Cultural determinants of national innovative capacity: A cross-country analysis of developed and developing countries
Abstract
This article investigates the impact of Hofstede’s cultural dimensions on the innovative capacity of countries by comparing developed and developing countries during the period 2009–2024, using an unbalanced panel dataset of 83 countries and a random-effects model with Driscoll–Kraay standard. The results reveal that cultures contexts characterized by high power distance, strong uncertainty avoidance, collectivism, femininity, short-term orientation, and restraint tend to suppress national innovative capacity, whereas low power distance, individualism, low uncertainty avoidance, masculinity, long-term orientation, and indulgence contribute to its enhancement. Moreover, whereas uncertainty avoidance exerts a more pronounced negative impact in developing countries, masculinity and indulgence exhibit comparatively stronger positive impacts on the innovative capacity of developed countries. These findings highlight that cultural dimensions shape cross-country differences in innovative capacity and that economic development level moderates the strength of these relationships.
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References
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