Abstract:

In this study, the long-term relationship between high-tech exports of goods and innovation was examined for Turkish economy. In the model, R&D expenditure and patent applications represent innovation. In the study, the ARDL Boundary Test Approach was used to determine the long-term relationship and Toda-Yamamoto causality analysis was used to determine the causality relationship between variables, based on annual data from the period 1990-2018. The results revealed the existence of a long-term positive relationship between variables for the Turkish economy and a unidirectional causality relationship from R&D expenditures towards high-tech exports of goods. According to the results of the analysis, R&D expenditures affect high-tech exports of goods to a higher extent than the patent applications. Considering the export-enhancing effect of R&D expenditures, it would be a great contribution to the economies of countries with chronic foreign trade deficits such as Turkey, to devote more resources to R&D activities.

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