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AbstractNowadays, innovations are perceived as one of the most important driving forces of socio-economic con-dition. Innovative capacity is, in turn, determined by various factors, among them there is human capital which continually improves its quality.

Investments in human capital in the near future may result in a variety of achievements. Appropriately ar-med employees frequently become authors of various valuable and important discoveries and studies which reinforce company’s position on the market, but also - properly used - influence economic condition.

That is why, we should try to develop knowledge and skills in order to create economies where innovations are one of the most important drivers of economic mec-hanism. Therefore, so as to obtain higher level of in-novation, developing actions should be taken to utilize skills and expertise of its citizens.

The aim of this article is to highlight the essence of in-vesting in the quality of human capital, thereby imp-roving innovative capacity of the national economy, which strengthens its international competitiveness. Studies presented on the example of the most innovati-ve and competitive countries in the world.

Keywords: Human Capital, İnnovativeness, Competitiveness, Economic Development

ÖzGünümüzde, yenilikler sosyo-ekonomik durumun en önemli itici güçlerinden biri olarak algılanmaktadır. Yenilikçi kapasite, sırasıyla, çeşitli faktörler tarafından belirlenir, bunlar arasında sürekli olarak kalitesini ar-tıran beşeri sermaye de bulunmaktadır.

Yakın gelecekte, beşeri sermayedeki yenilikler çok çeşitli başarılara neden olabilecektir. Kalifiyeli çalışanlar, sık sık şirketin pazardaki değerini yükselten ve -doğru kul-lanıldığında- ekonomik koşulları etkileyen çeşitli de-ğerlerin ve önemli gelişmeler ve çalışmaların yaratıcısı olmaktadırlar.

Bu yüzden bilgiyi ve becerileri, yeniliklerin ekonomik mekanizmaların en önemli ayaklarından birisini oluş-turduğu ekonomileri yaratmak için geliştirmeye çalış-malıyız. Bu nedenle, daha gelişmiş düzeyde yenilik elde etmek için eylemlerin gelişmesi, vatandaşların tecrübe ve becerilerinin kullanılması açısından gereklidir.

Bu makalenin amacı beşeri sermayenin kalitesindeki yatırımın özüne genel bir inceleme yapmak ve böylece uluslararası rekabette ülke ekonomisini güçlendiren ye-nilikçi kapasiteyi artırmaktır. Çalışmalar dünyadaki en yenilikçi ve rekabetçi ülke örneklerini göstermektedir.

Anahtar Kelimeler: Beşeri Sermaye, Yenilikçilik, Rekabetçilik, Ekonomik Gelişme

Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in

the World. Rank of Turkish Economy on the International Arena.

Dünyadaki En Yenilikçi ve Rekabetçi Ekonomiler Örneğinde Yenilikçiliğin ve Rekabetçiliğin Belirleyicisi Olarak Beşeri Sermayenin Kalitesi.

Uluslararası Arenada Türk Ekonomisinin Yeri.

Asst. Prof. Dr. Özgür Oğuz - Asst. Prof. Dr. Joanna Prystrom

Asst. Prof. Dr. Özgür Oğuz, Anadolu University Faculty of Law, [email protected] Asst. Prof. Dr. Joanna Prystrom, University of Bialystok Faculty of Economics and Management, [email protected]

Anadolu UniversityJournal of Social Sciences

Anadolu ÜniversitesiSosyal Bilimler Dergisi

32

Quality of Human Capital As A Determinant of Innovativeness and Competitiveness Presented on the Example of the Most Innovative and Competitive Economies in the World. Rank of Turkish Economy on the International Arena.

IntroductionInnovative knowledge and ability are indispensably linked with the issue of human capital which is con-sidered as one of the most significant factors condi-tioning innovativeness. Human capital may be cons-trued as knowledge and abilities acquired by people through education system and trainings.1

Furthermore, human capital may be defined as knowledge resources, abilities, health, power and vital energy incorporated in human being. These re-sources constitute genetically conditioned potential which may be increased through the investment in human being.2

The role of human capital in economic development is frequently raised in various discussions and literature. The assertion that human capital constitutes signifi-cant factor of economic development resulted from the tendency to provide free and public education – practically in every developing country. This profound belief that education is a crucial factor of economic de-velopment gives a support for the assertion mentioned above. However, important seems to be the fact that even well-functioning economies do not always meet the requirements of adequate investment in education and training without government support.3

More precisely, human capital may be defined as ac-celerating force of well-functioning labour market and at the same time, determinant of economic con-dition of a particular country.4

Therefore, we shall aim at development of knowledge and abilities in order to create economies where in-novations constitute driving force of economic mec-hanism. What is more, aiming at increase of innova-tions, it would be advisable to take actions developing and using abilities and knowledge of own citizens .5

1 Shultz T. W., Investment in Human Capital, [in:] American Economic Review, no 1/1961, p. 2.

2 Romański S. R., Kapitał ludzki i wzrost gospodarczy, PWN, Warszawa 1993, p. 35.

3 Pissarides Ch. A., Human capital and growth: a synthesis re-port, Research programme on: Human Resource Development and Poverty Reduction, OECD 2000, p. 8.

