Research Article
BibTex RIS Cite

Innovation Dynamics in Türkiye: Is there any convergence?

Year 2025, Volume: 10 Issue: 2, 86 - 94

Abstract

This study examines regional innovation convergence in Türkiye by employing Phillips and Sul (2007, 2009) club convergence algorithm. Descriptive results show that the relative dispersion (coefficient of variation) of innovation signals no evidence of sigma convergence. Moreover, log t regression results confirm that absolute convergence does not exist among 81 provinces. Instead, regions form two innovation clubs which converge to their respective steady-states. Regions from the relatively developed west form Club 1 whilst Club 2 mostly consists of eastern regions. Furthermore, innovation clubs do not demonstrate a convergent behaviour among themselves. According to the empirical results, innovation is heterogeneously distributed across Turkish regions. The existence of innovation clubs indicates the need for region-specific policies rather than “one-size-fits-all” policies.

References

  • Adak, M. (2015). Technological progress, innovation and economic growth: The case of Turkey. Procedia - Social and Behavioral Sciences, 195, 776–782. https://doi.org/10.1016/j.sbspro.2015.06.478
  • Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2), 323–351. https://doi.org/10.2307/2951599
  • Aghion, P., Howitt, P., & Mayer-Foulkes, D. (2005). The effect of financial development on convergence: Theory and evidence. The Quarterly Journal of Economics, 120(1), 173–222. https://doi.org/10.1162/qjec.2005.120.1.173
  • Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)01642-D
  • Awaworyi Churchill, S. A., Inekwe, J., & Ivanovski, K. (2020). Convergence of R&D intensity in OECD countries: Evidence since 1870. Empirical Economics, 59, 295–306. https://doi.org/10.1007/s00181-019-01628-1
  • Ayaydın, H., & Karaaslan, İ. (2014). The effect of research and development investment on firms’ financial performance: Evidence from manufacturing firms in Turkey. Bilgi Ekonomisi ve Yönetimi Dergisi, 9(1), 23–39.
  • Banyuls, B., & Vides, J. C. (2024). Convergence in R&D expenditure in the European Union: A club convergence and K-means clustering analysis. Journal of the Knowledge Economy, 1–29. https://doi.org/10.1007/s13132-024-02496-6
  • Barrios Gonzalez, M. C., Tierney, H. L. R., & Kim, M. H. (2023). Analysis of club convergence in the U.S. after the Great Recession. Economics Bulletin, 43(2), 842–854.
  • Barrios, C., Flores, E., & Martínez, M. Á. (2019). Club convergence in innovation activity across European regions. Papers in Regional Science, 98(4), 1545–1566. https://doi.org/10.1111/pirs.12429
  • Bednář, P., & Halásková, M. (2018). Innovation performance and R&D expenditures in Western European regions: Divergence or convergence? Journal of International Studies, 11(1), 210–224. https://doi.org/10.14254/2071-8330.2018/11-1/16
  • Blanco, F. A., Delgado, F. J., & Presno, M. J. (2020). R&D expenditure in the EU: Convergence or divergence? Economic Research - Ekonomska Istraživanja, 33(1), 1685–1710. https://doi.org/10.1080/1331677X.2020.1756371
  • Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
  • Bozkurt, C. (2015). R&D expenditures and economic growth relationship in Turkey. International Journal of Economics and Financial Issues, 5(1), 188–198.
  • Cattaruzzo, S. (2020). On R&D sectoral intensities and convergence clubs. JRC Working Papers on Corporate R&D and Innovation (No. 01/2020). Joint Research Centre.
  • Chawla, D. (2020). Economic growth and R&D expenditures in selected OECD countries: Is there any convergence? African Journal of Science, Technology, Innovation and Development, 12(1), 13–25. https://doi.org/10.1080/20421338.2019.1608694
  • Coe, D. T., & Helpman, E. (1995). International R&D spillovers. European Economic Review, 39(5), 859–887. https://doi.org/10.1016/0014-2921(94)00100-E
  • Cui, W., & Tang, J. (2023). Innovation convergence clubs and their driving factors within urban agglomeration. Economic Modelling, 121, 106199. https://doi.org/10.1016/j.econmod.2023.106199
  • Dereli, D. D. (2019). The relationship between high-technology exports, patent and economic growth in Turkey (1990–2015). Journal of Business, Economics and Finance, 8(3), 173–180. https://doi.org/10.17261/Pressacademia.2019.1124
  • Desrochers, P. (1998). On the abuse of patents as economic indicators. The Quarterly Journal of Austrian Economics, 1(4), 51–74. https://doi.org/10.1007/s12113-998-1026-z
  • Dogruel, F., & Dogruel, A. S. (2006). Openness and regional distribution of Turkish manufacturing industries. Topics in Middle Eastern and North African Economies, 8. http://meea.sites.luc.edu/volume8/PDFS/Dogruel.pdf
  • Dogruel, F., & Dogruel, S. (2011). Privatization and regional distribution of manufacturing in Turkey (Turkish Economic Association Discussion Paper No. 2011/4).
  • Durlauf, S. N., & Johnson, P. A. (1995). Multiple regimes and cross-country growth behaviour. Journal of Applied Econometrics, 10(4), 365–384. https://doi.org/10.1002/jae.3950100404
