External knowledge acquisition represents a precondition for firms’ competitive advantage. However, young firms find it particularly difficult to gain access to external sources of knowledge: young firms suffer from a liability of newness by exhibiting significantly lower propensities to invest in external R&D than their older counterparts. We explore the role of geographically bound social capital in moderating this liability. By employing a Nested Logit approach, our findings show that geographically bound social capital moderates the liability of newness related to R&D acquisition, suggesting that the liability exists only in regions associated with low levels of social capital.


Udgivelses stedFrederiksberg
UdgiverDRUID - Danish Research Unit for Industrial Dynamics. CBS
Antal sider35
ISBN (Trykt)9788778733078
StatusUdgivet - 2010


  • Research and Development, Social Capital, Liability of newness, Geography

ID: 32875746