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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.

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File URL: http://www.mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb51.pdf
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Bibliographic Info

Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 51.

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Length: 44 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:mtk:febawb:51

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Related research

Keywords: innovation; social capital; human capital; R&D;

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Cited by:
  1. Marta Portela & Isabel Neira, 2011. "Social Capital and growth in the European Regions," ERSA conference papers ersa10p1160, European Regional Science Association.

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