The influence of innovation on corporate performance: An empirical study of Turkey in manufacturing sector

This paper explores how innovation changes corporate performance in developing environments. The analysis focuses on manufacturing companies listed on Borsa Istanbul (BIST) from 2011 to 2020. By applying panel data techniques, the research evaluates how three key innovation indicators—R&D intensity, patent filings, and intangible assets excluding goodwill—relate to financial outcomes, specifically ROA, ROE, and ROS. The empirical data reveal that continuous R&D activities positively affect performance, especially ROE. The analysis finds that intangible assets affect company performance, while patent applications have no statistically significant link to short-term financial results. The study also notes that cutting-edge technologies such as AI and Industry 4.0 increasingly drive innovation and influence how companies plan their strategies. The findings indicate that they need to make continuous innovation investments to maintain their competitiveness and respond to changes in the industrial environment.