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The main objective of this paper is to provide an in depth analysis of human resource development index mechanism and the components of the technological achievement Index, and also to find out the relation exist between them as both this parameters are very much dependent on each other. This paper is based on the relation between human resource developments and there relation with economic growth and research capacity. The research and analysis proves that human resource development index alone is not sufficient enough to analyze the economic development of any country. The main factor coming out from this paper is there is a co relation between the trained human resource of any country with the technological development as well as economic growth of that country. According to the analysis of this paper, Croatia along with other developing countries has to make critical investments as well as detail follow up in the line of growth of human capital and their labor productivity to reduce developmental lags which they are having. Key points of the Paper: Before the technological development and restructuring of the organization come in to play, land, labor and capital these three parameters were the key for the growth of any country. But as the time moves on, with the development of organization structure and also the scientific –technological revolution, all set up started to change. For any country which relies on knowledge based economics, both human resources and knowledge simultaneously become key factors for the development. From a broader perspective, human resources defined as the total psycho-physical energy at the disposal of a society, which can be used by the society to achieve its developmental goals (Aksentijevic, Jezic; 2009, pp. 263-264). In regard to evaluating the contribution of human resources to economic growth and development on macro level, education is considered as a basic parameter. In simple words, the development of any country in terms of economic perspective education level is the key factor in spite of the fact that present world is more technology oriented. The paper also suggested that in last few years, it has been a proven fact that there is a close relation between economic growth and development, human resources development, research, innovations and technology, and the theory that economic development is only based on technological and human resource development is being abandoned. In a knowledge-based economy, knowledge management becomes a success strategy, as the effective and proper use of the knowledge base becomes a necessary pre-requisite of economic development. One key finding of this paper is that, the ability to suck up knowledge and successful distribution of new technologies are the key behind development of an economy. (Aksentijevic and Jezic, 2009, pp.266-268) .The basic principle of the ability to absorb knowledge and technology is reflected in greater efficiency of labor force, which generates greater production, and a greater income level. The key results derived from this analysis was the Human Resources Development Index is insufficient in the analysis of economic development and it is mentioned that unambiguous explanations of technological progress of human resources development as the basic force of economic growth is no longer sufficient, is correct (Aksentijevic and Jezic, 2009, pp.269-271). According to this paper, the possible ways of developing economic conditions are: Increase in human capital, Stimulation of productivity. In
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