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How Does Culture Contribute To Innovation? Evidence From European Countries

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  • Anneli Kaasa
  • Maaja Vadi

Abstract

Culture is deemed to be a crucial basis for innovation in various respects. The aim of this paper is to explore the relationships between different cultural dimensions introduced by Hofstede (2001) and the capability of initiating innovation measured by the number of patent applications using the sample of European countries at the regional level. As a novel approach, instead of using Hofstede’s original index scores, the measures for the cultural dimensions are based on the European Social Survey (ESS). We have learned that to be successful in patenting, a region should have power distance, uncertainty avoidance, family-related collectivism (as opposed to friend-related and organisation-related collectivism) and lower than average masculinity. In addition, the negative relationships between these cultural dimensions and patenting are stronger when there is a higher patenting intensity. However, culture alone does not serve as a guarantee for a high level of patenting intensity.

Suggested Citation

  • Anneli Kaasa & Maaja Vadi, 2008. "How Does Culture Contribute To Innovation? Evidence From European Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 63, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  • Handle: RePEc:mtk:febawb:63
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    References listed on IDEAS

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    1. Mourad Dakhli & Dirk De Clercq, 2004. "Human capital, social capital, and innovation: a multi-country study," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(2), pages 107-128, March.
    2. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
    3. Waarts, Eric & Van Everdingen, Yvonne, 2005. "The Influence of National Culture on the Adoption Status of Innovations:: An Empirical Study of Firms Across Europe," European Management Journal, Elsevier, vol. 23(6), pages 601-610, December.
    4. Shane, Scott, 1993. "Cultural influences on national rates of innovation," Journal of Business Venturing, Elsevier, vol. 8(1), pages 59-73, January.
    5. Al James, 2005. "Demystifying the role of culture in innovative regional economies," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1197-1216.
    6. Nasierowski, W. & Arcelus, F. J., 1999. "Interrelationships among the elements of national innovation systems: A statistical evaluation," European Journal of Operational Research, Elsevier, vol. 119(2), pages 235-253, December.
    7. Shane, Scott A., 1992. "Why do some societies invent more than others?," Journal of Business Venturing, Elsevier, vol. 7(1), pages 29-46, January.
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    Cited by:

    1. Rakesh Sambharya & Martina Musteen, 2014. "Institutional environment and entrepreneurship: An empirical study across countries," Journal of International Entrepreneurship, Springer, vol. 12(4), pages 314-330, December.
    2. Bobby Kurian, 2015. "Impact of Culture on Innovativeness in IT Organizations in India," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(3), pages 304-316, March.
    3. repec:bla:tvecsg:v:108:y:2017:i:1:p:109-128 is not listed on IDEAS
    4. Anneli Kaasa, 2016. "Culture, religion and productivity: Evidence from European regions," Business and Economic Horizons (BEH), Prague Development Center, vol. 12(1), pages 11-28, April.
    5. Arundel, Anthony & Casali, Luca & Hollanders, Hugo, 2015. "How European public sector agencies innovate: The use of bottom-up, policy-dependent and knowledge-scanning innovation methods," Research Policy, Elsevier, vol. 44(7), pages 1271-1282.
    6. repec:rdg:wpaper:em-dp2009-08 is not listed on IDEAS
    7. Matthias Siller & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2015. "Measuring regional innovation in one dimension: More lost than gained?," Working Papers 2015-14, Faculty of Economics and Statistics, University of Innsbruck.
    8. Marian Adolf & Jason Mast & Nico Stehr, 2013. "The foundations of innovation in modern societies: the displacement of concepts and knowledgeability," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 12(1), pages 11-22, June.
    9. Kaasa, Anneli & Vadi, Maaja & Varblane, Urmas, 2016. "A new dataset of cultural distances for European countries and regions," Research in International Business and Finance, Elsevier, vol. 37(C), pages 231-241.
    10. Denise Tsang, 2010. "The Institutional Sources of Innovation in Korean and UK Online Gaming Firms," Economics & Management Discussion Papers em-dp2009-08, Henley Business School, Reading University.
    11. repec:spr:manint:v:54:y:2014:i:6:d:10.1007_s11575-014-0223-6 is not listed on IDEAS

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    Keywords

    innovation; culture; Europe;

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