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Innovation and Social Capital: A Cross-Country Investigation

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  • Soogwan Doh
  • Zoltan Acs

Abstract

This study explores the impact of social capital on innovation by constructing a more general measure of social capital, which consists of generalized and institutional trust, associational activities and civic norms. We test the hypothesis that social capital has a positive impact on innovation at the national level. After controlling for research and development expenditure and human capital, we find that there is a positive relationship between social capital and innovation. Social capital interacts with entrepreneurship; the strongest relationship is between associated activities and entrepreneurship. This study supports the need to build strong social relationships in today's networked economy.

Suggested Citation

  • Soogwan Doh & Zoltan Acs, 2010. "Innovation and Social Capital: A Cross-Country Investigation," Industry and Innovation, Taylor & Francis Journals, vol. 17(3), pages 241-262.
    • Handle: RePEc:taf:indinn:v:17:y:2010:i:3:p:241-262
    DOI: 10.1080/13662711003790569
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    References listed on IDEAS

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    1. Jolanda Hessels, 2008. "International Entrepreneurship: Value Creation Across National Borders," Scales Research Reports R200809, EIM Business and Policy Research.
    2. Akçomak, I. Semih & ter Weel, Bas, 2009. "Social capital, innovation and growth: Evidence from Europe," European Economic Review, Elsevier, vol. 53(5), pages 544-567, July.
    3. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    4. Edward L. Glaeser & Charles Redlick, 2008. "Social Capital and Urban Growth," NBER Working Papers 14374, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Human capital; social capital; entrepreneurship; innovation;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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