Innovation success in an emerging economy: A comparison of R&D-oriented companies in Turkey

Abstract

Knowledge and innovation capacities are unevenly distributed on a global scale, with national or regional settings playing a crucial role when it comes to the production and usage of knowledge. In particular, emerging economies are less equipped with relevant institutions and resources, meaning that firms residing in such contexts are likewise dealing with lacking innovation capabilities. However, achieving innovation is highly relevant for the economic development of firms and regions. Therefore, we aim to identify key factors for innovation strategies in a differentiated corporate landscape that might affect innovation success. Survey data from the innovative segment of 225 manufacturing firms in Istanbul is used in a two-step methodological approach. We apply dimension reduction through principal component analysis and use the resulting components in logistic regression analysis to estimate their effects on firms’ innovation success. The results reveal not only important findings about factors for the innovation success of firms, but also highly relevant insights about firms’ innovation strategies. The usage of internal and external R&D resources varies with firm type. In addition, we find that external R&D resources determine firms’ internationalization strategies. Hereof, we suggest policy implications for distinct firm types to support diverse innovation strategies and consequently innovation success.