THE SYSTEM OF HUMAN CAPITAL DEVELOPMENT IN THE KNOWLEDGE ECONOMY - Научное сообщество
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THE SYSTEM OF HUMAN CAPITAL DEVELOPMENT IN THE KNOWLEDGE ECONOMY

20.09.2016 16:14

[Секция 1. Экономика, организация и управление предприятиями, отраслями, комплексами]

Автор: Zhuk Pavlo, PhD, International University of Business and Law


The experience of economically developed countries shows that the level of people's prosperity, the degree of county’s socio-economic development are defined by intellectual wealth of the population.

The new paradigm sets at the center of analysis of the socio-economic processes the ability of the economy to effectively adjust, as well as its transition to an innovative way of development, which directly depends on the person. Human capital theory has been developed in "An Inquiry into the Nature and Causes of the Wealth of Nations" Adam Smith [1]. He regarded the productive qualities of the worker as the main engine of economic progress. Economists as J. McCulloch, J. B. Say, G. Mill, N. Senior, believed that the man which gained the ability to work should be regarded as capital in its "human" form. A. Marshall in "Principles of Economics" (1890) noted that "the motivations of human to collect personal capital in the form of investments in education, similar to those that drive to accumulate physical capital" [2].

The current socio-economic development of the country depends on the functioning of the system of training high-quality human capital, namely its elements such as education, knowledge, science, health, culture, social and economic infrastructure. The development of tangible, intellectual and spiritual capacities of man, accumulation of human capital becomes an important task of the State’s social and economic policy. The priorities of such state policy are to invest in human capital development.

The system of qualified human capital formation in modern society takes many shapes and forms, and must operate effectively at different stages of people’s life. It is important to understand that in terms of economic cooperation, the person should be considered not only as a manufacturing power of society (labor resources of the country), but also as a consumer of goods and services (forms the consumption potential of the economy). At the core of knowledge economy lies a person's ability to innovate and perceive innovation product. Human capital formation is affected by the following groups of factors, namely, socio-demographic, socio-economic, institutional, environmental, industrial and technological, etc. The institutional environment is vitally important for the knowledge economy. Its effectiveness depends on the innovative socially oriented type of development, which in the long term is formed on the basis of human capital development, and first of all: education, health, human life support systems.

In the new transition phase from industrial to post-industrial economic system, and then to a knowledge economy, the actual problem is the shortage of qualified personnel that are capable to carry out such an accelerated pace of transformation. In this regard, there is a need of formation, development and effective use of the highly qualified human capital in the long term. But the transformation period also needs specialists capable of initiating such changes in all spheres of the economy and at different levels. In these conditions, the system of specialist training should be based on new developments in scientific and technical, technological and information and communication fields of the economy, with the use of new educational technologies and progressive forms of dissemination of knowledge. Equal and free access to the accumulated knowledge of mankind should be granted to all willing to obtain a new education or improve their educational and professional level.

Modern national system of human capital formation should be supplemented with the subsystem lifelong learning (continuing education) and based on up-to-date on-line and distant learning technologies. The use of such technology training and professional development will enable the employee to acquire new knowledge, competence, skills, which, in its turn, will provide one with new job opportunities. The ideology and training quality of human capital should be changed. People in the knowledge economy are not just a "Nomo economicus", which refers to a set of economic functions and roles that determine the rational human behavior in the industrial economy of the market type, but a multi-faceted personality as a decisive factor in the relations of production, consuming goods, and the main source of information society. In today's complex environment and diverse human needs, as on the initial stage of post-industrial development, human capital gradually transforms into a set of creative informational abilities and needs in the form of human resources.

Conclusion 

Intellectualization of economic environment, new scientific knowledge, innovative business, information, the degree of mastery of information resources becomes the basis for the functioning of the knowledge economy. [3] Therefore, it is necessary to create conditions for the organization of lifelong education to adapt to changes of the information environment. Society should be focused on the use of the most diverse and flexible forms of training and retraining. The availability and access of the population to modern communication tools allows a person freely to use a significant portion of accumulated scientific knowledge in the world. This allows to prepare a new type of professionals, knowledge workers in the field of high-tech industry.

The most important features of innovative type of human capital due to the fact that under this type of innovation is the ultimate goal and the mean of developing human labor. The economic growth is focused on the formation of a highly creative, initiative and innovative employee integrated into an innovative mechanism of social development.




References:

1. Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations. London: Methuen and Co., Ltd., ed. Edwin Cannan, 1904. Fifth edition 

2. Marshall, Alfred. 1920 [1890]. Principles of economics. London: Macmillan. 

3. Human capital in a global and knowledge-based economy. Final report: Access: http://europa.eu.int/comm/employment_social/news/2002/jul/report_final.pdf.



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