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Corruption and Innovation: A Grease or Sand relationship?

Author

Listed:
  • 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 Economics Research Papers 2008-017, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2008-017
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2008/wp_2008_017.pdf
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    More about this item

    Keywords

    Corruption; Developing Economies; Product Innovation; Process Innovation; Organisational Innovation; marketing Innovation; Taxation;
    All these keywords.

    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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