The effect of national culture on countries’ innovation efficiency

George Halkos and Nickolaos Tzeremes

MPRA Paper from University Library of Munich, Germany

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.

Keywords: National culture; Innovation efficiency; Conditional efficiency; Bootstrap procedures (search for similar items in EconPapers)
JEL-codes: C02 C14 C61 O14 Z13 (search for similar items in EconPapers)
Date: 2011-04
New Economics Papers: this item is included in nep-cul, nep-eff, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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