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Corruption and Innovation: A Grease or Sand relationship?

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

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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.

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Publisher Info
Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers in Economics with number 2008-017.

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Date of creation: 14 Mar 2008
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Handle: RePEc:jrp:jrpwrp:2008-017

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Related research
Keywords: Corruption; Developing Economies; Product Innovation; Process Innovation; Organisational Innovation; marketing Innovation; Taxation;

Find related papers by JEL classification:
D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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This page was last updated on 2009-12-15.

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