A Matter of Location: The Role of Regional Social Capital in Overcoming the Liability of Newness in R&D Acquisition Activities

Keld Laursen (), Francesca Masciarelli and Toke Reichstein ()

No 10-25, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: External knowledge acquisition represents a precondition for firms’ competitive advantage. However, young firms find it particularly difficult to gain access to external sources of knowledge: young firms suffer from a liability of newness by exhibiting significantly lower propensities to invest in external R&D than their older counterparts. We explore the role of geographically bound social capital in moderating this liability. By employing a Nested Logit approach, our findings show that geographically bound social capital moderates the liability of newness related to R&D acquisition, suggesting that the liability exists only in regions associated with low levels of social capital.

Keywords: Research and development; social capital; liability of newness; geography (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-sbm, nep-soc and nep-ure
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Citations: View citations in EconPapers (2)

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Journal Article: A Matter of Location: The Role of Regional Social Capital in Overcoming the Liability of Newness in R&D Acquisition Activities (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:aal:abbswp:10-25

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