Academic journal article E+M Ekonomie a Management

Analysis of State Investments into Human Capital in Slovak Republic

Academic journal article E+M Ekonomie a Management

Analysis of State Investments into Human Capital in Slovak Republic

Article excerpt

Introduction

As for creating values in society intellectual capital is as inevitable as money and physical capital. According to Edvinsson and Malone (1997), intellectual capital can be defined as intangible assets, which are not explicitly stated in the company's balance but even though they have a positive effect on the company's efficiency. The division of elements of the intellectual capital varies across different literature particularly regarding its titles. The same categories are called differently by Edvinsson and Malone (1997), by Petty, Cuganesan, Finch and Ford (2009), by Fragouli (2015) and by others like Ozkan, Cakan and Kayacan (2017). For our purposes, we will use the division that was also used by Ozkan, Cakan, and Kayacan (2017) and according to which intellectual capital consists of these three elements: structural, relational and human capital.

In this article, we focused our attention on the last element of the intellectual capital--human capital, which consist of all knowledge, experiences, and skills, that employees have (Ozkan et al., 2017). In the context of human capital, we will comprehend this issue in broader connection with upbringing and education because educational systems should respond to recent global problems. Their goal is to form full-valued graduates of each grade and types of schools, ready to fulfil their professional and personal tasks in their future lives. One of the possible approaches that can solve the negative effects of the changing, globalized world is implementing global development education into academical education.

Countries, in order to benefit from Global Value Chains (GVCs), must invest more into education and professional training, use the skills better, further coordinate their policy in the field of skills--from the policy of education and migration to employment protection legislation --and harmonize these policies with industrial and business policy.

According to Koisova et al. (Koisova, Masarova, & Habanik, 2018), the labour market is working with the most precious capital of the economy, the human capital, which is also the carrier of labour. The human capital has always played an important role in the social development and the achievement and stabilisation of economic growth (Gavurova, Soltes, & Kovac, 2017). "With an emphasis on stabilisation of economic growth, it is an essential part of the modern state to provide more incentives for job searching and to increase the competitiveness of Active Labour Market Policy (ALMP)" (Banociova, & Martinkova, 2017) and to prepare "a favourable business environment in which the state supports and protects economic competition, creates clear and stable rules, and effectively ensures compliance by all market participants while minimizing administrative barriers towards entrepreneurs".

The human capital increase has a positive effect on other factors of increase, stimulates technological progress (Galor & Tsiddon, 1997), supports indirectly growth of the physical capital (Dobes, 2000) and positively influences employment.

According to OECD (2017), Korea and Poland which started from different starting points, have increased their involvement in GVCs in the last 15 years. They specialized more on technologically developed fields and at the same time they have been improving the skills of their population and that's how they increased the economic and social profit rate and so they had benefited from GVCs.

Chile and Turkey have also increased their involvement in GVCs significantly as they have developed their skills necessary for the solving of their problems and so they have achieved good results in the field of employment. However, their skills were not harmonized enough with the requirements of technologically developed sectors, which partly explains their low level of specialization in these sectors.

Germany and the USA have significantly increased their involvement into GVCs. …

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