A Matter of Location: The Role of Regional Social Capital in Overcoming the Liability of Newness in R&D Acquisition Activities
AbstractExternal knowledge acquisition represents a precondition for firms’ competitive advantage. However, young firms find it particularly difficult to gain access to external sources of knowledge: young firms suffer from a liability of newness by exhibiting significantly lower propensities to invest in external R&D than their older counterparts. We explore the role of geographically bound social capital in moderating this liability. By employing a Nested Logit approach, our findings show that geographically bound social capital moderates the liability of newness related to R&D acquisition, suggesting that the liability exists only in regions associated with low levels of social capital.
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 10-25.
Date of creation: 2010
Date of revision:
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Web page: http://www.druid.dk/
Research and development; social capital; liability of newness; geography;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-CSE-2010-10-16 (Economics of Strategic Management)
- NEP-GEO-2010-10-16 (Economic Geography)
- NEP-INO-2010-10-16 (Innovation)
- NEP-SBM-2010-10-16 (Small Business Management)
- NEP-SOC-2010-10-16 (Social Norms & Social Capital)
- NEP-URE-2010-10-16 (Urban & Real Estate Economics)
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