Speaker: Luciano Pietronero (the Enrico Fermi Research Center)

Time: 10:00-11:30 a.m., May 31, 2023, GMT+8

Venue: Zoom Meeting ID: 969 9017 4936 Passcode: inse

Abstract:

Economic Fitness and Complexity (EFC) is the recent economic discipline and methodology which makes use and develops the modern techniques of data analysis to build economic models based on a scientific methodology inspired by the science of Complex Systems with special attention to quantitative tests to provide a sound scientific framework. It consists of a data based and bottom up approach that considers specific and concrete problems without economic ideologies and it acquires information from the previous growth data of all countries with methods of Complex Networks, Algorithms and Machine Learning. Its main characteristics are the scientific rigor, the precision in the analysis and in the forecasting, transparency and adaptability. The new Fitness algorithm overcomes the conceptual and practical problems of the early attempts in this field and sets the basis for a scientific, testable and successful implementation of the field of Economic Complexity in a broad perspective. According to Bloomberg Views: “New research has demonstrated that the "fitness" technique systematically outperforms standard methods, despite requiring much less data”.

In addition EFC has provided a detailed understanding and forecasting of the fantastic growth of China in the past thirty years which has been a major mystery for most of the standard economic analysts. The Economic Fitness represents a synthetic measure of the degree of competitivity in terms of the capabilities to produce products and services. Mathematically the Fitness corresponds to the diversification weighted by the complexity of the products. The diversification provides stability and resilience while the complexity of the products represents the exclusivity and the relative wealth. The European Commission (Joint Research Center) has recently adopted these methods for the study of the 27 EU countries. It will be used to evaluate the best planning and the impact of the recovery fund projects (PNRR) to stimulate the economy of EU in the era post COVID-19.

Biography:

Professor Luciano Pietronero is president of the Enrico Fermi Research Center. He is an author of 400 scientific papers, mostly in the leading international scientific journals: Phys. Rev. Letters, Rev. Mod. Phys., Nature, Nature Physics, Nature Scientific Reports, Physics Reports, Phys. Rev. B and E, Europhys. Lett., Physica A, J. of Physics etc. He received Enrico Fermi Prize (Italian Physical Society) in 2008, and he holds numerous assignments, including Fellow of the American Physical Society (1990), Member of the Academia Europaea for the Section B3 (Physics and Engineering Sciences) from Nov. 2011, Member of the EU Academy from 2012 etc.

Source: Institute of New Structural Economics