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Endogenous Growth Theory and Regional Extensions

  • Zoltan AcsEmail author
  • Mark Sanders
Reference work entry

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 then 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 further research. Once again, the importance of cities, organizations, and entrepreneurship is being 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.

Keywords

Knowledge Spillover Knowledge Creation Endogenous Growth Economic Geography Growth Theory 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.School of Public PolicyGeorge Mason UniversityFairfaxUSA
  2. 2.Utrecht School of EconomicsUtrechtThe Netherlands

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