The role of human capital in increasing the prospects of innovative development of various institutions

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The role of human capital in increasing the prospects of innovative development of various institutions

Hagverdiev Rakim Zulal oglu PhD student, Azerbaijan State Economic University, Baku, Azerbaijan

Abstract. The aim of the article is to examine the role of human capital, which is one of the most important factors of economic development in modern times.

The used methodology and methods were mainly analytical and comparative methods, referring to the works of local and foreign scientists as the theoretical and methodological basis of the research.

Proposed scientific innovation: The role of society in the formation of successful human capital is very important. This boomerang process is the basis of high development. Thus, successful human capital forms a society with positive qualities. And that society again human capital.

Proposed practical innovation: The role of human capital in innovative development and its impact on the current economy are examined from various aspects. Different examples from the world experience are shown and the areas of influence and application in the mentioned sector in Azerbaijan in recent times are shown.

Results of the research: Human capital is the most important factor of economic success in modern times. The most important issue in the formation of successful human capital is society. Special attention should be paid to creating a healthy environment for the formation of successful human capital. It is human capital that forms a healthy environment and a quality society. The investment spent in this direction is mainly reflected in education and health.

The concept of labor of the modern era requires the reconstruction of all types of production factors based on the concept of human capital in the direction of the innovative development of the economy as a factor of production. The presence of correct and promising human capital as one of the main factors determining the innovative development trajectory of the economy around the world is already understood and accepted by both researchers, representatives of state structures, and various oriented institutions.

Keywords: capital, human resources, innovative development, budget, human capital, etc.

Хагвердієв Ракім Зулал оглу аспірант, Азербайджанський державний економічний університет (UNEC), Баку, Азербайджан

РОЛЬ ЛЮДСЬКОГО КАПІТАЛУ У ПІДВИЩЕННІ ПЕРСПЕКТИВ ІННОВАЦІЙНОГО РОЗВИТКУ РІЗНИХ ІНСТИТУЦІЙ

Анотація. Метою статті є дослідження ролі людського капіталу, який є одним із найважливіших факторів економічного розвитку сучасності.

Застосовані методології та методи були основним аналітичним і comparative методів, що відносяться до робіт з місцевих і іноземних школярів як theoretical і методологічний основи для дослідження.

Наведено нове освітнє становлення: ця роль суспільства в формуванні успішного людського капіталу є дуже важливою. Цей boomerang процес є основою високого розвитку. Це, успішні людські capital forms a society with positive qualities. And that society again human capital.

Наведено практичне новаторство: важливість людського капіталу в інноваційному розвитку і його вплив на сучасну економіку є вивченим від різних аспектів. Різні приклади від світового досвіду становлять і сфери впливу й застосування в mentioned sector в Azerbaijan в останніх роках існують.

Результати досліджень: Human capital is the most important factor of economic success in modern times. Найважливішим є те, що у формуванні успішного людського капіталу є люди. Спеціальне значення повинно бути прийнято до створення здоров'я навколишнього середовища для формування успішного людського капіталу. Це є людським капіталом, що форми здоров'я навколишнього середовища і якості суспільства. investment spent in this direction is mainly reflected in education and health.

Концепція розвитку сучасної ери вимагає реконструкції всіх типів production factors, заснованих на концепції людського капіталу в напрямку інноваційного розвитку економіки як factor production. Збереження правильних і проміжних людських капіталів є одним з основних факторів, визначаючи іноземний розвиток trajectory of economy around the world is already understood and accepted by both researchers, representatives of state structures, and divers oriented institutions.

Ключові слова: капітал, людські ресурси, інноваційний розвиток, бюджет, людський капітал, etc.

Problem statement. Proposed scientific innovation

The role of society in the formation of successful human capital is very important. This boomerang process is the basis of high development. Thus, successful human capital forms a society with positive qualities. And that society again human capital. human capital economic

Proposed practical innovation

The role of human capital in innovative development and its impact on the current economy are examined from various aspects. Different examples from the world experience are shown and the areas of influence and application in the mentioned sector in Azerbaijan in recent times are shownAlong with human capital, national wealth and productive capital have taken a leading place in the development paradigm of the international community of countries. "All activities carried out in the direction of human resources management have maintained their activity until today in parallel with the stages of human development" [1, p.78].

It should be taken into account that currently the successful concept of the United States of America (USA) and leading European countries is formed and developed on the basis of the theory and correct practice of human capital [2]. For example, in the 2000s, Sweden, lagging behind other European countries, became one of the leading countries in the world economy precisely because of human capital. In addition, Finland, another European country, managed to transition from an economy based on raw resources to an innovative economy in a short period of time as a result of turning potential human resources into a leading force [2].