4 Denison E. F., The sources of Economic Growth in the United States and the Alternatives Before Us, American Economic Re-view, vol. 52, no. 4, New York 1962, pp. 762 – 782.

5 Ederer P., Innovation at Work: The European Human Capital Index, Lisbon Council Policy Brief, Deutschland Denken! eVZeppelin University gGmbH, Friedrichshafen 2006, p. 2, http://www.lisboncouncil.net/media/lisbon_council_euro-pean_human_capital_index.pdf, 04.04.2015

The aim of the article is the emphasis of the issue of investing in quality of human capital and at the same time increasing innovative ability of national eco-nomy which reinforces its competitiveness on the in-ternational arena. The elaboration has been prepared on the example of most innovative and competitive countries in the world.

The Significance of Human Capital in Creating Innovativeness and Competiti-veness of National Economy Global competitiveness forces on economies and functioning within economic subjects being inno-vative. Innovativeness of enterprises and simultane-ously complete economies is conditioned by constant rise of qualifications, competences and creativity by employees. That is why, it seems legitimate that the most important resources deciding on the develop-ment of economy is knowledge.6

Innovative knowledge and abilities are closely linked with the issue of human capital which is considered as one of the most important factors conditioning innovativeness. Human capital shall be construed as knowledge and abilities acquired by people through education system and trainings .7

Human capital means economic resources of know-ledge, abilities, health and vital energy incorporated in human being and society as a whole, defining abi-lity to work, adapt to changes in the environment and creation of new solutions.8

The notion of human capital also defines knowledge and abilities of particular people acquired through the system of education and professional trainings.9

Therefore, human capital means knowledge resources and abilities in human being which constitute gene-tically conditioned potential that may dramatically increase through the investment in human.10

6 Kuźniar K., Znaczenie kapitału ludzkiego dla realizacji kon-cepcji gospodarki opartej na wiedzy w Polsce, [in:] Poteralski P., Przemiany rynku pracy w kontekście procesów społecznych i gospodarczych, Published by: Faculty of Economics and Man-agement, University of Szczecin, Szczecin 2007, pp. 236 – 237.

7 Shultz T. W., Investment in Human Capital, [in:] American Eco-nomic Review, no 1/1961, p. 2.

8 Oleksiuk A., Inwestowanie w kapitał ludzki w Polsce, ECO-NOMICUS, Szczecin 2009, p. 9.

9 Welfe W., Sabanty L., Florczak W., Szacunek kapitału ludzkiego, [in:] Wiadomości Statystyczne 2001, no 5, p. 16.

10 Romański, Kapitał ..., op. cit., p. 35.

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Cilt/Vol.: 15 - Sayı/No: 4 (31-42) Anadolu Üniversitesi Sosyal Bilimler Dergisi

health care quality of education system apprenticeships

professional trainings at work focus on migration aspect

INVESTMENTS IN HUMAN CAPITAL

continuing education expenditure on scientific researches expenditure on acquired professional

information

postgraduate studies professional trainings

Figure 1. Investments in Human Capital – Chosen ExamplesSource: own elaboration

investments in human capital

higher quality of human capital

increased efficiency and better work results (including valuable ideas, innovations, elaborations)

innovativeness and flexibility towards challenges of modern economy, that is inter alia:

new goods and services modern/cheaper production methods modern production factors

lower prices of goods and services on the market

lower degradation of natural environment increase of demand for offered goods and services

development of innovative economic subject

creation of new work places observing success of one subject, other entities are willing to undertake innovative activity

more innovative subjects greater number of new work places

decrease of unemployment increase of consumption ability of the society

acceleration of economic downturn inflow of investors

improvement of socio-economic situation in the region Figure 2 Investments in human capital, innovativeness and socio-economic development Source: Own elaboration. Figure 2. Investments in Human Capital, Innovativeness and Socio-Economic Development

Source: Own elaboration.

