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Generalized trust and regional innovation activity

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  • Schild, Christopher-Johannes

Abstract

For a cross-section of 123 European regions, we find evidence for a positive effect of generalized trust on regional innovation activity. We aim to identify causal effects by using instrumental variables from climate and soil data, drawing from recent literature on the effects of climate on historic trust levels. The popular explanation for spatial clustering of innovation by interregional knowledge spillovers is also tested. It is found that spatial clustering of innovation activity can be better explained by a positive influence of trust on innovation and spatial clustering of trust.

Suggested Citation

  • Schild, Christopher-Johannes, 2013. "Generalized trust and regional innovation activity," FAU Discussion Papers in Economics 02/2012, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
  • Handle: RePEc:zbw:iwqwdp:022012
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    Cited by:

    1. Stephany, Fabian & Braesemann, Fabian, 2017. "Bonds and bridges, and between: An empirical analysis of group-based trust," Working Papers 09, Agenda Austria.

    More about this item

    Keywords

    Social Capital; Trust; Innovation; Regional Economics; Europe;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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