International Journal of

Business & Management Studies

ISSN 2694-1430 (Print), ISSN 2694-1449 (Online)
DOI: 10.56734/ijbms
The Impact of Human Capital and Innovation Determinants on Economic Growth: Evidence from Georgia


The hyper-competitive global economy of the twenty-first century has become an era of innovation, technology, productivity, new knowledge, and skills, focused on sustainable and inclusive growth. Human capital is one of the fundamental factors for ensuring sustainable and inclusive growth. The process of human capital formation is long and is influenced by many factors. Its measurement is one of the actual issues. The negative effects caused by the pandemic were added to the humanitarian, economic, logistical, and other types of problems caused by the Russia-Ukraine war, which took on a global character and affected all countries of the world with more or less severity.

This study aims at providing a theoretical concept of human capital measurement and innovation activity indicators.  The paper studies the role of human capital and innovation activity for a country’s development based on the experience of Georgia.  For this purpose, multiply regression models have been built and evaluate.  The empirical results based on models and coefficient’s significance suggests causality between human capital, innovation activity and the economic growth of Georgia: Contribution of human capital and innovation activity to economic growth is essential.