Critical Evaluation of Network Diversity and Benefits in Innovation - Essay Example

Network structure Woolcock and Narayan (2000) develop their considerations, considering social capital as a potential bridge among policymakers, practitioners and scholars. In case people generate a positive atmosphere of cooperation, they are able to continue their relations in a favorable atmosphere. Social capital is a social bond among different networks. The main goal for people in terms of any social network is to find and sustain the development and support of their social activities (Fukuyama, 1995).

The concepts of socializing and economic performance are closely related and there is a need to anchor bounds between these two concepts. Under conditions of networks creation, people are able to develop different behavioral templates and be focused on their mutual cooperation and common goals succeeding (Lee, 2009). Social interaction can be considered from a different prospect, when closed networks are acting against other social groups. For example, activities of mafias and different aspects of corruption can be positioned as negative outcomes of closed networks.

Shumpeter- social capital and resource combinations Social capital for Shumpeter is activity of people, directed on innovations development. Moreover, the scientist was not focused on the goal of enrichment as a final goal of innovations implementation. The goal of commercialization may not always correlate with the goal of innovations (Fukuyama, 1995). . Different spheres of human activities are connected with innovations and it is hard to claim that the final goal for social capital activities is enrichment.

Social capital combines its efforts in order to develop its knowledge, to develop and introduce more valuable and innovative policies in the field of activity (Fukuyama, 1995). He was also focused on “combinatory” activity, when the members of social groups acted like entrepreneurs, while performing “the entrepreneurial function”. In these terms Schumpeter considered possible ways for innovations and long-term economic change. Schumpeter was focused on a dynamic approach for economic development, because only through innovations it was possible to reach success.

Mutual interaction of entrepreneurs and the combination of their efforts in the field of innovations could result in creation of new opportunities (Schumpeter, 1970). At first, Schumpeter was focused on the individual role of the entrepreneur, which should be innovative and motivate the team of an entrepreneur to creation of new ideas. The main role of the entrepreneur was to correctly combine innovative practices and ideas of the members of his team. Further on, Schumpeter was focused on the important role of the team as the leading moving force of the company’s progress.

The entrepreneur performed a function of a new combinations’ manager (Schumpeter, 1970). . Innovations of a social group are considered to be a routine practice, while the entrepreneur should constantly be focused on “new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on” (Schumpeter 1970, p. 132). A “large corporations” is working in the name of a common goal. Concept of social capital-diversity In the modern globalized world the limits of the society are blurred.

Still, it is evident that the concept of social c