The Relationship between Performance, Innovation and Competition in Turkish Manufacturing Industry
Journal Title: Uluslararası Ekonomi ve Yenilik Dergisi - Year 2018, Vol 4, Issue 1
Abstract
The relationship between performance and innovation is covered most extensively in neoclassical economic theory and Schumpeterian approach. The neoclassical theory predicts that innovation emerges in competitive markets while Schumpeterian approach predicts it will emerge in imperfect competitive markets. Using data for the period 2008-2013, this study investigates the relationship between innovation and competition level in the Turkish Manufacturing Industry. Performance variables of the study are net profit margin, return on assets and return on equity. R&D intensity is innovation indicator. Industrial competition level is measured by Herfindahl-Hirschman Index. The results of Two-Step System Generalized Method of Moments analysis show that R&D intensity affects positively performance variables in contrast one lag of R&D effects negatively. Furthermore, competition intensity also improves performance. Positive coefficient of R&D variable supports the view of innovation has the characteristics of providing competitive advantage. The negative coefficient of R&D lag indicates the problems related to the protection of intellectual property right. This finding can be interpreted that innovation operations are imitated approximately after a period. The positive effect of competition intensity supports the prediction of Schumpeterian approach.
Authors and Affiliations
Aykut Karakaya, Seymur Ağazade, Selçuk Perçin
Keywords
Related Articles
- EP ID EP356380
- DOI -
- Views 134
- Downloads 0
A Historical Review from Resource-Based View to Dynamic Capabilities
Dynamic Capabilities that enhance the Resource Based View tries to explain how firms will gain competitive advantage at difficult environment conditions. The importance of dynamic capabilities is increasing in abroad and...
Prediction of Economical Investment Tool Returns With Hidden Markov Model for Turkey
Nowadays there is a great demand to financial investment tools due to the desire of profiting from future predictions. The revival in the markets drafted everyone interested in financial investment to information hunting...
Okul Öncesi Çocuklarda Reklâmın Satın Alma Davranışı Üzerindeki Etkileri
With low price sensitivity and high profitability, the children's market has been growing day by day all over the world. Furthermore, due to technology and internet usage that is nowadays prevalent in all areas of life,...
The Relationship between Emotional Labor and Individual Innovativeness at Accommodation Business in Tourism: Palandöken Example
With this study, it is aimed to examine the relationship between emotional labor and retail innovation dimensions of employees involved in process of service in hospitality management not only physically and cognitively...
An Outline of Skilled Emigration from Turkey to OECD Countries: A Panel Data Analysis
Turkey provides rich evidence for the current international migration trends given its economic and demographic dynamics. The number of people moving overseas to settle permanently has been following an increasing trend...