The Importance of Human Capital in the Production of New Knowledge
Abstract (Summary)This thesis aims at analyzing the importance of human capital for generation of economic growth through its effect on knowledge production in the innovation process. Knowledge is a fundamental precondition of innovation and technological change, which in turn is the main generator of long run economic growth. The thesis briefly outlines the milieu in which knowledge is produced and the factors affecting this production, assumed to be essentially human capital, accessibility to industry and university R&D and density of employment. The functional region is found to play a significant role in this process, partly due to its concentration of economic activity as a consequence of agglomeration effects.In order to analyze the effect on the knowledge production, measured through patents, a regression analysis including the variables specified above is performed on data of the Swedish municipalities. The results of the analysis confirm the main hypothesis of the thesis; that human capital has a major impact on the knowledge production process. Moreover, accessibility to R&D is found to have a significant impact as well; particularly local accessibility to industry R&D. This corresponds well with the conclusions of the theoretical part of the thesis; that local accessibility facilitates the transmission of knowledge useful in the innovation process.
School:Högskolan i Jönköping
Source Type:Master's Thesis
Date of Publication:03/08/2006