1Department of Economics, Payame Noor University, Tehran-Iran
2Department of Economics, Allameh Tabatabayi University, Tehran-Iran
Using panel data method, this study examines the effects of different dimensions of social capital on innovation at the societal level across 21 countries (19 Asian countries plus Russia and Egypt) for the period 1995-2011. Dimensions of social capital that have been considered in this study include generalized trust, trust toward friends, institutional trust, civic participation, and norms of civic behavior. We use Fully Modified OLS (FMOLS) method to estimate the model. Our empirical findings suggest that in Asian countries some aspects of social capital such as trust toward friends, generalized trust and norms of civic behavior have a positive and significant effect on innovation. But civic participation and institutional trust have no significant impact on innovation. Moreover, we find that human capital and R & D expenditure have a positive effect on innovation in these countries.
Aghion, P., & Howitt, P. (1998).Endogenous growth theory. Cambridge, USA: MIT Press.
Akcomak, S., & ter Weel, B. (2009). Social capital, innovation and growth: Evidence from Europe. European Economic Review, 53 (5), 544-567.
Baily, M. N., & Chakrabarti, A. K. (1985). Innovation and productivity in US industry. Brookings Papers on Economic Activity, 16(2), 609-639.
Barro, R. J. (2001). Education and economic growth. In J. F. Helliwell &A. Bonikowska (Eds.). The contribution of human and social capital to sustained economic growth and well-being. International Symposium Report(pp. 13-41). Quebec, Canada: Human Resources Development Canada.
Barro, R., & Lee, J. W. (2012). A new data set of educational attainment in the world, 1950-2010 (NBER Working Papers 15902). Cambridge, Massachusetts: National Bureau of Economic Research. Retrieved July 21, 2014, from http://www.nber.org/papers/w15902.
Bjørnskov, C., & Méon, P. G. (2010). The productivity of trust (ULB Working Papers 10042). Brussels, Belgium: Universite Libre de Bruxelles. Retrieved July 21, 2014, from https://dipot.ulb.ac.be/dspace/bitstream/2013/61225/1/wp10042.
Black, S. & Lynch, L. (1996). Human-capital investments and productivity. American Economic Review, 86 (2), 263-268.
Brunetti, A., Kisunko, G., & Weder, B. (1997). Credibility of rules and economic growth (World Bank Policy Research Working Paper 1760). Washington: World Bank. Retrieved July 21, 2014, from http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP /... /multi page.
Cannon, E. (2000). Human capital: Level versus growth effects. Oxford Economic Papers, 52 (4), 670-667.
Choi, I. (2001). Unit root tests for panel data. Journal of International Money and Finance, 20 (2), 249-272.
Chou, Y. K. (2006). Three simple models of social capital and economic growth. The Journal of Socio-Economics, 35 (5), 889-912.
Chudik, A., Pesaran, M. H., & Tosetti, E. (2011). Weak and strong cross-section dependence and estimation of large panels. The Econometrics Journal, 14 (1), C45-C90.
Clague, C., Keefer, P., Knack, S., & Olson, M. (1999). Contract-intensive money. Journal of Economic Growth, 4(2), 185-211.
Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94 (1), 95-120.
Dakhli, M., & de Clercq, D. (2004). Human capital, social capital, and innovation: A multi-country study. Entrepreneurship and Regional Development, 16 (2), 107-128.
Friedman, M. (1937). The use of ranks to avoid the assumption of normality implicit in the analysis of variance. Journal of the American Statistical Association, 32 (1), 675-701.
Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York: Free Press.
Georghiou, L. (1986). Post-innovation performance. London: Macmillan.
Geroski, P., Machin, S., & Reenan, J. V. (1993). The profitability of innovating firms. Rand Journal of Economics, 24 (2), 198-211.
Gimeno, J., Folta, T., Cooper, A., & Woo, C. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42 (4), 750-784.
Global Barometer Survey. (2009). Global Barometer Round 1 official data file. Retrieved from http://www.globalbarometer.net/.
Gratano, J., Inglehart, R., & Leblang, D. (1996). Cultural values, stable democracy and economic development: Theory, hypotheses, and some empirical tests. American Journal of Political Science, 40 (3), 607-631.
Grier, K.B., & Tullock, G. (1989). An empirical analysis of cross-national economic growth, 1951-80. Journal of monetary economics, 24 (2), 259-276.
Griliches, Z. (1980). R & D and the productivity slowdown. American EconomicReview, 70 (2), 343-348.
Grootaert, C., & Bastelaert, T.V. (2002). The role of social capital in development, an empirical assessment. Cambridge, UK: Cambridge University Press.
