Enhancing Economic Competitiveness Through Education: A Literature Review of Relevant Development Models

Abstract

Education is one of the key pillars in achieving sustainable and inclusive economic development. This article aims to critically examine the relationship between education and economic competitiveness through a literature review approach. The study analyzes various relevant development models such as the Endogenous Growth Model, Triple Helix Model, and Knowledge-Based Economy, while also comparing their implementation in countries that have successfully integrated education into their economic development strategies, including Finland, South Korea, and Singapore. This review summarizes key findings from studies conducted over the past decade, which demonstrate a positive correlation between quality education and economic growth. It also identifies enabling factors such as innovative policies, cross-sectoral collaboration, and the digitalization of education, alongside structural barriers such as unequal access and skills mismatch. The findings suggest that education not only improves human capital quality but also serves as a catalyst for building an innovation ecosystem that strengthens a nation's or region’s competitiveness. This article offers strategic policy recommendations for governments and stakeholders, including the need for education-business integration and curriculum adaptation in response to global and local economic dynamics. Moreover, it highlights the importance of further context-specific research, particularly at the regional level such as in Subang Regency, to ensure that education truly serves as a driver of economic development.