ECONOMIC GROWTH AND DEVELOPMENT-4 WHEEL MODEL WITH SPECIAL EMPHASIS ON INVESTMENT IN HUMAN CAPITAL AND TECHNOLOGICAL INNOVATION

The complexity of today's environment requires an integrative approach in the analysis in order to define new models of economic growth and development. Considering the numerous studies in the categorization of developed, developing and underdeveloped countries, it can be seen that as a criterion it is usually taken the GDP per capita. However, a deeper analysis leads to the other variables, such as life expectancy, education, health care, the use of modern technology and etc. which are in direct correlation with the development of a country. Considering, this fact, it is clear that the creation of new economic models for sustainable development must include the human aspects, which have been largely neglected, so far in economic theory. Past models were based primarily on the use of the basic factors of production. As the example of this is Switzerland, the first ranking country in the Global Competitiveness Index for the last eight years. But also the same ranking country in the efficiency of the work force, innovation and readiness in accepting the new technologies. Switzerland is fourth ranking in index of education and eight of the health care index. These indicators show us precisely the importance of human capital in creating a new framework for economic development. The new model of economic growth and development must include the four aspects, namely: human capital, innovation and technology, capital investment and natural resources. An important role in the formation of such a model of sustainable economic growth and development must have the government, as the main strategist in defining desirable priorities.