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Advances in Spatial Science
Manfred M. Fischer
Geoffrey J.D. Hewings
Folke Snickars (Coordinating Editor)
Titles in the Series
M. M. Fischer and A. Getis (Eds.) B. Fingleton (Ed.)
Recent Developments in Spatial Analysis European Regional Growth
X, 434 pages. 1997. ISBN 3-540-63180-1 VIII, 435 pages. 2003. ISBN 3-540-00366-5
P. McCann T. Puu
The Economics of Industrial Location Mathematical Location and Land Use Theory, XII, 228 pages. 1998. ISBN 3-540-64586-1 2nd Edition X, 362 pages. 2003. ISBN 3-540-00931-0 R. Capello, P. Nijkamp and G. Pepping (Eds.) Sustainable Cities and Energy Policies J. Bröcker, D. Dohse and R. Soltwedel (Eds.) XI, 282 pages. 1999. ISBN 3-540-64805-4 Innovation Clusters and Interregional Competition M. M. Fischer, L. Suarez-Villa and M. Steiner (Eds.) VIII, 409 pages. 2003. ISBN 3-540-00999-X Innovation, Networks and Localities D. A. Grifﬁth XI, 336 pages. 1999. ISBN 3-540-65853-X Spatial Autocorrelation and Spatial Filtering J. Stillwell, S. Geertman and S. Openshaw (Eds.) XIV, 247 pages. 2003. ISBN 3-540-00932-9 Geographical Information and Planning X, 454 pages. 1999. ISBN 3-540-65902-1 J. R. Roy Spatial Interaction Modelling G. Clarke and M. Madden (Eds.) X, 239 pages. 2004. ISBN 3-540-20528-4 Regional Science in Business VIII, 363 pages. 2001. ISBN 3-540-41780-X M. Beuthe, V. Himanen, A. Reggiani and L. Zamparini (Eds.) M. M. Fischer and Y. Leung (Eds.) Transport Developments and Innovations GeoComputational Modelling in an Evolving World XII, 279 pages. 2001. ISBN 3-540-41968-3 XIV, 346 pages. 2004. ISBN 3-540-00961-2 M. M. Fischer and J. Fröhlich (Eds.) Knowledge, Complexity and Innovation Systems Y. Okuyama and S. E. Chang (Eds.) XII, 477 pages. 2001. ISBN 3-540-41969-1 Modeling Spatial and Economic Impacts of Disasters M. M. Fischer, J. Revilla Diez and F. Snickars X, 323 pages. 2004. ISBN 3-540-21449-6 Metropolitan Innovation Systems VIII, 270 pages. 2001. ISBN 3-540-41967-5 L. Anselin, R.J.G.
Social Capital in the Knowledge Economy Theory and Empirics With 10 Figures and 26 Tables 123 Professor Hans Westlund National Institute for Working Life Studentplan 1 SE-831 40 Östersund SWEDEN Cataloging-in-Publication Data Library of Congress Control Number: 2006930411 ISBN-10 3-540-35364-X Springer Berlin Heidelberg New York ISBN-13 978-3-540-35364-5 Springer Berlin Heidelberg New York This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, speciﬁcally the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microﬁlm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable for prosecution under the German Copyright Law.
Springer is a part of Springer Science+Business Media springer.com © Springer-Verlag Berlin Heidelberg 2006 The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a speciﬁc statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.
Typesetting: Camera ready by author Production: LE-TEX Jelonek, Schmidt & Vöckler GbR, Leipzig Cover: Erich Kirchner, Heidelberg
SPIN 11777854 Printed on acid-free paper 88/3100YL 543210Preface
It is possible that there once was a time when scholars used to sit isolated with their cogitations in their attics, emerging now and then to publish their latest erudite offerings which no one had ever thought of before. If such a time did once exist, it certainly does so no longer. Writing a scientific or scholarly book in our era is to a large extent a team effort in which your team members are continually changing and you are unceasingly grateful for the privilege of enjoying and benefiting from the exertions, ideas, comments and support of a large number of very able people. Scientific and scholarly work nowadays is a process impossible without the existence and use of social capital.