  • Griliches, Z., Pakes, A., & Hall, B. H. (1986). The value of patents as indicators of inventive activity (NBER Working Paper No. 2083). National Bureau of Economic Research.
  • Grossman, G. M., & Helpman, E. (1994). Endogenous innovation in the theory of growth. Journal of Economic Perspectives, 8(1), 23–44. https://doi.org/10.1257/jep.8.1.23
  • Gür, B. (2017). The impact of R&D expenditures on development: A case of Turkey. International Journal of Humanities and Social Science Invention, 6(4), 1–9.
  • Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50(4), 1029–1054. https://doi.org/10.2307/1912775
  • Hardy, B., & Sever, C. (2023). Innovation convergence (BIS Working Papers No. 1108). Bank for International Settlements.
  • Howitt, P. (1999). Steady endogenous growth with population and R&D inputs growing. Journal of Political Economy, 107(4), 715–730. https://doi.org/10.1086/250076
  • Howitt, P. (2000). Endogenous growth and cross-country income differences. American Economic Review, 90(4), 829–846. https://doi.org/10.1257/aer.90.4.829
  • Jimenez-Moro, E., Piperopoulos, P., Kafouros, M., & Ming, A. A. K. (2023). Innovation dynamics and club convergence in innovation activity in China: A temporal perspective. Papers in Regional Science, 102(4), 791–816. https://doi.org/10.1111/pirs.12750
  • Karaca, O. (2004). Türkiye’de bölgeler arası gelir farklılıkları: Yakınsama var mı? Turkish Economic Association Discussion Paper (No. 2004/7).
  • Kijek, T., Kijek, A., & Matras-Bolibok, A. (2022). Club convergence in R&D expenditure across European regions. Sustainability, 14(2), 832. https://doi.org/10.3390/su14020832
  • Kiracı, M., Çelikay, F., & Çelikay, D. (2016). The effects of firms’ R&D expenditures on profitability: An analysis with panel error correction model for Turkey. International Journal of Business and Social Science, 7(5), 233–240.
  • Kolasa, M. (2008). Productivity, innovation and convergence in Poland. Economics of Transition, 16(3), 467–501. https://doi.org/10.1111/j.1468-0351.2008.00327.x
  • Köse, Z. (2020). The determinants of economic growth in Turkey: An empirical analysis of endogenous growth theory. In S. A. Hatırlı, Ş. A. Koç, & O. Demirel (Eds.), Theoretical and applied studies on Turkish economy (Vol. I, pp. 309–330). IJOPEC.
  • Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3–42. https://doi.org/10.1016/0304-3932(88)90168-7
  • Markowska, M., & Strahl, D. (2012). Evaluation of the European Union regions’ convergence regarding innovation. Argumenta Oeconomica, 28(1), 41–67.
  • Mulas-Granados, C., & Sanz, I. (2008). The dispersion of technology and income in Europe: Evolution and mutual relationship across regions. Research Policy, 37(5), 836–848. https://doi.org/10.1016/j.respol.2008.03.002
  • Öztürk, E., & Zeren, F. (2015). The impact of R&D expenditure on firm performance in manufacturing industry: Further evidence from Turkey. International Journal of Economics and Research, 6(2), 32–36.
  • Phillips, P. C., & Sul, D. (2007). Transition modeling and econometric convergence tests. Econometrica, 75(6), 1771–1855. https://doi.org/10.1111/j.1468-0262.2007.00811.x
  • Phillips, P. C., & Sul, D. (2009). Economic transition and growth. Journal of Applied Econometrics, 24(7), 1153–1185. https://doi.org/10.1002/jae.1080
  • Quah, D. T. (1996). Empirics for economic growth and convergence. European Economic Review, 40(6), 1353–1375. https://doi.org/10.1016/0014-2921(95)00051-8
  • Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002–1037. https://doi.org/10.1086/261420
  • Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71–S102. https://doi.org/10.1086/261725
  • Roodman, D. (2009). A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics, 71(1), 135–158. https://doi.org/10.1111/j.1468-0084.2008.00542.x
  • Şenol, N., & Onaran, S. (2022). The relationship between economic growth and health, R&D expenditures and unemployment in Turkey. Uluslararası Ekonomi İşletme ve Politika Dergisi, 6(1), 141–155. https://doi.org/10.29216/ueip.1086577
  • Škare, M., Sinković, D., & Blažević Burić, S. (2022). Testing for convergence innovation and club clustering in selected economies 1995–2017. Acta Montanistica Slovaca, 27(3), 767–782. https://doi.org/10.46544/AMS.v27i3.16
  • Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513
  • Tarı, R., & Alabaş, M. M. (2017). The relationship between R&D expenditures and economic growth: The case of Turkey (1990–2014). AİBÜ Sosyal Bilimler Enstitüsü Dergisi, 17(2), 1–17.
  • Turkish Statistical Institute. (2024). Research and development activities survey 2023. https://www.tuik.gov.tr/
  • Ulku, H., & Pamukcu, M. T. (2015). The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey. Journal of Productivity Analysis, 44, 79–95. https://doi.org/10.1007/s11123-015-0447-x
  • Windmeijer, F. (2005). A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics, 126(1), 25–51. https://doi.org/10.1016/j.jeconom.2004.02.005

