THE IMPACT OF HUMAN CAPITAL ON THE GLOBAL INDEX OF INNOVATION

Natela Tsiklashvili

E-mail: natia.tsiklashvili@bsu.edu.ge

Professor, Doctor of Economics, Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0000-0003-0638-7376

Nato Jabnidze 

E-mail: jabnidze.nato@bsu.edu.ge

Associate Professor, Doctor of Economics, Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0000-0002-5557-6109

Tamila Turmanidze

E-mail:tamila.turmanidze@bsu.edu.ge

Assist. Professor, Doctor of Economics, Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0000-0003-4710-2285

Abstract. The global innovation index is used to evaluate the innovation environment in the country. The components included in this index mainly consider human knowledge and education. Human capital is one of the most important drivers of economic growth and innovation.

The growth of investments in human capital will contribute to the growth of the economic value of education, the correct distribution of resources, and the correct management of state policy.

The purpose of our research is to justify the need to invest in human capital and to evaluate its effectiveness, which is the main factor in the development of the innovative economy in the current period. In order to evaluate the effectiveness between the innovative economy and human capital, we conducted a study in companies. The research examines the attitude of employers and employees working in the Adjara region towards professional growth events (training/seminars) that are directly related to innovative technologies.

Spending on education today is one of the most important ways to earn a higher income in the future. The amount of human capital in a country depends on education, that's why in developed countries, the effectiveness and strategies of investing in education are measured by the cost-benefit ratio.

According to the Global Innovation Index, Georgia is in the category of upper-middle income countries. According to the 2022 report, Georgia showed high results in only 2 out of 7 categories.

However, it should also be noted that the components of the index are based more on quantitative indicators than on qualitative indicators, so a single index cannot be a perfect estimator.