The Relationship of Innovation and Competition: A Case of Emerging Market Economies

Özet

Today, increasing competition with globalization has made it necessary for businesses to change according to this environment. Because the competition is intense both locally and regionally. Capital, raw materials, information and technology transfer are easily carried out in the world, which increases international competition, while local and international markets have become inseparable and become a whole. The developments all over the world, which started with the globalization process, created a competitive environment and made it compulsory for the world economies to adapt to the changing new order. It is of great importance for countries trying to survive in this competitive environment to focus on change and innovation strategies in order to achieve success. Innovation includes innovation activities that enable companies and countries to develop in all areas. The basic structure of innovation is based on differentiation and diversification. In this context, countries and organizations will be able to achieve economic progress, development and development through innovation activities. The aim of this study is to reveal the causality relations for innovation and competition for the emerging market economies for the years 2008-2019 with the Dumitrescu and Hurlin (2012) panel causality test. As a result of the analysis, one-directional causality between competition and innovation were determined.