Human capital is important for company growth, as well as for economic growth. Human capital consists of knowledge and ideas that can be contributed to an organization to accomplish goals. It can partially be explained through the Romer model – Ideas Production Function:
∆A_(t+1) = z ̅A_t L_at
So what does this even mean? Let me break it down.
- A_(t+1) is the amount of ideas that have been developed up to t
- L_at is the input of labor
- z ̅ is the productivity in the idea sector
This explains that there are not diminishing returns on ideas. The equation also explains that even old ideas contribute to more new ideas, thus creating a never-ending cycle of the growth of ideas, which in turn promotes overall economic growth.
But how do we develop ideas and a smarter labor-force that can create new ideas to contribute to businesses and the economy?
The most common answer is formal education. Although education in the classroom is a key factor for creating new, innovative ideas, there are other possible ways as well – one of them being internships. Internships not only give a person experience in the field, but also the opportunity to apply what was taught in the classroom to real-world situations.
As an intern, here at APCM, I can proudly say that I was able to experience the real world of finance and business that expanded on and enhanced my education in the classroom. I not only applied my Microsoft Office skills to update Excel spreadsheets full of interesting data, but also acquired a new set of skills such as coding, knowledge of Sharepoint, MoneyGuidePro, Bloomberg, and Salentica. I also saw some personal development within myself, in particular with soft-skills such as interpersonal communication between employees and clients.
As finals and summer come rushing in during these next few weeks, I will be on my next educational journey and bid farewell to the awesome APCM team that gave me the opportunity to learn and develop into a better, more knowledgeable future employee of the business world.