The model proposed in this paper characterizes economic development
as a three-phase process that involves: 1) non-market exogenous factors such
as territory, amenities, tolerance, diversity, artists and University, which attract
and produce talent; 2) talent that leads to the production of innovation and technology;
and, 3) the combination of exogenous factors with talent, innovation and
technology, which generates economic production. The process basically consists
in that non-market exogenous factors such as territorial, cultural, institutional,
regional factors together with diversity and University influence the production
and attraction of talent, which in turn influences the production of innovation and technology and, lastly, the right combination of the previous factors generates
economic production.