INVESTING IN THE DEVELOPMENT OF HUMAN CAPITAL IN THE CONTEXT OF INTELLECTUALIZATION OF THE ECONOMY

Abstract

This article examines the role of investing in human capital development as a critical driver of economic growth in the context of economy intellectualization. It highlights the importance of human capital, which encompasses a combination of knowledge, skills, creativity, and competencies essential for ensuring sustainable economic development and adapting to the challenges of technological progress. Special attention is given to analyzing the current state of human capital development in Ukraine and the barriers limiting its potential, including insufficient funding for education and healthcare, the mismatch between professional training and labor market needs, and the increasing outflow of skilled professionals due to migration. The study emphasizes that investment in human capital should prioritize enhancing labor productivity, fostering innovation, and supporting continuous learning to meet the demands of Industry 4.0. A comparative analysis with advanced economies such as Finland, Germany, and Singapore demonstrates the effectiveness of strategic investments in education, healthcare, and professional development, which significantly contribute to their competitiveness on the global stage. Key challenges facing Ukraine include the low share of human capital in national wealth, underfunding of research and development, and inadequate integration of science and business. Moreover, the consequences of ongoing military conflict, demographic decline, and economic instability exacerbate these issues, leading to a projected long-term reduction in economic potential. The article proposes a comprehensive approach to addressing these challenges through increased government and private sector investments, the adoption of innovative educational methodologies, and the integration of digital and analytical skills into training programs. Recommendations include policy measures to enhance collaboration between academia and industry, strengthen the regulatory framework for human capital development, and create incentives for professionals to remain in the country. The findings underscore the necessity of developing a national human capital strategy aimed at fostering sustainable growth, improving the quality of life, and ensuring Ukraine’s competitiveness in a globalized, knowledge-based economy.