Trust, Innovation and Prosperity

Abstract

Economic development and its determinants, esp. trust or innovation are subjects of several scientific studies. Several authors claim the importance of innovation for economic development. Some studies identified that one of the most crucial factor for economic growth and prosperity is the trust between people. Within the research in this paper we have tried to identify the role of interpersonal trust within the innovation vs. prosperity relation. For this purpose and for causality analysis, we have applied decision tree models. Through our analysis of country based data (involved in trust related WVS surveys) in opposition to current studies, we have identified, that interpersonal trust is more significant determinant of innovation development as prosperity.