Determination of Social Capital and Networks on Economic Geography and Innovation Trajectory
On the foregoing, it is reasonable to aver that economic advantages will accrue in societies whose structures support social capital and effective network creation (Porter, 1990). Studies (such as that by Saxenian, 1991, 1994) demonstrate high-technology-led economic growth occurs around areas featuring dense clusters of productive networks. Social capital is therefore correlative with economic geography (Porter, 1998).
Innovations and entrepreneurial activities evolve beyond incubation and their trajectories are shaped by social capital. As an enterprise matures, know-how accumulates, the reservoir of social capital deepens, and capabilities expand. The concept of bricolage has been identified as explanatory (Andersen, 2008): innovation/enterprise evolution takes form according to the nature of the knowledge at hand, embedded in the informal network of the enterprise.
...continue reading →