Compared to Neoclassical growth theory, newer "endogenous growth" theories are more regarding the prospect of continuous increases in the standard of living, due in part to its emphasis on the .

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Endogenous growth theory emphasizes the role of technological progress and innovation in driving economic growth, rather than just the accumulation of traditional factors of production like labor and capital as in Neoclassical growth theory. This is a more optimistic view because it suggests that economic growth can be sustained and even accelerated over time through investments in research and development and education, rather than being limited by diminishing returns to capital or natural resource constraints.

Compared to Neoclassical Growth Theory, Newer "Endogenous Growth" Theories Are