The availability of high-quality human capital is the most important issue for countries with developed economic potential to organize the production of competitive high-tech products, conquer the world market, and achieve success.

All this shows that the abundance or scarcity of natural resources is not the main factor of development. The main issue is the involvement of natural resources in proper production and consumption.

Human capital has generally been the subject of independent research over the past 50-60 years. The scientific and technical revolution that took place in the process of determining the potential characteristics of a person in the development of the economy at the same time sufficiently stimulated scientific approaches.

Analysis of recent research and publications

G. Becker, J. Kendrick, starting from the second century of the XX century [3, p.124]. Famous foreign scientists such as L. Mises, J. Mintzer, L. Turov, T. Shultz conducted detailed research on human capital in their research and laid the foundation for the science of human capital stimulation [3, p.76]. The 90s of the last century and the beginning of the new century were a period of active research in the field of human capital among local and foreign scientists.

It should also be noted that one of the urgent problems of the economy of the Republic of Azerbaijan is the development of human capital, the formation of competitiveness, ensuring a high level of its competitiveness and, in this way, implementing promising innovative development. Competition in the national economy is the main tool for taking a leading position in the global economic system.

The aim of the article is to examine the role of human capital, which is one of the most important factors of economic development in modern times.

Presenting main material. Development of business and economy

Thus, the development of business and economy, the stimulation of innovative business development prospects, the digitalization of enterprises and the improvement of the efficiency of human capital in these areas are among the most global issues facing both the state and individual structures. One of the interesting points is that the process of developing human capital in the country under the direct leadership of Mr. President Ilham Aliyev is primarily aimed at stimulating the potential opportunities of the young generation. For example, in 2015, the decree of the President of the Republic of Azerbaijan on the approval of the "2015-2025 Development Strategy of Azerbaijan's youth" is one of the important issues that play a role in the implementation of this process. In the introductory part of the decree, it is stated: "In the last 10 years, Azerbaijan has achieved significant success in all fields, and has entered the category of "countries of high human development" from the group of "countries of average human development" due to the development of human potential [2]. This means creating a new level of economic opportunities for different sections of the population, including young people, expanding rights and strengthening material security. In the past period, the social protection system was improved, the labor market based on the active employment policy was formed, and the fight against poverty was successfully continued. In addition to these, important measures such as protection of cultural heritage, increasing the flexibility of work with youth and sports policy, effective regulation of demography and migration issues have ensured high social welfare and development of human capital for the new generation." [4, p.67].

In this and other programs aimed at revitalizing the economy, the issue of increasing the competitiveness of human potential in the economy of the Republic is the main key to successful solutions. The successful development of the country's economy in the formation of potential and promising human capital has been determined in advance as the main factor for increasing the competitiveness of the national economy.

For example, in recent times, the access of large-scale companies such as "Azersun", "Palmaliv", etc. to both national and international markets plays a role in the proper management of human capital and directly in the formation of high-level capital.

In modern times, tourism is one of the most developing areas in the whole world, including in Azerbaijan, and the demand for the right human capital is created. In particular, special attention is paid to the development of human capital in the field of tourism, which is based on the availability of natural resources without raw materials.

In addition to the fact that touristic places are interesting and beautiful, private companies that organize tours also have an undeniable influence on the economic development and growth dynamics of this area, the production, consumption and export of national goods and services, human capital and other parameters. In particular, proper organization and management of human capital is one of the most important components of the issue. Thus, the right relationship between the tourist and the person leading the trip, the organization of the process at the highest level, plays an important role in the organization and progress of human capital tourism companies, and becomes the main factor of innovation in this field [5].

Currently, the level of professionalism of employees at various enterprises in our country does not correspond to modern scientific and technical achievements, which greatly complicates economic growth and hinders the process of innovation in some areas. In the process of modernization, in particular, the national labor market of machine-building, metal production and other specific areas and capital formation is characterized by a shortage of highly qualified specialists. However, in 1990, the increase in the impact of transformation processes on national security, both quantitatively and qualitatively, was characterized by a negative impact on the formation of human capital [4, p.96].

If we look at the issue from the other side, at the same time, at the same time, the relatively high level of education, as well as the cheap labor force, have a positive effect on the competitive advantages of our national economy. At present, it is noticeable that the engineering potential of our country is advancing. However, if we take into account that the pandemic, which has affected the economy of all the countries of the world for quite a long time, has not left an impact on the education system. The transition of teaching to a virtual form for about two years may lead to a decrease in the number of professional specialists and qualified workers after a while. Of course, in our opinion, both state structures and individuals should be interested in eliminating its consequences. Thus, the organization of certain professional development courses and the involvement of specialists there is a potential step that can be taken towards solving the problem.

