Impact of culture on innovative activities

Making cultural change and translating it into social behavior and hence economic decisions raises the question of whether cultural change affects the effectiveness of innovation. The relationship between cultural change and innovation performance was explored using unbalanced 10-year panel data for 34 OECD countries from 1980 to 2010. An analysis using fixed effects estimates of various variables in different countries shows that the overall indicator of culture is positively associated with innovation. In addition, a study of the impact of aspects of civic culture on innovation shows that the positive impact of culture on innovation stems from the positive effects of trust, control, work ethics, and honesty, while obedience negatively affects innovation.