Capital, institutions and urban growth systems

In recent years, both endogenous capital accumulation and institutional theories of economic growth have emerged as central sources for explaining uneven development across cities and regions. This article seeks to connect both theoretical stances as a means of explaining urban and regional growth differentials. It conceptualises urban and regional economies as growth systems combining the interaction between capital and institutions at the firm, inter-firm and spatial level. In these systems, the capital drivers of growth are not merely the result of preferences and existing capital endowments, but are mediated by a set of institutional factors.