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The advancement in the field of information technology and the increasing of competitive competition havemade many companies shift from conventional business by relying on labor (labor based business) into knowledge based business of which main characteristic is knowledge. Knowledgebased business is a business that is run with more use of intellectual capital. In order to be able to survive in the business environment, organizations carry out various methods such as creating product innovation, expanding markets, improving service quality, improving production process, improving organizational system, and doing cost saving. Organizational strategies are made and created in order to survive in the rapid changes of environment, and organizational strategies must be able to create competitive advantage (Kusuma, 2005). Banking sector is a business sector that utilizes intellectual capital quite intensively. Banking in Indonesia consists of sharia banking and conventional banking which in principle are high technology and high servicecompanies, also driven by the development of information technology and knowledge in their operational activities so that it has triggered the need for the banks to develop intellectual capital in conducting their business.Based on the above-mentioned matters, it is necessary to conducta study in the banking sector in order to see how far the role of human capital is,as part of intellectual capital and knowledge management,in innovation in banking companies in Indonesia. After discovering the impact, in the following year a further study will be carried out to see how the innovation in the companies would affect the companies’ competitive advantage and what the impact is on company performance.

The Linkages of the Role of Human Capital and Knowledge Management on Innovation: According to a Literature Studies