This paper is based on the initial findings of a nation-wide survey of technological innovation activities of 2100 firms in Turkish manufacturing industry. Our findings show that the innovation activities are more widespread in the firms having large sizes of employment. In some sectors of manufacturing industry 60-80% of the firms undertake innovation activities. Improving the product quality and opening up new markets rank at the top of the main objectives of innovation activities. In-house R&D turn out to be the main sources of information assisting innovation activities. 51.2% of the firms that are engaged in innovation carry out joint R&D with consultancy firms, and 52.3% Of the firms with which Turkish firms co-operate are in the EU countries. In the majority of the manufacturing sectors, more than 50% of the total sales are derived from technologically new and improved products. Only 19% of the firms have had patent applications with a return of very few patented inventions. A correlation analysis of basic indicators of innovation activities shows that, for instance, sales of new products, R&D expenditures, and firm sizes correlate only weakly. (C) 2001 Elsevier Science Ltd. All rights reserved.