INVESTING IN HUMAN CAPITAL AS THE LEVEL OF ACTIVITING INNOVATIVE DEVELOPMENT

Abstract

The aim of the article is to reveal the features of investing in human capital at the enterprise level as the main lever for enhancing the country's innovative development. The article substantiates the expediency of increasing the intensity of investing in human capital and proves the need to enhance innovative development. The international aspects and Ukrainian legislative initiatives to enhance innovation due to the accumulation of human capital are considered. The analysis of Ukraine's rating by the Global Competitiveness Index during 2010-2019 is carried out. The tendencies of changes in the sub-indices of human development - “health” and “skills”, the sub-index “innovative capability” are analyzed. The main sources of investing in human capital are identified and analyzed: investing at the expense of the state budget in the accumulation of human capital, investing by business entities in the development of personnel and investing by the individual and members of her family in their own professional and personal development. Concrete examples of the best practices of investing in human capital by creating separate professional development units by the largest employers in Ukraine are given. Two main economically feasible options for increasing the professional competence of employees of small and medium enterprises in Ukraine are analyzed: the use of various forms of internal mentoring and coaching; training and retraining of workers in specialized educational institutions on a paid basis. Management approaches are specified that can be implemented if there is a limitation of financial resources and the ability of an enterprise to invest in human capital. The first approach is related to the activation of the processes of investing in human capital, the second one is to freeze all programs of professional development of employees for an indefinite period. It is proved that the rationale for the appropriateness of the approach should be based on the application of an effective system of indicators and criteria for assessing the socio-economic efficiency of each of the planned investment measures.