THE ROLE OF SOCIAL CAPITAL IN MODERN BUSINESS INNOVATIVE ACTIVITIES

Nowadays the role and importance of social capital is increasing significantly in business activity. Social capital manifests itself in mutual trust, shared norms, values, and networking. Initially, the theory of social capital developed in relation to society, but gradually developed and moved to the company level. At the national level, social capital leads to mutually beneficial interactions between countries and nations and helps solve global problems (global warming, the threat of nuclear war, famine, etc.); at the state level, it helps strengthen democratic institutions; at the enterprise level, it helps develop trust between colleagues; at the individual level, it strengthens a person’s psychological health (removes feelings of loneliness, increases self-esteem and life satisfaction). The article highlights and substantiates the key role of social capital in the formation of economic entities regarding the development and implementation of innovations.