Abstract
In the era of knowledge economy, improving quality of labor force has great effort on enhancing innovation ability of Chinese enterprise and improving competitiveness of the whole country. Currently, the quantity of Chinese labor force isn’t enough mainly due to several reasons: firstly, population policy emphasized “quantity” rather than “quality”; secondly, the structure in labor force market is irrational; thirdly, big differences exist in labor quality between urban and rural areas; fourthly, intellectual capital investment in education and training has been far from enough. However, Intellectual Capital theory has provided a solid theoretical basis for the author to improve labor quality. It suggests setting up an active policy to promote intellectual capital investment; strengthen intellectual capital investment in education system; encourage more and more Chinese enterprises to use Intellectual Capital business model in management; and set up special founding for young generation.
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