Introduction. For long term and successful economic development, human resources effective use takes on a particular importance. Thus, it is important to use the existing skills to the full, contribute to the growth in skills accumulation, and bring them in line with the topical and practical objectives of the country. The goal of the study is to define the correlation and influence of institutions and the institutional environment with the elements of human capital. To study the correlation of human capital with acting institutions, the bibliographical, corporate, and logico-structural methods were used. Results. The article offers an analysis of correlation of reproduction and accumulation of human capital with the existing institutions in the country. According to the results obtained, it was concluded that despite the positive correlation between the human capital and successful economic development, the institutions of the family and state were an important factor. Moreover, the effect of human capital development becomes stronger with the effective correlation of the two factors. This study may be interesting for managers of regional and federal importance as well as for the specialists in the strategic development of regions, development of the employees for the innovative economy.