In recent times, the lack of qualified specialists in business and the failure to use the potential opportunities of qualified specialists due to various reasons have become widespread, so some delays in innovative development in this field are noticeable.

Of course, the problems listed above have direct or direct causes, and the investigation and elimination of these causes is actually one of the reasons that ensure the development of the enterprise and the economy at the same time.

Currently, the reasons for the low quality of the training of specialists are the financing of the fields of education and science, as well as the low level of financial sources of various educational institutions, the lack of qualified specialists, the limitation of stimulation of the actual experience of professors and teachers, etc. It is related to a number of serious reasons.

It should be taken into account that modern human capital is closely related to the development of human consciousness, the production of industrial products and is the most important social factor in society. It is shaped by investments in education, training, health, entrepreneurial skills, information technology, public safety and economic freedom, as well as science, culture and the arts, and at the same time governs and directs society.

Impact of the COVID-19 pandemic on education

The COVID-19 pandemic that has swept the world in recent years has led to the transition to virtual education in almost all countries in 2020. In this regard, the OECD report notes that schools remain closed for longer periods of time during the pandemic in countries with low levels of education. Children from socioeconomically vulnerable families missed more school hours than other groups and did not have the resources for effective distance learning. At the same time during the pandemic, people from all walks of life started education equally and reminded that the same result can be achieved. So, under such conditions, it can create equal conditions in education for people of all ages. To acquire various knowledge and skills. However, inequality in education is still evident.

"Gender, socio-economic status, family background or geographic location still determine our access to education and the choice we make within education, regardless of whether we succeed in school or not. Equity in education benefits all of us, not just individuals, and helps build a strong economy and sustainable society. Without it, we cannot achieve sustainable recovery. Students from disadvantaged backgrounds are less likely to do well in school or have access to digital learning tools. They lack a quiet place to study at home and get help from their parents in solving school assignments. They have little chance of getting higher education. Students from migrant families often face similar obstacles. Education systems must take care that digital education does not contribute to the deepening of existing inequalities in access and quality of teaching. Ensuring that all students have the resources they need to learn and succeed will be vital” [6, p.110].

Today, Azerbaijan is advancing confidently on the path of rapid development in all directions. Of course, human capital is the basis of every development, and education is its basis. Because the future of every state is measured by the level of education in that country. "Future development will be determined not by natural resources, but by knowledge. We see how technologies are developing in the economic, industrial and military fields. The owners of those technologies are the owners of the word in the world today. In Azerbaijan, we attach great importance to science, education, and technological development so that our youth and society are educated and Azerbaijan does not lag behind in terms of technological development. The material and technical base is being strengthened, the quality of education is improving. Investments are made in this area, investments are made in human capital" [2]. These views expressed by President Ilham Aliyev at the opening of the new building of the school-high school number 20 named after Arif Huseynzade have been confirmed by the large-scale work done in the field of education over the past years. The measures taken by the state regarding the development of education in our country indicate that Azerbaijan is determined to see its future more reliable and confiden.

The number of educational institutions and the number of students studying in them in the countries that are members of the CIS

Conclusion

Successful modernization of the republic's economy is determined by achievements in the field of human capital formation as the main factor of increasing the competitiveness of the national economy.

Successful modernization of the republic's economy is determined by achievements in the field of human capital formation as the main factor of increasing the competitiveness of the national economy.

The Global Competitiveness Index is one of the main indicators that determine the country's position and image at the world level. In the last 10 years, Switzerland has taken first place in the GIK ranking. Singapore, the United States (USA), the Netherlands, Germany, Great Britain, Japan, Sweden, Finland and Hong Kong are in the top ten. "As a result of the industrial revolution's focus on technology, giant firms such as Ford, Rockefeller and Chrysler emerged. In these years, Robert Owen, who has an important place in the history of the concept of personnel management, implemented some measures that improved working conditions to increase productivity. In addition to improving physical working conditions in his factories, he also reduced working hours from 12 to 10 hours a day. On the other hand, it prevented the widespread use of child labor, which was considered cheaper labor in factories" [7, p.26].

According to the "Global Competitiveness Index" published by the World Economic Forum on October 8, Azerbaijan moved up 11 places and ranked 58th among 141 countries. The Global Competitiveness Report is a globally authoritative report and is used as a reference source by international organizations, investors and entrepreneurs, and independent think tanks. The report reflects 12 directions and covers all areas of the economic and social sphere. In the last report, the "Global Competitiveness Index", which includes directions such as institutions, infrastructure, information technologies, macroeconomic situation, health care, education, consumer products market, labor market, financial system, market size, business dynamism and innovation, included 141 countries. According to the last edition of the report, Azerbaijan advanced in 8 out of 12 indicators and took a leading position among the CIS countries" [4, p.78].

