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Inputs, Outputs and Effectivity of Innovations in Cross-Country Perspective. The Role of National Cultural Values

Publication |
2019

Abstract

The association between the national cultural indices and levels of innovation has been an attractive subject of statistical analysis for the last decade. However, most of the papers concentrated on levels of innovations only.

This paper studies inputs, outputs and effectivity of innovations as related to cultural indices. Methodologically the paper relies on multiple regression analysis of innovation indices (Global Innovation Index, 2018) and the Hofstede culturalindices (power distance, individualism, masculinity, uncertainty avoidance, long term orientation, and indulgence) controlling for GDP per capita (PPP, 2018).

The results suggest, that levels, inputs, and outputs of innovations are positively associated with individualism and long term orientation. The other cultural dimensions were not statistically significant.

The efficiency of innovations did not prove to be statistically related to the national cultural indices. However, there are substantial geographically localized exceptions of the countries with a high degree of innovation while low individualism (China, Singapore, Hong Kong), representing the collectivist model of innovations.

Arguably, these countries have heavily benefitted from technology transfer, which enabled them to start their own innovation creation despite collectivism and originally a low level of economic development.