IDEAS home Printed from https://ideas.repec.org/a/taf/recgxx/v100y2024i1p80-101.html
   My bibliography  Save this article

Spatial Heterogeneity in the Effect of Regional Trust on Innovation

Author

Listed:
  • Thore Sören Bischoff
  • Petrik Runst
  • Kilian Bizer

Abstract

Generalized trust positively affects innovation at the regional level by reducing transaction costs and supporting collaboration. We develop theoretical reasons for why the trust–innovation relationship is heterogeneous across geographic space and identify two main mechanisms that drive this result: first, only regions in the lower half of the trust distribution benefit from an increase in trust; and second, as smaller firms lack internal capabilities such as research and development and therefore resort to informal collaboration, the trust–innovation relationship is stronger in regions with a large share of small firms. We argue that regional innovation work differently across regions and different mechanisms of cooperation can be leveraged to achieve innovation success. Our results highlight the role of trust during a certain stage in the process of regional economic development, since both low trust and a larger share of small business constitute characteristics of less developed regions.

Suggested Citation

  • Thore Sören Bischoff & Petrik Runst & Kilian Bizer, 2024. "Spatial Heterogeneity in the Effect of Regional Trust on Innovation," Economic Geography, Taylor & Francis Journals, vol. 100(1), pages 80-101, January.
  • Handle: RePEc:taf:recgxx:v:100:y:2024:i:1:p:80-101
    DOI: 10.1080/00130095.2023.2252552
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00130095.2023.2252552
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00130095.2023.2252552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Reher, Leonie & Runst, Petrik & Thomä, Jörg & Bizer, Kilian, 2024. "Measuring non-R&D drivers of innovation: The case of SMEs in lagging regions," ifh Working Papers 45/2024, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:recgxx:v:100:y:2024:i:1:p:80-101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recg .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.