THE EFFECT OF INNOVATION ON COMPETITION IN BRICS-T COUNTRIES: AN ECONOMETRIC ANALYSIS

Abstract

One of the important elements for economies to gain competitive advantage is innovation. Especially, developing countries have to support innovative activities, which are income-generating activities, since they are high-growth targets. The aim of this study is to determine the effect of innovation on competitiveness in the developing country group BRICS-T (Brazil, Russia, India, China, South Africa and Türkiye). For this reason, using the Global Competitiveness Index, Global Innovation Index and GDP data of the BRICS-T countries for the period 2011-2021, the panel was analyzed by cointegration. As a result of the analysis, the independent variables considered in the country group for the panel in general were found to be positively statistically significantly related to innovation and GDP competition. Throughout the panel, the Global Innovation Index variable increases the Global Competitiveness Index variable by 18.4%, and the GDP variable also affects the global competition variable by 13.5%. According to countries covered in the BRICS-T country group; The countries where innovation affects competition the most are Russia and China, and the countries where it is least affected are South Africa and Türkiye. It has been determined that the effect of innovation on competitiveness in BRICS-T countries, which is the developing country group, is more than GDP.