Does control of corruption play its role in enhancing the innovation? Empirical evidence from Asian region

Abstract

Purpose

In the current competitive era of industrialization, a significant level of innovation is necessary to meet the growing competition. There are many economic forces that determine the pace of innovation within a country. Among others, this study aims to focus on exploring the relevant role of corruption control (CC) in determining the innovation level.

Design/methodology/approach

For empirical analysis, the authors sample the 24 years of data (1996–2019) of Asian economies and use the fully modified ordinary least square (OLS) and dynamic OLS models to check the regression among variables. The selection of both techniques is based upon the empirical suggestions offered by unit root testing and the Johansen cointegration test.

Findings

The empirical findings infer the positive and statistically significant role of CC in boosting innovation. Strengthening the corruption-free environment encourages innovation activities within the country. In addition, foreign direct investment has a negative relationship with CC while financial development, economic growth, export volume and government subsidies positively determine the innovation level.

Practical implications

Based on empirical analysis, it is suggested that the policy officials should do more focus on CC to enhance the competitiveness of the country through more innovation.

Originality/value

The empirical analysis robust the findings of existing literature in an alternative data set and offers innovative views regarding the role of other factors in boosting the innovation level.

Citation

Farooq, U., Tabash, M.I., Hamouri, B. and Daniel, L.N. (2023), "Does control of corruption play its role in enhancing the innovation? Empirical evidence from Asian region", International Journal of Innovation Science, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJIS-05-2023-0110