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Social capital according to OECD definition is networks together with shared norms, values and understandings that facilitate co-operation within or among groups. Currently, social capital is identified as a one of the key factors of economic development. Most of the existing literature focuses on the role of social capital for economic growth, meanwhile the purpose of this study is to examine the role which social capital plays in the processes of smart growth in the EU countries. Smart growth is based on knowledge and innovation. The notion of smart growth, its factors and measuring methods are new categories which emerge from the concept of EU's strategic development objectives. The study uses a soft modelling method which allows for measuring and analysis of the relationships among unobserved variables (latent variables).

Social capital and smart growth of the EU countries