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Trust and Innovation in Europe: Causal, spatial and non-linear forces

Author

Listed:
  • Semih Akçomak

    (TEKPOL, Science and Technology Policy Studies, Middle East Technical University)

  • Hanna Müller-Zick

    (Maastricht University)

Abstract

This paper investigates the effect of trust on innovation. In addition to generalised trust we use a range of other indicators that could measure trust and investigate which trust related variables could explain innovation in 20 European countries divided into 135 regions. We specifically look at causal, non-linear and spatial forces. Our findings indicate that only generalised trust and non-egoistic fairness have robust effects on innovation in Europe. Using historical data on the extent and existence of universities and an instrumental variable strategy we set up a causal relationship between trust and innovation. Even after controlling for causal, spatial and non-linear forces there is a significant direct impact of trust on innovation.

Suggested Citation

  • 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.
  • Handle: RePEc:met:stpswp:1304
    as

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    File URL: http://stps.metu.edu.tr/sites/stps.metu.edu.tr/files/TEKPOL%20WP%201304.pdf
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    References listed on IDEAS

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    Keywords

    trust; social capital; innovation; EU;
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