XXXPFDEPSHQVCMJTIJOH

3UBSCRIBERS TO THIS PRINTED PERIODICAL ARE ENTITLED TO FREE ONLINE ACCESS )F YOU DO NOT YET HAVE ONLINE ACCESS VIA YOURINSTITUTIONS NETWORK CONTACT YOUR LIBRARIAN OR IF YOU SUBSCRIBE PERSONALLY SEND AN EMAIL TO 3OURCE/%#$ OECDORG

(ANDBOOKON#ONSTRUCTING

#OMPOSITE

)NDICATORS-%4(/

$/,/'9!.$

53%2'5)$%

)3". 0 "-.+/32348

(ANDBOOK ON #ONSTRUCTING #OMPOSITE )NDICATORS-%4(/$/,/'9 !.$ 53%2 '5)$%4HIS (ANDBOOK IS A GUIDE FOR CONSTRUCTING AND USING COMPOSITE INDICATORS FOR POLICY MAKERSACADEMICS THE MEDIA AND OTHER INTERESTED PARTIES 7HILE THERE ARE SEVERAL TYPES OF COMPOSITEINDICATORS THIS (ANDBOOK IS CONCERNED WITH THOSE WHICH COMPARE AND RANK COUNTRY PERFORMANCE INAREAS SUCH AS INDUSTRIAL COMPETITIVENESS SUSTAINABLE DEVELOPMENT GLOBALISATION AND INNOVATION 4HE(ANDBOOK AIMS TO CONTRIBUTE TO A BETTER UNDERSTANDING OF THE COMPLEXITY OF COMPOSITE INDICATORS ANDTO AN IMPROVEMENT OF THE TECHNIQUES CURRENTLY USED TO BUILD THEM )N PARTICULAR IT CONTAINS A SET OFTECHNICAL GUIDELINES THAT CAN HELP CONSTRUCTORS OF COMPOSITE INDICATORS TO IMPROVE THE QUALITY OF THEIROUTPUTS (ANDBOOK

ON #ONSTRUCTING#OMPOSITE)NDICATORS-%4(/$/,/'9!.$ 53%2 '5)$%

!6!),!",% /. ,).%

Handbookon Constructing

Composite IndicatorsMETHODOLOGY AND USER GUIDE

001-002-999-eng.fm Page 1 Tuesday, August 19, 2008 7:41 AM

ORGANISATION FOR ECONOMIC CO-OPERATIONAND DEVELOPMENT

The OECD is a unique forum where the governments of 30 democracies work together toaddress the economic, social and environmental challenges of globalisation. The OECD is also atthe forefront of efforts to understand and to help governments respond to new developments andconcerns, such as corporate governance, the information economy and the challenges of anageing population. The Organisation provides a setting where governments can compare policyexperiences, seek answers to common problems, identify good practice and work to co-ordinatedomestic and international policies.

The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic,Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea,Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic,Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission ofthe European Communities takes part in the work of the OECD.

OECD Publishing disseminates widely the results of the Organisations statistics gathering andresearch on economic, social and environmental issues, as well as the conventions, guidelines andstandards agreed by its members.

Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.

OECD 2008

You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimediaproducts in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as sourceand copyright owner is given. All requests for public or commercial use and translation rights should be submitted to rights@oecd.org. Requests forpermission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC)at info@copyright.com or the Centre franais d'exploitation du droit de copie (CFC) contact@cfcopies.com.

This work is published on the responsibility of the Secretary-General of the OECD. Theopinions expressed and arguments employed herein do not necessarily reflect the official views ofthe Organisation or of the governments of its member countries or of the European Commission.Neither the European Commission nor any person acting on behalf of the Commission isresponsible for the use which might be made of this publication.

!"#$%&&'(()*+,-)+.#/()&01&*.+2(.#$.)"+&,*3(02+!&$&4&/5("#$(-*2,(/-.$2(6(.*%#(789:7;:=?=@:7(:(A(&2)$(;>>9 ?

