Human capital is the set of skills, knowledge, abilities and attributes embodied in people that are crucial to the ability to absorb and systematise knowledge and to innovate. Research on human capital has traditionally focused on education and learning. Concerns about the motivationally relevant elements of human capital, such as employee job satisfaction, organisational commitment and willingness to change in the workplace (which have been shown to drive innovation), have often been overlooked in economic research and public policy research to date. This problem can be addressed by examining enterprise human resource systems that can improve these elements of human capital.
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