System cycle of human resources-knowledge-capital for innovation: concept, main components, and characteristics

Abstract

This paper explores critical aspects of the innovation process, specifically the role of human capital, knowledge, and investment in ensuring effective innovation development. Despite significant achievements in this field, existing research has notable shortcomings, as human capital and knowledge exchange alone do not guarantee successful innovation outcomes. A key condition is the involvement of capital. Analysis of scientific sources demonstrates the importance of investment in the innovation process, emphasizing its significance for competitiveness and sustainable economic growth. Specifically, investments in research and development (R&D) are crucial for the creation of new products and services, while venture capital supports the financing of innovative projects despite high risks. Digital technologies also play a significant role in enhancing business efficiency, reducing costs, and increasing customer satisfaction. Government support for innovation policy is also important, as it stimulates investment and fosters the development of competitive markets. The study proves the necessity of a systematic approach, where human resources, knowledge, and capital interact and interconnect, ensuring a cyclical innovation process. This includes the mobilization and management of critical resources to sustain a continuous innovation cycle. The paper compares the concepts of the “innovation ecosystem” and the “systemic cycle of human resources, knowledge, and capital for innovation.” The innovation ecosystem involves interactions between various organizations and institutions that promote innovation, whereas the systemic cycle focuses on internal processes and resource management within organizations. The study's conclusions highlight the importance of both approaches for understanding and optimizing innovation processes.