A Systemic Review on Human Capital Investment: The Context of Jordan

Abstract

This study investigates the relationship between innovation and human capital investment, and to show how the implementation of these two concepts leads to economic development. After carefully examining the extant literature and by utilizing relevant academic-based research databases, a total of 73 papers published in peer-reviewed journals over the last decade were reviewed and analyzed using well-established systematic literature review methodology. The findings identified four main pillars required to support economic development and achieve a competitive advantage using the country’s human capital: Habitation, Opportunity, Power Distance, and Entrepreneurship (HOPE). The findings also indicated that Jordanian culture is highly germane to all four pillars, which can encourage innovative human capital and ensure economic development. This paper is important to the Jordanian community and the Arab world in general, which lacks awareness of the importance of human capital in socio-economic development. The study helps understand innovation and economic development in the region. This paper explores the relationship between innovation and human capital investment, and shows how this combination will lead to the development of Jordanian culture and the economy.