Türkiye’de İnovasyon Dinamikleri: Yakınsama Var mı?

Year 2025, Volume: 10 Issue: 2, 86 - 94

Abstract

Bu çalışma Türkiye’deki bölgesel inovasyon yakınsamasını Phillips ve Sul (2007, 2009) kulüp yakınsaması yöntemi ile incelemektedir. Betimsel sonuçlara göre (varyasyon katsayısı) bölgeler arasında sigma yakınsaması yoktur. Log t regresyon sonuçlarına göre 81 il arasında mutlak inovasyon yakınsaması da bulunmamaktadır. Aksine, bölgeler kendi durağan durum değerlerine yakınsayan iki inovasyon kulübü oluşturmaktadır. Nispeten gelişmiş batı bölgeleri Kulüp 1’i oluştururken, Kulüp 2'yi daha çok doğu bölgeleri oluşturmaktadır. Ek olarak, kulüpler kendi aralarında da yakınsama göstermemektedir. Ampirik sonuçlara göre, Türkiye'de inovasyon bölgeler arasında heterojen dağılmıştır. İnovasyon kulüplerinin varlığı, tüm bölgeleri kapsayan politikalardan ziyade bölgeye özgü politikalara duyulan ihtiyacı göstermektedir.

References

  • Adak, M. (2015). Technological progress, innovation and economic growth: The case of Turkey. Procedia - Social and Behavioral Sciences, 195, 776–782. https://doi.org/10.1016/j.sbspro.2015.06.478
  • Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2), 323–351. https://doi.org/10.2307/2951599
  • Aghion, P., Howitt, P., & Mayer-Foulkes, D. (2005). The effect of financial development on convergence: Theory and evidence. The Quarterly Journal of Economics, 120(1), 173–222. https://doi.org/10.1162/qjec.2005.120.1.173
  • Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)01642-D
  • Awaworyi Churchill, S. A., Inekwe, J., & Ivanovski, K. (2020). Convergence of R&D intensity in OECD countries: Evidence since 1870. Empirical Economics, 59, 295–306. https://doi.org/10.1007/s00181-019-01628-1
  • Ayaydın, H., & Karaaslan, İ. (2014). The effect of research and development investment on firms’ financial performance: Evidence from manufacturing firms in Turkey. Bilgi Ekonomisi ve Yönetimi Dergisi, 9(1), 23–39.
  • Banyuls, B., & Vides, J. C. (2024). Convergence in R&D expenditure in the European Union: A club convergence and K-means clustering analysis. Journal of the Knowledge Economy, 1–29. https://doi.org/10.1007/s13132-024-02496-6
  • Barrios Gonzalez, M. C., Tierney, H. L. R., & Kim, M. H. (2023). Analysis of club convergence in the U.S. after the Great Recession. Economics Bulletin, 43(2), 842–854.
  • Barrios, C., Flores, E., & Martínez, M. Á. (2019). Club convergence in innovation activity across European regions. Papers in Regional Science, 98(4), 1545–1566. https://doi.org/10.1111/pirs.12429
  • Bednář, P., & Halásková, M. (2018). Innovation performance and R&D expenditures in Western European regions: Divergence or convergence? Journal of International Studies, 11(1), 210–224. https://doi.org/10.14254/2071-8330.2018/11-1/16
  • Blanco, F. A., Delgado, F. J., & Presno, M. J. (2020). R&D expenditure in the EU: Convergence or divergence? Economic Research - Ekonomska Istraživanja, 33(1), 1685–1710. https://doi.org/10.1080/1331677X.2020.1756371
  • Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
  • Bozkurt, C. (2015). R&D expenditures and economic growth relationship in Turkey. International Journal of Economics and Financial Issues, 5(1), 188–198.
  • Cattaruzzo, S. (2020). On R&D sectoral intensities and convergence clubs. JRC Working Papers on Corporate R&D and Innovation (No. 01/2020). Joint Research Centre.
  • Chawla, D. (2020). Economic growth and R&D expenditures in selected OECD countries: Is there any convergence? African Journal of Science, Technology, Innovation and Development, 12(1), 13–25. https://doi.org/10.1080/20421338.2019.1608694
