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Innovation is defined as the development of new or significantly improved product or processes. Therefore, innovative developments in a country also affect economic growth. In this study, the relationship between the innovation and the economic growth is examined through G7 countries. The main hypothesis of the study is that there is a relationship between innovation and economic growth.  As an indicator of innovation, R&D expenditures and patent applications were taken and panel data analysis were performed with annual data covering 1981-2016 periods. As a result of the analyses, it was concluded that there is a long-term relationship between innovation and economic growth. A negative relationship was found between economic growth and R&D. In addition, one-way causality relationship was observed from the growth rate to patent applications.

uluslararası ekonomi, işletme ve politika dergisi

THE RELATIONSHIP BETWEEN INNOVATION AND ECONOMIC GROWTH: PANEL DATA ANALYSIS ON G7 COUNTRIES / İnovasyon Ve Ekonomik Büyüme İlişkisi: G7 Ülkeleri Üzerine Panel Veri Analizi