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EFFECTS OF DIFFERENT DIMENSIONS OF SOCIAL CAPITAL ON INNOVATION: EVIDENCE FROM EUROPE AT THE REGIONAL LEVEL

Anneli Kaasa

No 51, University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia)

Abstract: This paper investigates how different dimensions of social capital influence innovation output. The novelty of the paper lies in the fact that for measuring social capital, instead of one overall index, six factors are constructed of 20 indicators using principal components analysis. Then, human capital and R&D are also included in the analysis as factors of innovation. Unlike many previous studies, this one uses the structural equation modelling approach instead of regression analysis in order to take into account the relationships between the factors of innovation. Regional-level data from Eurostat Regio and the European Social Survey are analysed. Compared to preceding studies, a larger number of observations is used. The findings provide strong support for the argument that social capital indeed influences innovative activity and furthermore, that different dimensions of social capital have dissimilar effects on innovation.

Keywords: innovation; social capital; human capital; R&D (search for similar items in EconPapers)
Pages: 44 pages
Date: 2007
New Economics Papers: this item is included in nep-eec, nep-hrm, nep-ino and nep-soc
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:mtk:febawb:51

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