capital has been identified as an important driver of economic performance.1 If
firms do not have access to sufficiently skilled workers, they may be unable to
implement new investments or organisational innovations. Skills gaps may cause a
lack of, or delay to, product or process innovation because workers may not have
sufficient skills to cope with producing new or better quality products or
improved ways of making an existing product. This will constrain their ability
to reap potential productivity gains.
- in the knowledge driven economy, knowledge and skills increasingly become key
determinants of both economic prosperity and social cohesion.
For the second edition, the indicators on human capital have been
expanded to include higher level skills, lifelong learning and management
Last updated on 22 October 2002