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Endogenous Growth Theory and Regional Extensions

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Handbook of Regional Science

Abstract

In this chapter, we outline the basic mechanisms in endogenous growth theory that identify knowledge creation and diffusion as the core driver of economic growth. Then we discuss how new economic geography, urban economics, organizational science, and entrepreneurship theory have “regionalized” the mechanisms involved. Knowledge creation, however, has been dubbed a “proximate cause” of growth, and the quest for “fundamental causes” has continued. We discuss this recent development in macroeconomic growth theory and argue that the new “institutional approach to growth” opens up a lot of new avenues for future research. Once again, the importance of cities, organizations, and entrepreneurship is largely ignored in macro growth theory. Yet economic geography, urban economics, organizational science, and entrepreneurship theory have a lot to contribute to growth theory by both empirically and theoretically developing our understanding of local institutions and linking these to regional economic development and growth.

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Authors and Affiliations

  1. Schar School of Policy and Government, George Mason University, Fairfax, VA, USA

    Zoltan Acs

  2. Utrecht School of Economics, Utrecht University, Utrecht, The Netherlands

    Mark Sanders

Authors
  1. Zoltan Acs
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  2. Mark Sanders
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Correspondence to Mark Sanders .

Editor information

Editors and Affiliations

  1. Institute for Economic Geography and GIScience, Vienna University of Economics and Business, Vienna, Austria

    Manfred M. Fischer

  2. and Business Administration Department of Spatial Economics, Free University Faculty of Economics, Amsterdam, The Netherlands

    Peter Nijkamp

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Acs, Z., Sanders, M. (2019). Endogenous Growth Theory and Regional Extensions. In: Fischer, M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36203-3_13-1

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  • DOI: https://doi.org/10.1007/978-3-642-36203-3_13-1

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-36203-3

  • Online ISBN: 978-3-642-36203-3

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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