COMPOSITE ASSESSMENT AND COMPARATIVE ANALYSIS OF THE NEW GENERATION ECONOMY INDEX

Abstract

This article systematizes the theoretical foundations, construction logic, and empirical results of the New Generation Economy Index across 15 countries. Its main objective is to demonstrate the analytical value of a composite framework that integrates digitalization, human capital, innovation, creative industries, and platform-based economic activity, and to assess Azerbaijan’s position within that framework. The empirical basis of the study is derived from the YNII methodological report and the 2025 global ranking report. The article explains the 10-subindex architecture, the expert-based weighting scheme, z-score standardization, reversal of negative indicators, weighted aggregation, and the Input-Output design of the index. The findings show that China leads the sample with a score of 74.42, while Hungary, Türkiye, Northern Cyprus, and Georgia form the high-performance group; Azerbaijan, with a score of 42.11, belongs to the middle tier. Correlation analysis indicates that the strongest drivers of the index are education, platform economy, infrastructure, demographic structure, and creative economy. For Azerbaijan, the core finding is that the country has already accumulated a visible input base, yet this base is not transformed sufficiently into innovation outcomes, creative productivity, and platform-based market results. Therefore, the main policy priority should be not only to mobilize additional resources, but also to improve the efficiency of the transformation chain. The paper argues that a comparative and diagnostic composite index can complement classical macroeconomic indicators and provide a more adequate tool for measuring structural transformation in the new generation economy.