Corruption research in economics has a long history. Seminal early articles, and older findings contrast with newer developments which have as yet not been measured empirically; in particular the link between corruption and innovating activities suffers from multiple results, on both a national country and company or firm level. This paper examines the corruption-innovation link in transition and emerging countries as the decision to corrupt, and the ability to innovate may not be independent. An endogenous switching regression model is advocated as a suitably methodological way of modeling the joint determination of a firm’s innovation and possible bribes as it implies not only a selection between corrupted and non-corrupted firms, but also heterogeneous effects on innovative activities. The paper shows that, when the selection effect is adequately considered, different firms’ strategies arise. In particular, the treatment effect of corruption on innovation is positive for corrupting firms and negative for non-corrupting firms. Corrupting firms appear rational because paying bribes increases their innovative activities. However, non-corrupting firms also appear rational because in the presence of bribes, their innovating activities would be fewer. Thus, when the selection effect is adequately considered, the effects of so-called “greasing-and-sanding-the-wheels” can co-exist. Finally, the role of competition is also considered. Building on these results, future research can move forward to re-examine economic outcomes such as the productivity or the economic impact of corruption, in the presence (or absence) of selection processes.

This paper investigates the relationship between spatial and institutional distances in research collaboration networks using data on co-authorship in scientific publications in the Italian “red” biotech sector. Specific tools of social network analysis complemented by multivariate analysis are used to show that there is a trade-off between institutional and geographic distances whatever the nature of the knowledge exchanged, namely the degree to which knowledge is basic or applied. However, the levels of geographic and institutional distances substantially differ across basic and applied research networks. Measures of the intensity of relationships are also considered in the analysis.

This study examines the impact of corruption on business innovation from a comparative perspective and shows that this relationship is inherently heterogeneous across firms and countries. It addresses two main research questions: (i) Does corruption facilitate or hinder innovation in the countries studied? (ii) To what extent is the relationship between corruption and innovation mediated/shaped by countries’ institutional configurations and firm characteristics (foreign and domestic ownership)? We analyze data from the fifth and sixth waves (2012–2016 and 2018–2019) of the EBRD’s World Bank Business Environment and Enterprise Performance Survey (BEEPS), using a balanced panel of 3584 establishments in 22 Eastern European and Central Asian economies. The results provide two key insights into the relationship between corruption and innovation. First, the institutional setting plays a crucial role in shaping both the strength and the direction of this relationship, for example, when comparing EU and non-EU countries. Second, the impact of corruption at the firm level varies depending on the ownership structure: the ‘greasing’ effect is particularly relevant for foreign firms operating in weak institutional environments, but appears to be ineffective—if not ‘sanding’—for foreign firms in contexts with stronger anti-corruption controls.

Religion is an individual and spiritual phenomenon, but it is not without collective, even economic implications. The effects of religion exert their impact on economy primarily through the link between individual religiosity and social capital, which encompasses both trust in others and a propensity for associations and volunteering. By nourishing social capital, religiosity therefore contributes to economic development and substitute for roles that the vast world of the third sector and the voluntary sector play in the declining welfare state. Through considering different levels of this relationship (individual, regional, and country level), this paper describes some implications for firm governance. Using data from 2014 to 2022 from the National Italian Institute of Statistics (ISTAT), this paper investigates the link between the degree of participation in religious life, on the one hand, and trust in others, active participation, or financial support for associations, on the other hand. The positive link between religious involvement and the aforementioned dimensions of social capital is confirmed, even when various areas of a country are considered, which are characterized by different levels of religious participation and social capital, as well as varying economic conditions, education, civil status, age, and gender.