What is Human Capital model?

Mario Scerri  December 14, 2012 – 11:16 am
Human Capital Theory

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Africa exemplifies a general disjuncture between local and global modes of innovation, a discordance which appears to have become entrenched over time, altered in form but unchanged in essence in the transition from colonised territory to the newly independent nations. A system of innovation may be defined as the relational web of institutions, both formal and informal, within which innovation occurs and is translated into an improvement in the wealth and the viability prospects of the system, usually defined at the national level.

An innovation theory of value and the evolution of African systems of innovation

A system of innovation may be defined as the relational web of institutions, both formal and informal, within which innovation occurs and is translated into an improvement in the wealth and the viability prospects of the system, usually defined at the national level.  A broad version of this definition takes a wide view of innovation, which, in its incorporation of organisational and institutional change, becomes contextually specific and ranges considerably beyond the output of formal R&D programmes.  The range of institutions which are included in the broad definition of the national system of innovation (NSI) is also broad.  As far as formal institutions are concerned, the range of inclusiveness is extended to all those organisations which are relevant to the political economy, including state organs, private sector enterprises, labour organisations, and civil society organisations.  This category of institutions is relatively easy to place within the system of innovation web, given the explicit nature of formal institutions.  At least at the explicit level, the relational web may be drawn out from the overt terms of reference of formal institutions.  This is not, of course, to simplify a dauntingly complex task which is further complicated by a more evolutionary perspective on organisational theories.  This is especially true with respect to the relationship between the explicit goal sets of institutions and the implicit goals which evolve with the growth of the same institutions.  These implicit goals may, and often do, result in actual behaviour and evolutionary trajectories which are deviant in terms of the explicit goals of the institutions.  The other layer of the institutional web of the NSI consists of established and accepted routines and practices which govern interpersonal and intra-societal relationships in all aspects.  It is these informal institutions which evolve over time in specific cultural and historical contexts which impart specificity to national systems of innovation and which shape the actuality of formal institutions.

Source: innovation talk

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