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In the economic growth models, technological progress is either exogenous or endogenous. The endogenized theory is based on analytical modeling of the economic process in order to include the event of innovating. Theory around the subject innovation and economic growth also includes several independent parameters that have a strong impact over innovation. However, few of them established creativity as an independent parameter of innovation. The present paper aims to extend the endogenized theory in order to include creativity as an independent parameter of innovation, based on the evidence of a panel data of 28 countries, through 8 years. A theoretical model, a multiple linear regression, an ANOVA analysis and correlational matrixes were used in order to fulfill our purpose. Results show that innovation is determined by the level of knowledge twice as much as the level of creativity. A conceptual framework for an extension of endogenous growth models, in order to include creativity, is presented in the paper. The model can enhance economic growth by fostering creativity or knowledge and thus, the size of innovation, which is the main driver for economic growth in the model presented.

Sustainable Development with Schumpeter Extended Endogenous Type of Innovation and Statistics in European Countries