Companies would react by investing in more physical capital, and in the innovation needed to make that capital (and the people who work with it) more productive. (bloomberg.com)
The odd thing is that even though most industrial nations acknowledged the change from physical capital to human capital, only one did much about it until well into the 20th century. (educationnext.org)
Although the example above regards physical capital, these same decisions are made with human capital. (fortune.com)