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Limits of Social Capital as a Driver of Innovation: An Empirical Analysis in the Context of European Regions

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  • Carmen Echebarria
  • Jose M. Barrutia

Abstract

Echebarria C. and Barrutia J. M. Limits of social capital as a driver of innovation: an empirical analysis in the context of European regions, Regional Studies . The available empirical research referring to different units of analysis supports, in general terms, a linear positive relationship among some components of social capital and innovation. Yet some studies also present controversial results by finding non-significant, negative, diminishing returns and quadratic relationships. Building on the social network theory of innovation, this paper shows that the social capital--innovation relationship has an inverted 'U'-shape. This is consistent with recent research that suggests that some sub-constructs of social capital, such as tie strength, involve maintenance and opportunity costs and that social capital has positive effects, but it also has its limits.

Suggested Citation

  • Carmen Echebarria & Jose M. Barrutia, 2013. "Limits of Social Capital as a Driver of Innovation: An Empirical Analysis in the Context of European Regions," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1001-1017, July.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:7:p:1001-1017
    DOI: 10.1080/00343404.2011.603720
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    References listed on IDEAS

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    1. Bengt-Åke Lundvall, 1996. "The Social Dimension of the Learning Economy," DRUID Working Papers 96-1, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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    Cited by:

    1. Roberto Antonietti & Ron Boschma, 2021. "Social capital, resilience, and regional diversification in Italy [Social capital, innovation and growth: evidence from Europe]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 762-777.
    2. Tommaso Pucci & Mara Brumana & Tommaso Minola & Lorenzo Zanni, 2020. "Social capital and innovation in a life science cluster: the role of proximity and family involvement," The Journal of Technology Transfer, Springer, vol. 45(1), pages 205-227, February.
    3. 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.
    4. Roth, Felix, 2024. "Trust and Growth: The Global Evidence over 40 Years," Hamburg Discussion Papers in International Economics 14, University of Hamburg, Department of Economics, revised 2024.
    5. repec:jpe:journl:1773 is not listed on IDEAS
    6. Nicola Cortinovis & Jing Xiao & Ron Boschma & Frank G van Oort, 2017. "Quality of government and social capital as drivers of regional diversification in Europe," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1179-1208.
    7. Ibrahim D. Raheem & Kazeem B. Ajide & Xuan V. Vo, 2021. "The hype of social capital in the finance‐growth nexus," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(3), November.
    8. Qiliang, Mao & Xianzhuang, Mao, 2024. "The shaping of inter-regional industrial linkages by institutional and cultural division in China: Characteristics and differences," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1113-1132.
    9. Bischoff, Thore Sören & Runst, Petrik & Bizer, Kilian, 2023. "Spatial heterogeneity in the effect of regional trust on innovation," ifh Working Papers 41/2023, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    10. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2023. "Firm innovation and generalized trust as a regional resource," Research Policy, Elsevier, vol. 52(8).
    11. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2022. "Firm innovation and generalized trust as a regional resource," ifh Working Papers 32/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    12. Hanna Nałęcz & Łukasz Skrok & Dawid Majcherek & Elżbieta Biernat, 2020. "Through Sport to Innovation: Sustainable Socio-Economic Development in European Countries," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    13. 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.

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