The role of national culture in creating innovation ecosystems: A global study

Document Type : Original

Authors

1 Department of Innovation and Sustainability, Faculty of Governance, University of Tehran, Tehran, Iran.

2 Department of Public Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.

3 Department of Leadership and Human Capital, Faculty of Public Administration and Organizational Science, University of Tehran, Tehran, Iran.

Abstract

Culture and innovation are intricately interdependent, and analyzing them simultaneously is essential for effective policymaking and understanding technological progress. This study aims to explain the role of Hofstede’s cultural dimensions in cross-country differences in innovation ecosystem performance. The research data consists of the Global Innovation Index (GII) and Hofstede’s six cultural dimensions— Power Distance, Individualism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-Term Orientation, and Indulgence— in countries with available overlapping data. The study employs a secondary data analysis at the national level, using descriptive statistics, Pearson correlation coefficients, and multiple linear regression. Prior to analysis, the data were cleaned and normalized to ensure comparability. The results indicate that Individualism, Long-Term Orientation, and Indulgence have a significant and positive relationship with the GII and most of its components. In contrast, Uncertainty Avoidance shows a significant negative impact on innovation and several of its key pillars. The Masculinity vs. Femininity dimension does not show a statistically significant effect on innovation. Countries characterized by higher levels of Individualism, long-term perspectives, and greater power distance tend to have higher innovation capacity, whereas a strong sensitivity to ambiguity is associated with lower technological outputs. The findings underscore the importance of fostering a culture of experimentation, teaching skills to cope with uncertainty, and institutionalizing long-term perspectives in research and development investments. These cultural strategies can create a more supportive environment for enhancing national innovation performance.

