Comparative analysis of regional innovation performance: The case of Türki̇ye (2012-2019)

The purpose of this thesis is to demonstrate how the stylized factors discussed in the innovation geography literature shed light on the performance of local innovation in Türkiye. Collecting data at the provincial level and on a yearly basis in Türkiye is currently limited. This limitation makes a challenging research area for creating a regional innovation model at the provincial level. To achieve this purpose, a unique composite innovation indicator set was created first. Data was available annually from 2012 to 2019. Thus, this thesis study contributes to the existing body of knowledge in this field by analyzing the Local Innovation Index for the provinces of Türkiye at a local level. The calculations are derived from the results of various analyses, including factor analysis, cluster analysis, multiple regression analysis, and panel data analysis. The thesis explains that the innovation performance of 81 provinces can be categorized into 5 clusters based on their capacity factors. The analysis findings reveal important relationships between innovation capacity indicators and innovation performance for all the years examined. Based on the study, it has been concluded that the investment climate and social capital factors have a positive and statistically significant impact on innovation performance in Türkiye. The study indicates that financial support and diversity-specialization factors have a negative and statistically significant impact on innovation performance. The human capital factor explains innovation performance positively and statistically significantly, depending on the eight-year time effect. The findings of the study are important in terms of determining the factors affecting the future innovation performance of the provinces. This offers a more tangible viewpoint for decision-makers at the local level. Examining innovation performance and capacity at the provincial level can assist in identifying successful local specialization strategies that lead to higher productivity and economic growth.