestic Knowledge Product (GDKP) Measurement."
The goal is to move from purely economic indicators to a more knowledge-centric approach.
"Satellite account" approach– MoSPI is considering using a "satellite account" approach, similar to how they account for tourism or culture, to capture the knowledge base of the economy.
A technical committee – Will be formed to evaluate the proposal and guide the measurement of the knowledge economy.
Challenges – Key challenges include:
Methodology – Defining a clear and objective methodology for measuring knowledge is crucial.
This includes identifying relevant parameters and finding ways to quantify them.
Data availability – Data on knowledge-related aspects may not be readily available, requiring the use of surveys and potentially subjective assessments.
Integration with GDP – Determining how GDKP will complement or integrate with GDP is essential.
The relationship between the two metrics needs to be clearly defined.
Subjectivity – The concept of "knowledge" itself can be subjective, making it difficult to measure objectively.
