08/08/2020  h. 20:21   
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Beyond The Crisis: Advantages brought by human capital improvement

25/03/2011 | Economy |  By Renato Chahinian, former Secretary General of Treviso Chamber of Commerce

palazzo trecento

As already underlined, productivity factors are needed to go "Beyond the crisis": they are essential in any development process, both in good and bad times.

Through articles in this section, we are describing them briefly, one by one, trying to highlight their optimal applications to achieve the expected productivity advantages.

We began with human capital: the latest article included a specification of what is meant by "human capital" and three main factors were identified as critical to improvement: education, commitment and entrepreneurship. Now, it is necessary to explain the advantages that human capital may bring to economic development, improving the above-mentioned factors.

First of all, it is worth reminding that increasing business productivity (and, thus, economic growth) can only be achieved by reducing external costs (that is, those related to goods and services that are not produced by capital and labour inside the company) at constant production level and/or, vice versa, increasing production level, external costs being equal. Therefore, each production unit's critical task is to aim human capital improvement at achieving such result at least in the medium term.
Starting with education (as a necessary source of knowledge aimed at achieving the above-mentioned productivity results):

the appropriate profile for each company's requirements must be identified among a very broad, still not specific, spectrum of possibilities.

There is no magic formula that fits all cases. Instead, before turning to a specific knowledge provider, each company must conduct an in-depth internal analysis on its learning needs, maybe supported by an "independent" specialist (which means he/she is not interested in providing that specific knowledge). Only then, with clear requirements in mind, it will be possible to assess what the market offers and choose the most appropriate alternative.

By way of example, the following could be one out of the possible preliminary paths a company might engage in: ...

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English translation by m.b.

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