Corruption and Innovation: A Grease or Sand relationship?

Prashanth Mahagaonkar ()
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Prashanth Mahagaonkar: Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group

No 2008-017, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: This paper provides a firm-level empirical analysis on the ways in which corruption affects innovative activity. Particularly with respect to the African continent that is striving to reconcile with instability and poverty, this issue seems to be of utmost importance. Using a newly available dataset on African firms, it is shown that corruption has a negative effect on product innovation and organisational innovation. Corruption does not affect process innovation while it facilitates marketing innovation.

Keywords: Corruption; Developing Economies; Product Innovation; Process Innovation; Organisational Innovation; marketing Innovation; Taxation (search for similar items in EconPapers)
JEL-codes: D73 H11 H25 O14 O31 (search for similar items in EconPapers)
Date: 2008-03-14
New Economics Papers: this item is included in nep-afr, nep-ent, nep-ino, nep-mic and nep-pol
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Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2008-017

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