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Interdependence between Gross Capital Formation, Public Expenditure on R&D and Innovation in Turkey

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  • Elma Satrovic
  • Adnan Muslija
  • Sadeq J. Abul
  • Dragan Gligoric
  • Tamanna Dalwai

Abstract

This paper outlines the roles of gross domestic spending on research and development (R&D) and gross capital formation in the innovation process and detects their contribution to this improvement. The analysis is conducted for Turkey for the period 1990-2017 using annual time-series data. Our findings suggest a bidirectional causal link between all variables of interest and prove that R&D can be a significant driving force for the Turkish innovation process. Most of the research and development activities in Turkey have been performed by universities. Herein, it is of key importance for the Turkish government to increase public expenditure, especially on education, since human capital plays an important role in building innovation capacity.

Suggested Citation

  • Elma Satrovic & Adnan Muslija & Sadeq J. Abul & Dragan Gligoric & Tamanna Dalwai, 2021. "Interdependence between Gross Capital Formation, Public Expenditure on R&D and Innovation in Turkey," Journal of Balkan and Near Eastern Studies, Taylor & Francis Journals, vol. 23(1), pages 163-179, January.
    • Handle: RePEc:taf:cjsbxx:v:23:y:2021:i:1:p:163-179
    DOI: 10.1080/19448953.2020.1818027
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