Policy brief: Promoting human capital and innovation
Analysed human capital at a macro level showing a positive relationship between human capital and innovation
Abstract
In policy making, business practice and academic research, there has been much interest in the factors promoting innovation, particularly research and development (R&D), technology acquisition and the external institutional context. Only a few studies have focused on the role of internal human capital, or the skills, abilities and knowledge of the employees, as an important source for innovation within firms. These studies analysed human capital at a macro level, showing a positive relationship between human capital and innovation. However, they offer little insight into the relationship between human capital and innovation at the firm level, particularly in Low Income Countries (LICs). This is especially important because most innovation within manufacturing SMEs in LICs occursincrementally via learning by doing, for which human capital at the firm level is critical.
Citation
Tilburg University (2015) Policy brief: Promoting human capital and innovation
Links