How does Confucian Dynamism influence National Innovativeness

Chapter 3, HYPOTHESES DEVELOPMENT:
Based on the reviewed literature, I propose a theoretical model to link cultural long-term orientation and national innovativeness. This section is concerned with developing these links and proposing hypotheses to test it. Section 3.1 will discuss links between cultural-long-term orientation and national innovativeness through a nation s economic development, while section 3.2 discusses links through a nation s R&D effort.
3.1 Links relating to economic development:
Statistical evidence confirms a positive relationship between CD and growth rates of national economies (Franke et al., 1991). This suggests, national economies benefit from a cultural context in which strong work-ethics, thrift, respect for hierarchy and complementary relationships, a sense of shame, along with a proactive, future-orientated mentality are accepted. Furthermore, a mentality that preserves past and present realities through undue emphasis of traditions, reciprocations, and face-concern should be absent. For example, the recent success of the Chinese economy can be at least partly attributed to the cultural values of its people. China has undergone rapid economic transformations throughout the past decades. These transformations cannot be realised through the work of a few corporate and government leaders alone, but require the support of the people at large. The Chinese nation, taking the top rank on the CD-dimension, shares a culture in acceptance of change and new realities combined with perseverance and strong work-ethics. These cultural values create individual mindsets in support of such rapid economic transformations.
Even though the direction of causality is not evident, it seems reasonable to assume that cultural values are not the consequences of economic development (although they may have been reinforced or discouraged by it). The Chinese were known to value thrift and perseverance long before their economy has experienced rapid