Human 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.
 

·         Human capital - 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 skills.

Last updated on 22 October 2002