SOCIAL TRUST AS A FACTOR OF ECONOMIC INNOVATION
DOI:
https://doi.org/10.18485/Keywords:
innovation, social capital, social trust, trust in institutions, regression analysis, structural equation modelingAbstract
In this paper we empirically test the effect of social capital as a factor of innovation. Theoretically we rely on Social Capital Theory with the main thesis that culture of the society has an economic outcome. We used for the analysis aggregate date from 44 countries in Europe. The data are taken from relevant international sources and researches. Dependent variable in the research was Global Innovation Index. Social capital, as well as other predictors was taken from World Value Survey. Results of the hypothesis testing confirm a significant effect of social capital onto economic innovation. Among few dimensions of social capital, by using regression analysis and Structural Equation Modeling we found that social trust has the strongest effect on innovation. In conclusion, we provide theoretical argumentation regarding the effect of culture onto economic outcomes. Finally, we assume that one of the factors of the low level of economic innovation in Serbia is due to the lack of social capital.
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