Why Does Economic Growth Occur in Some Cities and Not Others? The Importance of Small Amounts of Capital for Small Businesses Innovation

Abstract

In The Lever of Riches, (1990), Joel Mokyr reviews the relationship between economic development and technological innovation by first raising the question why economic growth occurs in some regions and not others.

Mokyr perceives an interplay of forces between social factors and economic factors that, in some cases, leads to technological innovation. The outcome of this interplay of forces is contingent. Some societies have institutions and cultural values that promote technological innovation, which causes economic growth. Some societies do not.

Among the most important resources for promoting economic growth is capital for innovation.

Keywords: assest based lending, regional economic growth, job creation, small business, innovation

JEL Classification: L16, M13, O16, O31, O32, O33, O34, O38, R12, R15, R58