Guiso, L., Sapienza, P., & Zingales, L. (2010). Civic capital as the missing link (NBER Working Papers 15902). Cambridge, Massachusetts: National Bureau of Economic Research. Retrieved July 21, 2014, from http://www.eief.it/files/2012/09/wp-05-civic-capital-as-the-missing-link.
Hall, R. & Jones, C. (1999). Why do some countries produce so much more output per worker than others? Quarterly Journal of Economics, 14 (1), 83-116.
Kao, C. (1999). Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics, 90 (1), 1-44.
Kassa, A. (2009). Effects of different dimensions of social Capital on innovative activity: Evidence from Europe at the regional level. Technovation, 29 (3), 218-233.
Knack, S. (2002). Social capital, growth and poverty: A survey of cross-country evidence. In Grootaert, Christiaan and Thierry van Bastelaert (Eds.), 2002, The role of social capital in development, An empirical assessment (pp. 42-84). Cambridge, UK: Cambridge University Press.
Knack, S., & Keefer, P. (1995). Institutions and economic performance: Cross-country tests using alternative institutional measures. Economics and Politics, 7 (3), 207-227.
Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. The Quarterly Journal of Economics, 112 (4), 1252-1288.
Kormendi, R.C., & Meguire, P.G. (1985). Macroeconomic determinants of growth. Journal of Monetary Economics, 16 (1), 141-163.
Landry, R., Amara, N., & Lamari, M. (2002). Does social capital determine innovation? To what extent? Technological Forecasting and Social change, 69 (7), 681-701.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1997). Trust in large organizations. In P. Dasgupta & I. Serageldin (Eds.), Social capital: A multifaceted perspective (pp. 310-321). Washington, DC: The World Bank.
Maddala, G. S., & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61 (S1), 631-652.
Mansfield, E. (1980). Basic research and productivity increase in manufacturing. American Economic Review, 70 (5), 863-873.
Maskell, P., & Malmberg, A. (1999). Localised learning and industrial competitiveness. Cambridge Journal of Economics, 23 (2), 167-185.
Nadiri, M. I. (1980). Sectoral productivity slowdown. American Economic Review, 70 (2), 349-355.
Pedroni, P. (2000). Fully modified OLS for heterogeneous cointegrated panels (Department of Economics Working Papers 2000-03). Massachusetts, US: Department of Economics, Williams College. Retrieved July 21, 2014, from http://web.williams.edu/Economics /wp/pedroniaie.
Pennings, J. M., Lee, K., & van Witteloostuijn, A. (1998). Human capital, social capital and firm dissolution. Academy of Management Journal, 41 (4), 425-440.
Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in Panels (Cambridge Working Papers in Economics 0435). Cambridge, UK: Faculty of Economics, University of Cambridge. Retrieved July 20, 2014, from http://www.econ.cam.ac.uk/research/repec/cam/pdf/cwpe0435.
Putnam, R., Leonardi, R., & Nanetti, R.Y. (1993). Making democracy work: Civic traditions in modern Italy. Princeton: Princeton University Press.
Raiser, M., Haerpfer, C., Nowotny, T., & Wallace, C. (2001). Social capital in transition: A first look at the evidence (EBRD Working Paper Series 61). London, UK: European Bank for Reconstruction and Development.
Scherer, F. (1982). Inter-industry technology flows and productivity growth. Review of Economics and Statistics, 64 (4), 627-634.
Schumpeter, J. (1974). Capitalism, socialism and democracy. New York: Harper.
Shane, S. (1992). Why do some societies invent more than others?. Journal of Business Venturing, 7 (1), 29–46.
Shane, S. (1995). Uncertainty avoidance and the preference for innovation championing roles. Journal of International Business Studies, 26 (1), 47–68.
Terleckyj, N. (1974). Effects of R & D on the productivity growth of industries: An exploratory study. Washington DC: National Planning Association.
Tjosvold, D. (1988). Cooperative and competitive dynamics within and between reorganizational units. Human Relations, 41 (6), 425-436.
United Nations. (2012). World population prospects: The 2012 Revision. Retrieved from http://esa.un.org.
World Bank. (2012a). Education statistics. Retrieved from http://databank.worldbank.org.
World Bank. (2012b). Research and development expenditure (% of GDP). Retrieved from http://databank.worldbank.org.
World Intellectual Property Organization. (2012). Resident patent filings per million population. Retrieved from http://www.wipo.int.
World Values Survey. (2014). WVS database. Retrieved from http://www. worldvaluessurvey.org.
Zak, P. J., & Knack, S. (2001). Trust and growth. Economic Journal, 111 (470), 295-321.