National Innovation System And Culture: A Cross-Country Analysis

This study assesses the relationship between Hofstede’s cultural dimensions and the constituents of a National Innovation System (NIS). We consider an NIS as a special kind of intangible (latent) asset and identify its two constituents: input and output capital. These are extracted through a modern NIS measurement model, based on the Global Innovation Index. Using structural equation models, we show that power distance and uncertainty avoidance, and long-term orientation and indulgence vs. restraint, act through the latent constructs PDUA and LTIV, respectively. Moreover, individualism (IDV) and NIS constituents are directly and negatively affected by PDUA. IDV and LTIV directly and positively affect the NIS constituents. Further, the results show that masculinity vs. femininity significantly and negatively affects the NIS input constituent and significantly affects the NIS output constituent, but its impact is negative for high-income countries and positive for non-high income countries.