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