High-skilled Workforce and Productivity Growth: the Knowledge-based Economics Perspective

Abstract

-Knowledge-based economics has been characterized by productivity growth based on advances in science and technology. The conditions as such will require the existence of human capital with adequate capabilities to improve competitiveness and economic productivity in a country. In this context, higher education graduates can be seen as entities that have an important role as a channel for knowledge transfer from universities to the industry. In turn, the knowledge spillover will be useful for the realization of industrial innovation in order to increase productivity. In this connection, this study aims to examine the role of higher education graduates as high-skilled workforce for various industrial sectors in Indonesia. Using national labor force surveys data as the main data source, this study contributes to filling research gaps on human resources and knowledge-based economic development in the contexts of developing country such as Indonesia. Keywords--Knowledge-based economy; Higher education graduates; Labor; Productivity growth