The Osborne-Gaebler Model

The Osborne-Gaebler Model describes how regional economic growth is influenced by the process of "positive feedback," where successful development in a region attracts more investment and talent, further boosting growth. When regions develop infrastructure, education, and industries, they become more attractive, leading to even more development. Conversely, less-developed areas tend to lag, as their limited resources make it harder to attract new growth. The model highlights the importance of initial investments and policies to kick-start development and the tendency for economic activity to concentrate in already prosperous regions, creating disparities over time.