Human capital: Can it be a source of innovative development in the face of labor shortage and sanctions?

Subject. This article discusses the problems of sustainable economic growth of the Russian economy in the context of new limitations of its possible sources. Objectives. The article aims to answer the question – Is it possible for the Russian economy to grow sustainably in the new conditions, in particular, through technological progress based on investment in human capital, as it is proposed in the new State programmes? Methods. For the study, I used the methods of theoretical and statistical analyses. Results. The article finds that today in Russia, there is no necessary growth in labor productivity, which could ensure sustainable economic growth with a decrease in the population. The article proposes to change the priorities in the policy of economic development towards integration with developing countries with labor-surplus economies that are ready to set up joint ventures and provide access to the international component base. Conclusions. The article concludes that the traditional policy of import substitution for the last decade is incompatible with the labor shortage of the economy.