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That is why, significantly important seems to be the investment and continual development of human ca-pital which is considered to be a determinant of inno-vative ability and therefore driving force of economic development and competitive edge.11

Continually proceeding globalization processes and developing competition effect in the necessity to invest in human capital. Investments in human can be defi-ned as a set of activities which influence future pecuni-ary and physical income aiming at increase of human resources.12 (see figure 1)

Moreover, investment in human capital may result in various achievements. Competently equipped emp-loyees are frequently authors of many valuable and significant discoveries and elaborations which can sustain position of a company on a particular market and what is more important, properly used may affect economic condition. (figure 2)

Condition of Human Capital and Innovativeness of Most Competitive Economies in the World An interesting indicator which presents situation of human capital is Human Capital Index (HCI)13, port-raying influence of human capital management on the market value of the enterprise. European Human

11 Stenberg L., Gustafsson E., Marklund G., Use of human re-source data for analysis of the structure and dynamics of the Swedish innovation system, Research evaluation, vol. 6, No. 2, August 1996, pp. 121 - 132.

12 Domański S., Kapitał ludzki i wzrost gospodarczy, PWN, War-szawa 1993, p. 56.

13 HCI (Human Capital Index).

Capital Index (HCI)14 covers ranking of countries presented in terms of ability to develop own human capital and sustaining it on the adequate level.15

European Human Capital Index measures stock of human capital, its relocation, use and level of deve-lopment in the European countries, classifying them in terms of developing ability of native capital and meeting the requirements of globalization.16

Table 1includes ranking of European Human Capital Index, considering 13 best developed countries. In the top ten of the ranking, beside Sweden such co-untries as Denmark, Great Britain, Netherlands and Germany were placed. Economies of those countries together with Swedish economy are considered to be most competitive in the world. 17

Unfortunately, the ranking of European Human Ca-pital Index was created in 2006, therefore, it signifi-cantly diverges from the current state. However, it can be treated as an introduction to the discussion con-cerning the European human capital condition sin-ce in the further part of the article the most current embrace has been presented – results of the World Economic Forum portraying economic competitive-ness and more precise state of domestic human reso-urces capital among 30 most competitive countries in the world.

14 EHCI (European Human Capital Index).15 Ederer P., Schuler P., Willms S., The European Human Capital

Index: The Challenge of Central and Eastern Europe, Lisbon Council Policy Brief, Brussels 2007, p. 3, http://www.ibm.com/ibm/governmentalprograms/lisbon_council_european_hu-man_capital_index_cee.pdf, 22.11.2008

16 Ederer P., Innovation at …, op. cit., p. 2.17 The Global Competitiveness Report 2007 – 2008, World Eco-

nomic Forum, Geneva 2007, http://www.gcr.weforum.org/, 15.07.2008



The first place in the ranking shows that Sweden aims at developing of human capital and sustaining above mentioned capital on the consistent level. It concerns education of the society from the early years and in-tensive professional trainings.18

The ability of the society to develop, master and use innovations to generate economic growth and well-being, to a huge extent depends on society’s natural abilities and usage of human capital. An adequate example presenting this interdependence is eBay19. It requires not only scientists and engineers to create the platform but also widely spread trade knowledge and entrepreneurial spirit from millions of entrepreneurs using this platform. Moreover – in order to clinch a deal – it requires hundred millions of consumers able to use the platform. eBay phenomenon proves that human capital means more than education and pro-fessional skills acquired at schools and universities. It also covers cultural abilities and social norms ac-quired by a child at home, informal education gained

18 Ederer P., Innovation at Work: The European Human Capi-tal Index, Lisbon Council Policy Brief, Deutschland Denken! eVZeppelin University gGmbH, Friedrichshafen 2006, p. 3, http://www.lisboncouncil.net/media/lisbon_council_europe-an_human_capital_index.pdf, 04.04.2015

19 eBay is a global market online authorizing for trade on a local, national and international scale. Varied and dynamic society composed of companies and particular participants of the eBay offers online platform where millions of goods are selled every day.

voluntarily during whole life and continuous learning present in the changes in the work environment.20

Analysing Table 2 it can be noticed that quality of human capital and factors increasing its innovative ability are diversely created in the range of world grid system. Once, a group of countries of high compe-titiveness constitute the European Union Member States and sometimes the economies out of the mem-bership.

Generally, it can be stated that the group of countries of the highest competitiveness in terms of factors cre-ating level of human capital are Finland, Switzerland, Singapore, Denmark, Netherlands, USA, Norway or Japan.

