The effects of alternative innovation indicators on growth: Panel data analysis

The aim of this thesis is to carry out a comparative analyze by using panel data on one-component variables such as R&D, patent and the number of researhers, which are widely used for innovation in the literature and also the effects of other alternative innovation indicators as multi-component subtitles like innovation indexes and total factor productivity on economics growth. Economic growth, which is used as a dependent variable in this study, is represented by GDP growth per employee. The total number of patent applications, the income rate of R&D expenditures, the number of researchers working in R&D, European Innovation Index, Global Innovation Index and Total Factor Productivity growth were used as innovation indicators. The span of the study includes the period between 2006 and 2015. According to the study results, not the patents and R&D databasis that are commonly used for the optimal innovation indicators, but the innovation indexes and total factor productivity which combine all the effects have a significant effect on economic growth. In addition, according to the result of conditional convergence hypothesis that is tested in the model; except total factor productivity, conditional hypothesis is valid in all models.