Heterogeneous Impacts of National Culture and Rule of Law on Innovation : A Comparative Analysis of Developed Countries and Leading Emerging Countries

This research investigated the impact of national culture and rule of law on innovation output nationally. Time series panel regression analysis shows cultural facilitators have a positive impact on innovation output in Type I countries when moderated by the rule of law, which is not significant for Type II countries. Cultural inhibitors have a negative impact on innovation output in Type II countries, diminished for Type II countries when moderated by the law of rule. These findings imply when designing public policies to promote disruptive innovation activities in Type II countries policymakers needs to consider the regulatory institutional environment