Result: It is as a result of this that the improvement of individual indicators characterizing the level of national human capital was observed.

In the current conditions, it is necessary to develop a mechanism of human capital management, taking into account the factors of interaction and the formation and use of its structure, which allows to increase the innovative activity of employees. These cases and the seriousness of the identified problems determine the relevance of the research topic, as well as clarify its goals and objectives.

For this article, based on the experience of both Azerbaijan and the world, we come to the following conclusions:

• The comprehensive progress in society in recent years has formed a new type of human capital, in other words, representatives of generation Z who are open to techniques and technology.

• Successful human capital is the main factor that brings any company or country to a high level of development.

• The most important issue for forming successful human capital in individual enterprises and countries in all fields is to accelerate the process of using and stimulating potential personnel in the education system.

The formation and use of human capital, which meets the requirements of the innovative economy and is necessary for development, is one of the priority tasks of every country.

References:

1. Oliyev M., Hamidov H. Biznesda insan resurslarinin idara edilmasi (darslik). Baki, “iqtisad Universiteti” na§riyyati, 2013, 532 s.

2. Aliyev M., Hamidov H. (2013). Human resources management in business (textbook). Baku: "Economics University" Publishing House,. - 532 p.

3. The Decree of the President of the Republic of Azerbaijan dated October 24, 2013, https://president.az/az/articles/view/9779. L.v. 05.12.2022

4. Awan, A.G, (2012)."Diverging Trends of Human Capital in BRICS Countries", International Journal of Asian Social Science, 2195-2219.

5. Muradov, R. (2016).Theoretical and methodological bases of budget process improvement. Baku, 290 p.

6. http://adudspace.adu.edu.tr:8080/jspui/bitstream/11607/4403/1/3173.pdf.L.v. 18.12.2022

7. Altiner, Ali, Toktas, Yilmaz (2017).: "Relationship Between Human Capital and Economic Growth: An Application to Developing Countries", Eurasian Journal of Economics and Finance, Vol:3, Issue:3, p. 87-98.

8. Florin Marius Martina, Laurentiu Ciovicab, Marian Pompiliu Cristescua. (2013), Implication of Human Capital in the Development of SMEs through ICT Adoption. International Economic Conference of Sibiu. Post Crisis Economy: Challenges and Opportunities, IECS, 270 p.

9. https://www.stat.gov.az/source/education/. L.v. 19.12.2022

10. "Children should study in good schools, teachers should teach in good schools",https://azertag.az/xeber/Azerbaycanin_konseptual_tehsil_strategyasi_geleceye_qoyulan_ sermaye-1991021

Література:

1.0liyev M., Hamidov H. Biznesda insan resurslarinin idara edilmasi (darslik). Baki, “iqtisad Universiteti” na§riyyati, 2013, 532 s.

2. Aliyev M., Hamidov H. (2013). Human resources management in business (textbook). Baku: "Economics University" Publishing House,. - 532 p.

3. The Decree of the President of the Republic of Azerbaijan dated October 24, 2013, https://president.az/az/articles/view/9779. L.v. 05.12.2022

4. Awan, A.G, (2012)."Diverging Trends of Human Capital in BRICS Countries", International Journal of Asian Social Science, 2195-2219.

5. Muradov, R. (2016).Theoretical and methodological bases of budget process improvement. Baku, 290 p.

6. http://adudspace.adu.edu.tr:8080/jspui/bitstream/11607/4403/1/3173.pdf.L.v. 18.12.2022

7. Altiner, Ali, Toktas, Yilmaz (2017).: "Relationship Between Human Capital and Economic Growth: An Application to Developing Countries", Eurasian Journal of Economics and Finance, Vol:3, Issue:3, p. 87-98.

8. Florin Marius Martina, Laurentiu Ciovicab, Marian Pompiliu Cristescua. (2013), Implication of Human Capital in the Development of SMEs through ICT Adoption. International Economic Conference of Sibiu. Post Crisis Economy: Challenges and Opportunities, IECS, 270 p.

9. https://www.stat.gov.az/source/education/. L.v. 19.12.2022

10. "Children should study in good schools, teachers should teach in good schools",https://azertag.az/xeber/Azerbaycanin_konseptual_tehsil_strategyasi_geleceye_qoyulan_ sermaye-1991021

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