Investments in Human Capital as a Competitive Factor of St. Petersburg

Abstract

This study describes the government’s focus on enhancing and promoting regional competitiveness by investing in the formation, improvement, and development of human capital with the aim to implement it in the process of social reproduction at the current stage of the country’s economic development. Aim. This study aims to expose the crucial problems faced by government authorities in promoting regional competitiveness, sustainable economic growth, and people’s quality of life. Tasks. This study examines human capital as a key factor in enhancing competitiveness of St. Petersburg and shows that the quality and efficient use of human capital affect market economy conditions. Methods. Objective and complex assessment of human capital and investment processes in the city is used as a basis for taking managerial decisions that affect the city’s competitiveness. Availability of human capital in St. Petersburg largely determines the efficiency of the investment processes and serves as the main force that drives the development of the said processes. Results. At the current stage of economic development in St. Petersburg, analysis and comparison show that economic growth and national competitiveness is hindered by underutilization of human capital. Conclusion. The study reflects the active measures undertaken by St. Petersburg for efficiently forming and developing human capital for economic development.