It's better to catch theendogenous growthand its specificities in the face of exogenous theory to address revisions of the SES tray effectively. This concept, at the heart of the programme, sheds light on howinnovation, training and research give the economy a new impetus thanks to human and public investment, a key benchmark to be mastered with precision in order to be calm on the day of the test. Moreover, some professors note that clarifying this distinction often helps to decrypt examination topics.
Definition and essential distinctions
Looking for an accessible definition for your revisions? Endogenous growth refers to an economic theory that sustainable growth results from domestic factors specific to the country. Unlike the so-called approach « exogenous » (as in the Solow model), endogenous growth emphasizes the key role of innovation, human capital (workers' skills), research and development (R&D) and public infrastructure in wealth creation. This is also why we are talking about growth. « Self-maintained » : innovation and training feed each other, create a virtuous circle, and each investment enriches the economy with new knowledge... In turn, stimulating innovation. To illustrate: some students say that they have better understood this mechanism by thinking about the growth of an ecosystem of startups.
For SES, remember above all that endogenous growth makes it possible to complete the Solow model by explaining more preciselyThe origin of technical progress. Rather than imagining it as a simple « gift fallen from heaven »This perspective shows that it is the result of human and strategic efforts: training, research, business organisation are at the heart of the process. The question may be asked: Is this also valid for the ecological transition? Some experts suggest that investing in green training could accelerate sustainable innovation.
Rapid comparison – endogenous vs exogenous growth
For your revisions, keep this table in memory:
| Model | Origin of growth | Technical progress | Role of the State and actors |
|---|---|---|---|
| Exogenous (Solow) | External factors, given | Exogenous (imposed, not explained) | Secondary |
| Endogenous | Internal factors (innovation, human capital) | Endogenous (created by the economy itself) | Central (R&D, public investment, training) |
At first glance, the distinction may seem complex, yet the examples show the difference: an economy that injects resources into the economy.R&Dand education generally benefits from more dynamic growth. Even a country, after investing heavily in research, manages to catch up with its competitors in a few years.
Historical foundations and major authors
Why did economists try to move beyond Solow's model? In the 1980s, the countries investing in training or innovation consistently showed much higher growth. Paul Romer, winner of the Nobel Prize in economics in 2018, formalizes the theory of endogenous growth in 1986. Its essential contribution: to demonstrate that immaterial accumulation (ideas, knowledge) can produce increasing yields, unlike machines whose efficiency eventually blows out. A trainer SES sometimes warns students that the shift from material investment to intangible investment is crucial to understanding the paradigm shift.
Paul Romer is not the only one to explore this terrain. Robert Lucas associates himself with the endogenous approach, and some analysts believe that France, with its public research policy since the 1970s, illustrates this model very well. Students' confidence in resources validated by their teachers, such as Kartable (note 4.5/5 on20 269 opinions, updated 12/05/2025), shows the importance of using reliable media to revise this theme of the official programme 2025-2026. A school accompaniment professional recently mentioned that access to appropriate resources often allows a better understanding of the historical dimension of the models.
Historical perspective
It can be seen that the shift from löxogene to löendogen has really changed the way growth is conceived. Before Romer, progress seemed to emerge without explanation. Today, we know that this is an investment (and sometimes an ambitious bet) that public policies can encourage, support, or curb. One economic policy expert sometimes mentions that collective choices greatly influence a country's innovation capacity. It is not always obvious: several students say that they have grasped this historical shift through a concrete example such as the rise of digital technology in the French economy.
Factors and mechanisms of endogenous growth
At the heart of this model: innovation,R&D, accumulation of knowledge and human capital. This section helps you see how these practical levers contribute to sustainable growth and what they are used for on a daily basis (it is often recommended to link each pillar to an example of your school experience).
The pillars of endogenous growth
Hold these key levers:
- Innovation/R&D:Research spending paves the way for further technical progress, increasing the productivity of all sectors. A businessman sometimes reports that the creativity of a team also results from an investment in R&D.
- Human capital:When the population is better trained and educated, it generates more ideas and adapts more easily to economic developments.
- Positive externalities:The benefits of progress benefit society as a whole: for example, with the Internet, many jobs have emerged in unexpected areas.
