anadolu Üniversitesi anadolu university sosyal bilimler...
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AbstractNowadays, innovations are perceived as one of the most important driving forces of socio-economic con-dition. Innovative capacity is, in turn, determined by various factors, among them there is human capital which continually improves its quality.
Investments in human capital in the near future may result in a variety of achievements. Appropriately ar-med employees frequently become authors of various valuable and important discoveries and studies which reinforce company’s position on the market, but also - properly used - influence economic condition.
That is why, we should try to develop knowledge and skills in order to create economies where innovations are one of the most important drivers of economic mec-hanism. Therefore, so as to obtain higher level of in-novation, developing actions should be taken to utilize skills and expertise of its citizens.
The aim of this article is to highlight the essence of in-vesting in the quality of human capital, thereby imp-roving innovative capacity of the national economy, which strengthens its international competitiveness. Studies presented on the example of the most innovati-ve and competitive countries in the world.
Keywords: Human Capital, İnnovativeness, Competitiveness, Economic Development
ÖzGünümüzde, yenilikler sosyo-ekonomik durumun en önemli itici güçlerinden biri olarak algılanmaktadır. Yenilikçi kapasite, sırasıyla, çeşitli faktörler tarafından belirlenir, bunlar arasında sürekli olarak kalitesini ar-tıran beşeri sermaye de bulunmaktadır.
Yakın gelecekte, beşeri sermayedeki yenilikler çok çeşitli başarılara neden olabilecektir. Kalifiyeli çalışanlar, sık sık şirketin pazardaki değerini yükselten ve -doğru kul-lanıldığında- ekonomik koşulları etkileyen çeşitli de-ğerlerin ve önemli gelişmeler ve çalışmaların yaratıcısı olmaktadırlar.
Bu yüzden bilgiyi ve becerileri, yeniliklerin ekonomik mekanizmaların en önemli ayaklarından birisini oluş-turduğu ekonomileri yaratmak için geliştirmeye çalış-malıyız. Bu nedenle, daha gelişmiş düzeyde yenilik elde etmek için eylemlerin gelişmesi, vatandaşların tecrübe ve becerilerinin kullanılması açısından gereklidir.
Bu makalenin amacı beşeri sermayenin kalitesindeki yatırımın özüne genel bir inceleme yapmak ve böylece uluslararası rekabette ülke ekonomisini güçlendiren ye-nilikçi kapasiteyi artırmaktır. Çalışmalar dünyadaki en yenilikçi ve rekabetçi ülke örneklerini göstermektedir.
Anahtar Kelimeler: Beşeri Sermaye, Yenilikçilik, Rekabetçilik, Ekonomik Gelişme
Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in
the World. Rank of Turkish Economy on the International Arena.
Dünyadaki En Yenilikçi ve Rekabetçi Ekonomiler Örneğinde Yenilikçiliğin ve Rekabetçiliğin Belirleyicisi Olarak Beşeri Sermayenin Kalitesi.
Uluslararası Arenada Türk Ekonomisinin Yeri.
Asst. Prof. Dr. Özgür Oğuz - Asst. Prof. Dr. Joanna Prystrom
Asst. Prof. Dr. Özgür Oğuz, Anadolu University Faculty of Law, [email protected] Asst. Prof. Dr. Joanna Prystrom, University of Bialystok Faculty of Economics and Management, [email protected]
Anadolu UniversityJournal of Social Sciences
Anadolu ÜniversitesiSosyal Bilimler Dergisi
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Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in the World. Rank of Turkish Economy on the International Arena.
