Abstract
Abstract
Theory predicts a country’s cultural norms and values can influence its innovative capability- its research and development, technological output, and scientific output. The extent of this influence is however unknown. Theoretical predictions of three leading schools of cultural values literature are therefore tested across all countries of the world for which there is sufficient data, using ordinary least squares, negative binomial, quantile, and count data quantile regressions. Findings provide insights into channels through which cultural values act differently to enable or constrain innovative capability. Almost all tight norms and values seem to constrain research and development. In-group collectivism seems to constrain all three components of innovative capability. Whereas future orientation and power distance relate negatively to research and development, they relate positively to technological output, yet only future orientation is positively related to both technological and scientific output. Findings suggest a failure to consider causal influences of a country’s culture on its innovative capability may be costly in the face of potentially existential threats not only to firms but also countries at this time.