Abstract:

The scientific community shares the view that human capital is the key factor that ensures the long-term economic growth of the country and the innovative development of the economy. Human capital is the driving force behind socio-economic and technological progress. In order to accelerate the innovative development of Georgia and augment its international competitiveness, a further orientation of state and private investments towards the development of human capital should be implemented. Human capital development should be based on an effective state strategy for human resource management, which primarily involves the collection, analysis and conjuncture of information on labor demand. It is vital to make multifaceted forecasts about the size and structure of the labor market, and then to develop and implement measures for the effective use of the human factor. Only through such a multidimensional state policy will the priority task of Georgia be achieved. The purpose of this article is to discuss the current state of human capital formation and identify the problems that exist in the field of quantitative and qualitative growth of human capital, and based on the analysis of these problems, to develop a state strategy for human resource management related to market conditions and modern technological and communication challenges. And the use of which will contribute to the rapid socio-economic development of the country. There is a deficit of the information about the higher education and the labor market relation in Georgia. The condition means that there is no systematic approach to the analysis of the market and education system relation, comprehended data compatibility and aggregation strategy at the national level.

However, it is worth to mention that the existence of intellectual resources does not in itself determine the existence of innovative and high-tech production. To achieve the latter, it is necessary to have a number of factors in a knowledge-based economy that ensure the rational use of intellectual resources. Moreover, there is a significant mismatch between the needs of the employer and the skills offered by the potential employee. Serious mistakes in the education system, in particular the training of unsolicited specialists, have determined an unprecedented level of unemployment in Georgia with higher education. In particular, the unfavorable trend of high levels of unemployment of higher education persons started a while ago. This situation was defined by the processes when the state did not have developed priorities for the development of the country, therefore the priorities of the specialties were not defined, which should be the basis for the future sustainable development of Georgia. During the last decade, the most important, large-scale complex reforms have been implemented in the educational system in order to provide the education policy, through establishing the accessibility of education, quality of education and principle of justice. Nowadays, there is a positive change on international level. In order to occupy a certain niche in an international educational level there are a plethora of exchange programs for professors, students and administrative staff, international scientific conferences for academic staff and students.

Keywords:

Human Capital, Innovations, State’s Strategy for Human Resource Management, Skills, Education System.