The effect of national culture on countries’ innovation efficiency

Halkos, George and Tzeremes, Nickolaos (2011): The effect of national culture on countries’ innovation efficiency.

Abstract

This paper contributes to the link between social and cultural factors with countries innovation performance. By measuring 25 countries’ innovation efficiency with the use of conditional and unconditional DEA (Data Envelopment Analysis) frontiers the paper provides empirical evidence of the effect of culture on countries’ innovation efficiency. Particularly, conditional and unconditional full frontier models are used alongside with bootstrap techniques in order to determine the effect of national culture on countries’ innovation performance. The study illustrates how the recent developments in efficiency analysis and statistical inference can be applied when evaluating such issues. The results reveal that national culture has an impact on countries’ innovation efficiency. Analytically, the results indicate that higher PDI (power distance index), IDV (individualism) and UAI (uncertainty avoidance) values have a negative effect on countries innovation efficiency, whereas masculinity values appear to have a positive effect on countries innovation performance.

• Item Type: MPRA Paper
• Language: English
• Keywords: National culture; Innovation efficiency; Conditional efficiency; Bootstrap procedures
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology

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