Corruption, Culture And Effects On National Innovation In International Societies

This study aims to examine the effects of corruption perception and cultural dimensions on national innovation in international societies. To achieve this, data from the Corruption Perception Index (CPI) provided by the non-governmental organization Transparency International, information on Hofstede's Cultural Dimensions, and data available in the Global Innovation Index (GII) reports were utilized for a total of 59 countries spanning from 2010 to 2022. The panel regression method was employed, with national innovation as the dependent variable and corruption perception and cultural dimensions as independent variables. The findings indicate that in societies where there is a higher perception of corruption, i.e., where fewer corrupt acts are tolerated, there are better national innovation indices. Additionally, countries characterized by lower power distance, greater individualism, lower uncertainty avoidance, higher long-term orientation, and greater indulgence exhibit superior national innovation indices. These findings contribute to various market stakeholders by signaling interactions on how corruption can negatively influence innovation generation within a society, and how intrinsic cultural aspects of these nations impact this innovation index, which may represent a country's level of competitiveness on a global scale. The results are relevant as they provide insights for policymakers regarding the effects of corrupt practices on innovation, which in turn affects the country's competitive image in international markets.