More the country’s average IQ, more is the GDP!


Intelligence quotient (IQ) involves a series of tests to predict a person’s intelligence. The tests include a mix of observations, analytical, quantitative and qualitative questions which judge his / her ability to react to situations. And the higher the IQ of a person, the more he / she is regarded as having done something great or being a part of an esteemed society of people. But since intelligence is something which doesn’t have one particular definition, many people are of the view that it comes only by solving real problems in the world out there. Don’t know how many people are listening to that though.

To prove the importance of IQ for a nation’s economy and productivity, Chemnitz University of Technology recently conducted a study of more than 90 countries and tried to find the link between intelligence and the growth of the economy. The contribution to science in these countries in terms of research, number of patents, universities etc. was found out too as one of the ways to judge intelligence.


Some interesting results were thrown up. It has been found that the country’s IQ is directly related to its economic productivity and development. For each point increase in the IQ, the per capita GDP of the nation increases by US $229.

The increase is even higher when it came to smartest people of the country. If even 5% of them get more smarter, the per capita GDP increases by US $468. Interestingly, the question here is on what defines smartness. Is it the number of patents a scientist gets? Is it the number of scientists in a country? Is it the number of research papers presented? Is it the number of entrepreneurs in a country?

This is a debatable topic for a lot of people. But the results show the increasing importance being given today to human capital and cognitive ability by economists all across the spectrum. Today though government which doesn’t interfere in the functioning of a country is important, what is more important is an innovative, clear thinking and strong headed workforce; A workforce which can lead the nation to greatness with its productivity and hard work.

So how much are you adding to your country’s GDP using your IQ ? :)

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  1. Mihir Naik says

    nice article… thanks for it..

  2. Arpan Kar @ Business Fundas says

    well said..
    but sadly, despite all the human capital we have in India, knowledge creation both in terms of quality and quantity is yet to reach even half its potential..

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