The Impacts of Firms' Research and Development Capacities on Innovation Development

Purpose: The main objective of this study is to measure the effects of R&D capacities of firms operating in Türkiye, registered in Borsa Istanbul and having R&D centers on innovation development. Methodology: In this research, the panel data analysis technique is applied. In this research, innovation (defined as the total number of patent, utility model, design, and trademark filings) is considered the dependent variable. The intensity of R&D expenditures and the number of personnel engaged in R&D activities serve as independent variables, while firm age is treated as a control variable Findings: As a result of the analysis, it was determined that both the number of personnel working in R&D activities and the intensity of R&D expenditures had a positive but not significant effect on innovation. Originality: As far as the authors’ is aware, no research has been carried out at the firm level concerning the impact of the workforce employed in R&D centers on innovation. This study adds to the existing body of knowledge by investigating the influence of firms' R&D capabilities on innovation advancement through the number of personnel engaged in R&D activities.