Role of Human Capital and Innovation in Economic Growth : Comparative Study of India and China

The paper evaluates the role of human capital and innovation in economic growth. Human capital and innovation has become crucial for economic growth in the globalized economy. The study compares human capital, innovation parameters and GDP for India and China. Secondary data is used for the study. Patent and GDP data is considered from 2001 to 2015. It is found that China has focused on education and innovation to support aggressive growth oriented policies. A significant positive correlation was found between patent and GDP in India and China. Patent growth rate showed significant differences between India and China. The demographic profile, political activism, and judicious use of information technology can strengthen the innovation ecosystem and economic growth in India