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Innovative thinking opens up new growth prospects in mechanical and plant engineering. Mechanical and plant engineering has been traditionally very important to the industrial location of Germany [1]. With an export share of 70%, it has a considerable direct influence on economic structure and job market. In addition, mechanical engineering is the “innovation engine” for other core industries in Germany – as supplier of production equipment for industries such as the car manufacture, plastics processing and electrical engineering sectors. Only through this production equipment can innovative products reach production readiness in the first place, and can “Made in Germany” continue to enjoy an excellent reputation all over the world.
The links between innovativeness as a driver of economic performance, and the determinants of innovativeness have been investigated by management scholars and economists for decades, focusing mostly on “hard factors” as investment in research and development, or education. Focusing on a relatively neglected, but in times of globalization even more important aspect, the infuence of cultural characteristics on innovativeness, we apply diferent econometric models to test for links between cultural tightness and looseness on the one hand, and national innovativeness on the other hand. We fnd that cultural tightness—in the sense of homogenous and intolerant societies—has a negative link to national innovativeness, while cultural looseness—in the sense of tolerant and diverse societies—displays a positive link to national innovativeness.