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Social capital and regional innovation efficiency: The moderating effect of governance quality

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  • Zhang, Liangliang
  • Huang, Shoujun

Abstract

Most studies demonstrate the determinants of institutional factors on regional innovation behavior in an isolated way, thus ignoring the interaction between different dimensions of institutions. This paper brings heterogeneous social capital and governance quality into the category of regional innovation efficiency. An empirical study based on China's provincial data showed that R&D resources and innovation capability combined in developed regions. Structural social capital led to a significant reduction in R&D input and output, which actually deviated from the original intention to improve the efficiency in regional innovation. Governance quality moderated structural social capital and regional innovation activities positively. The mechanism of cognitive social capital was similar with that of governance quality in enhancing regional innovation efficiency because innovation output greatly exceeded R&D investment. The negative moderating effect of governance quality revealed the substitution relationship between cognitive social capital and governance quality in the regional innovation system.

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  • Zhang, Liangliang & Huang, Shoujun, 2022. "Social capital and regional innovation efficiency: The moderating effect of governance quality," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 343-359.
    • Handle: RePEc:eee:streco:v:62:y:2022:i:c:p:343-359
    DOI: 10.1016/j.strueco.2022.05.013
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