THE RELATIONSHIP BETWEEN INNOVATION ACTIVITIES AND PROFITABILITY OF BIST MANUFACTURING COMPANIES
THE RELATIONSHIP BETWEEN INNOVATION ACTIVITIES AND PROFITABILITY OF BIST MANUFACTURING COMPANIES

Summary/Abstract: This study's purpose is to analyze the connection between innovation activities and profitability of companies trading in the manufacturing industry on the Istanbul Stock Exchange. For this purpose, data from independently audited financial and income statements of 45 manufacturing companies with R&D expenditures during 2008-2021 are analyzed using the panel data. According to the examination's findings, there is an important and advantageous connection between business innovation activities and firm profitability. To conclude, the results of research examining the connection between innovation activity and profitability have both micro and macro implications. On a micro level, the solution assists firms in gaining a competitive advantage by ensuring that existing production systems operate effectively and increasing their share. At the macro level, they improve the welfare of society and help promote long-term economic growth and the accumulation of knowledge, especially the effective and cost-effective utilization of national resources.

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