# What Are the Binding Constraints for a Knowledge-Based Economy in Qatar?
## 3 Methodology  
[PERSON] [46] theorized four levels of social analysis within the NIE paradigm: level 1 is embeddedness (informal institutions, culture, religion, tradition, and norms), level 2 is the formal institutional environment (formal \"rules of the game\", polity, judiciary, and bureaucracy), level 3 is governance (\"play of the game\", primarily contract enforcement and aligning governance structure with transactions), and level 4 is resource allocation and employment. The hierarchy of the levels is such that the preceding level acts as a binding constraint on the following level. The NIE theory provides a theoretical framework that was applied to conceptualize this study. The research utilized descriptive data to answer the research question regarding binding constraints in achieving a KBE in Qatar. The methodology of this study comprised 3 stages. Stage one considered the concept of a KBE and data from the GEM Global Report on KBE in comparable countries. This enhanced the understanding of the level of KBE development across these countries, identified possible drivers therein, and compared them with Qatar. In stage two, the drivers of a KBE in Qatar were considered through the lens of NIE (culture, institution, governance, and market). Various proxies for each construct were used to observe their evolution over time. Stage three examined the perceived challenges faced by various stakeholders within Qatar's KBE ecosystem, which were conceptualized as binding constraints according to NIE theory. The diagnostics phase was designed to reflect the culture, institution, governance, and market elements. Entrepreneurs (both incubators and incubatees) were addressed for firsthand information on the difficulties encountered during entrepreneurship endeavors in Qatar. Because entrepreneurship is a knowledge-driven venture, any constraints faced by actors within the entrepreneurship ecosystem will affect the transition to a KBE (see Figure 1).  
In summary, this study applied both descriptive and qualitative approaches within the NIE paradigm to achieve the research objectives.  
To better understand the problems and constraints in transitioning to a KBE and achieving economic targets, the diagnostic tree presented in Figure 2 will be utilized to help policymakers mitigate these limitations and advance toward real economic development using the NIE approach.  
Figure 1: Research framework.  
Figure 2: Diagnostic decision tree for KBE in Qatar, which is based on NIE theory [46].  
The diagnostic decision tree was constructed beyond the neoclassical perspective on economics and more toward the NIE framework developed by [PERSON] over 25 years of research [46]. NIE aims to expand the study of economics by focusing on the social and legal norms and rules (i.e., institutions) that underlie economic activities. In other words, instead of concentrating on the effect of the invisible hand, NIE observes the visible hand's impact on the market [47]. NIE analyzes this phenomenon at four levels: institutions, organizations, markets/transactions, and culture. Hence, each element of the diagnostic decision tree is clearly defined throughout this paper.  
The first stage of this research relied on data from the GEM Global Report 2020/2021, specifically Qatar's score compared with neighboring countries and leading countries. These scores were then analyzed in the Qatari context. Thirteen countries were selected based on the latest available data and represented all income classes (low, middle, and high income), as well as nearly all geographical regions. The selected countries were Brazil, Egypt, Germany, India, Luxembourg, Norway, Qatar, Saudi Arabia, South Korea, Turkey, UAE, the UK, and the USA.