For a cross-section of 123 European regions, a positive causal effect of generalised trust on innovation activity is identified using a set of geographic instrumental variables from climate and soil data. The geographic instrumental variables are defined and discussed. The popular explanation...

In light of its importance of innovation on the political agenda it is necessary to provide guidance to decision makers how innovation can effectively be fostered in practice and to disentangle and evaluate the effects of the determinants suggested by the literature. This thesis focuses on the...