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Social Capital, Creative Destruction and Economic Development

Author

Listed:
  • Bezemer, Dirk
  • Dulleck, Uwe
  • Frijters, Paul

    (Groningen University)

Abstract

This paper develops a conceptual framework for the role of social capital in the political economy of innovation, growth and reform, with illustrations from developing and transition countries. It identifies separate but related roles for the individual and communal interpretations of social capital. It argues that economic growth via innovation requires the creative destruction of individual social capital linkages and discusses the roles of communal social capital and formal market institutions in the process. A negative externality associated with creative destruction implies the possibility of growth accelerations as well as growth traps.

Suggested Citation

  • Bezemer, Dirk & Dulleck, Uwe & Frijters, Paul, 2005. "Social Capital, Creative Destruction and Economic Development," Research Report 05C09, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:05c09
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    File URL: http://irs.ub.rug.nl/ppn/289322421
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