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              <p>Available empirical research referring to different units of analysis supports, in general terms, a linear positive relationship among some components of social capital and innovation. Yet some studies also present controversial results by finding non-significant, negative, diminishing returns and quadratic relationships. Building on the social network theory of innovation, this paper shows that the social capital-innovation relationship has an inverted U-shape. This is consistent with recent research that suggests that some sub-constructs of social capital, such as tie strength, involve maintenance and opportunity costs and that social capital has positive effects but also has its limits.</p>
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