Innovation and firm growth: Turkish manufacturing and services SMEs

Başak Dalgıç () and Burcu Fazlıoğlu ()
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Başak Dalgıç: Hacettepe University
Burcu Fazlıoğlu: TOBB Economics and Technology University

Eurasian Business Review, 2021, vol. 11, issue 3, No 2, 395-419

Abstract: Abstract The aim of the study is to explore the effect of innovation on growth of firms placed at different percentiles of the growth distribution in manufacturing and services sectors in Turkey. We show that innovation crucially adds to the likelihood of being a high growth firm. Innovation efforts are found to have more pronounced effects on growth performance of firms at the upper end of the distribution of growth. Results indicate that compared with services, manufacturing firms are influenced more by R&D whereas innovation outputs are more beneficial for services firms.

Keywords: Firm growth; Innovation; CIS (search for similar items in EconPapers)
JEL-codes: D22 L20 L60 O31 O33 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s40821-020-00176-4

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