Innovation in your blood? Exploring the influence of culture on national-level innovation performance in the European Union

This study investigates the influence of national cultural values on innovation performance across European Union (EU) member states, applying Hofstede’s six-dimensional cultural model along with the 2024 Summary Innovation Index. Addressing major gaps in prior research—including the lack of EU-focused, longitudinal analyses and limited alignment between theoretical claims, and empirical testing—the study applies a two-stage design. In the first stage, multiple regression analysis identifies indulgence (IND) as a robust, statistically significant predictor of innovation performance, while individualism (IDV) gains significance only in a reduced model, despite extant literature. In the second stage, t-tests demonstrate that neither IND nor IDV significantly distinguishes countries that improved their innovation group ranking between 2017 and 2024. These findings indicate that while permissive and individualistic cultures are associated with higher baseline innovation capacity, they do not drive innovation advancement over time. Thus, cultural values represent important but not decisive structural elements within national innovation systems. Long-term progress appears to be more strongly shaped by other factors; for instance, institutional, political, and structural conditions. Consequently, innovation policies should be culturally informed rather than culturally determined—recognising the role of culture without overemphasising its influence.