IntroductionInnovative knowledge and ability are indispensably linked with the issue of human capital which is con-sidered as one of the most significant factors condi-tioning innovativeness. Human capital may be cons-trued as knowledge and abilities acquired by people through education system and trainings.1
Furthermore, human capital may be defined as knowledge resources, abilities, health, power and vital energy incorporated in human being. These re-sources constitute genetically conditioned potential which may be increased through the investment in human being.2
The role of human capital in economic development is frequently raised in various discussions and literature. The assertion that human capital constitutes signifi-cant factor of economic development resulted from the tendency to provide free and public education – practically in every developing country. This profound belief that education is a crucial factor of economic de-velopment gives a support for the assertion mentioned above. However, important seems to be the fact that even well-functioning economies do not always meet the requirements of adequate investment in education and training without government support.3
More precisely, human capital may be defined as ac-celerating force of well-functioning labour market and at the same time, determinant of economic con-dition of a particular country.4
Therefore, we shall aim at development of knowledge and abilities in order to create economies where in-novations constitute driving force of economic mec-hanism. What is more, aiming at increase of innova-tions, it would be advisable to take actions developing and using abilities and knowledge of own citizens .5
1 Shultz T. W., Investment in Human Capital, [in:] American Economic Review, no 1/1961, p. 2.
2 Romański S. R., Kapitał ludzki i wzrost gospodarczy, PWN, Warszawa 1993, p. 35.
3 Pissarides Ch. A., Human capital and growth: a synthesis re-port, Research programme on: Human Resource Development and Poverty Reduction, OECD 2000, p. 8.
4 Denison E. F., The sources of Economic Growth in the United States and the Alternatives Before Us, American Economic Re-view, vol. 52, no. 4, New York 1962, pp. 762 – 782.
5 Ederer P., Innovation at Work: The European Human Capital Index, Lisbon Council Policy Brief, Deutschland Denken! eVZeppelin University gGmbH, Friedrichshafen 2006, p. 2, http://www.lisboncouncil.net/media/lisbon_council_euro-pean_human_capital_index.pdf, 04.04.2015
The aim of the article is the emphasis of the issue of investing in quality of human capital and at the same time increasing innovative ability of national eco-nomy which reinforces its competitiveness on the in-ternational arena. The elaboration has been prepared on the example of most innovative and competitive countries in the world.
The Significance of Human Capital in Creating Innovativeness and Competiti-veness of National Economy Global competitiveness forces on economies and functioning within economic subjects being inno-vative. Innovativeness of enterprises and simultane-ously complete economies is conditioned by constant rise of qualifications, competences and creativity by employees. That is why, it seems legitimate that the most important resources deciding on the develop-ment of economy is knowledge.6
Innovative knowledge and abilities are closely linked with the issue of human capital which is considered as one of the most important factors conditioning innovativeness. Human capital shall be construed as knowledge and abilities acquired by people through education system and trainings .7
Human capital means economic resources of know-ledge, abilities, health and vital energy incorporated in human being and society as a whole, defining abi-lity to work, adapt to changes in the environment and creation of new solutions.8
The notion of human capital also defines knowledge and abilities of particular people acquired through the system of education and professional trainings.9
Therefore, human capital means knowledge resources and abilities in human being which constitute gene-tically conditioned potential that may dramatically increase through the investment in human.10
6 Kuźniar K., Znaczenie kapitału ludzkiego dla realizacji kon-cepcji gospodarki opartej na wiedzy w Polsce, [in:] Poteralski P., Przemiany rynku pracy w kontekście procesów społecznych i gospodarczych, Published by: Faculty of Economics and Man-agement, University of Szczecin, Szczecin 2007, pp. 236 – 237.
