Investors and market observers constantly seek a comprehensive perspective on the innovation‑driven growth emerging across global economies.
A fresh, data‑driven framework co‑developed by the Nasdaq Economic Institute and Oxford Economics, the Economic Opportunity Index (EOI), will now serve as a valuable resource for them.
Launched today, the Economic Opportunity Index evaluates 123 economies across five core pillars: Innovation Engine, Economic Governance and Predictability, Capital Dynamism, Market Strength and Resilience, and Talent and Opportunity. The index blends proprietary Nasdaq data with public sources, including historical records dating back to 2000.
The Nasdaq Newsroom interviewed Michael Normyle, U.S. Economist at the Nasdaq Economic Institute, to discuss the Index’s design, its relationship to GDP, and key insights from the research.
What is the Economic Opportunity Index?
The Economic Opportunity Index is a quarterly index that assesses whether the structural ingredients supporting innovation‑led, resilient growth are present and working together in a given economy. Rather than predicting which economies will outperform, the index evaluates their readiness to do so, including the structural conditions that support long‑term economic resilience, competitiveness, and innovation‑led growth, as outlined in our white paper with Oxford Economics.
While most economic indicators show where an economy currently stands, the EOI helps reveal where it may be headed by assessing the five pillars that determine whether conditions for durable, resilient growth are in place.
How does the EOI differ from traditional economic indices?
GDP remains the standard measure of a country’s economic performance, but it captures only output. The EOI is not intended to replace GDP; it complements it. Unlike GDP, which measures output alone, the EOI adopts a holistic view that incorporates demographics, market inputs, and other factors within its five pillars.
What does the EOI measure?
The index is built around five core pillars: Innovation Engine, Economic Governance and Predictability, Capital Dynamism, Market Strength and Resilience, and Talent and Opportunity. These pillars capture both longstanding measures—such as governance and political stability—and newer factors like artificial‑intelligence readiness, collectively assessing an economy’s readiness for innovation‑led growth.
How is the EOI structured methodologically?
The index is organized in three tiers: individual indicators, sub‑pillars, and pillars. There are 44 individual indicators, grouped into sub‑pillars, which combine into the five top‑level pillars. Those five pillars are then aggregated into a total EOI score.
Scores are calibrated on a scale centered at 100 and indexed to Q4 2025, enabling cross‑country and time‑series comparability. A score above 100 indicates above‑average performance relative to that benchmark, whereas a score below 100 signals below‑average performance.
Who is the EOI designed for?
The EOI targets a broad audience. Policymakers can leverage it to inform decisions, as it measures readiness and highlights strengths and improvement areas. Corporations making investment decisions can use it to quickly narrow down economies that match their needs and focus on the most relevant pillars for a given investment. Researchers will also find it valuable for uncovering new insights.
How often will the EOI be updated, and where will findings be published?
The EOI will be published quarterly on Nasdaq.com, providing users with a relatively current view of an economy’s trending performance. This quarterly cadence is unusual for broad economic activity measures, which typically reflect lagged or historical data.
Did your research turn up any noteworthy patterns?
The research revealed distinct patterns across income groups. For lower‑income countries, capital dynamism and talent‑and‑opportunity were the most statistically significant pillars. The Innovation Engine became more critical for upper‑middle and high‑income nations, while high‑income countries again saw talent and opportunity emerge as a key factor—likely reflecting brain‑drain dynamics. Additionally, the Economic Governance and Predictability pillar showed roughly a ten‑year lead over real GDP per‑capita performance, underscoring its role as a prerequisite for long‑term growth.
Explore the index and read the joint white paper.
