The impact of innovation on export and growth: The case of Turkey

In order for countries to compete in international trade, it has become essential for them to concentrate on innovation activities. In this study, the effect of innovation in Turkey on exports and real GDP has been investigated. In the econometric part of the study, the impact of innovation on exports and growth has been analyzed with annual data covering the period 1988-2018. Unit root tests were applied to the variables, respectively, and it was concluded that all of them were stationary at the same level. Johansen cointegration test was applied, domestic patent applications and foreign patent applications were received as innovation variable and the existence of long-term relationship was determined. According to the results obtained from the cointegration test, it was concluded that the effect of domestic patent applications and foreign patent applications on exports and growth was negative. Then, the Engle-Granger cointegration test was applied: Total patent applications and total trademark applications were taken as innovation variable. According to the result of this test, no relationship was found between the variables. By adding control variables to the analysis, Engle-Granger cointegration test was performed again. The test results showed that the effect of total trademark applications on exports and real GDP was positive.