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

Carmen Echebarria and José Barrutia

Regional Studies, 2013, vol. 47, issue 7, 1001-1017

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.

Date: 2013
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DOI: 10.1080/00343404.2011.603720

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