This paper applies New Growth Theory (NGT) to the economic development plan of the Institute for Advanced Learning and Research (IALR) for the Dan River region. New Growth Theory is summarized into five concepts: knowledge and human capital, technology, flexible production and innovation, and the institutional environment. The IALR program demonstrates this NGT framework. The IALR program seeks to promote growth by attracting exogenous demand for innovation and high tech. Endogenously, the program plans to create an institutional support environment and human capital infrastructure. The New Growth Theory supports the IALR in developing a knowledge based economy.
However, the New Growth Theory has limitations in application for economic development. It assumes that the targeted economy has some physical and social infrastructure. The Dan River region lacks transportation infrastructure and a history of valuing higher education. The New Growth Theory assumes that using knowledge as a factor will insure against diminishing returns. However, growth from high tech is risky and uneven. The IALR program is an example of an under-educated region trying to transform its economy by using high tech. What may happen is an increased gap between the lower and higher income population, with skilled knowledge labor being recruited and the existing human capital not able to keep up with the new skill requirements. Finally, while the Dan River region has a need to work on quality of life aspects, such as living conditions, equity, the environment, health and civic infrastructure, New Growth Theory does not consider these aspects. / Master of Public and International Affairs
| Identifer | oai:union.ndltd.org:VTETD/oai:vtechworks.lib.vt.edu:10919/9713 |
| Date | 12 February 2004 |
| Creators | Materna, Jane M. |
| Contributors | Public and International Affairs, Stephenson, Max O. Jr., Franklin, Tim, Ridenour, Minnis E., Mayer, Heike |
| Publisher | Virginia Tech |
| Source Sets | Virginia Tech Theses and Dissertation |
| Detected Language | English |
| Type | Major paper |
| Format | ETD |
| Rights | I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to Virginia Tech or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
| Relation | maternamajorpaper.pdf |
Page generated in 0.0026 seconds