7 Shultz T. W., Investment in Human Capital, [in:] American Eco-nomic Review, no 1/1961, p. 2.
8 Oleksiuk A., Inwestowanie w kapitał ludzki w Polsce, ECO-NOMICUS, Szczecin 2009, p. 9.
9 Welfe W., Sabanty L., Florczak W., Szacunek kapitału ludzkiego, [in:] Wiadomości Statystyczne 2001, no 5, p. 16.
10 Romański, Kapitał ..., op. cit., p. 35.
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health care quality of education system apprenticeships
professional trainings at work focus on migration aspect
INVESTMENTS IN HUMAN CAPITAL
continuing education expenditure on scientific researches expenditure on acquired professional
information
postgraduate studies professional trainings
Figure 1. Investments in Human Capital – Chosen ExamplesSource: own elaboration
investments in human capital
higher quality of human capital
increased efficiency and better work results (including valuable ideas, innovations, elaborations)
innovativeness and flexibility towards challenges of modern economy, that is inter alia:
new goods and services modern/cheaper production methods modern production factors
lower prices of goods and services on the market
lower degradation of natural environment increase of demand for offered goods and services
development of innovative economic subject
creation of new work places observing success of one subject, other entities are willing to undertake innovative activity
more innovative subjects greater number of new work places
decrease of unemployment increase of consumption ability of the society
acceleration of economic downturn inflow of investors
improvement of socio-economic situation in the region Figure 2 Investments in human capital, innovativeness and socio-economic development Source: Own elaboration. Figure 2. Investments in Human Capital, Innovativeness and Socio-Economic Development
Source: Own elaboration.
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Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in the World. Rank of Turkish Economy on the International Arena.
That is why, significantly important seems to be the investment and continual development of human ca-pital which is considered to be a determinant of inno-vative ability and therefore driving force of economic development and competitive edge.11
Continually proceeding globalization processes and developing competition effect in the necessity to invest in human capital. Investments in human can be defi-ned as a set of activities which influence future pecuni-ary and physical income aiming at increase of human resources.12 (see figure 1)
Moreover, investment in human capital may result in various achievements. Competently equipped emp-loyees are frequently authors of many valuable and significant discoveries and elaborations which can sustain position of a company on a particular market and what is more important, properly used may affect economic condition. (figure 2)
Condition of Human Capital and Innovativeness of Most Competitive Economies in the World An interesting indicator which presents situation of human capital is Human Capital Index (HCI)13, port-raying influence of human capital management on the market value of the enterprise. European Human
11 Stenberg L., Gustafsson E., Marklund G., Use of human re-source data for analysis of the structure and dynamics of the Swedish innovation system, Research evaluation, vol. 6, No. 2, August 1996, pp. 121 - 132.
12 Domański S., Kapitał ludzki i wzrost gospodarczy, PWN, War-szawa 1993, p. 56.
13 HCI (Human Capital Index).
Capital Index (HCI)14 covers ranking of countries presented in terms of ability to develop own human capital and sustaining it on the adequate level.15
European Human Capital Index measures stock of human capital, its relocation, use and level of deve-lopment in the European countries, classifying them in terms of developing ability of native capital and meeting the requirements of globalization.16
Table 1includes ranking of European Human Capital Index, considering 13 best developed countries. In the top ten of the ranking, beside Sweden such co-untries as Denmark, Great Britain, Netherlands and Germany were placed. Economies of those countries together with Swedish economy are considered to be most competitive in the world. 17
Unfortunately, the ranking of European Human Ca-pital Index was created in 2006, therefore, it signifi-cantly diverges from the current state. However, it can be treated as an introduction to the discussion con-cerning the European human capital condition sin-ce in the further part of the article the most current embrace has been presented – results of the World Economic Forum portraying economic competitive-ness and more precise state of domestic human reso-urces capital among 30 most competitive countries in the world.
14 EHCI (European Human Capital Index).15 Ederer P., Schuler P., Willms S., The European Human Capital
Index: The Challenge of Central and Eastern Europe, Lisbon Council Policy Brief, Brussels 2007, p. 3, http://www.ibm.com/ibm/governmentalprograms/lisbon_council_european_hu-man_capital_index_cee.pdf, 22.11.2008
16 Ederer P., Innovation at …, op. cit., p. 2.17 The Global Competitiveness Report 2007 – 2008, World Eco-
nomic Forum, Geneva 2007, http://www.gcr.weforum.org/, 15.07.2008
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The first place in the ranking shows that Sweden aims at developing of human capital and sustaining above mentioned capital on the consistent level. It concerns education of the society from the early years and in-tensive professional trainings.18
The ability of the society to develop, master and use innovations to generate economic growth and well-being, to a huge extent depends on society’s natural abilities and usage of human capital. An adequate example presenting this interdependence is eBay19. It requires not only scientists and engineers to create the platform but also widely spread trade knowledge and entrepreneurial spirit from millions of entrepreneurs using this platform. Moreover – in order to clinch a deal – it requires hundred millions of consumers able to use the platform. eBay phenomenon proves that human capital means more than education and pro-fessional skills acquired at schools and universities. It also covers cultural abilities and social norms ac-quired by a child at home, informal education gained
18 Ederer P., Innovation at Work: The European Human Capi-tal Index, Lisbon Council Policy Brief, Deutschland Denken! eVZeppelin University gGmbH, Friedrichshafen 2006, p. 3, http://www.lisboncouncil.net/media/lisbon_council_europe-an_human_capital_index.pdf, 04.04.2015
19 eBay is a global market online authorizing for trade on a local, national and international scale. Varied and dynamic society composed of companies and particular participants of the eBay offers online platform where millions of goods are selled every day.
