ENThis article investigates how human and social capital can affect innovativeness and economic development. It also examines the level of human capital in the Baltic countries, especially in relation to the European Union average. The analysis showed that in the Baltic states there are untapped conditions and possibilities for substantial improvement of economic competitiveness and innovativeness inherent in human capital. This particular potential distinguishes them from other European countries. One of the ways to improve the quality of human capital is to strive for continuous improvement of the professional competence of the society and life-long learning is an essential element of this process. In this area, the Baltic states still lag behind the developed countries of Western Europe. Competent and qualified employees working in various organizations, businesses and public institutions can significantly contribute to raising the level of economic development.