ABSTRACT
Many factors that affect the expansion of human capabilities seem to directly impact the functioning of innovation processes. Innovation, too, contributes directly and indirectly to the expansion of capabilities. Equality plays a crucial role in the link between human development and innovation. The idea that the innovation processes can benefit from giving greater attention to freedom, and that innovation can foster processes of change and economic growth necessary for the expansion of capabilities, hypothesise the existence of virtuous circles between innovation, human development and economic growth. In order to maximise the potential of a virtuous link between human development and innovation, macroeconomic and welfare policies need to be consistent with the previously identified objectives. Employees are at the centre of interactions that sustain innovation: thus, considering them only as a production cost greatly limits the growth capacity of enterprises.