!"#$%"#&

+BCD(!EFGHIIJ(ECKD(LI(MNIOCGP(E(QRCGP(LI(LBP(SIFDLNRSLCIF(EFG(RDP(IT(SIKMIDCLP(CFGCSELINDUTIN(MIVCSW:KEJPNDU(ESEGPKCSDU(LBP(KPGCE(EFG(ILBPN(CFLPNPDLPG(MENLCPDX(YBCVP(LBPNP(ENP(DPOPNEV(LWMPD(ITSIKMIDCLP( CFGCSELINDU( LBCD( !EFGHIIJ( CD( SIFSPNFPG( ZCLB( LBIDP( ZBCSB( SIKMENP( EFG( NEFJ( SIRFLNWMPNTINKEFSP( CF( ENPED( DRSB(ED( CFGRDLNCEV(SIKMPLCLCOPFPDDU( DRDLECFEHVP(GPOPVIMKPFLU( QVIHEVC[ELCIF(EFGCFFIOELCIFX(+BP(!EFGHIIJ(ECKD(LI(SIFLNCHRLP(LI(E(HPLLPN(RFGPNDLEFGCFQ(IT(LBP(SIKMVP\CLW(IT(SIKMIDCLPCFGCSELIND( EFG( LI( EF( CKMNIOPKPFL( CF( LBP( LPSBFC]RPD( SRNNPFLVW( RDPG( LI( HRCVG( LBPKX( .F( MENLCSRVENU( CLSIFLECFD(E(DPL(IT(LPSBFCSEV(QRCGPVCFPD(LBEL(SEF(BPVM(SIFDLNRSLIND(IT(SIKMIDCLP(CFGCSELIND(LI(CKMNIOP(LBP]REVCLW(IT(LBPCN(IRLMRLDX

.L(BED(HPPF(^ICFLVW(MNPMENPG(HW(LBP(&2)$(_LBP(*LELCDLCSD($CNPSLINELP(EFG(LBP($CNPSLINELP(TIN*SCPFSPU( +PSBFIVIQW( EFG( .FGRDLNW`( EFG( LBP( 2SIFIKPLNCSD( EFG( "MMVCPG( *LELCDLCSD( -FCL( IT( LBP( aICFL,PDPENSB()PFLNP(_a,)`(IT(LBP(2RNIMPEF()IKKCDDCIF(CF(.DMNEU(.LEVWX(1NCKENW(ERLBIND(TNIK(LBP(a,)(ENP0CSBPVE(#ENGIU(0CSBEPVE(*ECDEFEU("FGNPE(*EVLPVVC( EFG(*LPTEFI(+ENEFLIVEX(1NCKENW(ERLBIND( TNIK( LBP&2)$( ENP("FGPND(!ITTKEFF( EFG(2FNCSI(/CIOEFFCFCX( 2GCLINCEV( EDDCDLEFSP(ZED( MNIOCGPG( HW()EFGCSP*LPOPFDU(/RFDPVC(%EWQEFU('ENDLPF(&VDPF(EFG(*ENEB(0IINPX

0EFW( MPIMVP( SIFLNCHRLPG( LI( CKMNIOP( LBCD( BEFGHIIJ( ZCLB( LBPCN( OEVREHVP( SIKKPFLD( EFGDRQQPDLCIFDX (+BP(ERLBIND(ZCDB(LI(LBEFJ(PDMPSCEVVW(aISBPF(aPDCFQBERD(TNIK(LBP(2RNIMPEF()IKKCDDCIFU$/(aICFL(,PDPENSB()PFLNPb(+EF^E(*NPHILF^EJ(TNIK(LBP(5EVP()PFLPN(TIN(2FOCNIFKPFLEV(4EZ(EFG(1IVCSWb4ERNPFD()BPNSBWP(EFG(+IK(cEF(1RWPFHNIPSJ(TNIK(LBP()ELBIVCS(-FCOPNDCLW(IT(4PROPFb(1EDSEV(,COCdNPTNIK(.#*22(b(+IK(/NCTTCFU(*PFCIN(*LELCDLCSEV("GOCDPN(LI(LBP(-#$1(!RKEF($POPVIMKPFL(,PMINLb(EFG"NC(4"+c"4"(TNIK(LBP(2RNIMPEF()IKKCDDCIFU($/(2FLPNMNCDP(EFG(.FGRDLNWX

