Trust and Innovation in Europe: Causal, spatial and non-linear forces
AbstractThis paper investigates the effect of trust on innovation. In addition to generalised trust we use a range of other indicators that could measure trust and investigate which trust related variables could explain innovation in 20 European countries divided into 135 regions. We specifically look at causal, non-linear and spatial forces. Our findings indicate that only generalised trust and non-egoistic fairness have robust effects on innovation in Europe. Using historical data on the extent and existence of universities and an instrumental variable strategy we set up a causal relationship between trust and innovation. Even after controlling for causal, spatial and non-linear forces there is a significant direct impact of trust on innovation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by STPS - Science and Technology Policy Studies Center, Middle East Technical University in its series STPS Working Papers with number 1304.
Length: 43 pages
Date of creation: Dec 2013
Date of revision: Dec 2013
trust; social capital; innovation; EU;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-06-07 (All new papers)
- NEP-CSE-2014-06-07 (Economics of Strategic Management)
- NEP-EFF-2014-06-07 (Efficiency & Productivity)
- NEP-EUR-2014-06-07 (Microeconomic European Issues)
- NEP-GEO-2014-06-07 (Economic Geography)
- .html">NEP-GRO-"> (Economic Growth)
- NEP-GRO-2014-06-07 (Economic Growth)
- NEP-INO-2014-06-07 (Innovation)
- NEP-SOC-2014-06-07 (Social Norms & Social Capital)
- NEP-TID-2014-06-07 (Technology & Industrial Dynamics)
- NEP-URE-2014-06-07 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luigi Guiso & Paola Sapienza & Luigi Zingales, 2000.
"The Role of Social Capital in Financial Development,"
NBER Working Papers
7563, National Bureau of Economic Research, Inc.
- Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
- Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2000. "The Role of Social Capital In Financial Development," CEPR Discussion Papers 2383, C.E.P.R. Discussion Papers.
- Luigi Guiso & Paola Sapienza & Luigi Zingales, 2000. "The Role of Social Capital in Financial Development," CRSP working papers 511, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Sriya Iyer & Michael Kitson & Bernard Toh, 2005. "Social capital, economic growth and regional development," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1015-1040.
- Steven N. Durlauf, 2002.
"On the Empirics of Social Capital,"
Royal Economic Society, vol. 112(483), pages 459-479, November.
- Akcomak, Semih & Ter Weel, Bas, 2007. "How do social capital and government support affect innovation and growth? Evidence from the EU regional support programmes," MERIT Working Papers 009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Bottazzi, Laura & Peri, Giovanni, 2003.
"Innovation and spillovers in regions: Evidence from European patent data,"
European Economic Review,
Elsevier, vol. 47(4), pages 687-710, August.
- Laura Bottazzi & Giovanni Peri, . "Innovation and Spillovers in Regions: Evidence from European Patent Data," Working Papers 215, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Håkan J. Holm & Anders Danielson, 2005.
"Tropic Trust Versus Nordic Trust: Experimental Evidence From Tanzania And Sweden,"
Royal Economic Society, vol. 115(503), pages 505-532, 04.
- Danielson, Anders & Holm, Hakan J, 2003. "Tropic Trust versus Nordic Trust: Experimental Evidence from Tanzania and Sweden," Working Papers 2003:6, Lund University, Department of Economics.
- 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.
- Soogwan Doh & Zoltan J. Acs, 2009. "Innovation and Social Capital: A Cross-country Investigation," Jena Economic Research Papers 2009-082, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
- Ann Owen & Julio Videras, 2009. "Reconsidering social capital: a latent class approach," Empirical Economics, Springer, vol. 37(3), pages 555-582, December.
- Lindon Robison & A. Allan Schmid & Marcelo Siles, 2002.
"Is Social Capital Really Capital?,"
Review of Social Economy,
Taylor & Francis Journals, vol. 60(1), pages 1-21.
- Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
- Leamer, Edward E & Leonard, Herman B, 1983. "Reporting the Fragility of Regression Estimates," The Review of Economics and Statistics, MIT Press, vol. 65(2), pages 306-17, May.
- Sjoerd Beugelsdijk & Ton Van Schaik, 2005.
"Differences in social capital between 54 Western European regions,"
Taylor & Francis Journals, vol. 39(8), pages 1053-1064.
- Beugelsdijk, S. & Schaik, A.B.T.M. van, 2005. "Differences in social capital between 54 western European regions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-172427, Tilburg University.
- Ernest Miguelez & Rosina Moreno & Manuel Artis, 2011.
"Does Social Capital Reinforce Technological Inputs in the Creation of Knowledge? Evidence from the Spanish Regions,"
Taylor & Francis Journals, vol. 45(8), pages 1019-1038.
- Ernest Miguélez & Rosina Moreno & Manuel Artís, 2008. "Does social capital reinforce technological inputs in the creation of knowledge? Evidence from the Spanish regions," IREA Working Papers 200813, University of Barcelona, Research Institute of Applied Economics, revised Oct 2008.
- Ahlerup, Pelle & Olsson, Ola & Yanagizawa, David, 2007. "Social Capital vs Institutions in the Growth Process," Working Papers in Economics 248, University of Gothenburg, Department of Economics.
- Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
- Juan Alcácer & Wilbur Chung, 2007. "Location Strategies and Knowledge Spillovers," Management Science, INFORMS, vol. 53(5), pages 760-776, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Semih Akcomak).
If references are entirely missing, you can add them using this form.