Causal relationship between R&D and export: The case of Turkey 1996-2019

In recent years, the rapid development of technology has caused innovation activities to be effective in many areas. One of the most important tools of innovation is R&D. Companies working in the R&D sector, set goals such as improving services and products, increasing competitiveness and creating a difference in the market. Companies that attach importance to these activities also give importance to export activities and want to participate in the international market. In this study, the causality relationship between R&D and exports, and the data between 1996-2019 for Turkey were examined. In the study, first of all, ADF unit root test was performed to measure the stationarity of the variables. It was supported that the VAR model is stationary by performing a diagnostic test. After that, impulse response analysis was done. The result of this test is as follows, affects the R&D variable of the export variable but R&D variable has no effect on export variable. Granger Causality Test and Toda Yamamoto tests support this result. There is a one-way causality running from exports to R&D. Accordingly, while R&D activities do not cause an increase in export values, the increase in export values may cause an increase in R&D activities. Keywords: Innovation, R&D, export, causality