Human capital in business value

Abstract

Abstract. Schumpeter [7] pointed out that in today's advanced economies, innovation is essential for development and growth. It has now become clear that human resources are a more effective factor in further economic growth than increasing invested capital [2, 6]. However, in their published financial reports on their operations and economic situation, companies determine and communicate the value of the company based on the book value. However, according to many opinions, this procedure does not show the real value.