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Social Capital And Institutional Quality As Factors Of Innovation: Evidence From Europe

Author

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  • Anneli Kaasa
  • Helje Kaldaru
  • Eve Parts

Abstract

This paper investigates how different dimensions of social capital and institutional quality are related to innovation activity and its utilisation. For reasons of data availability, previous studies have included mainly patenting data. This study complements the previous studies by analysing smaller sample, but including more indicators of innovation. Data for 29 European countries are analysed. As an alternative to usual analysing methods, cluster analysis is used to overcome the problem of small sample. First, cluster analysis is conducted to examine the similarities and differences in various aspects of innovation activity and utilisation of innovations. Next, the social capital and institutional quality are considered as possible factors of innovation next to the R&D and human capital. The findings supported the idea that different dimensions of social capital have a different impact on innovation activity; the results concerning the utilisation of innovations were mixed.

Suggested Citation

  • Anneli Kaasa & Helje Kaldaru & Eve Parts, 2007. "Social Capital And Institutional Quality As Factors Of Innovation: Evidence From Europe," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 55, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  • Handle: RePEc:mtk:febawb:55
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    Cited by:

    1. Abdurrahman Mete Yazan, 2013. "Do Social Factors Matter for Innovation, and Do They Influence Innovation in Aeronautics Industry?," IET Working Papers Series 05/2013, Universidade Nova de Lisboa, IET/CICS.NOVA-Interdisciplinary Centre on Social Sciences, Faculty of Science and Technology.

    More about this item

    Keywords

    innovation; social capital; institutional quality; Europe;

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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