voluntarily during whole life and continuous learning present in the changes in the work environment.20
Analysing Table 2 it can be noticed that quality of human capital and factors increasing its innovative ability are diversely created in the range of world grid system. Once, a group of countries of high compe-titiveness constitute the European Union Member States and sometimes the economies out of the mem-bership.
Generally, it can be stated that the group of countries of the highest competitiveness in terms of factors cre-ating level of human capital are Finland, Switzerland, Singapore, Denmark, Netherlands, USA, Norway or Japan.
Worth notice seems to be the fact that economies which were usually placed on the lowest positions and definitely further than the leaders, were surpri-singly placed on the first positions (Peurt Rico, Italy, Georgia).
20 Ederer P., Dlaczego innowacje wymagają inwestycji w kapitał ludzki?, [in:] Innowacje w Europie, Komisja Europejska - DYREKCJA GENERALNA DS. PRZEDSIĘBIORSTW I PRZEMYSŁU, p. 27, ftp://ftp.cordis.lu/pub/itt/docs/ei07_1_pl.pdf, 14.10.2008
Table 1. European Index of Human Capital in 2006Place in the ranking Country
1 Sweden2 Denmark3 United Kingdom4 Netherlands5 Austria6 Finland7 Ireland8 France9 Belgium
10 Germany11 Portugal
12 Spain
13 Italy
Source: Ederer P., Innovation at Work: The European Human Capital Index, Lisbon Council Policy Brief, Deutschland Denken! eVZeppelin University gGmbH, Friedrichshafen 2006, p. 3, http://www.lisboncouncil.net/media/lisbon_council_european_human_capital_index.pdf, 04.04.2015
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land
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ed K
ingdom
22
Tai
wan
, C
hin
a C
anad
a U
nit
ed A
rab
Em
irat
es
Un
ited
Ara
b E
mir
ates
Ir
elan
d
Irel
and
23
Hu
ng
ary
N
ew Z
eala
nd
Ch
ina
Po
rtu
gal
A
ust
ria
Bel
giu
m
24
Au
stri
a U
nit
ed A
rab
Em
irat
es
Ind
on
esia
A
ust
ria
Au
stra
lia
Jord
an
25
Est
on
ia
Ko
rea,
Rep
. E
l S
alv
ado
r Ic
elan
d
Qat
ar
Pan
ama
26
Lu
xem
bo
urg
P
ort
ug
al
Ho
ng
Ko
ng
SA
R
Ko
rea,
Rep
. Q
atar
Bah
rain
P
ort
ugal
27
Ko
rea,
Rep
. S
pai
n
Can
ada
Lit
hu
ania
E
sto
nia
B
ahra
in
28
Lit
hu
ania
L
ith
uan
ia
Ken
ya
Ho
ng
Ko
ng
SA
R
Den
mar
k
Mal
ta
29
Icel
and
Est
on
ia
New
Zea
lan
d
Fra
nce
B
arb
ados
Fra
nce
30
Un
ited
Ara
b E
mir
ates
T
aiw
an, C
hin
a In
dia
In
do
nes
ia
Ko
rea,
Rep
. M
alay
sia
Tabl
e 2. C
ontin
ued
38
Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in the World. Rank of Turkish Economy on the International Arena.
