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Corruption - A Dark Side of Entrepreneurship. Corruption and Innovations

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  • Marek Tomaszewski

Abstract

In this article, corruption is treated as an expression of human entrepreneurship, which does not fully fit in the commonly accepted moral and legal standards. Despite being negatively perceived, it is persistently present in the public, economic and political life of every country as evidenced by a number of press releases on corruption.Research literature analysis reveals the existence of two conflicting opinions with regard to the way in which corruption affects innovative activity of companies and economic growth. The more morally correct theory, which can be dubbed the sand-the-wheels theory, assumes that corruption negatively influences innovative activity and economic growth. Whereas, the grease-the-wheels theory, which is inconsistent with the principles of social responsibility of business, argues for the positive influence of corruption on innovative activity of companies and economic growth. This article is a voice in that discussion.

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  • Marek Tomaszewski, 2018. "Corruption - A Dark Side of Entrepreneurship. Corruption and Innovations," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(3), pages 251-269.
    • Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:3:id:647:p:251-269
    DOI: 10.18267/j.pep.647
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    Cited by:

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    2. Rajeev K. Goel & James W. Saunoris, 2020. "Design versus utility innovation: Is corruption sanding or greasing the wheels of innovation?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 848-860, July.
    3. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju, 2020. "Country governance, corruption, and the likelihood of firms’ innovation," Economic Modelling, Elsevier, vol. 92(C), pages 326-338.
    4. Galindo-Martín, Miguel-Ángel & Castaño-Martínez, María-Soledad & Méndez-Picazo, María-Teresa, 2021. "The role of entrepreneurship in different economic phases," Journal of Business Research, Elsevier, vol. 122(C), pages 171-179.

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    More about this item

    Keywords

    corruption; entrepreneurship; the sand-the-wheels theory; the grease-the-wheels theory; innovations; economic growth;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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