Abstract
The Ancient Roman Economy’s persistence at a nonindustrialized, near-subsistence level despite its size and complexity, is explained by endogenous growth. Endogenous growth—economic growth through innovation rather than the simple growth of capital and labor stocks—is one of the defining features of an industrialized society and fundamentally requires legal/cultural frameworks able to protect individuals’ ability to make, replicate, and profit off of innovations. Due to a combination of economic and social factors, the Ancient Roman Economy lacked the combination of rule of law, intellectual property rights, and reception towards innovation required to promote endogenous growth or otherwise industrialize. The prevalence of slavery in the Ancient Roman Economy likewise limited growth by creating a systemic underemployment of human resources. Within the context of international development initiatives today, the Ancient Roman Economy teaches us the necessity of promoting these legal frameworks, civil liberties for individuals, high monetization, and ease of access to education and knowledge about new technologies.