Composite indicator for regional innovative systems of the countries with developing and transitional economy

Present article introduces composite indicator for regional innovative systems of the countries with developing and transitional economy. Using the factor analysis technique it exposes four principal unobservable factors, which reflect basic aspects of regional innovative systems. Those factors are used as sub indicators to elaborate composite indicator of the regional innovative systems. This composite indicator may be used for measurement of the regions innovative lavel. Proposed composite indicator can be easily adapted for other countries with developing and transitional economy (e.g. for the post USSR space). By way of illustration here are provided calculations of sub indicators and the composite indicator for Georgian regions (GRIS-2010).