The impact of innovation and human capital on economic performance has drawn more and more attention. This is greatly due to the strong trend of globalization and technology development, which characterize the economy as technology or innovation oriented developing pattern. Human capital and innovation are considered as the endogenous factors for supporting the long run economic growth in the new growth theories. In the thesis, we emphasized the multiple relationships between innovation, human capital and economic growth. In the quantitative analysis, the econometric test basically supports the conventional theories about human capital and innovation’s significant positive influence on economic performance in the long run. Thus promoting innovation’s development would be the top priorities for both policy makers and individual firms. In the short run analysis, the Swedish empirical case implies that economic level and old knowledge’s impact on innovation’s creation is tremendous. What’s more, we should also notice that there is an obvious time lag for human capital and R&D investment to significantly affect innovations’ development.