CULTURAL DETERMINANTS OF NATIONAL INNOVATIVE CAPACITY: A CROSS-COUNTRY ANALYSIS OF DEVELOPED AND DEVELOPING COUNTRIES
CULTURAL DETERMINANTS OF NATIONAL INNOVATIVE CAPACITY: A CROSS-COUNTRY ANALYSIS OF DEVELOPED AND DEVELOPING COUNTRIES

Summary/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 errors. The results reveal that cultural 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 those cultural dimensions shape cross-country differences in innovative capacity and that the level of economic development moderates the strength of these relationships.

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