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Social Capital and Enterprise Innovative Performance: A Multi-Level Analysis of Developing Nations

  • Edward Lorenz

The basic objectives of this paper are to explore the relation between social capital and the innovative performance of enterprise for a sample of 27 developing nations in different regions of the world. Social capital has been defined in various ways and this paper works with the notion of social capital defined as connections among individuals and social networks. A multi-level regression approach is used with national-level indicators of social capital being derived from different waves of the World Values Survey. Enterprise-level data are derived from the results of different waves of the World Bank Enterprise Survey, a unique micro-level data set using a common survey design to measure the characteristics of enterprises including their innovative activities for a large number of developing nations. The results of the analysis demonstrate a positive impact of the level of social capital in a nation on the likelihood that an enterprise innovates. The analysis also investigates the relation between the firm's absorptive capacity and its expenditures on R&D.

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File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2012-11.pdf
File Function: First version, 2012
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Paper provided by Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis in its series GREDEG Working Papers with number 2012-11.

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Length: 23 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:gre:wpaper:2012-11
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  1. Almeida, Rita & Fernandes, Ana Margarida, 2006. "Openness and technological innovations in developing countries : evidence from firm-level surveys," Policy Research Working Paper Series 3985, The World Bank.
  2. Tomi Tura & Vesa Harmaakorpi, 2005. "Social capital in building regional innovative capability," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1111-1125.
  3. Marcel Fafchamps, 2005. "Development and Social Capital," Economics Series Working Papers GPRG-WPS-007, University of Oxford, Department of Economics.
  4. Sriya Iyer & Michael Kitson & Bernard Toh, 2005. "Social capital, economic growth and regional development," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1015-1040.
  5. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
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