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uman capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.”

Over a series of articles from 1986 through 1990, Paul Romer developed a model of economic growth in which the fundamentally different nature of technological innovations compared to that of the most economic goods play a central role. Technological change is the principal engine of growth. (Gordon, 2005)

We can highlight that in all the economical models the investment in new technology are a solutions for development and this will make a serious change in economic performance, employment, education, health care, government, the environment and in the delivery services for everybody.

MODELS OF LOCAL DEVELOPMENT

The first approach on regionalization and urban issue was devoted to economic activities and geographic location of cities and is known in economics sciences - the theory of localization.

We identified the following models of regional and local/urban theory based on location:

a) Von Thunen model is known by the name of Heinrich Von Thunen which is considered the founder of location theory. In 1826 he developed a model of rational spatial organization for farmers. He analyzed the allocation of agricultural land among several competing locations, knowing that the agricultural product has to be transported from place of production to the consumption.

b) Weber model is known by its author Alfred Weber theory underlying the location published in 1909 his 'Theory of branch location.' The Thune's model was based on creating a new model for industry location choice. Main interest was to choose the location of industrial centers.

Weber's model is an important milestone in the theory of localization, because it attempts to optimize the location of businesses regardless of the mathematical basis of their activity profile.

c) Christaller's model is known by its author W. Christaller. The purpose of this theory was to explain the size and number of cities and the distance to which they are located in a particular territory.

W. Cristallerie with his 'central places of southern Germany' (Hurjui, 2006) founded the complete analysis of the territory organization, identifying how the centralization of urban structures and relations.

d) Losh's model is known by its author August Losch.

Cristallerie's theory was extended by A. Losch that the book 'Spatial organization of the economic system', trying first to introduce elements of space in general equilibrium theory of markets (Hurjui, 2006).

Unlike Weber, Losh assumes a homogeneous surface on which consumers are uniformly distributed. Manufacturers are concentrated, while consumers are assumed to be spread regularly in space. The fundamental point emphasized by the model is that, because of the overlap of hexagonal networks, prosperous areas rise and others get poorer. In other words, the hierarchy of industrial concentration, which he called 'central places', emerged (Levent, 2006).

e) Zipf's model, known as the law 'Position - Size'. This model correlates the size of a city (geographical size) with its rank (the position they occupy in the hierarchy of urban system).

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