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This study mainly focuses on the impact of various financing channels on corporate innovations. For this purpose, three kinds of external financing sources and two kinds of internal financing sources are considered. The study covers 18 Turkish companies traded in Istanbul Stock Exchange with the highest R&D expenditures of the year 2019. The dataset covers a panel data of 18 Turkish companies for the period from 2010 to 2019. The analysis are performed using dynamic panel data analysis. The estimation results show that loans have a negative and statistically significant effect on R&D expenditures. Moreover, according to the findings, there is no statistically significant effect of internal financing on R&D expenditures. The results of the study provide valuable information on how companies finance innovation processes. [ABSTRACT FROM AUTHOR]