Panel data analysis of determinants of global competition

Countries make great efforts to develop new products and processes in order to survive and maintain their market shares in the intense global competition environment they face. Regardless of their size and sector, companies have to constantly innovate for various reasons such as changes in industry structures, new knowledge acquisition, and shortened life spans of products. Global competition conditions force countries to innovate. This situation causes countries to attach importance to innovation and R&D studies. This study aims to reveal the impact of innovation and R&D expenditures, which are the two most important factors in increasing global competitiveness. Considering that the most important goal for countries is sustainable growth and welfare increase, this issue gains importance. In this study, firstly, the concepts of innovation and R&D activities are included. Afterwards, their relations with global competition were evaluated and approaches on competitiveness were explained. In the empirical part of the study; Panel ARDL method was used for 6 selected Asian countries. In addition to the analysis, the causality relations between countries and variables were examined with the Dumitrescu-Hurlin causality test. In analysis; Country rankings in the Global Competitiveness Index, number of brands, country scores and high-tech product exports are used as variables. The findings obtained in the study; In the long run, all variables have a statistically significant effect on the country's competitiveness score. No significant effect was found in the short term, except for the speed of adaptation. As a result of the causality research; It has been determined that the brand causes one-way country score, and there is a two-way causality relationship between high-tech product exports and country score. No causal relationship was found between the scores of the countries and their place in the global competition index.