The Effects of R&D Expenditures and Patent Applications on Exports of High Technology Products and Information Communication Technologies

Abstract

In the study, effects of research and development expenditure (R&D) and patent applications on high technology export and information and communıcation goods export are indicated for G7 countries and Turkey by covering period of 2007-2019 annually. To do this, two different models are developed. In the first model, high technology export (HT) is dependent variable whereas information communication technology services export (ICT) is dependent variable in the second model. To determine the relationship between variables, method of panel data analysis is used. Ordinarily, Pooled Ordinary Least Square Model and Fixed Effects Model are applied for both developed models. Then, Log Likelihood Ratio Test is operated to choose the model that produce the most appropriate outputs. The obtained econometric conclusions imply that an increase in R&D expenditures increases both high technology export and information communication technology services export. Patent application increases ratio of high technology export to export of industrial good while it decreases information communication technology services export