  • Coe, D. T., & Helpman, E. (1995). International R&D spillovers. European Economic Review, 39(5), 859–887. https://doi.org/10.1016/0014-2921(94)00100-E
  • Cui, W., & Tang, J. (2023). Innovation convergence clubs and their driving factors within urban agglomeration. Economic Modelling, 121, 106199. https://doi.org/10.1016/j.econmod.2023.106199
  • Dereli, D. D. (2019). The relationship between high-technology exports, patent and economic growth in Turkey (1990–2015). Journal of Business, Economics and Finance, 8(3), 173–180. https://doi.org/10.17261/Pressacademia.2019.1124
  • Desrochers, P. (1998). On the abuse of patents as economic indicators. The Quarterly Journal of Austrian Economics, 1(4), 51–74. https://doi.org/10.1007/s12113-998-1026-z
  • Dogruel, F., & Dogruel, A. S. (2006). Openness and regional distribution of Turkish manufacturing industries. Topics in Middle Eastern and North African Economies, 8. http://meea.sites.luc.edu/volume8/PDFS/Dogruel.pdf
  • Dogruel, F., & Dogruel, S. (2011). Privatization and regional distribution of manufacturing in Turkey (Turkish Economic Association Discussion Paper No. 2011/4).
  • Durlauf, S. N., & Johnson, P. A. (1995). Multiple regimes and cross-country growth behaviour. Journal of Applied Econometrics, 10(4), 365–384. https://doi.org/10.1002/jae.3950100404
  • Griliches, Z., Pakes, A., & Hall, B. H. (1986). The value of patents as indicators of inventive activity (NBER Working Paper No. 2083). National Bureau of Economic Research.
  • Grossman, G. M., & Helpman, E. (1994). Endogenous innovation in the theory of growth. Journal of Economic Perspectives, 8(1), 23–44. https://doi.org/10.1257/jep.8.1.23
  • Gür, B. (2017). The impact of R&D expenditures on development: A case of Turkey. International Journal of Humanities and Social Science Invention, 6(4), 1–9.
  • Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50(4), 1029–1054. https://doi.org/10.2307/1912775
  • Hardy, B., & Sever, C. (2023). Innovation convergence (BIS Working Papers No. 1108). Bank for International Settlements.
  • Howitt, P. (1999). Steady endogenous growth with population and R&D inputs growing. Journal of Political Economy, 107(4), 715–730. https://doi.org/10.1086/250076
  • Howitt, P. (2000). Endogenous growth and cross-country income differences. American Economic Review, 90(4), 829–846. https://doi.org/10.1257/aer.90.4.829
  • Jimenez-Moro, E., Piperopoulos, P., Kafouros, M., & Ming, A. A. K. (2023). Innovation dynamics and club convergence in innovation activity in China: A temporal perspective. Papers in Regional Science, 102(4), 791–816. https://doi.org/10.1111/pirs.12750
  • Karaca, O. (2004). Türkiye’de bölgeler arası gelir farklılıkları: Yakınsama var mı? Turkish Economic Association Discussion Paper (No. 2004/7).
  • Kijek, T., Kijek, A., & Matras-Bolibok, A. (2022). Club convergence in R&D expenditure across European regions. Sustainability, 14(2), 832. https://doi.org/10.3390/su14020832
  • Kiracı, M., Çelikay, F., & Çelikay, D. (2016). The effects of firms’ R&D expenditures on profitability: An analysis with panel error correction model for Turkey. International Journal of Business and Social Science, 7(5), 233–240.
  • Kolasa, M. (2008). Productivity, innovation and convergence in Poland. Economics of Transition, 16(3), 467–501. https://doi.org/10.1111/j.1468-0351.2008.00327.x
  • Köse, Z. (2020). The determinants of economic growth in Turkey: An empirical analysis of endogenous growth theory. In S. A. Hatırlı, Ş. A. Koç, & O. Demirel (Eds.), Theoretical and applied studies on Turkish economy (Vol. I, pp. 309–330). IJOPEC.
  • Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3–42. https://doi.org/10.1016/0304-3932(88)90168-7
