Research, innovation and labour productivity in Turkey

Official URL: http://risc01.sabanciuniv.edu/record=b1606897 (Table of Contents)

In this thesis, I analyze the effect of innovation on labour productivity in Turkish manufacturing sector across three periods, 2002-2004, 2004-2006 and, 2006-2008, using a general framework that accounts for research activities and for process and product innovation. I apply a structural model that analyze the link between R&D expenditure, innovation output and productivity. This structural model was used first proposed by Crepon, Duguet, Mairesse(1998) and become the main model of analyzing the relationship between R&D, innovation and productivity. I use the Community Innovation Surveys(CIS) conducted in Turkey by Turkstat. I separately analyze each wave of CIS(CIS4, CIS2006, CIS2008) for Turkish manufacturing firms. My econometric results are consistent across these periods with regards to Turkish manufacturing firms; however, I find interesting differences across the waves of periods. R&D intensity effects innovation in CIS4 and CIS2008 but not in CIS2006. The effects of process innovation and product innovation on productivity is not consistent over the years.