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Corruption and Innovation: A Grease or Sand relationship?

Author

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  • Prashanth Mahagaonkar

    () (Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group)

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.

Suggested Citation

  • Prashanth Mahagaonkar, 2008. "Corruption and Innovation: A Grease or Sand relationship?," Jena Economic Research Papers 2008-017, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2008-017
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    File URL: http://zs.thulb.uni-jena.de/receive/jportal_jparticle_00098443
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    Citations

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    Cited by:

    1. Kamilia Loukil, 2016. "Role of Human Resources in the Promotion of Technological Innovation in Emerging and Developing Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 341-352, September.
    2. Blackburn, Keith & Forgues-Puccio, Gonzalo F., 2009. "Why is corruption less harmful in some countries than in others?," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 797-810, December.
    3. Micheline Goedhuys & Pierre Mohnen & Tamer Taha, 2016. "Corruption, innovation and firm growth: firm-level evidence from Egypt and Tunisia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 299-322, December.
    4. Stephen Oluwatobi & Uchenna Efobi & Isaiah Olurinola & Philip Alege, 2015. "Innovation in Africa: Why Institutions Matter," South African Journal of Economics, Economic Society of South Africa, vol. 83(3), pages 390-410, September.
    5. Chi Keung Marco Lau & Fu Steve Yang & Zhe Zhang & Vincent K. K. Leung, 2015. "Determinants Of Innovative Activities: Evidence From Europe And Central Asia Region," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(01), pages 1-18.
    6. Kamilia Loukil, 2016. "Foreign Direct Investment And Technological Innovation In Developing Countries," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 31-40, September.
    7. Valerija Botrić & Ljiljana Božić, 2015. "Innovators' vs Non-innovators' perceptions of corruption in European post-transition economies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 8(3), pages 47-58, December.
    8. Jayoti Das & Cassandra E. DiRienzo, 2012. "Spatial Decay of Corruption in Africa and The Middle East," Economic Papers, The Economic Society of Australia, vol. 31(4), pages 508-514, December.
    9. Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, 2016. "Taxes, corruption, and entry," Small Business Economics, Springer, vol. 47(1), pages 201-216, June.

    More about this item

    Keywords

    Corruption; Developing Economies; Product Innovation; Process Innovation; Organisational Innovation; marketing Innovation; Taxation;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - 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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