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Effects Of Different Dimensions Of Social Capital On Innovation: Evidence From Europe At The Regional Level

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  • Anneli Kaasa

Abstract

This paper investigates how different dimensions of social capital influence innovation output. The novelty of the paper lies in the fact that for measuring social capital, instead of one overall index, six factors are constructed of 20 indicators using principal components analysis. Then, human capital and R&D are also included in the analysis as factors of innovation. Unlike many previous studies, this one uses the structural equation modelling approach instead of regression analysis in order to take into account the relationships between the factors of innovation. Regional-level data from Eurostat Regio and the European Social Survey are analysed. Compared to preceding studies, a larger number of observations is used. The findings provide strong support for the argument that social capital indeed influences innovative activity and furthermore, that different dimensions of social capital have dissimilar effects on innovation.

Suggested Citation

  • Anneli Kaasa, 2007. "Effects Of Different Dimensions Of Social Capital On Innovation: Evidence From Europe At The Regional Level," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 51, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    • Handle: RePEc:mtk:febawb:51
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    Citations

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    Cited by:

    1. Fédes Rijn & Ephraim Nkonya & Adewale Adekunle, 2015. "The impact of agricultural extension services on social capital: an application to the Sub-Saharan African Challenge Program in Lake Kivu region," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(4), pages 597-615, December.
    2. García-Villaverde, Pedro M. & Rodrigo-Alarcón, Job & Parra-Requena, Gloria & Ruiz-Ortega, María José, 2018. "Technological dynamism and entrepreneurial orientation: The heterogeneous effects of social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 51-64.
    3. Ndubuisi, Gideon, 2020. "Trust and R&D investments: evidence from OECD countries," Journal of Institutional Economics, Cambridge University Press, vol. 16(6), pages 809-830, December.
    4. Lyndon Murphy & Robert Huggins & Piers Thompson, 2016. "Social capital and innovation: A comparative analysis of regional policies," Environment and Planning C, , vol. 34(6), pages 1025-1057, September.
    5. Bijedić, Teita & Chlosta, Simone & Werner, Arndt, 2016. "Inventions and their commercial exploitation in academic institutions: Analysing determinants among academics," Working Papers 04/16, Institut für Mittelstandsforschung (IfM) Bonn.
    6. Hunecke, Claudia & Engler, Alejandra & Jara-Rojas, Roberto & Poortvliet, P. Marijn, 2017. "Understanding the role of social capital in adoption decisions: An application to irrigation technology," Agricultural Systems, Elsevier, vol. 153(C), pages 221-231.
    7. İ. Semih Akçomak & Hanna Müller-Zick, 2018. "Trust and inventive activity in Europe: causal, spatial and nonlinear forces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(3), pages 529-568, May.
    8. Irene Daskalopoulou & Athanasia Karakitsiou, 2020. "Regional Social Capital and Economic Growth: Exploratory Evidence from Testing the Virtuous Spiral vs. Vicious Cycle Model for Greece," Sustainability, MDPI, vol. 12(15), pages 1-25, July.
    9. Emiliano Colantonio & Daniela Cialfi, 2018. "Social Capital Formation: Do Ict Matter For Europe?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 47-53, July.
    10. Dobrowolski Zbysław & Szejner Tomasz, 2019. "Enhancing Innovation Through Implementation of the Comprehensive Approach to Nurturing the Compliance Culture of the Worldwide Innovation Ecosystem," Journal of Intercultural Management, Sciendo, vol. 11(2), pages 21-46, June.
    11. Neira, I. & Portela, M. & Vieira, E., 2010. "Social Capital and growth in European regions," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(2).
    12. Sibylle Puntscher & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2016. "Measuring Social Capital with Aggregated Indicators: A Case of Ecological Fallacy?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 431-449, January.
    13. Matthias Siller & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2015. "Measuring regional innovation in one dimension: More lost than gained?," Working Papers 2015-14, Faculty of Economics and Statistics, Universität Innsbruck.
    14. Urszula Markowska-Przybyła, 2020. "Does Social Capital Matter for Total Factor Productivity? Exploratory Evidence from Poland," Sustainability, MDPI, vol. 12(23), pages 1-25, November.
    15. Teemu Makkonen & Robert P. Have, 2013. "Benchmarking regional innovative performance: composite measures and direct innovation counts," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(1), pages 247-262, January.
    16. van Rijn, Fédes & Bulte, Erwin & Adekunle, Adewale, 2012. "Social capital and agricultural innovation in Sub-Saharan Africa," Agricultural Systems, Elsevier, vol. 108(C), pages 112-122.
    17. Sibylle Puntscher & Christoph Hauser & Karin Pichler & Gottfried Tappeiner, 2014. "Social Capital and Collective Memory: A Complex Relationship," Kyklos, Wiley Blackwell, vol. 67(1), pages 116-132, February.
    18. Hassan Shahraki & Ebrahim Heydari, 2019. "Rethinking rural entrepreneurship in the era of globalization: some observations from Iran," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-26, December.
    19. Annapoornima M. Subramanian & Young Rok Choi & Soo-Hoon Lee & Chang-Chieh Hang, 2016. "Linking technological and educational level diversities to innovation performance," The Journal of Technology Transfer, Springer, vol. 41(2), pages 182-204, April.
    20. Inbar Weiss & Pamela Paxton & Kristopher Velasco & Robert W. Ressler, 2019. "Revisiting Declines in Social Capital: Evidence from a New Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(3), pages 1015-1029, April.
    21. Mai Beilmann & Liisi Kööts-Ausmees & Anu Realo, 2018. "The Relationship Between Social Capital and Individualism–Collectivism in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(2), pages 641-664, June.
    22. Semih Akçomak & Hanna Müller-Zick, 2013. "Trust and Innovation in Europe: Causal, spatial and non-linear forces," STPS Working Papers 1304, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Dec 2013.

    More about this item

    Keywords

    innovation; social capital; human capital; R&D;
    All these keywords.

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