Worth notice seems to be the fact that economies which were usually placed on the lowest positions and definitely further than the leaders, were surpri-singly placed on the first positions (Peurt Rico, Italy, Georgia).

20 Ederer P., Dlaczego innowacje wymagają inwestycji w kapitał ludzki?, [in:] Innowacje w Europie, Komisja Europejska - DYREKCJA GENERALNA DS. PRZEDSIĘBIORSTW I PRZEMYSŁU, p. 27, ftp://ftp.cordis.lu/pub/itt/docs/ei07_1_pl.pdf, 14.10.2008

Table 1. European Index of Human Capital in 2006Place in the ranking Country

1 Sweden2 Denmark3 United Kingdom4 Netherlands5 Austria6 Finland7 Ireland8 France9 Belgium

10 Germany11 Portugal

12 Spain

13 Italy

Source: Ederer P., Innovation at Work: The European Human Capital Index, Lisbon Council Policy Brief, Deutschland Denken! eVZeppelin University gGmbH, Friedrichshafen 2006, p. 3, http://www.lisboncouncil.net/media/lisbon_council_european_human_capital_index.pdf, 04.04.2015

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ust

ria

Au

stra

lia

Jord

an

25

Est

on

ia

Ko

rea,

Rep

. E

l S

alv

ado

r Ic

elan

d

Qat

ar

Pan

ama

26

Lu

xem

bo

urg

P

ort

ug

al

Ho

ng

Ko

ng

SA

R

Ko

rea,

Rep

. Q

atar

Bah

rain

P

ort

ugal

27

Ko

rea,

Rep

. S

pai

n

Can

ada

Lit

hu

ania

E

sto

nia

B

ahra

in

28

Lit

hu

ania

L

ith

uan

ia

Ken

ya

Ho

ng

Ko

ng

SA

R

Den

mar

k

Mal

ta

29

Icel

and

Est

on

ia

New

Zea

lan

d

Fra

nce

B

arb

ados

Fra

nce

30

Un

ited

Ara

b E

mir

ates

T

aiw

an, C

hin

a In

dia

In

do

nes

ia

Ko

rea,

Rep

. M

alay

sia

Tabl

e 2. C

ontin

ued

38


Ran

k/

Cou

ntr

y

Av

ail

ab

ilit

y o

f sc

ien

tist

s

an

d e

ng

inee

rs

Sci

enti

fic

an

d t

ech

nic

al

jou

rna

l a

rtic

les

(per

1

00

0 p

eop

le)

