The Role of Social Capital and Social Innovation in Economic Growth

Abstract

The study assessed the role of social capital and social innovation in economic growth. Nonetheless, a panel of 147 countries was sampled from 2009 to 2017, and econometric panel techniques were utilized to arrive at a statistical conclusion. The techniques used in the estimation are contemporaneous correlation estimators; thus, panel corrected standard errors, panel generalized least square with correlation disturbances, and generalized linear model. Upon estimations, the study concluded that social capital and social innovation strongly play a positive role in economic growth. Therefore, in pursuit of sustainable economic growth, social capital accumulation; thus, social trust and social networking are essential. Moreover, social innovations that are internet-related positively contribute to economic growth sustainably. The study recommends that investment in digital communication technologies should be prioritized because it improves material living standards because it lowers the cost of maintaining and creating professional and personal ties, strengthening the diffusion of knowledge and ideas, and further creating productivity spill overs positively. Also, policymakers should enact policies that offer triple triumph; thus, triumph for government, society, and individuals characterised by affordability, benefits, and add value to citizens' standard of living. Contribution/Originality:The paper contributes the first logical analysis of the role of social capital and social innovation in economic growth. With a panel of 147 countries and period from 2009 to 2017, and econometric panel techniques utilized, the study concludes that social capital and social innovation strongly play a positive role in economic growth. INTRODUCTIONFrom a macroeconomic perspective, social capital is the shared good that entails a trust-based network and trust itself, thereby improving economic policies' effectiveness (Easterly & Levine, 1997). According to Uzzi (1996), trust-based networks ensure the transmission and transfer of varied, reliable, and essential information. Perhaps, information sharing is considered as the fundamental ingredient for innovation. In support of this assertion, Akçomak and Ter Weel (2009) contend that facilitating cooperation, interaction, and information sharing result in creating social capital that encourages innovation undertakings, whereas affecting economic growth positively. In most emerging and industrialized economies, innovation has been deciphered as the fuel for growth, especially in countries like the United Kingdom, Finland, Austria, Sweden, and the United States became heavily innovative between 1995 and 2006 when they aimed to become innovative economies. Innovation is referred to as introducing

Social capital and corporate resilience: The case of small and medium enterprises in Vietnam

“…Social capital is considered an interdisciplinary concept because it inherently combines the two notions of 'capital' and 'social' (Akpemah, 2021;Van Ha, Kant, & Maclaren, 2006). Social capital is 'accumulated' when individuals 'invest' in relationships for future 'utilization.…”