Relationship among R&D, innovation and productivity in Turkey

The purpose of this study is to analyze the impact of R&D and innovation activities on firm productivity, with using World Bank Enterprise Survey Turkey 2019 Data. In order to avoid the problem of selection bias, simultaneity and endogeneity due to the nature of variables, the CDM model developed by Crepon et al. (1998), and the method suggested by Griffith et al. (2006) were used. According to the findings obtained, it is concluded that the firms' R&D and innovation activities in Turkey have no impacts on productivity. It can be interpreted that the Turkish economy is not firms have no knowledge and technology-based economy, and continues to grow with capital investment. They have not already passed to innovation-based growth.