Spatial and Sectoral Characteristics of Relational Capital in Innovation Activity

Abstract

The paper presents prima facie evidence of the role of relational capital in innovation activities, and underlines the spatial and sectoral difference of the effects of relational capital on innovation processes. Relational cpaital is defined in this paper as the stock of relations that a firm can entertain with other firms, institutions, research centres, measured through the intensity of cooperation among local actors. The paper is structured in two parts. In the first part, a review on the literature is presented, and the similarities and differences between the concept of relational capital and the more common concept of knowledge spillovers is underlined. In the second part, the empirical results of the analysis are presented; the empirical analysis is based on a database of 133 firms' observations, located in different geographical areas. With a quantitative approach, the paper replies to the following key questions: Is relational capital a determinant for innovation activities? If it is so, does it have the same role in urban and non-urban areas? Does it have a different role in specialized and despecialized areas? The empirical results to these questions help in understanding whether it is true that competitive city regions in the global economy are the major locations for relatively exclusive knowledge and learning resources. The paper shows that if relational capital plays a role in innovation activities, it may very well be that its role strongly depends on the sectoral as well as the spatial characteristics in which the innovation process takes place. Non-urban areas characterized by strong local synergies and highly specialized activities may even be more facilitated in their inovation activity.