Economic Theory of Human Capital: Application in the Information and Communication Revolution

I. Human capital is proving to be an important foundation of sustainable economic prosperity

i. Knowledge is usually privately owned and is acquired though research and development, and incorporated into technology or a given product (Mingaleva & Mirskikh, 2010).

a. Knowledge is increasingly the dominant drive for economic growth in the 21st century (Gabe, 2009).

ii. Competition in the labor market commences with school, not with employment (Loomis & Rodriguez, 2009).

a. Economic development initiatives are greatly dependent on a highly knowledgeable workforce (Gabe, 2009).

II. Coupled with human capital, information technology enhances the positive economic outcomes

i. Information and communication technology in developed countries finds wide employment in individual, business and government use (Kotterman & Boyer-Wright, 2009).

a. One commentator observed that there has been an unprecedented increase in the velocity, volume and interdependence between information and the movement of commodities (Bojanic & Budimir, 2011).

III. Human capital and information-communication technologies are discernable through various synergies

i. Renewed emphasis on education and training in among other disciplines, entrepreneurship, underscores the view that human resource development is fundamental to sustainable economic gains (Kotterman & Boyer-Wright, 2009).

a. Knowledge is a significant contributor in supporting growth and innovation and therefore the in the creation of wealth (Gabe, 2009).

ii. Intellectual capital is knowledge that an enterprise can use to achieve a competitive edge in wealth creation (Adrian, 2008).

iii. Increasingly, the global economy continues shifting towards being one based on human capital and intellect as opposed to physical capital and natural resources (Gabe, 2009).

IV. There are merits that come with synchronizing human capital and information-communication and associated challenges

i. The information and communication revolution has created about new opportunities as well as challenges.

a. One of the challenges brought about by the information and communication revolution is that it has enabled appropriation of intellectual property by individuals, usually for commercial ends (Adrian, 2008).

b. Globalization is complex and therefore challenging to any entrepreneurial efforts (Bojanic & Budimir, 2011).

1. Labor trends have become an important factor vis-à-vis the long-term viability of any business enterprise (Hotchkiss, 2009).

V. Conclusion

i. An important task facing entrepreneurs today is creating value in intellectual capital (Adrian, 2008).

ii. Information and communication technologies continue raising the bar of quality, efficiency and deepening international integration, knowledge and labor economy (Bojanic & Budimir, 2011) .

iii. Intellectual capital makes for significant income if the responsible entity properly harnesses it (Adrian, 2008).