Abstract

This paper is devoted to exploring the social dynamics of economic behaviour specifically how to encourage endogenous growth. Innovation, the key to successful competition, and therefore growth, must be futher understood. The tecnological aspects of innovation are important, but their presence does not always result in innovation. It will be argued that the organization of the collective is the key to the establishment of the social mechanisms necessary to incorporate change without threatening the system as a whole. The paper concludes with a discussion of policy implications.