Does corruption have a sanding or greasing impact on innovation? Reconciling the contrasting perspectives through a systematic literature review

Abstract

There has been a significant increase in the number of academic studies published on the relationship between corruption and innovation in recent years. Various relationships have been conceptualized, including the “sand” and “grease” perspectives which propose that corruption reduces and increases innovation, respectively. In light of interest in the topic showing growing momentum, we review the literature on corruption and innovation for the purpose of reconciling these proposed theoretical perspectives. Following a systematic literature review methodology, we explain the composition of the literature and map the key conceptualizations of the corruption-innovation relationship. We link the variables, measures, and theories employed in the literature to proposed conceptual relationships. Furthermore, we outline the key patterns in which the sanding or greasing impact is more likely to be observed. Based on the systematic review, we propose a research agenda for corruption-innovation research and discuss policy implications.