The effects of innovation on export performance in developing countries

Abstract

Innovation now emerges as a critical concept in the socioeconomic development of countries. It is necessary to focus on areas such as innovation and technology which will increase the added value of developing countries. In this regard, they can become competitive in foreign markets. In recent years, it is seen that some developing countries are starting to rank higher in the Global Innovation Index (GII). In addition, export performance of developing countries such as China, Turkey, Brazil, Malaysia, Mexico, and Thailand are also increasing. In this context, the aim of study is to determine whether the innovation levels of developing countries have an impact on their export performance or not. For this aim, panel data analysis is used to examine the relationship between export performance and innovation data of 27 developing countries in the GII of 2016 for the period of 2011-2015. The result of research shows that innovation in developing countries has a positive effect on export performance.