A proposal for measuring the structure of economic ecosystems: a mathematical and complex network analysis approach

TL;DR

This paper introduces a new mathematical measure based on complex network analysis to evaluate and compare the overall structure and collaboration dynamics of diverse economic ecosystems.

Contribution

It proposes a novel formula that synthesizes CNA metrics into a single index for assessing economic ecosystem wellness, tested on real and simulated networks.

Findings

The measure effectively differentiates between various economic ecosystems.

It correlates well with known social and economic indicators.

The approach is validated on networks from Latin America and Europe.

Abstract

The benefits of using complex network analysis (CNA) to study complex systems, such as an economy, have become increasingly evident in recent years. However, the lack of a single comparative index that encompasses the overall wellness of a structure can hinder the simultaneous analysis of multiple ecosystems. A formula to evaluate the structure of an economic ecosystem is proposed here, implementing a mathematical approach based on CNA metrics to construct a comparative measure that reflects the collaboration dynamics and its resultant structure. This measure provides the relevant actors with an enhanced sense of the social dynamics of an economic ecosystem, whether related to business, innovation, or entrepreneurship. Available graph metrics were analysed, and 14 different formulas were developed. The efficiency of these formulas was evaluated on real networks from 11 different innovation-driven entrepreneurial economic ecosystems in six countries from Latin America and Europe and on 800 random graphs simulating similarly constructed networks.