Changing Endogenous Development: the Territorial Capital


  • Balázs István Tóth University of West Hungary, Faculty of Economics, István Széchenyi Management and Organisation Doctoral School


The aim of this research is to analyze territorial capital as a new paradigm to make best use of endogenous assets. The study is dealing with the preconditions, meaning and possible theoretical taxonomies of territorial capital. In this study I emphasize that the cumulative effects of regional potentials are more important than economies of scale and location factors. I present different approaches and interpretations of territorial capital, then make an attempt to create an own model. I try to find answers for questions, such as why territorial capital shows a new perspective of urban and regional development; how cognitive elements of territorial capital provide increasing return; how territorial capital influences competitiveness and what kind of relation it has with cohesion.


Barca, F (2009). An Agenda for a Reformed Cohesion Policy. A Placed-based Approach to Meeting European Union challanges and expectations. Independent report prepared at the request of Danuta Hübner, Commissioner of Regional Policy

Becker, G. S (1993). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. University of Chicago Press, Chicago

Bougas, A (2001). Progress and Challenges in the Evaluation of European Structural Policies. Informationen zur Raumentwicklung. 6. p. 311-314.

Bourdieu, P (1983). Ökonomische Kapital, kulturelles Kapital, soziales Kapital. In: Kreckel, R. (Hrsg.): Soziale Ungleichheiten. Soziale Welt. Sonderband 2. Göttingen, p. 183-198.

Camagni, R (2008). Regional Competitiveness. Towards a Theory of Territorial Capital. In: Capello et al. (eds.): Modelling Regional Scenarios for the Enlarged Europe. European Competitiveness and Global Strategies. Springer, Berlin, p. 33-46.

Capello, R., Caragliu, A., Nijkamp, P (2009). Territorial Capital and Regional Growth: Increasing Returns in Cognitive Knowledge Use. Timbergen Institute Discussion Papers. 09-059/3. Timbergen Institute

Coleman, J. S (1988). Social Capital in the Creation of Human Capital. The American Journal of Sociology. 94/Supplement. p. 95-120.

Costanza, R., Daly, H. E (1992). Natural capital and sustainable development. Conservation Biology. 6. p. 37-46.

Costanza, R (2008). Natural capital. In: Cleveland, C. J (ed): Encyclopedia of Earth. Environmental Information Coalition, National Council for Science and the Environment. Washington, D.C

European Commission (EC) (2005). Territorial state and perspectives of the European Union. Scoping Document and Summary of Political Messages. Brussels

European Commission (EC) (2007). Growing Regions, Growing Europe. Fourth Report on Economic and Social Cohesion. Brussels

European Commission (EC) (2010). Europe 2020: A Strategy for Smart, Sustainable and Inclusive Growth. Brussels

Florida, R (2002). The Rise of Creative Class. Basic Books, New York

Fukuyama, F (1996). Trust. The Social Virtues and the Creation of Prosperity. Free Press Papaerbacks Book, New York

Gertler, M. S (2005). Tacit Knowledge, Path Dependency and Local Trajectories in Growth. In: Fuchs, G., Shapira, P. (eds.): Rethinking Regional Innovation and Change: Path Dependency or Regional Breakthrough. Spronger Science + Business Media Inc., Boston, p. 23-42.

Giffinger, R (2007). Territorial Capital: a New Pespective on Urban Competitiveness? Conference presentation. SPA-CE.NET Conference, September

Giffinger, R., Hamedinger, A (2008). Metropolitan Competitiveness reconsidered: the Role of Territorial Capital and Metropolitan Governance. Conference presentation. 48th Congress of the European Regional Science Association, August

Isard, W (1975). Introduction to Regional Science. Prentice-Hall Inc. Englewood Cliffs, New Jersey

Jansson, A. M., Hammer, M., Folke, C., Costanza, R. (eds.) (1994). Investing in Natural Capital: The Ecological Economics Approach to Sustainability. Island Press, Washington D.C.

Judson, R (2002). Measuring Human Capital Like Physical Capital: What Does It Tell Us? Bulletin of Economic Research. 3. p. 209–231.

Konvitz, J. W (2000). Changing economies: The territorial dimension. Informationen zur Raumentwicklung. 11. p. 657-663.

Molle, W (2007). European Cohesion Policy. Routledge, London–New York

Nonaka, I., Takeuchi, H (1995): The Knowledge-Creating Company. Oxford University Press, Oxford

OECD (2001). Territorial Outlook. OECD, Paris

Perman, R., Ma, Y., McGilvray, J (1996). Natural and Environmental Resource Economics. Longman, London

Putnam, R. D (1993). The Prosperous Community - Social Capital and Public Life. The American Prospect. 4/13. p. 27-40.

Sprenger, R. U (2001). Inter-firm Networks and Regional Networks. ADAPT, Bonn

Schultz, T. W (1961). Investment in human capital. The American Economic Review. 1. p. 1-17.

Stewart, T (1995). Intellectual Capital. Doubleday/Currency, New York

Sveiby, K. E (1997). The New Organizational Wealth: Managing and Measuring Knowledge-Based Assets. Berett-Koehler Publishers, San Fransisco

Tomer, J. F (1987). Organizational Capital: The Path to Higher Productivity and Well-Being. Praeger Publishing Co., New York