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How do social capital and government support affect innovation and growth? Evidence from the EU regional support programmes

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Author Info
Akcomak, Semih () (UNU-MERIT)
Ter Weel, Bas () (UNU-MERIT)

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Abstract

This research investigates the role of social capital and government intervention in explaining the differences of innovation output and economic growth for regions of the European Union from 1990-2002. Using several measures of social capital and innovation, and the European Union’s Objective 1, 2 and 5b figures for EU regional support, the estimates suggest that EU funding is not significantly contributing to economic outcomes, while social capital is. Investigation of a possible complementary relationship between social capital and government support reveals that regions with higher levels of social capital are more likely to effectively gain from EU regional support programmes. This result implies that aside from the benefits associated with the direct effect of social capital on economic outcomes, social capital appears to be a critical prerequisite for the effective implementation of government programmes. From a policy perspective, it appears to be important to stimulate education to foster human capital formation. When combined, human capital and social capital are likely to yield stronger effects for effective policies which increase economic outcomes.

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Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 009.

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Date of creation: 2007
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Handle: RePEc:dgr:unumer:2007009

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Related research
Keywords: Social capital Innovation Economic growth European Union Structural funds

Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O3 - Economic Development, Technological Change, and Growth - - Technological Change
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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  1. repec:att:wimass:1920412 is not listed on IDEAS
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    Other versions:
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