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Spatial Heterogeneity in the Effect of Regional Trust on Innovation

Bibliographic Data

ID4041043
AuthorsThore Sören Bischoff (0000-0002-5511-6778, Institute for Small Business EconomicsGeorg-August-University Göttingen37073 GöttingenGermany), Petrik Runst (0000-0003-2483-9081, Institute for Small Business EconomicsGeorg-August-University Göttingen37073 GöttingenGermany), Kilian Bizer (0000-0002-2258-7725, Chair of Economic Policy and SME ResearchGeorg-August-Universität Göttingen37073 GöttingenGermany)
Year2024
Volume100
Issue1
Pages80-101
Publication date2024-01-02
Open AccessNo
TypeARTICLE
VenueEconomic Geography (JOURNAL)
Journal identifiersISSN: 0013-0095 • E-ISSN: 1944-8287
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00130095.2023.2252552
OpenAlexW4387703101
LanguageEN
Citations received2
References cited58

Generalized trust positively affects innovation at the regional level by reducing transaction costs and supporting collaboration. We develop theoretical reasons for why the trust–innovation relationship is heterogeneous across geographic space and identify two main mechanisms that drive this result: first, only regions in the lower half of the trust distribution benefit from an increase in trust; and second, as smaller firms lack internal capabilities such as research and development and therefore resort to informal collaboration, the trust–innovation relationship is stronger in regions with a large share of small firms. We argue that regional innovation work differently across regions and different mechanisms of cooperation can be leveraged to achieve innovation success. Our results highlight the role of trust during a certain stage in the process of regional economic development, since both low trust and a larger share of small business constitute characteristics of less developed regions

Business · Database transaction · Distribution (mathematics) · Economic geography · Economic growth · Economics · Geography · Gross domestic product · Industrial organization · Intellectual property · Political science · Product (mathematics) · Regional science · Transaction cost · Work (physics) · Computer Science · Finance · Marketing · Regional Development and Policy · Regional Economics and Spatial Analysis · Social Capital and Networks

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Citations per year2
Citation span2025 - 2025 (1)
Highly citedNo

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