Sta

te o

f cl

ust

er

dev

elo

pm

ent

Do

ing

bu

sin

ess

ind

ex

Inte

llec

tual

pro

per

ty

pro

tect

ion

an

d p

rop

erty

ri

gh

ts

1

Fin

lan

d

Sw

itze

rlan

d

Ital

y

Sin

gap

ore

F

inla

nd

2

Qat

ar

Sw

eden

U

nit

ed A

rab

Em

irat

es

New

Zea

lan

d

Sin

gap

ore

3

Jap

an

Den

mar

k

Ger

man

y

US

A

Sw

itze

rlan

d

4

Gre

ece

Fin

lan

d

Sw

itze

rlan

d

Den

mar

k

Un

ited

Kin

gdom

5

US

A

No

rway

U

SA

N

orw

ay

New

Zea

land

6

Pu

erto

Ric

o

Net

her

lan

ds

Jap

an

Un

ited

Kin

gd

om

L

ux

embourg

7

Un

ited

Ara

b E

mir

ates

Is

rael

S

ing

apo

re

Ko

rea,

Rep

. Q

atar

8

Po

rtu

gal

A

ust

rali

a N

eth

erla

nd

s G

eorg

ia

Net

her

lands

9

Mal

aysi

a C

anad

a Q

atar

A

ust

rali

a C

anad

a

10

Isra

el

Sin

gap

ore

F

inla

nd

F

inla

nd

Ja

pan

11

Sp

ain

Ic

elan

d

Un

ited

Kin

gd

om

M

alay

sia

No

rway

12

Can

ada

Un

ited

Kin

gd

om

M

alay

sia

Sw

eden

G

erm

any

13

Jord

an

New

Zea

lan

d

No

rway

Ic

elan

d

Sw

eden

14

Tai

wan

, C

hin

a U

SA

In

dia

Ir

elan

d

Au

stri

a

15

Irel

and

B

elg

ium

A

ust

ria

Can

ada

Fra

nce

16

Sin

gap

ore

Ir

elan

d

Can

ada

Th

aila

nd

Irel

and

17

Cy

pru

s S

lov

enia

S

wed

en

Mau

riti

us

So

uth

Afr

ica

18

Ger

man

y

Au

stri

a B

elg

ium

G

erm

any

O

man

19

Sw

eden

G

erm

any

Ir

elan

d

Est

on

ia

Un

ited

Ara

b E

mir

ates

20

Sri

Lan

ka

Fra

nce

L

ux

emb

ou

rg

Sau

di

Ara

bia

B

elg

ium

21

Fra

nce

S

pai

n

Sau

di

Ara

bia

M

aced

on

ia, F

YR

A

ust

rali

a

22

Un

ited

Kin

gd

om

K

ore

a, R

ep.

Ch

ina

Jap

an

Den

mar

k

23

Ital

y

Ital

y

Bra

zil

Lat

via

M

alta

24

Sw

itze

rlan

d

Gre

ece

Jord

an

Un

ited

Ara

b E

mir

ates

U

SA

25

Co

sta

Ric

a Ja

pan

K

ore

a, R

ep.

Lit

hu

ania

S

aud

i A

rabia

26

Tu

nis

ia

Po

rtu

gal

In

do

nes

ia

Sw

itze

rlan

d

Bah

rain

27

Au

stra

lia

Est

on

ia

Tu

rkey

A

ust

ria

Mal

aysi

a

28

Leb

ano

n

Cze

ch R

epu

bli

c F

ran

ce

Po

rtu

gal

Ic

elan

d

29

Ch

ile

Lu

xem

bo

urg

B

ahra

in

Net

her

lan

ds

Est

on

ia

30

Net

her

lan

ds

Cro

atia

T

hai

lan

d

Arm

enia

Jo

rdan

Tabl

e 2. C

ontin

ued

Sour

ce: o

wn

elab

orat

ion

on th

e ba

sis o

f: Sc

hwab

K.,

The

Glo

bal C

ompe

titiv

enes

s Rep

ort 2

014–

2015

, Wor

ld E

cono

mic

For

um, G

enev

a 20

14, h

ttp://

ww

w3.

wef

orum

.org

/doc

s/W

EF_

Glo

balC

ompe

titiv

enes

sRep

ort_

2014

-15.

pdf,

19.1

1.20

14; Th

e H

uman

Cap

ital R

epor

t, W

orld

Eco

nom

ic F

orum

, Col

ogny

/Gen

eva

2013

, pp.

50-

521.



Bearing in mind the Figure 2 which presents influen-ce of investments on the innovative ability and in the effect socio-economic condition, the attention shall be paid to the creation of domestic competitiveness in terms of innovativeness and factors supporting thirty most competitive economies in 2014 (Table 3).

It shall be noticed that the leaders of innovativeness and economic competitiveness are also those charac-terized by high competitiveness due to innovation determinants.

Condition of Human Capital, Innovati-veness and Competitiveness of Turkish Economy Analysing state of human capital, innovativeness and competitiveness of individual economies with par-ticular attention paid to factors conditioning them. The notice shall be paid to the condition of Turkish economy.

Table 4 shows that Turkey, according to the current competitiveness report prepared by the World Eco-

Country Innovativeness and sophisticated

factors

Global Competitiveness Index

(GCI)Switzerland 1 1Singapore 11 2


factors


(GCI)USA 5 3Finland 3 4Germany 4 5Japan 2 6Hong Kong SAR 23 7United Kingdom 6 8Sweden 8 9Norway 7 11United Arab Emirates 16 12Denmark 21 13Taiwan, China 9 14Canada 13 15Qatar 24 16New Zealand 15 17Belgium 25 18Luxembourgh 12 19Malaysia 18 20Austria 17 21Australia 14 22France 26 23Saudi Arabia 19 24Ireland 32 25Korea Rep. 20 26Israel 22 27China 10 28Estonia 33 29Iceland 34 30

Table 3. Innovativeness and Competitiveness of Most Competitive Countries in the World in 2014

Table 3. Innovativeness and Competitiveness of Most Competitive Countries in the World in 2014-c.d.

40


nomic Forum was placed in the first 60 of the most competitive countries from the world, in the aggrega-te 120 countries were considered.

More precise embrace is presented in Table 5 which presents factors such as education, health and well-ness, workforce and employment, quality of educa-tion system, education attainment, life expectancy, stress and depression problems, healthcare quality

and accessibility, talent and skills of employers, staff training and training services or social mobility.

