Improving Regional Competitiveness in the Light of Endogenous Growth Theory Recommendations

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.