- Increasing Performance:Unlike limited machines, the diffusion of knowledge increases without obstacle a shared idea benefits all simultaneously, which amplifies its effects.
Look at the French situation (~2.2% of GDP in R&D in 2022) : the cost may appear high, but its impact is spreading throughout the economy. That's also why some countries are taking a lead... and why the state encourages these investments, sometimes via Bpifrance or the tax credit research. One researcher points out that the training effect can be surprising: a simple collaborative university project sometimes leads to unexpected innovations.
The key role of the State and enterprises
In this model, the state is no longer a distant observer, it acts at the centre of the scheme: it supports innovation, finances universities, develops public infrastructure. Without public policy incentives, private investment may lack the strength to drive a sustainable dynamic. We talk regularly about « multiplier of positive effects », sometimes even unexpected: for example, the public-private partnership led to the emergence ofTGVor vaccinemRNAprogress that would not have existed without coordinated support. An innovation specialist insists that synergy between public and private actors increases the benefits for the entire economic fabric. Is it really that systematic? Some students note that success sometimes depends on local context or institutional choices.
Practical examples and patterns to be used
To better integrate theory, nothing replaces an example from current events or startups. Many educational resources (PDF, short videos, interactive chapters) offer this type of application, to be stored during the revisions between 19,000 and 21,000 students consult each year. A SES teacher sometimes tells us that the discovery of a successful start-up story allows us to understand how the endogenous model works in practice.
Examples of practical application
Observe a typical pattern of endogenous dynamics:
- Public investments: they initiate better training and quality infrastructure, triggering regular innovations and promoting knowledge sharing.
- Virtuous cycle: each new idea feeds growth, then stimulates investment, which itself generates the next advance.
Let us take an example in France: in Saclay, the research, engineering and high-tech enterprise ecosystem stimulates start-ups. In turn, they hire locally and innovate. This development has nothing but chance, it is the result of internal investment and structural policies. Sometimes students visiting Saclay tell their surprises about the diversity of collaborations between public laboratories and private companies.
Note: INSEE studies show that an increase in10%R&D spending increases annual GDP growth by around0.2 point. This kind of figure gives a new perspective on the impact of innovation policies.
FAQ and additional resources
Need a clarification? Find out below the most frequently asked questions, with links to download sheets or view a video on demand, available daily. Pedagogical advisors regularly specify that relying on verified materials is often the best way to address the review calmly.
Frequently asked questions about endogenous growth
- What is the precise difference with exogenous growth?
Exogenous growth treats technical progress as a data, while endogenous growth analyses its creation through investment in innovation, training and research developed from within the economy. - Who founded the theory?
Paul Romer, American economist (model proposed in1986). - Does innovation necessarily generate growth?
In this model, each innovation contributes directly to a new phase of growth through its positive externalities, but some researchers point out that success can vary according to context. - Is this theory still in use?
Yes. Many economists and policy makers use it, including analysing growth gaps between developed countries or designing ambitious educational policies. - Is there a file to download to revise?
Yes. PDF and lexicon available at the end of the page, or via the updated mobile app for the2025.
Keep in mind: for each notion, check your sources and choose materials recommended by your teachers! The most popular tools (Kartable, SES.Webclass, CentralCharts) display a higher user rating than4,5/5and are regularly updated. One educator mentioned that this validation ensures a stronger and less stressful review.
Resources for deepening
– Concept sheet on SES.Webclass
– Detailed definition CentralCharts
– Wikipedia page
– Download the PDF file(presented below and on the official application, available throughout the week, for the 2025-2026 programme.
Express lexicon
Positive externalities: Beneficial effects for society as a whole generated by action (e.g. the dissemination of the Internet, which stimulates many sectors).
Increasing yieldsInvesting in innovation or knowledge increases overall productivity, with no fixed limit.
Human capitalAll knowledge, skills and experiences acquired by individuals.
Endogenous technical progress: Innovations and technological improvement created by internal economic action does not exclude that this lever greatly differentiates modern economies according to some academics.
Need a boost to review or an explanatory video? You can contact the certified educational support, accessible by email or phone, and enjoy the mobile app (more than20,000 usersconnect each year). Several students say that this service helps them better organize their reviews during exam periods.
Last update: 12/05/2025 content validated by SES professors and economy.