This book is no exception to the above stated. There are very many colleagues (some of them referees and thus anonymous) and friends who have made the book possible. The foremost of these is Roger Bolton, with whom I wrote my first paper on social capital. Most of that paper has found its way into various passages of this book, while Chapter 6, Social Capital and Entrepreneurship, comes almost completely from Roger's pen. Thank you, Roger, for letting me use your text!
The empirical studies of the biotech industries of Japan, California and Sweden would have been impossible without a great deal of help. Kiyoshi Kobayashi and Kakuya Matsushima of Kyoto University and Therese Vallerius and Helena Jonsson-Franchi of the Swedish Office of Science and Technology in Los Angeles organized the distribution and collection of questionnaires as well as arranging study visits for me in Kansai and California respectively; Lars Norlander attended to the Swedish questionnaire and compiled the data. Miho Ota helped us to interpret the Japanese replies. The empirical study of the biotech industries was prepared by Elin Nilsson, with whom I also coauthored a paper of which some parts are included in this book.
The initiative to write this book came from Folke Snickars. A large number of colleagues have shared their knowledge with me through discussions, comments on papers and chapter drafts and interviews: Aku Alanen, Fredrik Andersson, Martin Andersson, Åke E. Andersson, Jonathan Conning, Eskil Ekstedt, Rod Falcon, Björn Falkenhall, Robert Formaini, Henrik Fridén, Peter Friedrich, Masahisa Fujita, Tracy Gordon, Urban Gråsjö, Börje Johansson, Kiyoshi Kobayashi, Anna S Nilsson, Hiroshi Ohta, Masamitsu Onishi, Takashi Omori, Dan Sasaki, Komei Sasaki, Arthur Silvers, Robert Stimson, Roger Stough, Anand Swamy, Gunnar Törnqvist, Takayuki Ueda, Lars Westin, Junfu Zhang, Wei-Bin Zhang and a number of unknown referees.
Work on the book took me to the American East and West coasts as well as to Japan. I am very grateful for the hospitality extended to me by Roger and Judy VI Preface Bolton, Jack and Gail Osman, Irene Tegelvik, and Kiyoshi Kobayashi and his family.
The manuscript was edited and brought to completion during the fall of 2005 when I had the great privilege of being Visiting Professor of the Center for International Research on the Japanese Economy (CIRJE) at the Faculty of Economics of the University of Tokyo. I am grateful to Yoshitsugo Kanemoto and Naoto Kunitomo for affording me the opportunity to work in such a stimulating environment, and to Shunji Ishihara for scholarly support and congenial company. Special thanks go to Hitomi, Tsukasa, Yuki and Kimiko for practical assistance, inspiring coffee breaks and very enjoyable company.
Most of the work on the book was carried out within projects sponsored by my former employers, the Swedish Institute for Regional Research (SIR) and the Swedish Institute for Growth Policy Studies (ITPS). The final editing was done as part of my current duties at the National Institute for Working Life. Financial support for publication was given by the Swedish Agency for Economic and Regional Growth (NUTEK).
Parts of this book have been published previously as papers in Small Business Economics (www.springer.com) and Regional Studies (www.tandf.co.uk), with Roger Bolton and Elin Nilsson as coauthors respectively. Also, parts of my chapter in Karlsson C, Andersson ÅE, Cheshire P and Stough RR (Eds) Innovation, Dynamic Regions and Regional Dynamics (forthcoming 2007 by Springer) are included in this book. The publishers’ and editors’ permissions to reuse the texts are highly appreciated.
The English linguistic check was made by Geoffrey French. It is a privilege to collaborate with such a skilled advisor.
Östersund, May 2006 Hans Westlund Contents Preface
The Emergence of a Concept
Does Social Capital Exist Only in the Civil Society?
The Definition Used in this Book
A Different Economy Needs a Different Social Capital
2 Social Capital as an Economic Concept
The Capital Concept’s Development
Can “Saved” Social Capital Provide a Yield?
