Background: Innovation in education is found to improve human capital with relevant knowledge and skills in schools. Innovation in education maintains competitive advantage for an individual, a dominant discourse of knowledge, and a source of productivity. Governments have now embraced innovation in education as an approach to create more efficient education systems. The objectives of the study are; To identify strategies of innovation in education that improve human capital development; To examine the effectiveness of innovation in education that improve policies of human capital development and, to identify the challenges to innovation in education that affect human capital development. Methods: The study explore the human capital theory, this postulates the significance of education and training as elements of educational investment that encourage the competitiveness of human capital. The study identified and evaluated data from 2015 to 2020 that followed the systematic literature review method which used a documented research process for inclusion and exclusion of selected articles, and created evidence to suit the research objectives. Results: The results indicated that innovation in education implored employee’s education and training, professional development, total quality management and adoption of digital technologies. Conclusion: The study recommended that education institutions should implore innovation in education to increase knowledge, skills, and competencies for human capital development.
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