New Growth Theory

"Old Ghost", Dwayne Wilcox (Oglala) Colored pencil and ink on 1893 paper

New Growth Theory

The Rose Approach has powered its comprehensive programs for creating economic growth by connecting to the advanced sciences now being used to model economic growth in our high tech, knowledge-based economy--Chaos, Complexity and Complexity in Cooperation-all encapsulated under what is now called New Growth Theory. We do not limit our activities to the narrow paradigm of conventional economic theory built around the assumptions of diminishing returns. Instead, we have expanded the paradigm of economic modeling to include the economics of increasing returns. Unlike most economic development practitioners, Rose Community Development has connected itself to the latest academic studies about economic growth and has incorporated those studies into its approach. Rose Community Development agrees with academic centers that say that neoclassical economic theory is not necessarily wrong, but that it is incomplete. Rose Community Development does believe that community economic development models based on traditional, neoclassical economic theory are incomplete and therefore unsustainable.

While parts of the world's economy are resource-based,(agriculture, bulk goods production, mining) and are for the most part subject to diminishing returns and conventional economics, the knowledge based economy (products such as computers, pharmaceuticals, missiles, aeronautics, automobiles, software, telecommunications equipment, fiber optics) are largely subject to increasing returns.

Rose Corporation uses the principles of modern physics and applied mathematics as exemplified in chaos and complexity theory, to develop accelerated economic models around existing economic activities of the knowledge based economy, in order to address the economic needs of the communities involved. This replaces the failed approach of applying social theories to address economic needs.

The Rose approach to community economic modeling, following New Growth Theory, emphasizes the economic growth that results from the increasing returns associated with knowledge. Knowledge and technology are both characterized by increasing returns and as such, they are critical to the creation of accelerated economic growth. These critical acceleration factors are internalized in the economic models used by Rose Community Development.

To learn more about New Growth Theory click the link below
New Growth Theory.pdf