The relationship of human capital and innovation: An econometric investigation

Innovations are recognized as an important factor for economic growth. Therefore, it is important to identify the determinants of innovation. The main factor driving innovation is knowledge. A person can produce technology and innovation thanks to his human capital, which includes knowledge, skills and experience that he or she has acquired later. Innovation occurs when human capital meets technology. In this study, the relationship between human capital and innovation has been examined both theoretically and empirically. In the empirical part, data from 11 OECD countries between the years 1980-2019 were analyzed by panel data analysis methods. According to the analysis findings, no cointegration relationship, that is, a long-term relationship, was found between human capital and innovation in 11 selected OECD countries. The causality analysis findings also show that there is no causal relationship between the mentioned variables.