"(DMPSCEV(LBEFJ(QIPD(LI(/CRDPMMP(0RFGE(_-FCOPNDCLEL("RLeFIKE(GP(%ENSPVIFE(EFG(2RNIMPEF)IKKCDDCIFU($/(aICFL(,PDPENSB()PFLNP`(ZBI(DRMMVCPG(EVV(LBP(KELPNCEV(TIN(LBP(SBEMLPN(IF(EQQNPQELCIFKPLBIGD( EFG( LBP( HI\( IF(KPEDRNPKPFL( DSEVPD( EFG( LI( 2RNIDLEL( _-FCL(%@:f0PLBIGIVIQW( EFG( NPDPENSBfU$$/:>;( f( *LELCDLCSEV( QIOPNFEFSPU( ]REVCLW( EFG( POEVRELCIFf( EFG( ILBPN(KPKHPND( IT( LBP( +EDJ( gINSP( IF)IKMIDCLP( .FGCSELIND`( TIN( LBP( RDPTRV( SIKKPFLD( EFG( LBP( CKMNIOPKPFLD( LBPW( DRQQPDLPGX(YP( ENP( EVDIQNELPTRV(LI(LBP(*LELCDLCSEV(&TTCSPD(IT(LBP(&2)$()IKKCLLPP(IF(*LELCDLCSD(ZBIDP(SIKKPFLD(SIFLNCHRLPGLI(PFBEFSP(LBP(]REVCLW(IT(LBCD(BEFGHIIJX

gRNLBPN( CFTINKELCIF( IF( LBP( LIMCSD( LNPELPG( CF( LBCD( BEFGHIIJ( EFG( IF( ILBPN( CDDRPD( NPVELPG( LISIKMIDCLP(CFGCSELIND(SEF(HP(TIRFG(CF(LBP(ZPH(MEQP3 BLLM3hhSIKMIDCLP:CFGCSELINDX^NSXPSXPRNIMEXPRh

+BP(NPDPENSB(ZED(MENLVW(TRFGPG(HW(LBP(2RNIMPEF()IKKCDDCIFU(,PDPENSB($CNPSLINELPU(RFGPNLBP(MNI^PSL('2.(_'FIZVPGQP(2SIFIKW(.FGCSELIND`U()IFLNESL(g1;@;7X( .F( LBP(&2)$(SIFLP\LULBP(ZINJ(BED(HPFPTCLPG(TNIK(E(QNEFL(TNIK(LBP($EFCDB(/IOPNFKPFLX(+BP(OCPZD(P\MNPDDPG(ENP(LBIDP(ITLBP( ERLBIND( EFG( DBIRVG( FIL( HP( NPQENGPG( ED( DLELCFQ( EF( ITTCSCEV( MIDCLCIF( IT( PCLBPN( LBP( 2RNIMPEF)IKKCDDCIF(IN(LBP(&2)$X

!"#$%&&'(()*+,-)+.#/()&01&*.+2(.#$.)"+&,*3(02+!&$&4&/5("#$(-*2,(/-.$2(6(.*%#(789:7;:=?=@:7(:(A(&2)$(;>>9 @

'()*$+"!+,"-'$-'.

.#+,&$-)+.(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(i?

1NID(EFG(SIFD(IT(SIKMIDCLP(CFGCSELIND(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(i?"CK(IT(LBP(!EFGHIIJ(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(i=YBELjD(FP\L(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(i8

1",+(.X()*+,-)+.#/("()&01&*.+2(.#$.)"+&,(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(i7

iX (*LPMD(TIN(SIFDLNRSLCFQ(E(SIKMIDCLP(CFGCSELIN(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(i7

iXi ($POPVIMCFQ(E(LBPINPLCSEV(TNEKPZINJ(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(;;iX; (*PVPSLCFQ(OENCEHVPD(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(;?iX? (.KMRLELCIF(IT(KCDDCFQ(GELE(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(;=iX= (0RVLCOENCELP(EFEVWDCD(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(;@iX@ (#INKEVCDELCIF(IT(GELE(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(;8iX< (YPCQBLCFQ(EFG(EQQNPQELCIF(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(?iiX8 (,IHRDLFPDD(EFG(DPFDCLCOCLW(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(?=iX9 (%ESJ(LI(LBP(GPLECVD(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(?@iX7 (4CFJD(LI(ILBPN(OENCEHVPD(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(?7iX(i>(1NPDPFLELCIF(EFG(GCDDPKCFELCIF(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(=>

;X ("(]REVCLW(TNEKPZINJ(TIN(SIKMIDCLP(CFGCSELIND(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(==

;Xi (kREVCLW(MNITCVP(TIN(SIKMIDCLP(CFGCSELIND(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(==;X; (kREVCLW(GCKPFDCIFD(TIN(HEDCS(GELE(XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(=