Problems of Measurement and Aggregation
Measurement of Enterprise-Related Social Capital
Measurement of Social Capital in Civil Society
The Aggregation Problem
3 Social Capital as Capital in the Economic Sense
The Vintage Aspect
Accumulation and Maintenance
Rights of Possession Versus Public Goods
Complexity and Level of Aggregation
Social Capital as Capital – Summary
4 Social Capital as a Spatial Externality
Producer Surplus and Place Surplus
Formalized and Non-formalized Interactions
The Civil Society
5 The Social Capital of the Enterprise
The Enterprise’s Internal Social Capital
The Enterprise's Production-Related Social Capital
The Enterprise’s Environment-Related Social Capital
Market-Related Social Capital
6 Social Capital and Entrepreneurship
A Rereading of Schumpeter
Region-Bound Social Capital and Entrepreneurship
Entrepreneurship-Inhibiting and Facilitating Social Capital
Theoretical Models in Economics
The Basic Model
The Labor Market
The Typical Entrepreneur
Increase in Vision or Ease of Financing
Incorporation of Social Capital
After the Startup
7 Social Capital and Innovation: Actors and Policies
Innovation and Social Capital
From the Lonely Genius to Innovation Nodes
Why Care About Social Links?
Social Capital on Three Levels
Organizations and Their Social Capital
Social Capital of the Individual
Society’s Social Capital
Public Policies for Economic and Social Innovations
Policies on Different Spatial Levels
Three Swedish Examples
8 Why Compare Sweden, Japan and USA/California?
Three Countries in the Global Knowledge Economy
The Welfare State
The Land of Opportunity
The Asian Forerunner
What Aspects of Social Capital Should be Compared?
9 Social Capital Expressed in the Form of Labor Market Relations......... 109 Labor Market Relations in Sweden
Japanese Labor Market Relations
Labor Market Relations in the U.S. and California
USA and California – The Knowledge Economy’s Cradle
11 Civil Society’s Social Capital
Some Quantitative Figures
Sweden’s Civil Society
Japan’s Civil Society
Civil Society in USA and California
The Interplay of Civil Society and Business Life
12 The Knowledge-Intensive Biotech Industry: Structures and Policies.....149 Introduction
Biotechnology, Concepts and Clusters
Concepts, Definitions and Peculiarities
An International Comparison
Biotech Industry Clusters in the Three Countries
Policies for the Growth of Biotech Industries in the Three Countries...........159 Sweden
USA and California
13 The Biotech Industry’s Social Capital: An Empirical Study
A General Picture of the Enterprises Investigated
Enterprise-Internal Social Capital
External Production-Related Social Capital
Environment-Related Social Capital
Market-Related Social Capital
Connections Social Capital – Economic Performance?
Summary and Discussion
Growth Policies in a Global Knowledge Economy
Appendix: The Empirical Data
14 Some Forward Looking Comments
A Concept of Economics
Social Capital of Organizations
The Diversity of Organizations
Internal and External Social Capital
Measurement of Social Capital Stock and Depreciation
Social Capital in Macroeconomics
The Byproduct Problem
Game-Theory Approaches on Social Capital
The Role of Space in the Global Knowledge Economy
X Contents Place Surplus – Specialized Clusters and Diversified Regions................. 190 References …………………………………………………………………..191 Index…………………………………………………………………………207 1 Introduction The Emergence of a Concept During the 1990s a new concept of capital, social capital, came into general use alongside the established concepts of financial, real, and human capital. Over a decade later, a virtual explosion of social capital research has taken place in a large number of academic disciplines. Unlike its companion concepts, the idea of social capital does not originate from the discipline of economics but has its roots primarily in sociology. It has been said to have originated with the classical sociologists of the nineteenth century (Portes and Landolt 1996). The first explicit use of the term in approximately its present connotation seems to have been in the United States by Hanifan (1916). Jacobs (1961) used the concept in her celebrated book on American cities, and the anthropologist Hannerz (1969) used the term in his book on ghetto cultures. In Europe it was Bourdieu (1980) who made the concept of social capital a familiar one, alongside his better-known concept of cultural capital. Social capital, according to Bourdieu, is “the sum of the resources, actual or virtual, that accrue to an individual or a group by virtue of possessing a durable network of more or less institutionalized relationships of mutual acquaintance and recognition” (Bourdieu and Wacquant 1992 p. 119). Another scholar who has defined social capital as an individual-related resource is Loury (1977, 1987).
Coleman’s (1988, 1990) definition of the concept places it on a different plane from that of the individual. In Foundations of Social Theory (1990) he uses the figure below to explain the distinction between human capital and social capital.