Innovative Capacity Determinants: An Empirical Study of Turkish Firms

Abstract

This paper presents an empirical examination of the determinants of innovative capacity of Turkish firms. The sample consists of 215 domestically-owned firms and is confined to the period of 2005-2008. Innovative capacity is measured with patent and trademark applications. The results show that patent intensity is not affected by financial performance, firm growth and value-added productivity. Trademark intensity is also not affected by financial performance and firm growth. Larger and younger domestically-owned firms are more patent-intensive in Turkey. On the other hand, smaller and older firms are more trademark-intensive. Less capital-intensive firms have more propensity to innovate. In addition, exporting increases patent intensity even though it decreases trademark intensity.