The effects of internal growth and r & d expenditures on economic growth: Analysis of advanced and developing countries with panel data analysis

Research and Development (R-D) activities play a major role as the driving force of the economy. From 1980 to the present, the theories of internal growth reveal the importance of R-D activities in economic growth. With the scientific study, the relationship between R-D expenditures and economics growth for developing and developed countries has been examined both theoretically and emprically. Theoretically, it has been found that R-D activities have a great place in the economy and especially developing countries should attach importance to R-D activities in order to improve their economies. With the scientific study, it has been conclued that Science and technology attect the economic transformation and sustainable growth of developed and developing countries and that technological development results from R-D activities. In other words, countries that are able to achieve sustainable economic growth use a large amount of resources for R-D activities and innovation. Because technological development is seen only through R-D activities. Keywords: R&D, Economic Growth, Developed and Developing Countries, Panel Data Analysis