Ran
k/
Cou
ntr
y
Av
ail
ab
ilit
y o
f sc
ien
tist
s
an
d e
ng
inee
rs
Sci
enti
fic
an
d t
ech
nic
al
jou
rna
l a
rtic
les
(per
1
00
0 p
eop
le)
Sta
te o
f cl
ust
er
dev
elo
pm
ent
Do
ing
bu
sin
ess
ind
ex
Inte
llec
tual
pro
per
ty
pro
tect
ion
an
d p
rop
erty
ri
gh
ts
1
Fin
lan
d
Sw
itze
rlan
d
Ital
y
Sin
gap
ore
F
inla
nd
2
Qat
ar
Sw
eden
U
nit
ed A
rab
Em
irat
es
New
Zea
lan
d
Sin
gap
ore
3
Jap
an
Den
mar
k
Ger
man
y
US
A
Sw
itze
rlan
d
4
Gre
ece
Fin
lan
d
Sw
itze
rlan
d
Den
mar
k
Un
ited
Kin
gdom
5
US
A
No
rway
U
SA
N
orw
ay
New
Zea
land
6
Pu
erto
Ric
o
Net
her
lan
ds
Jap
an
Un
ited
Kin
gd
om
L
ux
embourg
7
Un
ited
Ara
b E
mir
ates
Is
rael
S
ing
apo
re
Ko
rea,
Rep
. Q
atar
8
Po
rtu
gal
A
ust
rali
a N
eth
erla
nd
s G
eorg
ia
Net
her
lands
9
Mal
aysi
a C
anad
a Q
atar
A
ust
rali
a C
anad
a
10
Isra
el
Sin
gap
ore
F
inla
nd
F
inla
nd
Ja
pan
11
Sp
ain
Ic
elan
d
Un
ited
Kin
gd
om
M
alay
sia
No
rway
12
Can
ada
Un
ited
Kin
gd
om
M
alay
sia
Sw
eden
G
erm
any
13
Jord
an
New
Zea
lan
d
No
rway
Ic
elan
d
Sw
eden
14
Tai
wan
, C
hin
a U
SA
In
dia
Ir
elan
d
Au
stri
a
15
Irel
and
B
elg
ium
A
ust
ria
Can
ada
Fra
nce
16
Sin
gap
ore
Ir
elan
d
Can
ada
Th
aila
nd
Irel
and
17
Cy
pru
s S
lov
enia
S
wed
en
Mau
riti
us
So
uth
Afr
ica
18
Ger
man
y
Au
stri
a B
elg
ium
G
erm
any
O
man
19
Sw
eden
G
erm
any
Ir
elan
d
Est
on
ia
Un
ited
Ara
b E
mir
ates
20
Sri
Lan
ka
Fra
nce
L
ux
emb
ou
rg
Sau
di
Ara
bia
B
elg
ium
21
Fra
nce
S
pai
n
Sau
di
Ara
bia
M
aced
on
ia, F
YR
A
ust
rali
a
22
Un
ited
Kin
gd
om
K
ore
a, R
ep.
Ch
ina
Jap
an
Den
mar
k
23
Ital
y
Ital
y
Bra
zil
Lat
via
M
alta
24
Sw
itze
rlan
d
Gre
ece
Jord
an
Un
ited
Ara
b E
mir
ates
U
SA
25
Co
sta
Ric
a Ja
pan
K
ore
a, R
ep.