In overall analysis it may be noticed that Turkish eco-nomy is placed on a slightly worse position than the first 30. Only primary education enrolment rate pla-ces Turkey in the group of leaders, that is on the 29th place.


factors


(GCI)

Turkey 45 51

Table 4. Innovativeness and Competitiveness of Turkey Among 122 Countries in the World, in 2014

Source: own elaboration on the basis of: Schwab K., The Global Competitiveness Report 2014–2015, World Economic Forum, Geneva 2014, pp. 13-14, http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf, 03.04.2015.

Factor Overall index Education Health and

wellness

Workforce and

employment

Rank 60 77 51 83

Factor

Primary education

enrolment rate (%)

Secondary enrolment rate

(%)

Tertiary enrolment rate

(%)

Education gender

gap

Rank 29 55 41 98

Factor Quality of

education system

Primary

education attainment (%

population age 25+)

Secondary

education attainment (%

population age 25+)

Tertiary education attainment

Rank 78 41 71 67

Factor Life expectancy Stress (% of

respondents)

Depression (% of

respondents) Healthcare quality

Rank 42 103 75 55

Factor Healthcare accessibility

Country capacity to attract talent

Country capacity to retain talent

Easy of finding skilled employees

Rank 48 72 68 86

Factor Pay related to

productivity Staff training Training services Social mobility

Rank 55 56 65 56

Table 5. Turkey in Human Capital Report, Competitiveness in Terms of Factors Presenting/Conditioning Condition of Human Capital (Among 122 Economies in the World)



If it comes to competitiveness of domestic economy in the light of factors conditioning competitiveness of domestic economy, Turkey fares extremely well in terms of state of cluster development, firm level tech-nology absorption or scientific and technical journal articles (per 1000 people), which locates the country in the first 40 of the ranking.

Unfortunately, Turkish economy fares itself relatively bad in terms of quality of the education system, Com-pany spending on R&D and Extent of staff training, which significantly reflects quality of domestic hu-man capital.

ConclusionsWilling to meet the expectations of accelerating glo-balization processes, socio-economic changes, eco-nomies and functioning within economic entities shall be flexible and ready for the continuous adjust-ments to the current situation. Innovativeness, condi-tioned by various factors, among which investments in human capital constitute a key issue, may be signi-ficantly helpful.

Through investments and at the same time increase of human capital can be construed as activities such as

education system, professional trainings and the ran-ge of those trainings, competent health care as well as ability to find and use talented sources of the capital.

It shall be noticed that the countries placed relatively high in the competitiveness ranking in terms of vari-ous factors conditioning quality of human capital, are also placed in the group of most innovative and com-petitive countries in the world. Successful, seems to be the information that Turkey among 120 countries from all over the world, takes place in the first 50, in consideration of factors such as primary and tertiary education enrolment rate, life expectancy, healthcare accessibility, higher education and training, or state of cluster development, firm level technology absorp-tion or scientific and technical journal articles (per 1000 people).

Employees equipped in adequate abilities and quali-fications as well as being of a good health and vital energy are frequently authors of many valuable and innovative ideas and solutions which finally may be reflected in innovativeness and competitive position on the market. The more of such behaviours are ob-served, the highest innovative and competitive ability of a whole economy is. Therefore, investing and loo-king after domestic human capital shall be treated as

Factor

Competitiveness of the economy in terms of selected factors

Innovation and

sophistication factors

Institution

surrounding

Higher education and

training

Quality of the

education system

Rank 51 64 50 89

Factor Quality of scientific research institutions

Technological readiness

Company spending on R&D

University-industry collaboration in R&D

Rank 64 55 89 61

Factor

Availability of

scientists and engineers

Scientific and

technical journal articles (per 1000

people)

State of cluster

development

Doing business index

Rank 59 36 27 58

Factor Extent of staff training

Firm level technology

absorption

Availability of research and training

services/ latest technologies

Intellectual property protection and

property rights

Rank 91 34 57/45 50

Table 6. Competiveness of Turkish Economy in Terms of Factors Conditioning Innovativeness of National Economy

Source: Own elaboration on the basis: Schwab K., The Global Competitiveness Report 2014–2015, World Economic Forum, Geneva 2014, http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf, 02.04.2015 r. and The Human Capital Report, World Economic Forum, Cologny/Geneva 2013, pp. 500-501.

42


a priority by all countries, including those most inno-vative and competitive in the world, willing to sustain own position on the international arena, and willing to reinforce won innovativeness and competitiveness and socio-economic growth.

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