Social Capital in Eibar, 1886–1985: dimensions, institutions and outcomes

Abstract

It is widely accepted that the generation of knowledge and its diffusion is an important mechanism in order to promote innovation and entrepreneurship, but many studies over-estimate the importance of spillovers and do not explain the actual dissemination of know-how. This involves looking into social capital in order to analyze the channels of tacit knowledge and the players involved. This paper tackles the role of social relationships as facilitators of the industrialization process in Eibar, an old industrial town in the Basque Country. From a micro-level approach, and applying social network analysis, co-ownership links, old-school personal relationships, voluntary association, or family ties between companies are investigated. The evidence shows that there is an informal network that forms a remarkable alternative for official channels of interaction, and helps to understand the industrial dynamism of the town.