The direct and indirect impact of culture on innovation

•I examined the influence of cultural dimensions on innovation over a decade.•I used a structural equation modeling for each of the years tested.•Investment in Innovation does not mediate cultureʼs impact on innovation.•Three out of the four cultural dimensions showed strong impact on innovation.•Some cultural dimensions showed synergetic affects.

Innovationʼs centrality and importance in international operations has been a subject of enduring debate in the age of globalization. Cross-border knowledge spillovers and the race between nations for increased innovativeness only underscore the importance of innovation. One aspect of this discussion concerns the effect of national culture on the ability to be innovative. Following Shane, 1992. Journal of Business Venturing. 7, 29–46; Shane, 1993. Journal of Business Venturing 8, 59–73 research, the present study aims to examine the impact, both direct and indirect, of culture on the motivation to innovate at the national level over a period of time. The findings support the claim that although some change had occurred in this impact, most cultural aspects still demonstrate strong and lasting impact on the tendency to innovate at the national level.