INVESTMENT IN HUMAN CAPITAL IN THE CONDITIONS OF INNOVATIVE ECONOMIC DEVELOPMENT

Abstract

Paradoxically, economic slowdown has been one of the major current trends alongside with intensive technology development. Changes in nature of production require employees to acquire qualitatively different skills that were not were not previously needed. In particular, one of them is being able to provide diffusion of innovations. Consequently, investment in human capital is gaining a new meaning, the quality of which contributes to long-term economic growth in modern socioeconomic reality. Investing is being implemented on different levels, starting from an individual and all the way to a company or a government. Every entity plays their own special role in the process of achieving the common goal of improving the quality of human capital. Investing in entities from different levels requires different tools, mechanisms and involves different kinds of risks for investors. Benefits gained from human capital don’t only belong to investors but also take the form of positive externalities.