National culture and corporate innovation

In this paper, we examine how cultural norms along the dimensions of individualism-collectivism
and uncertainty-avoidance affect corporate innovation. Using a comprehensive sample across 41
countries, we find that firms located in countries with higher levels of individualism generate
more and higher impact patents, and are more efficient in converting R & D into innovative
output. In contrast, we find that firms located in countries with higher levels of uncertaintyavoidance
produce fewer and less significant patents, and are less efficient with their R & D
expenditure. Taken together, our findings show that national culture plays an important role in
influencing corporate innovation around the world.