Human capital and innovativeness of the European Union regions

The objective of this article is to analyze and classify European Union (EU) regions according to human capital and innovativeness. Innovativeness of 225 EU NUTS-2 regions within 2008-2010 is analyzed with special attention paid to human capital. Eighteen indicators of innovativeness and human capital were adapted and transformed into four mutually orthogonal components, with use of factor analysis. The use of factor analysis eliminated the portions of information overlapping in indicators proposed in the beginning of the analysis. It is one of the beneficial differences between the approach presented in this article and the Regional Innovation Scoreboard. A second difference is the scope, for in this article the specific meaning of human capital in the innovation process was highlighted. On this basis the EU regions were classified in five homogeneous groups. It enabled the authors to draw conclusions concerning the areas of innovativeness which need specific support and the potential to be exploited. On the basis of our article concerning the issue of relatively poor innovativeness of some EU regions' economies, it's worth stressing that underinvestment in the field of human capital is one of the basic causes which determine different results obtained in innovation activity.