The financing of the productive service through HCC*
Jiří Mihola, Radim Valenčík
The following Figure 5 depicts the development of labour productivity from the beginning of our era:
We can see that G(HDP/L), (i.e. rate of growth per labour unit), starts to increase markedly in the initial phase of the industrial revolution and keeps growing to this day. However, its growth is decreasing and shall stabilize at the average interannual rate of 1.4 %:
The transition to economy based on productive services can launch a similar process. Not only does the economic growth have an exponential nature from a long-term perspective, but it is actually faster. At a certain period the exponential dynamics of this growth started to accelerate and stabilized (so far) on exponential growth that corresponds to the average interannual rate of 1.4 % of rate of growth per labour unit (i.e. absolute growth is higher as a result of labour reserve gain). This increase in the rate of growth, well-described in graph 7 presenting the increase of average long-term gains, occurs during the industrial revolution. Throughout the industrial revolution, the respective dynamics is slightly increasing. Rather than to expect the rate of growth to decrease, we are more likely to experience similar increase as the one during the industrial revolution when the change of the economic growth character causes increase in its interannual dynamics from the present 1.4 % to a higher number as indicated by the following Figure 7:
Figure 7: The transition to the Economy Based on Productive Services
Another analysis presents intensive factors of growth entering the economy during the industrial revolution. First, there was room for capital accumulation (which was not the intensive factor of growth yet), only then did the capital accumulation provide room for applying innovations related to technical progress.
Intensive factors stand for all positive changes as against the expansion of production solely based on expanding the production scope. The basic circle provides innovations of all kinds supported by patents and inventions i.e. by the development of science and knowledge in the broadest sense of the word. The intensive factors also include numerous improvements such as better work organization, more efficient management, effective motivation and marketing etc.
The growth in influence of intensive factors depends on the level of human capital. The key elements are utilization and development of those primary human skills possessed by all individuals. This complex of skills and faculties is always individual and original for every individual, however, it is possible to find a job that can be the most suitable for this person. Therein lies the biggest present reserve of society development.
The dynamic parameter of intensity is determined by the relationship and the dynamic parameter of extensity is determined by the expression, where G(SIF) is the rate of growth of the total input factor and G(SPF) is the rate of growth of the total productivity factors.
The dynamic parameter of intensity expresses the portion of intensive factors influence, whereas the dynamic parameter of extensity expresses the portion of extensive factors influence. If both factors exert influence upon the growth, their sum equals 1 (or 100 %).
Productive services of their own nature (suitable selection of profession, acceleration of professional preparation, acquirement of higher-level innovation skills, extension of the period of their acquirement and application, enhancement of the effectiveness of their application) lead to the enhancement of intensive factors influence. Technically speaking, they are the growth factor that enhances intensification, which makes it quite a distinct intensive factor.
The development of intensity and extensity of the world development from the beginning of our era is shown in the upper graph. It clearly demonstrates that a significant arrival of intensive factors corresponds to the period of industrial revolution. By that time, the development had been quite moderate, so the significance of dynamic parameters was markedly smaller with this tiny product growth. This development came close to a purely extensive development.
The input of human skills that "are recast" within a technical progress is the factor of intensive growth and we can express it and even imagine. Productive services intensify the process of overall utilization of human faculties (through their effective acquirement, better maintenance and application) and affect the intensification of the intensive factor. Future breakdown of the portion of extensive, intensive and super intensive growth factors may take the form presented in the Figure 9.
(To be continued)
* Následující text je zpracován s využitím materiálů prezentovaných na mezinárodní konferenci. Zařazujeme jej jako přípravný materiál na pracovní část 17. ročníku naší konference Lidský kapitál a investice do vzdělání mj. i vzhledem k tomu, že jsme její termín posunuli až na 5.12. a že se na její obsah dotazují i zahraniční zájemci.