The Relationship Between Innovation and Growth in Emerging Economies: A Panel Cointegration Analysis

Pınar TOKAL

Abstract
A country’s economy’s access to technology at a global level becomes possible by implementing a growth strategy that focuses on R&D and technology creation, with innovation. The concept of innovation, which expresses economic benefit in the form of creating new products and production processes or improving existing products or production processes, has great importance for countries to achieve sustainable economic growth and competitiveness. Innovation; “It is seen as one of the important elements in gaining competitive advantage on a global scale, increasing productivity, economic growth and, accordingly, raising welfare and living standards. Technological developments and innovation are of great importance as the driving force of growth, especially for emerging economies. The aim of this study is to reveal the effect of technological developments on growth in emerging economies by using panel cointegration analysis. With the analysis performed, a long-term link between the variables was determined. When the long-term coefficient estimates are examined, it is seen that there is a positive statistical relationship between the R&D and PA variable GDP. The R&D variable increases the GDP variable by 25.2%. On the other hand, the PA variable increases the GDP variable by 21.4%. Also, one-way causality was found from R&D and PA variables to GDP”
Keywords: Innovation, Growth, Technology, Panel Data Analysis.

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