Factors Impacting on Product and Process Innovation Capability: An Empirical Analysis on Manufacturing Firms in Turkey

Authors : Alper Sönmez, Fazal Rahman Amirzai

Pages : 348-357

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Publication Date : 2023-12-30

Article Type : Research Paper

Abstract :The purpose of the study is to empirically investigate the factors that impact on both product and process innovation capabilities of the manufacturing firms in Turkey. For this purpose, by using the 2019 World Bank Enterprise Survey (WEBS) database, the factors affecting innovation were analyzed by conducting binary logistic and bivariate probit regression analysis methods. The key findings can be summarized as follows: (i) remarkably, \"internal R&D\" activities of the firms emerge as a determining force in both product and process innovation activities of firms; (ii) while \"Foreign Technology Use\" reveals a weak effect on process innovation, it emerges as a key driver for firms\' product innovation. This means that the likelihood of firms’ product innovation increases with the use of foreign technology; (iii) \"Foreign Ownership\" positively affects process innovation activities, according to the bivariate probit regression analysis; (iv) \"Human Capital Development\" positively impacts on both product and process innovation activities according to the findings of binary logistic regression analysis. The findings of the study reveal the importance of in-house R&D activities and using foreign technology in promoting the innovation activities of Turkish manufacturing firms.
Keywords : İnovasyon, İmalat Sanayi, Binary Lojistik Regresyon, Bivariate Probit Regresyon

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