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The Antecedent Impact of Culture and Economic Growth on Nations` Creativity and Innovation Capability

Even though the literature has widely examined culture’s effect on nations’ creativity and innovation level, it has done little to address the system theory’s perspective. However, as proponents of the system theory have argued, nations’ creativity and innovation is the cumulative effort of the various stakeholders who operate as a system, so any assessment of a nation’s creativity and innovation must consider these stakeholders’ role. This study examines the overlooked effect of culture on the broader system aspect of eighty nations’ creativity and innovationto ensure representation by both developed and developing countries. Structural equation modeling using partial least squares software is applied to analyze the data. The study found out that nations with individualist and low power distance cultural values have the highest creativity and innovation, and that a nation’s economic growth level moderates the impact of the individualist cultural value. Policymakers who seek to develop a strategy that promotes creativity and innovation at the national level benefit from these findings. Future research directions are suggested.