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The article substantiates the necessity to develop a system of indicators for assessing the level of development of the information and knowledge economy. Main methodological approaches regarding their development and analysis have been analyzed. Some recommendations have been proposed for eliminating existing problems in this field. A methodology has been proposed for calculating the Gross Domestic Product generated by information and knowledge. A composite index of information and knowledge-based economy, as well as corresponding hierarchic indices, subindices, and indicators, have been developed. General information on global indices characterizing the information and knowledge economy is analyzed. Some countries are rated on the development of the knowledge economy. Information is provided on sub-indices and indicators that affect the formation of some global ICT, innovation, and economic indices. The main and sub-indicators used in the calculation of global indices are identified. The current situation in Azerbaijan on some global indices is analyzed, and the country’s ranking on different indices on the formation of the information and knowledge economy is determined. A comparative analysis of the methods of measuring the level of information and knowledge economy is conducted. Features of the regional and sectoral approach to assessing the level of information and knowledge economy are explained. Innovation, science, and technology-intensive components of the information and knowledge economy are proposed. The interaction of the main indices and indicators that form the composite index of the information and knowledge economy is proposed. The structure of the composite index system is proposed in a multi-level form. A system of multi-level composite indicators integratively reflects the main level and the lower levels coming after it. Indicators’ system includes the main composite index and ten sub-indices of information and knowledge economy. The study presents the stages of successive formation of indicators and variables upon which main indices and sub-indices of information and knowledge economy functionally depend. 1st national level consists of a composite integrative index of the information and knowledge economy; initially 2nd level consists of ten indices, 3rd level consists of 83 sub-indices and indicators; 4th level consists of 320 macro/micro indicators. Directions of future research are identified based on indicators.

Development System of Hierarchical Indicators for Analyzing and Measuring the Level of Growth of Information and Knowledge Economy