Previous studies have found that generalized trust positively affects innovation at the country and regional level. We … extend this literature by arguing that there are four reasons to believe that the trust-innovation relationship is … trust-innovation relationship is stronger in regions with a large share of small firms. Our results mostly support the small …

trust among people in regions on innovation using two distinct data sets. The first one contains firm-level data and is used … to analyze how trust affects firm-level innovation in small and medium sized enterprises (SMEs). The second data set is … used to analyze the trust-innovation relationship within regions. It allows us to capture innovation in the form of patents …