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Does culture still matter?: The effects of individualism on national innovation rates

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  • Taylor, Mark Zachary
  • Wilson, Sean

Abstract

Does a society's culture affect its rate of inventive activity? This article analyzes several independent datasets of culture and innovation from 62 countries spanning more than two decades. It finds that most measures of individualism have a strong, significant, and positive effect on innovation, even when controlling for major policy variables. However, the data also suggest that a certain type of collectivism (i.e. patriotism and nationalism) can also foster innovation at the national level. Meanwhile, other types of collectivism (i.e. familism and localism) not only harm innovation rates, but may hurt progress in science worse than technology.

Suggested Citation

  • Taylor, Mark Zachary & Wilson, Sean, 2012. "Does culture still matter?: The effects of individualism on national innovation rates," Journal of Business Venturing, Elsevier, vol. 27(2), pages 234-247.
  • Handle: RePEc:eee:jbvent:v:27:y:2012:i:2:p:234-247
    DOI: 10.1016/j.jbusvent.2010.10.001
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    1. repec:eee:techno:v:66-67:y:2017:i::p:43-56 is not listed on IDEAS
    2. Patrick Kreiser & Louis Marino & Donald Kuratko & K. Weaver, 2013. "Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance," Small Business Economics, Springer, vol. 40(2), pages 273-291, February.
    3. Ratan J. S. Dheer, 2017. "Cross-national differences in entrepreneurial activity: role of culture and institutional factors," Small Business Economics, Springer, vol. 48(4), pages 813-842, April.
    4. Manjit Singh Sandhu & Poon Wai Ching, 2014. "Relationship between Individual Cultural Values and Knowledge Sharing in Selected Multinational Companies in Malaysia," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 13(1), pages 1-24, June.
    5. Černe, Matej & Jaklič, Marko & Škerlavaj, Miha, 2013. "Decoupling management and technological innovations: Resolving the individualism–collectivism controversy," Journal of International Management, Elsevier, vol. 19(2), pages 103-117.
    6. James B. Ang, 2015. "Agricultural Legacy, Individualistic Culture, and Techology Adoption," Economic Growth Centre Working Paper Series 1506, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    7. Tommaso Minola & Giuseppe Criaco & Martin Obschonka, 2016. "Age, culture, and self-employment motivation," Small Business Economics, Springer, vol. 46(2), pages 187-213, February.
    8. Ana Ferreira & Ana Lúcia Teixeira, 2016. "Intra- And Extra-Organisational Foundations Of Innovation Processes — The Information And Communication Technology Sector Under The Crisis In Portugal," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-44, August.
    9. repec:eee:corfin:v:46:y:2017:i:c:p:284-306 is not listed on IDEAS
    10. Dilli, Selin & Elert, Niklas, 2016. "The Diversity of Entrepreneurial Regimes in Europe," Working Paper Series 1118, Research Institute of Industrial Economics.
    11. repec:spr:soinre:v:133:y:2017:i:3:d:10.1007_s11205-016-1396-0 is not listed on IDEAS
    12. Lewellyn, Krista B. & Bao, Shuji ‘Rosey’, 2014. "A cross-national investigation of IPO activity: The role of formal institutions and national culture," International Business Review, Elsevier, vol. 23(6), pages 1167-1178.
    13. Sharon Simmons & Johan Wiklund & Jonathan Levie, 2014. "Stigma and business failure: implications for entrepreneurs’ career choices," Small Business Economics, Springer, vol. 42(3), pages 485-505, March.
    14. Sarooghi, Hessamoddin & Libaers, Dirk & Burkemper, Andrew, 2015. "Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors," Journal of Business Venturing, Elsevier, vol. 30(5), pages 714-731.
    15. Boubakri, Narjess & Saffar, Walid, 2016. "Culture and externally financed firm growth," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 502-520.
    16. Lewellyn, Krista B. & Bao, Shuji ‘Rosey’, 2015. "R&D Investment in the Global Paper Products Industry: A Behavioral Theory of the Firm and National Culture Perspective," Journal of International Management, Elsevier, vol. 21(1), pages 1-17.
    17. Elert, Niklas & Henrekson, Magnus & Stenkula, Mikael, 2017. "Institutional Reform for Innovation and Entrepreneurship: An Agenda for Europe," Working Paper Series 1150, Research Institute of Industrial Economics, revised 16 Feb 2017.
    18. Proksch, Dorian & Haberstroh, Marcus Max & Pinkwart, Andreas, 2017. "Increasing the national innovative capacity: Identifying the pathways to success using a comparative method," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 256-270.
    19. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    20. Magnus Henrekson, 2014. "Entrepreneurship, innovation, and human flourishing," Small Business Economics, Springer, vol. 43(3), pages 511-528, October.
    21. repec:eee:jbrese:v:84:y:2018:i:c:p:243-252 is not listed on IDEAS
    22. repec:kap:jtecht:v:42:y:2017:i:5:d:10.1007_s10961-016-9478-3 is not listed on IDEAS

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