Counting heads: A breakthrough in measuring the knowledge economy

Economist.com | Economics focus:

"TO WHAT extent is economic growth driven by the acquisition of 'human capital'? Many economists have pursued the answer over the past 20 years, but without great success. Despite building and rebuilding elaborate growth models, they have failed to prove that better education and training significantly raises a country's long-term growth. Recently, though, a Canadian team made a breakthrough. It found that, if you measure actual skills rather than educational qualifications, human capital becomes a strong predictor of economic growth."