Modelling the effect of national culture on countries’ innovation performance: A conditional full frontier approach. International Review of Applied Economics 27(5): 656-678

Modelling the effect of national culture on countries’ innovation performance: A conditional full frontier approach. International Review of Applied Economics 27(5): 656-678 (SCOPUS, EconLit Listed). Από κοινού με N. Tzeremes (2013).

This paper provides empirical evidence of the link between countries’ cultural factors and innovation performance. By defining innovation process in a knowledge production framework it uses conditional and unconditional Data Envelopment Analysis (DEA) models together with data from the European Innovation Scoreboard for the year 2007 and Hofstede’s cultural indexes. In this way it models and measures the effect of cultural values on 25 European countries’ innovation efficiency levels. The empirical results reveal that national culture can impact countries’ innovation performance. Specifically, we find significant negative effects on countries’ innovation efficiency levels for countries with higher power distance and uncertainty avoidance values.

Keywords: National culture; Innovation performance; Conditional efficiency; Bootstrap procedures.

JEL Classification: C6, C14, O3, O31.