Methodology

In a nutshell, the overall scores for each country are derived from the simple average of all the category scores, and the category scores are the simple average of the individual metric scores.

The seven categories are Productivity, Intellectual Property Protection, Enterprise Support, Intensity, Education/Workforce and Foundations, Policy and Stability. Each is comprised of a number of metrics.

The metric scores are calculated by measuring the performance of each country and assigning the highest-ranked country a '10' and the lowest-ranked country a '0'. These metric scores are shown at the bottom of each Category page, and the overall category score is the simple average of the metrics. For countries for which no data is available for a metric, then that metric is excluded from the average — there is no penalty for missing data.

The category scores are averaged to produce an overall score for each country, and that overall score is normalized to a range from 0-100. As with the metric scores, when no data is available for a given category it is excluded from the average. So, there is no penalty for missing data.

The use of simple averages, as opposed to weighed averages, gives each metric and each category equal weighting. This means that the scorecard gives equal importance to intellectual property strength, to business friendly environment, etc.

The rationale for this unweighted average is for transparency. If a weighting were applied, it would imply that an appropriate algorithm for weighing the factors exists—and it doesn't. Further, using a neutral weighting makes it possible for you to apply your own weighting. For example, if you consider Enterprise Support to be of primary importance, then the unweighted scorecard makes it easy for you to evaluate the final scores in your own context.

Data sources:

CategoryMetricSource
Productivity Publicly-traded company revenuesMorrison, C., Lahteenmaki, R., Public biotech 2014—the numbers. Nature Biotechnology 33 (703-709), and company disclosures
Number of publicly-traded companiesMorrison, C., Lahteenmaki, R., Public biotech 2014—the numbers. Nature Biotechnology 33 (703-709), and company disclosures
IP Protection Patent strengthPark, W.G., International patent protection: 1960–2005, Res Policy (2008) 37:4 (761-766)
Perceived IP protectionWorld Economic Forum
Intensity Publicly-traded companies / capitaMorrison, C., Lahteenmaki, R., Public biotech 2014—the numbers. Nature Biotechnology 33 (703-709), company disclosures
Publicly-traded company employees / capitaMorrison, C., Lahteenmaki, R., Public biotech 2014—the numbers. Nature Biotechnology 33 (703-709), and company disclosures
Publicly-traded company revenues / GDPMorrison, C., Lahteenmaki, R., Public biotech 2014—the numbers. Nature Biotechnology 33 (703-709), and company disclosures
Biotechnology patents / total patentsOECD
Value added of knowledge-and technology-intensive industriesNational Science Foundation
Business expenditures on biotechnology R&DOECD
Enterprise Support Business friendly environmentThe World Bank
Biotechnology venture capitalOECD
VC availabilityWorld Economic Forum
Capital availabilityMilken Capital Access Index
Education and Workforce Post-secondary science graduates / capitaUNESCO
PhD graduates in life sciences / capitaOECD
R&D personnel / employmentUNESCO
Talent retentionNational Science Foundation
Brain gainUNESCO
Foundations Business expenditures on R&D (% of GDP)OECD
Gross domestic expenditure on R&D (% of GDP)UNESCO
Infrastructure qualityWorld Economic Forum
Entrepreneurship and opportunityLegatum Prosperity Index
Policy and Stability Political stability and absence of violence/terrorismWorld Bank Group
Government effectivenessWorld Bank Group
Regulatory qualityWorld Bank Group
Rule of lawWorld Bank Group

Copyright © 2018 thinkBiotech LLC. Source data from Scientific American Worldview

Copyright 2018 thinkBiotech LLC

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