Lit
hu
ania
S
aud
i A
rabia
26
Tu
nis
ia
Po
rtu
gal
In
do
nes
ia
Sw
itze
rlan
d
Bah
rain
27
Au
stra
lia
Est
on
ia
Tu
rkey
A
ust
ria
Mal
aysi
a
28
Leb
ano
n
Cze
ch R
epu
bli
c F
ran
ce
Po
rtu
gal
Ic
elan
d
29
Ch
ile
Lu
xem
bo
urg
B
ahra
in
Net
her
lan
ds
Est
on
ia
30
Net
her
lan
ds
Cro
atia
T
hai
lan
d
Arm
enia
Jo
rdan
Tabl
e 2. C
ontin
ued
Sour
ce: o
wn
elab
orat
ion
on th
e ba
sis o
f: Sc
hwab
K.,
The
Glo
bal C
ompe
titiv
enes
s Rep
ort 2
014–
2015
, Wor
ld E
cono
mic
For
um, G
enev
a 20
14, h
ttp://
ww
w3.
wef
orum
.org
/doc
s/W
EF_
Glo
balC
ompe
titiv
enes
sRep
ort_
2014
-15.
pdf,
19.1
1.20
14; Th
e H
uman
Cap
ital R
epor
t, W
orld
Eco
nom
ic F
orum
, Col
ogny
/Gen
eva
2013
, pp.
50-
521.
39sbd.anadolu.edu.tr
Cilt/Vol.: 15 - Sayı/No: 4 (31-42) Anadolu Üniversitesi Sosyal Bilimler Dergisi
Bearing in mind the Figure 2 which presents influen-ce of investments on the innovative ability and in the effect socio-economic condition, the attention shall be paid to the creation of domestic competitiveness in terms of innovativeness and factors supporting thirty most competitive economies in 2014 (Table 3).
It shall be noticed that the leaders of innovativeness and economic competitiveness are also those charac-terized by high competitiveness due to innovation determinants.
Condition of Human Capital, Innovati-veness and Competitiveness of Turkish Economy Analysing state of human capital, innovativeness and competitiveness of individual economies with par-ticular attention paid to factors conditioning them. The notice shall be paid to the condition of Turkish economy.
Table 4 shows that Turkey, according to the current competitiveness report prepared by the World Eco-
Country Innovativeness and sophisticated
factors
Global Competitiveness Index
(GCI)Switzerland 1 1Singapore 11 2
Country Innovativeness and sophisticated
factors
Global Competitiveness Index
(GCI)USA 5 3Finland 3 4Germany 4 5Japan 2 6Hong Kong SAR 23 7United Kingdom 6 8Sweden 8 9Norway 7 11United Arab Emirates 16 12Denmark 21 13Taiwan, China 9 14Canada 13 15Qatar 24 16New Zealand 15 17Belgium 25 18Luxembourgh 12 19Malaysia 18 20Austria 17 21Australia 14 22France 26 23Saudi Arabia 19 24Ireland 32 25Korea Rep. 20 26Israel 22 27China 10 28Estonia 33 29Iceland 34 30
Table 3. Innovativeness and Competitiveness of Most Competitive Countries in the World in 2014
Table 3. Innovativeness and Competitiveness of Most Competitive Countries in the World in 2014-c.d.
40
Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in the World. Rank of Turkish Economy on the International Arena.
nomic Forum was placed in the first 60 of the most competitive countries from the world, in the aggrega-te 120 countries were considered.
More precise embrace is presented in Table 5 which presents factors such as education, health and well-ness, workforce and employment, quality of educa-tion system, education attainment, life expectancy, stress and depression problems, healthcare quality
and accessibility, talent and skills of employers, staff training and training services or social mobility.
In overall analysis it may be noticed that Turkish eco-nomy is placed on a slightly worse position than the first 30. Only primary education enrolment rate pla-ces Turkey in the group of leaders, that is on the 29th place.
Country Innovativeness and sophisticated
factors
Global Competitiveness Index
(GCI)
Turkey 45 51
Table 4. Innovativeness and Competitiveness of Turkey Among 122 Countries in the World, in 2014
Source: own elaboration on the basis of: Schwab K., The Global Competitiveness Report 2014–2015, World Economic Forum, Geneva 2014, pp. 13-14, http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf, 03.04.2015.
