Literature on Intellectual Capital provides interesting arguments about the key role of social and human capital, not only separately but also jointly, for innovation activities. Thus, given the acknowledged importance of these variables, this article studies (1) the direct relationship between social and human capital and innovative performance, (2) the links between these two components of intellectual capital, as well as the possible mediating role of human capital, (3) the effect of particular human resource management (HRM) practices (selection procedures, development programmes, empowerment and use of incentives on compensation) on social and human capital, and (4) the influence of innovative performance on firm performance. In our study, we define a population of firms in the most innovative Spanish sectors for an empirical test of this model, focusing on their R&D departments. Using data taken from 85 firms and applying Structural Equation Models, we have tested the hypotheses and obtained interesting results. It is the uniqueness of human capital, and not its value, which has a direct and positive effect on firm innovativeness. Such uniqueness, in turn, is enhanced through social capital and HRM practices such as empowerment and employee selection based on learning potential and interpersonal abilities. Social capital does not have, per se, a direct influence on innovation, but it indirectly does through human capital. Social capital, in turn, can be enhanced by the selection of individuals with learning potential and interpersonal skills, as well as by their involvement in decision-making processes. Finally, innovation improves firm performance.

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We examine the role of internal and external relational social capital (SC) as determinants of radical product innovation (RPI). By analysing both sides of SC, we provide interesting insights on their relative influence and their interaction effect on this type of innovation. Besides, traditional assumptions on SC and innovation are questioned. In our empirical study using a sample of 142 manufacturing and service companies we found that, of the two types of SC analysed, internal SC is the most relevant predictor of RPI in relation to either technological or market dimensions. The influence of external SC is not as strong as the internal one. Regarding their interaction effect, external SC reduces the positive effect of internal SC on the market dimension of RPI. Interesting implications arise for practitioners, who should pay special attention to the higher impact of internal SC on RPI and the need to carefully manage the difficulties that emerge when it is combined with external SC.

In this study we analyse the effect of team diversity, encouragement to take risks and team incentives on the degree of radicalness of innovation. Empirical research has been conducted with a sample of 95 companies from four innovative industries according to their high number of patents. The results indicate that team diversity and the combined use of long‐ and short‐term incentives are associated with incremental innovation, whereas the development of risk‐taking attitudes within the team is associated with radical innovation.