Territorial Dimension of Human Capital

The purpose of the work is to identify the ways and scope of territorialization processes of human capital as well as to analyze its perception and values in economic processes. Theoretical research begins with the identification of human resources as a production factor that is reevaluated and reinterpreted towards the concept of human capital. Human capital is not initially associated with the place and space, especially in the initial period of globalization of the late twentieth century. However, also under the global trends it is getting territorialised, which is raising the role of territory in economic processes both in the local, as well as in global scale. At the same time, the nature of innovative processes also changes, from a linear model to open innovation systems. These systems are also determined by the properties of the territory. Thus, two important features of human capital are revealed through evolution, subject to embeddedness and concentration processes. Human capital is an important element of territorial capital that determines the existence and attractiveness of innovative entrepreneurial milieu. The role of the spatial proximity of the institutional environment is invaluable in his investment process.