Factor Overall index Education Health and
wellness
Workforce and
employment
Rank 60 77 51 83
Factor
Primary education
enrolment rate (%)
Secondary enrolment rate
(%)
Tertiary enrolment rate
(%)
Education gender
gap
Rank 29 55 41 98
Factor Quality of
education system
Primary
education attainment (%
population age 25+)
Secondary
education attainment (%
population age 25+)
Tertiary education attainment
Rank 78 41 71 67
Factor Life expectancy Stress (% of
respondents)
Depression (% of
respondents) Healthcare quality
Rank 42 103 75 55
Factor Healthcare accessibility
Country capacity to attract talent
Country capacity to retain talent
Easy of finding skilled employees
Rank 48 72 68 86
Factor Pay related to
productivity Staff training Training services Social mobility
Rank 55 56 65 56
Table 5. Turkey in Human Capital Report, Competitiveness in Terms of Factors Presenting/Conditioning Condition of Human Capital (Among 122 Economies in the World)
41sbd.anadolu.edu.tr
Cilt/Vol.: 15 - Sayı/No: 4 (31-42) Anadolu Üniversitesi Sosyal Bilimler Dergisi
If it comes to competitiveness of domestic economy in the light of factors conditioning competitiveness of domestic economy, Turkey fares extremely well in terms of state of cluster development, firm level tech-nology absorption or scientific and technical journal articles (per 1000 people), which locates the country in the first 40 of the ranking.
Unfortunately, Turkish economy fares itself relatively bad in terms of quality of the education system, Com-pany spending on R&D and Extent of staff training, which significantly reflects quality of domestic hu-man capital.
ConclusionsWilling to meet the expectations of accelerating glo-balization processes, socio-economic changes, eco-nomies and functioning within economic entities shall be flexible and ready for the continuous adjust-ments to the current situation. Innovativeness, condi-tioned by various factors, among which investments in human capital constitute a key issue, may be signi-ficantly helpful.
Through investments and at the same time increase of human capital can be construed as activities such as
education system, professional trainings and the ran-ge of those trainings, competent health care as well as ability to find and use talented sources of the capital.
It shall be noticed that the countries placed relatively high in the competitiveness ranking in terms of vari-ous factors conditioning quality of human capital, are also placed in the group of most innovative and com-petitive countries in the world. Successful, seems to be the information that Turkey among 120 countries from all over the world, takes place in the first 50, in consideration of factors such as primary and tertiary education enrolment rate, life expectancy, healthcare accessibility, higher education and training, or state of cluster development, firm level technology absorp-tion or scientific and technical journal articles (per 1000 people).
Employees equipped in adequate abilities and quali-fications as well as being of a good health and vital energy are frequently authors of many valuable and innovative ideas and solutions which finally may be reflected in innovativeness and competitive position on the market. The more of such behaviours are ob-served, the highest innovative and competitive ability of a whole economy is. Therefore, investing and loo-king after domestic human capital shall be treated as
Factor
Competitiveness of the economy in terms of selected factors
Innovation and
sophistication factors
Institution
surrounding
Higher education and
training
Quality of the
education system
Rank 51 64 50 89
Factor Quality of scientific research institutions
Technological readiness
Company spending on R&D
University-industry collaboration in R&D
Rank 64 55 89 61
Factor
Availability of
scientists and engineers
Scientific and
technical journal articles (per 1000
people)
State of cluster
development
Doing business index
Rank 59 36 27 58
Factor Extent of staff training
Firm level technology
absorption
Availability of research and training
services/ latest technologies
Intellectual property protection and
property rights
Rank 91 34 57/45 50
Table 6. Competiveness of Turkish Economy in Terms of Factors Conditioning Innovativeness of National Economy
Source: Own elaboration on the basis: Schwab K., The Global Competitiveness Report 2014–2015, World Economic Forum, Geneva 2014, http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf, 02.04.2015 r. and The Human Capital Report, World Economic Forum, Cologny/Geneva 2013, pp. 500-501.
42
Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in the World. Rank of Turkish Economy on the International Arena.
a priority by all countries, including those most inno-vative and competitive in the world, willing to sustain own position on the international arena, and willing to reinforce won innovativeness and competitiveness and socio-economic growth.
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