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The concept of social capital has recently grown significantly and it is now common for cities and regions to assess and improve their competitive advantages. Yet it remains rather unclear just whether it has negative aspects distinct from the positive effects of social capital on the performances of regional innovation system. The blurring of the characteristics of social capital when applied to regional innovation system also complicates matters. In contrast to the typical approach to using social capital as a hidden innovative ingredient, what is required is thus a more comprehensive approach that also analyzes the negative impact of social capital in regional innovation system. To support this argument, the paper firstly tries to examine the relationships between social capital and regional innovation system, to analyze the dysfunctional aspects of social capital in regional innovation system, and then to explore the policy implications. More specifically, analysis indicates that social capital may have negative impacts on regional innovation system due to network closure, group think and overconformity. The paper also presents a discussion of how the dysfunctionality of social capital may be overcomed by suggesting the structural, relational and cognitive dimensions of regional innovation system as policy implications.
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