Abstract:

Today, innovation investments in expenditures of countries and associated risks and returns have increased. This reveals the necessity of correct innovation investments. In this study, firstly, fully modified ordinary least squares models in which domestic patent numbers are dependent variables were developed to find variables that affect innovation in the long-term. R&D expenditures, number of R&D personnel, foreign direct investment and import amounts were found as significant factors for domestic patent applications. Then, the effects of sectoral R&D expenditures on the number of domestic patent applications were examined. An optimization model was developed for R&D expenditures through the private, public and higher education sector by the help of past expenditure rates and coefficients obtained in regression models. In models aiming to maximize the number of domestic patent applications, investing in R&D through higher education was found as the most effective channel

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