Endogenous growth theory is an economic concept that explains how investment in human capital, innovation, and knowledge contributes to economic growth from within a system. Unlike traditional growth theories, which emphasize external factors like capital accumulation, this theory suggests that policies and decisions made by individuals and firms can lead to sustained economic growth. The theory highlights the importance of factors such as research and development, education, and technology. By fostering an environment that encourages innovation, economies can achieve long-term growth. This approach emphasizes the role of government and institutions in creating conditions that support entrepreneurship and innovation.