<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Competitiveness of a region shows its ability to generate adequate amount of exports, on the one hand, and to ensure full employment and rising income levels of workers, on the other hand. In this context, it follows that productivity growth of locally-oriented economic activities is decisive for improving regional competitiveness. The paper starts with the premise that to understand the nature of the phenomenon of regional competitiveness, it is of great importance to know the basic theoretical postulates of endogenous growth theory. The paper examines the most significant messages of the theories of endogenous growth for the policy of regional competitiveness development (the growth of investment in education, training, research and development, i.e. investments in factors that decisively contribute to the commercialisation of knowledge in innovations). The aim of the paper is to present how each of these mechanisms influences the growing efficiency of accumulation of factors of regional economic growth, thanks to manifestation of various external effects. The importance of research is reflected in the quotation of conclusions of the supporters of endogenous explanation of growth that no economic convergence is necessary at all. In a word, economically more superior regions can smoothly improve competitiveness and raise the living standards of their inhabitants, while economically less developed regions can always be poor and insufficiently competitive. This is also a very strong message of the creators of regional policies.</p></abstract>

Competitiveness of a region shows its ability to generate adequate amount of exports, on the one hand, and to ensure full employment and rising income levels of workers, on the other hand. In this context, it follows that productivity growth of locally-oriented economic activities is decisive for improving regional competitiveness. The paper starts with the premise that to understand the nature of the phenomenon of regional competitiveness, it is of great importance to know the basic theoretical postulates of endogenous growth theory. The paper examines the most significant messages of the theories of endogenous growth for the policy of regional competitiveness development (the growth of investment in education, training, research and development, i.e. investments in factors that decisively contribute to the commercialisation of knowledge in innovations). The aim of the paper is to present how each of these mechanisms influences the growing efficiency of accumulation of factors of regional economic growth, thanks to manifestation of various external effects. The importance of research is reflected in the quotation of conclusions of the supporters of endogenous explanation of growth that no economic convergence is necessary at all. In a word, economically more superior regions can smoothly improve competitiveness and raise the living standards of their inhabitants, while economically less developed regions can always be poor and insufficiently competitive. This is also a very strong message of the creators of regional policies.

Improving Regional Competitiveness in the Light of Endogenous Growth Theory Recommendations

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Competitiveness of a region shows its ability to generate adequate amount of exports, on the one hand, and to ensure full employment and rising income levels...

Improving Regional Competitiveness in the Light of Endogenous Growth Theory Recommendations

Publié en ligne: 28 nov. 2017

Pages: 319 - 333

Reçu: 21 févr. 2017

Accepté: 15 août 2017

DOI: https://doi.org/10.1515/ethemes-2017-0018

Mots clés
endogenous growth, competitiveness, regional competitiveness, externalities, human capital, regional divergence

© 2017 David Jovović, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Improving Regional Competitiveness in the Light of Endogenous Growth Theory Recommendations

Publié en ligne: 28 nov. 2017

Pages: 319 - 333

Reçu: 21 févr. 2017

Accepté: 15 août 2017

DOI: https://doi.org/10.1515/ethemes-2017-0018

Mots clésendogenous growth, competitiveness, regional competitiveness, externalities, human capital, regional divergence

© 2017 David Jovović, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Mots clés
endogenous growth, competitiveness, regional competitiveness, externalities, human capital, regional divergence