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Title: Interpersonal trust, invention, and innovation across European regions
Authors: Dindaroğlu, Burak
Keywords: innovation
quality of institutions
social capital
Issue Date: 2023
Publisher: John Wiley and Sons Inc
Abstract: Many studies in economics and regional science claim a positive link between interpersonal trust and innovation by demonstrating a positive effect of trust on patenting. This contrasts many findings from organization level studies on trust and innovation, who report a variety of findings including inverted-U type relations. A possible explanation is that trust exhibits different roles in invention and innovation, as the former relies on knowledge commons while the latter directly embeds commercialization and the market context. This study attempts to reconcile the two set of findings by studying indicators of invention and innovation in relation to trust at the same unit of observation, by using the regional variation in Europe. I study the relationship between interpersonal trust and patent applications (a measure of invention), trademark applications (a composite indicator) and the share of innovative sales in turnover by SMEs (a direct indicator of commercialization), across European regions. I show that trust positively affects trademark applications with an effect that is comparable to that on patent applications. However, trust exhibits an inverted-U type relationship with innovative sales. Results collectively point to a strong role of trust in all three creative activities, including a negative effect at the higher end when the indicator is directly contingent on commercialization and sales. I also estimate the extent of spatial spillovers in the effect of trust on all three creative outcomes. © 2023 Wiley Periodicals LLC.
ISSN: 0017-4815
Appears in Collections:Rectorate / Rektörlük
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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