Innovation and Social Capital: A Cross-country Investigation Volume 3 Jena Economic Research Papers 2009-10-13 2009 2007 2009-082 human capital social capital entrepreneurship innovation generalized and institutional trust civic norms associational activities This study explores the impact of social capital on innovation by constructing a more general measure of social capital indicator consisting of generalized and institutional trust, associational activities and civic norms. We test the hypothesis that social capital has a positive impact on innovation at the national level. After controlling for R&D expenditure and human capital there is a positive relationship between social capital and innovation. Social capital interacts with entrepreneurship and the strongest relationship is between associated activities and entrepreneurship. This is consistent with the need to build social relationships in today’s networked economy. jportal_jpjournal_00000016 2009-10-14T06:05:14.067Z 2010-12-17T11:54:09.785Z