The relationship between shadow economy and corruption and innovation

Undoubtedly the ability to innovate and successful product marketing is one of the most important factors in the global competitiveness of economies over the next decade. In other words, innovative activities are a key factor in economic progress and prosperity, as well as a potential factor in meeting global challenges in the economic and social spheres. Therefore, identifying and strengthening the grounds for creating innovation must be studied that have been addressed in this research. The subject of this study is to investigate the effect of shadow economy and corruption on innovation in Iran in the period (2017-1997) using the approach of least partial equations in PLS software. The results of this paper show the positive relationship between the shadow economy and innovation and the positive effect of corruption on innovation. This result is not unexpected, the results of some studies have shown that economic agents are able to take advantage of the bureaucratic structure. Other results of this study have been the negative impact of government size, and democracy on innovation in the period under study in this study. In addition, the results in this article examined the causes and effects of corruption.