Firm innovation and generalized trust as a regional resource

Arbeitspapier

Generalized trust within regions represents an important firm resource. We provide empirical evidence on the impact of trust among people in regions on innovation using two distinct data sets. The first one contains firm-level data and is used to analyze how trust affects firm-level innovation in small and medium sized enterprises (SMEs). The second data set is used to analyze the trust-innovation relationship within regions. It allows us to capture innovation in the form of patents and explore spatial patterns. Our observation period ranges from 2004 to 2019. We apply a multilevel approach, panel data models as well as spatial techniques. The results show that generalized trust has a positive impact on a firm's innovativeness, which is particularly strong for small and medium-sized firms and in regions with relatively low levels of trust.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ifh Working Paper ; No. 32/2022

Classification and Topics

• Classification: Wirtschaft ; Institutions: Design, Formation, Operations, and Impact ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Microeconomic Analyses of Economic Development ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure ; Innovation and Invention: Processes and Incentives
• Subject: Trust ; innovation ; regional innovation systems ; SMEs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bischoff, Thore Sören ; Hipp, Ann ; Runst, Petrik
• Event: Veröffentlichung
• (who): Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh)
• (where): Göttingen
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/249268
• Last update: 10.03.2025, 11:42 AM CET