  • Markowska, M., & Strahl, D. (2012). Evaluation of the European Union regions’ convergence regarding innovation. Argumenta Oeconomica, 28(1), 41–67.
  • Mulas-Granados, C., & Sanz, I. (2008). The dispersion of technology and income in Europe: Evolution and mutual relationship across regions. Research Policy, 37(5), 836–848. https://doi.org/10.1016/j.respol.2008.03.002
  • Öztürk, E., & Zeren, F. (2015). The impact of R&D expenditure on firm performance in manufacturing industry: Further evidence from Turkey. International Journal of Economics and Research, 6(2), 32–36.
  • Phillips, P. C., & Sul, D. (2007). Transition modeling and econometric convergence tests. Econometrica, 75(6), 1771–1855. https://doi.org/10.1111/j.1468-0262.2007.00811.x
  • Phillips, P. C., & Sul, D. (2009). Economic transition and growth. Journal of Applied Econometrics, 24(7), 1153–1185. https://doi.org/10.1002/jae.1080
  • Quah, D. T. (1996). Empirics for economic growth and convergence. European Economic Review, 40(6), 1353–1375. https://doi.org/10.1016/0014-2921(95)00051-8
  • Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002–1037. https://doi.org/10.1086/261420
  • Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71–S102. https://doi.org/10.1086/261725
  • Roodman, D. (2009). A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics, 71(1), 135–158. https://doi.org/10.1111/j.1468-0084.2008.00542.x
  • Şenol, N., & Onaran, S. (2022). The relationship between economic growth and health, R&D expenditures and unemployment in Turkey. Uluslararası Ekonomi İşletme ve Politika Dergisi, 6(1), 141–155. https://doi.org/10.29216/ueip.1086577
  • Škare, M., Sinković, D., & Blažević Burić, S. (2022). Testing for convergence innovation and club clustering in selected economies 1995–2017. Acta Montanistica Slovaca, 27(3), 767–782. https://doi.org/10.46544/AMS.v27i3.16
  • Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513
  • Tarı, R., & Alabaş, M. M. (2017). The relationship between R&D expenditures and economic growth: The case of Turkey (1990–2014). AİBÜ Sosyal Bilimler Enstitüsü Dergisi, 17(2), 1–17.
  • Turkish Statistical Institute. (2024). Research and development activities survey 2023. https://www.tuik.gov.tr/
  • Ulku, H., & Pamukcu, M. T. (2015). The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey. Journal of Productivity Analysis, 44, 79–95. https://doi.org/10.1007/s11123-015-0447-x
  • Windmeijer, F. (2005). A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics, 126(1), 25–51. https://doi.org/10.1016/j.jeconom.2004.02.005
There are 52 citations in total.

Details

Primary Language English
Subjects Applied Economics (Other)
Journal Section Research Article
Authors

Pelin Sahin 0009-0001-7640-0524

Early Pub Date December 2, 2025
Publication Date December 2, 2025
Submission Date June 21, 2025
Acceptance Date October 18, 2025
Published in Issue Year 2025 Volume: 10 Issue: 2

Cite

APA Sahin, P. (2025). Innovation Dynamics in Türkiye: Is there any convergence? JOEEP: Journal of Emerging Economies and Policy, 10(2), 86-94.

JOEEP is published as two issues per year June and December and all publication policies and processes are conducted according to the international standards. JOEEP accepts and publishes the research articles in the fields of economics, political economy, fiscal economics, applied economics, business economics, labour economics and econometrics. JOEEP, without depending on any institution or organization, is a non-profit journal that has an International Editorial Board specialist on their fields. All “Publication Process” and “Writing Guidelines” are explained in the related title and it is expected from authors to Show a complete match to the rules. JOEEP is an open Access journal.