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How do social capital and government support affect innovation and growth? Evidence from the EU regional support programmes

Author

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  • Akcomak, Semih

    (UNU-MERIT)

  • Ter Weel, Bas

    (UNU-MERIT)

Abstract

This research investigates the role of social capital and government intervention in explaining the differences of innovation output and economic growth for regions of the European Union from 1990-2002. Using several measures of social capital and innovation, and the European Union’s Objective 1, 2 and 5b figures for EU regional support, the estimates suggest that EU funding is not significantly contributing to economic outcomes, while social capital is. Investigation of a possible complementary relationship between social capital and government support reveals that regions with higher levels of social capital are more likely to effectively gain from EU regional support programmes. This result implies that aside from the benefits associated with the direct effect of social capital on economic outcomes, social capital appears to be a critical prerequisite for the effective implementation of government programmes. From a policy perspective, it appears to be important to stimulate education to foster human capital formation. When combined, human capital and social capital are likely to yield stronger effects for effective policies which increase economic outcomes.

Suggested Citation

  • Akcomak, Semih & Ter Weel, Bas, 2007. "How do social capital and government support affect innovation and growth? Evidence from the EU regional support programmes," MERIT Working Papers 2007-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2007009
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    File URL: https://unu-merit.nl/publications/wppdf/2007/wp2007-009.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jun, Seung-Pyo & Kim, Sang-Gook & Park, Hyun-Woo, 2017. "The mismatch between demand and beneficiaries of R&D support programs for SMEs: Evidence from Korean R&D planning programs," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 286-298.
    2. Akçomak, I. Semih & ter Weel, Bas, 2009. "Social capital, innovation and growth: Evidence from Europe," European Economic Review, Elsevier, vol. 53(5), pages 544-567, July.
    3. James A. Cunningham & Albert N. Link, 2016. "Exploring the effectiveness of research and innovation policies among European Union countries," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 415-425, June.
    4. Wen, Jun & Wang, Siqin & Yang, Xiuyun & Zhou, Xiaozhou, 2023. "Impacts of epidemics on innovation: An empirical analysis," Technovation, Elsevier, vol. 119(C).
    5. 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.
    6. Sonja Đuričin & Isidora Beraha & Olivera Jovanović & Marija Mosurović Ružičić & Marija Lazarević-Moravčević & Mihailo Paunović, 2022. "The Efficiency of National Innovation Policy Programs: The Case of Serbia," Sustainability, MDPI, vol. 14(14), pages 1-14, July.

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    More about this item

    Keywords

    Social capital; Innovation; Economic growth; European Union; Structural funds;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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