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Competition and Product Innovation by Turkish Firms
Abstract
This chapter examines empirically the determinants of research and development (R&D) activities by Turkish firms. It focuses on the question of how competition affects product innovation, and not process innovation, in Turkey. In particular, we test if there is a non-linear relationship between R&D activities of a firm and the degree of competition in that industry. We use Turkish firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS) and find strong support for an inverted-U relationship between the two variables.
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