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What is Endogenous Growth Theory

Handbook of Research on Entrepreneurship, Innovation, Sustainability, and ICTs in the Post-COVID-19 Era
Based on investment in human capital, innovation, technology and knowledge, this theory holds that in a knowledge-based economy positive and spillover effects will lead to economic development.
Published in Chapter:
Contextualising Entrepreneurial Activity: A Paradigm Shift in European Countries
Gonçalo Rodrigues Brás (IN+, LARSyS, Instituto Superior Técnico, Universidade de Lisboa, Portugal & Centre for Business and Economics Research (CeBER), Faculty of Economics, University of Coimbra, Portugal)
DOI: 10.4018/978-1-7998-6776-0.ch001
Abstract
Given the heterogeneity and plasticity of the concept of entrepreneurship, it is crucial to change the paradigm that has prevailed in some European countries driven by necessity entrepreneurship. The proposed model can be used in some European countries to ensure that the entrepreneurial seed establishes sustainable roots rather than moving unexpectedly away from development. European countries with a similar or higher level of necessity-driven entrepreneurship to Portugal could take advantage of the proposed shift in the entrepreneurial paradigm. This implies countries making changes to policies related to the role of entrepreneurship in their sustainable development, potentially accelerated by EU's 7-year budget and COVID-19 recovery package to minimise the fallout of the COVID-19 pandemic on the economy.
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Regional Impact of Innovation: The Case of an H2020 Project in Central and Western Europe
Refers to an economic theory developed during the 1980s and 1990s which holds that economic growth is primarily the result of endogenous and not external forces, so that investment in human capital, innovation, and knowledge are significant contributors to economic growth. The theory also focuses on positive externalities and spill-overs effects of a knowledge-based economy, which will lead to economic development.
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Knowledge-Based Urban Development
Sees economic growth as generated from within a system as a direct result of internal processes, and the enhancement of a nation's human capital that will lead to economic growth by means of the development of new forms of technology and efficient and effective means of production.
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Dynamic Evaluation of Indian Commercial Banking Sector: A Bank-Level Growth Frontier Approach
The endogenous growth theories developed by Romer (1986 , 1990 ), Lucas (1993) AU44: The in-text citation "Lucas (1993)" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. and others showed that endogenous factors cause the aggregate production function to maintain increasing marginal productivity. The main contributing factor is learning by doing, knowledge capital, and the like.
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Governmental and Cultural Factors in Broadband Adoption
An macroeconomic theory in which both technology and policy measures have an effect on long-term growth rates. It arose as a critique of neoclassical growth models which did not explain the origin of growth, assuming it to be exogenous.
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