Keywords

Main Subjects


حوزة موضوعی: مطالعات جهان

Scope: World Studies

Adler NJ. (2002). International Dimensions of Organizational Behavior. 4th ed. South-Western College Publishing. https://doi.org/10.1002/tie.5060280112.
Ahern D. (2025). “The new anticipatory governance culture for innovation: Regulatory foresight, regulatory experimentation and regulatory learning”. European Business Organization Law Review. 26(2): 241-283. https://doi.org/10.1007/s40804-025-00348-7.
Ahmed PK. (1998). “Culture and climate for innovation”. European Journal of Innovation Management”. 1(1): 30-43.  https://doi.org/10.1108/14601069810199131.
Amabile TM, Hennessey BA, Grossman BS. (1986). “Social influences on creativity: The effects of contracted-for reward”. Journal of Personality and Social Psychology. 50(1): 14-23. https://doi.org/10.1037/0022-3514.50.1.14.
Anderson N, Potočnik K, Zhou J. (2014). “Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework”. Journal of Management. 40(5): 1297-1333. https://doi.org/10.1177/0149206314527128.
Baghersad V, Garmroud Esfandiari Eٍ. َAkbari M. (2025). "The relationship between countries’ innovation, technological activities and local competitiveness in the internationalization of businesses". Journal of Countries Studies. 3(2): 371-404. https://doi.org/10.22059/jcountst.2024.385553.1191. [in Persian]
Balzat M, Hanusch H. (2004). “Recent trends in the research on national innovation systems”. Journal of Evolutionary Economics. 14(2): 197-210. https://doi.org/10.1007/s00191-004-0187-y.
Barrett FD. (1985). “Technology: the permanent wave”. Business Quarterly. 50(Spring): 43-52.
Bik OPG. (2010). The Behavior of Assurance Professionals: A Cross-Cultural Perspective. Thesis fully internal (DIV), Rijksuniversiteit Groningen. Eburon.
Chen Y, Podolski EJ, Veeraraghavan M. (2017). “National culture and corporate innovation”. Pacific-Basin Finance Journal. 43: 173-187. http://dx.dou.org/10.2139/ssrn.2480320.
Cornell University, INSEAD, & World Intellectual Property Organization. (2024). “Global Innovation Index 2024: The geography of innovation across the world”. https://www.globalinnovationindex.org/.
English AS, Wang S, Zhang Q, Talhelm T. (2023). “Cultural traits or social norms? Both responsibilism and norms linked to accepting COVID‐19 vaccine”. Social and Personality Psychology Compass. 17(8): e12791. https://doi.org/10.1111/spc3.12791.
Etzkowitz H, Leydesdorff L. (2000). “The dynamics of innovation: from National Systems and ‘Mode 2’ to a Triple Helix of university–industry–government relations”. Research Policy. 29(2): 109-123. https://doi.org/10.1016/S0048-7333(99)00055-4.
Fagerberg J, Srholec M. (2008). “National innovation systems, capabilities and economic development”. Research Policy. 37(9): 1417-1435. https://doi.org/10.1016/j.respol.2008.06.003.
Fagerberg J, Srholec M, Verspagen B. (2010). “Innovation and economic development”. In Handbook of the Economics of Innovation (Vol. 2, Chapter 20: 833-872). North-Holland. https://doi.org/10.1016/S0169-7218(10)02004-6.
Fang M, Wang M. (2025). “Like minds think alike: impacts of cultural and trust congruences on joint innovation”. Cross Cultural & Strategic Management. 32(1): 239-261. https://doi.org/10.1108/CCSM-09-2023-0199.
Freeman C. (1995). “The ‘National System of Innovation’ in historical perspective”. Cambridge Journal of Economics. 19(1): 5-24. https://doi.org/10.1093/oxfordjournals.cje.a035309.
Gelfand MJ, Raver JL, Nishii L, Leslie LM, Lun J, Lim BC, ... Yamaguchi S. (2011). “Differences between tight and loose cultures: A 33-nation study”. Science. 332(6033), 1100-1104. https://doi.org/10.1126/science.1197754.
Gorodnichenko Y, Roland G. (2017). “Culture, institutions, and the wealth of nations”. Review of Economics and Statistics. 99(3): 402-416. https://doi.org/10.1073/pnas.1101933108.
Gorodnichenko Y, Roland G. (2011). “Individualism, innovation, and long-run growth”. Proceedings of the National Academy of Sciences. 108(supplement_4): 21316-21319. https://doi.org/10.1073/pnas.1101933108.
Hall ET, Hall MR. (2001). “Key concepts: Underlying structures of culture”. International HRM: Managing diversity in the workplace. https://www.csun.edu/~sm60012/Intercultural/Key%20Concepts%20-%20Hall%20and%20Hall%20-%201.pdf.
Harati H, Talhelm T. (2023). “Cultures in water-scarce environments are more long-term oriented”. Psychological Science. 34(7): 754-770. https://doi.org/10.1177/09567976231172500.
Henderson R, Jaffe A, Trajtenberg M. (2005). “Patent citations and the geography of knowledge spillovers: A reassessment: Comment”. American Economic Review. 95(1): 461-464. https://doi.org/10.1257/0002828053828644.
Herbig P, Dunphy S. (1998). “Culture and innovation”. Cross Cultural Management: An International Journal. 5(4): 13-21. https://doi.org/10.1108/13527609810796844.
Herbig PA, Miller JC. (1992). “The United States versus the United Kingdom, Canada, and Australia: The case for structural influences on innovation”. Technological Forecasting and Social Change. 41(4): 423-434. https://doi.org/10.1016/0040-1625(92)90047-W.
Hofstede G. (2011). “Dimensionalizing cultures: The Hofstede model in context”. Online readings in Psychology and Culture. 2(1). https://doi.org/10.9707/2307-0919.1014.
---------------. (2001). “Culture's recent consequences: Using dimension scores in theory and research”. International Journal of Cross Cultural Management. 1(1): 11-17. https://doi.org/10.1177/147059580111002.
---------------. (1980). “Culture and organizations”. International Studies of Management & Organization. 10(4): 15-41. https://doi.org/10.1080/00208825.1980.11656300.
Hofstede Insights. (2021). “Country comparison Tool”. https://www.hofstede-insights.com/country-comparison/.
House RJ, Hanges PJ, Javidan M, Dorfman PW, Gupta V. (Eds.). (2004). Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Sage publications.
Howells J. (2005). “Innovation and regional economic development: A matter of perspective?”. Research Policy. 34(8): 1220-1234. https://doi.org/10.1016/j.respol.2005.03.014.
