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Limits of Social Capital as a Driver of Innovation: An Empirical Analysis in the Context of European Regions

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  • Carmen Echebarria
  • Jose M. Barrutia

Abstract

Echebarria C. and Barrutia J. M. Limits of social capital as a driver of innovation: an empirical analysis in the context of European regions, Regional Studies . The available empirical research referring to different units of analysis supports, in general terms, a linear positive relationship among some components of social capital and innovation. Yet some studies also present controversial results by finding non-significant, negative, diminishing returns and quadratic relationships. Building on the social network theory of innovation, this paper shows that the social capital--innovation relationship has an inverted 'U'-shape. This is consistent with recent research that suggests that some sub-constructs of social capital, such as tie strength, involve maintenance and opportunity costs and that social capital has positive effects, but it also has its limits.

Suggested Citation

  • Carmen Echebarria & Jose M. Barrutia, 2013. "Limits of Social Capital as a Driver of Innovation: An Empirical Analysis in the Context of European Regions," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1001-1017, July.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:7:p:1001-1017
    DOI: 10.1080/00343404.2011.603720
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    References listed on IDEAS

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    1. Bengt-Åke Lundvall, 1996. "The Social Dimension of the Learning Economy," DRUID Working Papers 96-1, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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    1. Bischoff, Thore Sören & Runst, Petrik & Bizer, Kilian, 2023. "Spatial heterogeneity in the effect of regional trust on innovation," ifh Working Papers 41/2023, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    2. Ibrahim D. Raheem & Kazeem B. Ajide & Xuan V. Vo, 2021. "The hype of social capital in the finance‐growth nexus," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(3), November.
    3. Nicola Cortinovis & Jing Xiao & Ron Boschma & Frank G van Oort, 2017. "Quality of government and social capital as drivers of regional diversification in Europe," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1179-1208.
    4. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2023. "Firm innovation and generalized trust as a regional resource," Research Policy, Elsevier, vol. 52(8).
    5. Roberto Antonietti & Ron Boschma, 2021. "Social capital, resilience, and regional diversification in Italy [Social capital, innovation and growth: evidence from Europe]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 762-777.
    6. Tommaso Pucci & Mara Brumana & Tommaso Minola & Lorenzo Zanni, 2020. "Social capital and innovation in a life science cluster: the role of proximity and family involvement," The Journal of Technology Transfer, Springer, vol. 45(1), pages 205-227, February.
    7. İ. Semih Akçomak & Hanna Müller-Zick, 2018. "Trust and inventive activity in Europe: causal, spatial and nonlinear forces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(3), pages 529-568, May.
    8. Roth, Felix, 2024. "Trust and Growth: The Global Evidence over 40 Years," Hamburg Discussion Papers in International Economics 14, University of Hamburg, Department of Economics, revised 2024.
    9. Ryan H. Murphy, 2021. "The Soft Stuff of Institutional Development: Culture, Cohesion, and Economic Freedom," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 36(Summer 20), pages 37-66.
    10. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2022. "Firm innovation and generalized trust as a regional resource," ifh Working Papers 32/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    11. Hanna Nałęcz & Łukasz Skrok & Dawid Majcherek & Elżbieta Biernat, 2020. "Through Sport to Innovation: Sustainable Socio-Economic Development in European Countries," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    12. 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.
    13. Qiliang, Mao & Xianzhuang, Mao, 2024. "The shaping of inter-regional industrial linkages by institutional and cultural division in China: Characteristics and differences," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1113-1132.

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