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Innovation and Social Capital: A Cross-country Investigation

Author

Listed:
  • Soogwan Doh

    (George Mason University)

  • Zoltan J. Acs

    (George Mason University)

Abstract

This study explores the impact of social capital on innovation by constructing a more general measure of social capital indicator consisting of generalized and institutional trust, associational activities and civic norms. We test the hypothesis that social capital has a positive impact on innovation at the national level. After controlling for R&D expenditure and human capital there is a positive relationship between social capital and innovation. Social capital interacts with entrepreneurship and the strongest relationship is between associated activities and entrepreneurship. This is consistent with the need to build social relationships in today's networked economy.

Suggested Citation

  • Soogwan Doh & Zoltan J. Acs, 2009. "Innovation and Social Capital: A Cross-country Investigation," Jena Economics Research Papers 2009-082, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2009-082
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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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