The Socioeconomic Determinants of Innovation

Abstract

While previous research has provided an unprecedented amount of data on entrepreneurial activity across countries (Global Entrepreneurship Monitor, GEM), this study takes an expanded yet nuanced view, and questions previous assumptions regarding what is both an input and outgrowth of such activity – innovation. By adopting a cross-cultural perspective that utilizes information from multiple datasets, the authors investigate the distinct role that government, business/technical and human capital has on enabling innovation. By employing a number of robust empirical tests across multiple countries in a longitudinal manner, the authors determine which hierarchy of factors affects how a particular country initiates and fosters innovative behaviour. Directions for future research, study limitations and the role of government in innovation are discussed.

Keywords

innovation socioeconomic factors cross-cultural longitudinal research

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