Territorial Dimension of Human Capital

Abstract

The purpose of the work is to identify the ways and scope of territorialisation processes shaping human capital as well as to analyse the perception and value of human capital in economic processes. Theoretical research begins with the identification of human resources as a factor of production that is re-evaluated and reinterpreted towards the concept of human capital. Human capital was not initially associated with the place and space, especially in the initial period of globalisation in the late 20th century. However, under the influence of global trends, human capital is becoming "territorialised", leading to a growing role of territory in economic processes on both a local and global scale. At the same time, the nature of innovative processes is changing from a linear model to open innovation systems. These systems are determined by the properties of the territory. Thus, two important features of human capital are revealed through evolution, subject to embeddedness and concentration processes. Human capital is an important element of territorial capital that determines the existence and attractiveness of innovative entrepreneurial milieus. The role of the spatial proximity of the institutional environment is invaluable in the investment process.