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Social capital and regional innovation in the aftermath of crisis: evidence from Italian provinces

Author

Listed:
  • Marianna Marino

    (IMT School of Advanced Studies Lucca)

  • Sandro Montresor

    (University of Trento)

  • Alessandra Faggian

    (Gran Sasso Science Institute)

Abstract

This paper investigates how regions’ innovation responses to economic crises vary with their level of social capital. Combining the literature on innovation along the business cycle with that about the role of social capital in spurring regional innovation, we argue that higher social capital levels should enhance the regions’ innovative resilience to crises, particularly for their bridging social capital. Using a diff-in-diff approach on Italian provinces (NUTS3) with respect to the 2007 recession, we find that provinces with higher bridging social capital exhibit lesser drops in innovation post-crisis, confirming expectations. However, bonding social capital does not show a similar effect.

Suggested Citation

  • Marianna Marino & Sandro Montresor & Alessandra Faggian, 2025. "Social capital and regional innovation in the aftermath of crisis: evidence from Italian provinces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(1), pages 1-40, March.
    • Handle: RePEc:spr:anresc:v:74:y:2025:i:1:d:10.1007_s00168-024-01352-4
    DOI: 10.1007/s00168-024-01352-4
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    More about this item

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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