The effect of innovative initiatives to the regional growth: The case of Turkey

The aim of this study is to analyze the effect of innovative initiatives on regional growth in Turkey. For this purpose, 12 regions described as the level-1 by Turkish Statistical Institute, are examined by using empirical data sets covering the years 2006-2016. This study differs from previous literature especially by taking "innovations" to the centre of impacts that affect regional growth. Also, in this study regional disparities in Turkey identified in terms of innovation by using a concentration index. Furthermore, patent application numbers are assigned as proxies for innovations. In this study, panel data and dynamic panel data specifications are used to determine possible effects of innovations on regional growth. According to the findings, it can be said that innovations and research and development investments, which generally result in an innovation, have a positive effect on growth. However, empirical analysis also shows that research and development investments may not be resulted with a patent application in Turkey.