Human Capital for the Knowledge Economy

Human Capital for the Knowledge Economy offers a compelling investigation into how advanced capitalist democracies have reshaped higher education to meet the demands of their national knowledge economies. As non-routine cognitive tasks become increasingly crucial in labour markets transformed by technological change, countries have expanded higher education since the mid-1990s. Yet, as this book reveals, national approaches to creating high-level skills diverge sharply, shaped by deep institutional and political differences. This study sets out to explain those differences.

At its core is a novel analytical framework that links two key dimensions: the sectoral specialisation of national economies—whether oriented toward advanced manufacturing or high-end services—and the institutional design of higher education systems, including modes of financing and patterns of differentiation. From this, the book identifies four ideal-typical state-led strategies—allocation, modification, facilitation, and information—to explain how different countries align higher education with labour market demands.

Drawing on cross-national quantitative data and detailed case studies of Germany, South Korea, the Netherlands, and the United Kingdom, Human Capital for the Knowledge Economy explores how policy choices and institutional legacies shape countries' distinct 'upskill journeys'.

The book also speaks to urgent contemporary policy debates. As governments confront the twin pressures of sustaining economic competitiveness and achieving broader societal goals—such as those entailed by the green transition—higher education becomes both more central and more politically contested.