Social Capital and Institutional Quality as Factors of Innovation: Evidence from Europe

University of Tartu Faculty of Economics and Business Administration Working Paper No. 55-2007

56 Pages Posted: 28 Sep 2007

See all articles by Anneli Kaasa

Anneli Kaasa

University of Tartu - Faculty of Economics and Business Administration

Helje Kaldaru

University of Tartu - Faculty of Economics and Business Administration

Eve Parts

University of Tartu - Faculty of Economics and Business Administration

Date Written: September 27, 2007

Abstract

This paper investigates how different dimensions of social capital and institutional quality are related to innovation activity and its utilisation. For reasons of data availability, previous studies have included mainly patenting data. This study complements the previous studies by analysing smaller sample, but including more indicators of innovation. Data for 29 European countries are analysed. As an alternative to usual analysing methods, cluster analysis is used to overcome the problem of small sample. First, cluster analysis is conducted to examine the similarities and differences in various aspects of innovation activity and utilisation of innovations. Next, the social capital and institutional quality are considered as possible factors of innovation next to the R&D and human capital. The findings supported the idea that different dimensions of social capital have a different impact on innovation activity; the results concerning the utilisation of innovations were mixed.

Keywords: innovation, social capital, institutional quality, Europe

JEL Classification: A12, A13, O31, O4

Suggested Citation

Kaasa, Anneli and Kaldaru, Helje and Parts, Eve, Social Capital and Institutional Quality as Factors of Innovation: Evidence from Europe (September 27, 2007). University of Tartu Faculty of Economics and Business Administration Working Paper No. 55-2007, Available at SSRN: https://ssrn.com/abstract=1017754 or http://dx.doi.org/10.2139/ssrn.1017754

Anneli Kaasa (Contact Author)

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Road 4-A210
Tartu 51009
Estonia
+ 372 7 375 842 (Phone)

Helje Kaldaru

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Road 4 - A210
Tartu
Estonia
+ 372 7 375 841 (Phone)

Eve Parts

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Rd. 4-A214
Tartu 51009, 51009
Estonia

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