In this study it is aimed to determine the factors affecting innovation and R&D probabilities of the firms in manufacturing industry in Turkey. The sample of the study consists of 25394 firms which were active between 2005 and 2011 in manufacturing industry. The determinants of innovation for the firms are classified as entrepreneur, firm and environment based factors. It is concluded that firm based factors such as export, firm size, investment and branches are decisive and effective for innovation activities
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