Reproduction of Human Potential in Economic Development Strategies from a Cross-Country Perspective

The main prerequisite for expanding the studied aspects of the human potential concept (human development) was the fact that today there are groups of countries with similar high human potential assessments and different indicators of economic development. The study of the conditions for the implementation of human potential for economic growth is largely ignored in the scientific literature. The aim of the study is to identify key aspects of human potential reproduction in state strategies for long-term development in leading countries in terms of technological and scientific progress. It is necessary to give a general assessment of human potential, study the measures of state policy to stimulate R&D, assess the relationship between long-term economic growth, education of the population and the quality of public administration, study the strategies of states for building a system of reproduction and realization of human potential in modern conditions. Simple stimulation of demand through R&D subsidies and tax incentives can lead to an inflated cost of research without increasing its quantity and quality. Human potential is often defined through the level of education of the population. In the context of the development of an innovative economy, science becomes the most important step in the implementation of the educational component of potential. Countries often do not take into account the importance of supply-side policy in the form of timely development of the education system (primarily technical), investment in infrastructure (universities, buildings, laboratories, logistics), popularization of a scientific career, assistance in the influx of highly qualified personnel, etc. It was shown that ultimately, an increase in the education of the population as a whole leads to a higher quality and satisfactory state policy. An analysis of key strategic documents has revealed a number of pressing challenges for countries seeking long-term economic growth: there is no connection between the components of reproduction and the implementation of human potential, which leads to a decrease in the effectiveness of public administration. The exceptions among the countries studied are Japan and South Korea, which place human potential at the center of their long-term development strategies. The article includes a general assessment of the reproduction of human potential, the relationship between long-term economic growth, education of the population and the quality of public administration, and a study of state strategies for building a system of reproduction and implementation of human potential in modern conditions.

1. Bodrunov S.D., Zolotarev A.A. (2024) Transition to Noonomy, Problems of Technological Sovereignty, and Regional Development. Ekonomika Severo-Zapada: problemy i perspektivy razvitiya. No. 1(76). P. 75–79. DOI: 10.52897/2411-4588-2024-1-75-79

2. Castle S.D., Byrd W.C., Koester B.P. et al. (2024) Systemic Advantage Has a Meaningful Relationship with Grade Outcomes in Students’ Early STEM Courses at Six Research Universities. International Journal of STEM Education. Vol. 11. DOI: 10.1186/s40594-024-00474-7

3. Goolsbee A. (1998) Does Government R&D Policy Mainly Benefit Scientists and Engineers? American Economic Review. Vol. 88. Is. 2. P. 298–302.

4. Guenther G. (2015) Research Tax Credit: Current Law and Policy Issues for the 114th Congress. Congressional Research Service. 2015. Available at: https://nationalaglawcenter.org/wp-content/uploads/assets/crs/RL31181.pdf

5. Hanushek E.A., Woessmann L. (2015) The Knowledge Capital of Nations: Education and the Economics of Growth. Cambridge, MA: MIT Press.

6. Molchanov I.N. (2025) Education and Economic Growth: The Present and a Look into the Future. Gosudarstvennoye upravleniye. Elektronnyy vestnik. No. 108. P. 68–79. DOI: 10.55959/MSU2070-1381-108-2025-68-79

7. Romer P.M. (2001) Should the Government Subsidize Supply or Demand in the Market for Scientists and Engineers? In: Jaffe A., Lerner J., Stern S. (eds.) Innovation Policy and the Economy, vol. 1. Cambridge, MA: MIT Press. P. 221–252.

8. Santacreu A.M., Zhu H. (2018) How Did South Korea’s Economy Develop So Quickly? St. Louis Fed on the Economy. Available at: https://www.stlouisfed.org/on-the-economy/2018/march/how-south-korea-economy-develop-quickly

9. Ufuk A., Stantcheva S. (2020) Taxation and Innovation: What Do We Know? NBER Working Paper No. 27109. Available at: https://www.nber.org/papers/w27109

10. Warwick K. (2013) Beyond Industrial Policy: Emerging Issues and New Trends. OECD Science, Technology and Industry Policy Papers. No. 2. Available at: https://www.oecd.org/en/publications/beyond-industrial-policy_5k4869clw0xp-en.html