Keyword: «economics of education»

The relevance of this research stems from the increasing role of human capital as a key factor in economic development amid digital transformation, coupled with the intensive implementation of pedagogical innovations despite inadequate understanding of their actual economic efficiency. A fundamental contradiction exists between the scale of global investments in education and the limited clarity regarding the mechanisms by which these investments translate into measurable socioeconomic outcomes. The absence of an integrative theoretical model impedes evidence-based decision-making in educational policy. The aim of the study is the theoretical analysis and conceptualization of the relationship between human capital investments and the effectiveness of pedagogical innovations within the context of the modern economics of education. The methodological basis is a systemic and interdisciplinary approach, integrating neoclassical human capital theory, institutional economics, and contemporary pedagogical concepts. The primary method is a systematic review of domestic and international literature for the period 2020–2025, supplemented by comparative analysis, critical analysis, and theoretical modeling. The main results include: the systematization of contemporary approaches to evaluating investments and innovation effectiveness; the identification of critical research gaps; the development of a typology of pedagogical innovations based on economic characteristics; and the formulation of an integrative theoretical model that reflects the nonlinear relationships among investments, innovations, mediating factors, and educational outcomes. The theoretical significance of the work lies in its contribution to the development of the economics of education through the conceptualization of the mechanisms for transforming investments into qualitative changes in human capital via pedagogical innovations. The practical significance lies in the applicability of the developed model for justifying investment decisions at the level of public educational policy and educational organization management, as well as for designing evidence-based programs for implementing pedagogical innovations. The scientific novelty of the research consists in the theoretical substantiation of the link between human capital investment and the effectiveness of pedagogical innovations based on an interdisciplinary synthesis of economic theory and pedagogical science. It marks the first attempt at a comprehensive systematization of the criteria for evaluating the effectiveness of pedagogical innovations within the framework of human capital theory.