Hurley RF, Hult GTM. (1998). “Innovation, market orientation, and organizational learning: an integration and empirical examination”. Journal of Marketing”. 62(3): 42-54. https://doi.org/10.1177/002224299806200303.
Jones GK, Davis HJ. (2000). “National culture and innovation: Implications for locating global R& D operations”. Management International Review. 40(1): 11-39. https://www.jstor.org/stable/40835865.
Kaasa A, Vadi M. (2010). “How does culture contribute to innovation? Evidence from European countries”. Economics of Innovation and New Technology. 19(7): 583-604. https://doi.org/10.1080/10438590902987222.
Khan R, Cox P. (2017). “Country culture and national innovation”. Archives of Business Research. 5(2): 85-101. https://doi.org/10.14738/abr.52.2768.
Kwan HK, Zhang X, Liu J, Lee C. (2018). “Workplace ostracism and employee creativity: An integrative approach incorporating pragmatic and engagement roles”. Journal of Applied Psychology. 103(12): 1358-1366. https://doi.org/10.1037/apl0000320.
Lundvall BÅ. (2007). “National innovation systems—analytical concept and development tool”. Industry and Innovation. 14(1): 95-119. https://doi.org/10.1080/13662710601130863.
Mokyr J. (1991). “Dear labor, cheap labor, and the industrial revolution”. Favorites of Fortunes: Technology, Growth and Economic Development since the Industrial Development, CUP: MA, 177. https://www.econbiz.de/Record/dear-labor-cheap-labor-and-the-industrial-revolution-mokyr-joel/10001283617.
Morris MW, Peng K. (1994). “Culture and cause: American and Chinese attributions for social and physical events”. Journal of Personality and Social Psychology. 67(6): 949. https://doi.org/10.1037/0022-3514.67.6.949.
Mowery DC, Oxley JE. (1995). “Inward technology transfer and competitiveness: The role of national innovation systems”. Cambridge Journal of Economics. 19(1): 67-93. https://ideas.repec.org/a/oup/cambje/v19y1995i1p67-93.html.
Muskat B, Zehrer A, Mansfeldt M. (2021). “Cultural influences on innovation: A systematic review”. Tourism Management Perspectives. 37: 100772.
Nakata C, Sivakumar K. (1996). “National culture and new product development: An integrative review”. Journal of Marketing. 60(1): 61-72. https://doi.org/10.1177/002224299606000106.
Nathan M, Lee N. (2013). “Cultural diversity, innovation, and entrepreneurship: firm-level evidence from London”. Economic Geography. 89(4): 367-394. https://doi.org/10.1111/ecge.12016.
Rogers EM, Shoemaker FF. (1971). Communication of Innovations: A Cross-Cultural Approach. 2nd ed. Free Press.
Rothwell R, Wissema H. (1986). “Technology, Culture and Public Policy”. Technovation. 4(2): 91-115. https://doi.org/10.1016/0166-4972(86)90002-7.
Schwartz SH. (2006). “A theory of cultural value orientations: Explication and applications”. Comparative Sociology. 5(2-3): 137-182. https://doi.org/10.1163/156913306778667357.
Sedaghat Kalmarzi H. (2026). "The role of institutions in knowledge and technology transfer between Iran and neighboring countries". Journal of Countries Studies. 3(4): 659-691. https://doi.org/10.22059/jcountst.2025.388851.1226. [in Persian]
Shane SA. (1992). “Why do some societies invent more than others?”. Journal of Business Venturing. 7(1): 29-46. https://doi.org/10.1016/0883-9026(92)90033-N.
Song X, Wei Z. (2025). “Transforming academic knowledge into industrial innovation: The double-edged sword of learning from universities”. The Journal of Technology Transfer. 50(2): 692-727. https://doi.org/10.1007/s10961-024-10118-1.
Steel GD, Rinne T, Fairweather J. (2012). “Personality, nations, and innovation: Relationships between personality traits and national innovation scores”. Cross-Cultural Research. 46(1): 3-30. https://doi.org/10.1177/1069397111409124.
Steensma HK, Marino L, Weaver KM, Dickson PH. (2000). “The influence of national culture on the formation of technology alliances by entrepreneurial firms”. Academy of Management Journal. 43(5): 951-973. https://doi.org/10.5465/1556421. https://www.jstor.org/stable/1556421.
Sternberg RJ, Lubart TI. (1991). “An investment theory of creativity and its development”. Human Development. 34(1): 1-31. https://psycnet.apa.org/doi/10.1159/000277029.
Taylor MZ, Wilson S. (2012). “Does culture still matter?: The effects of individualism on national innovation rates”. Journal of Business Venturing. 27(2): 234-247. https://doi.org/10.1016/j.jbusvent.2010.10.001.
Tian M, Deng P, Wu B. (2021). “Culture and innovation in the international context: a literature overview”. Innovation: The European Journal of Social Science Research. 34(4): 426-453. https://doi.org/10.1080/13511610.2020.1783644.
Tihanyi L, Griffith DA, Russell CJ. (2005). “The effect of cultural distance on entry mode choice, international diversification, and MNE performance: A meta-analysis”. Journal of International Business Studies. 36(3): 270-283. https://doi.org/10.1057/palgrave.jibs.8400136.
Waarts E, van Everdingen Y. (2005). “The influence of national culture on the adoption status of innovations: An empirical study of firms across Europe”. European Management Journal. 23(6): 601-610. https://doi.org/10.1016/j.emj.2005.10.007.
Welzel C, Inglehart R. (2005). “Liberalism, postmaterialism, and the growth of freedom”. International Review of Sociology. 15(1): 81-108. https://doi.org/10.1080/03906700500038579.
Williams LK, McGuire SJ. (2010). “Economic creativity and innovation implementation: The entrepreneurial drivers of growth? Evidence from 63 countries”. Small Business Economics. 34(4): 391-412. https://doi.org/10.1007/s11187-008-9145-7.
Zhao H, Seibert SE. (2006). “The big five personality dimensions and entrepreneurial status: a meta-analytical review”. Journal of Applied Psychology. 91(2): 259-271. https://doi.org/10.1037/0021-9010.91.2.259.
Volume 4, Issue 2
2026
Pages 373-401
  • Receive Date: 24 September 2025
  • Revise Date: 01 October 2025
  • Accept Date: 04 October 2025
  • First Publish Date: 12 October 2025
  • Publish Date: 23 August 2026