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The article is devoted to analysis of the principal mechanisms behind the impact of human capital on the regional innovation development. The study is based on panel data covering 74 regions of Russia for the period of 2010–2017 provided by the Federal State Statistics Service of the Russian Federation. Innovation result was measured with the average volume of innovation goods and services per an innovative firm. The results show that the share of employees with higher and secondary education, marginal propensity for consumption and the share of researchers younger than 39 years old have the strongest impact on innovation development in the Russian regions. According to the results, for innovation development qualified employees both with higher and secondary education are essential. The results will be useful for development of economic policy in the field of human capital and innovation.
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