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An Investigation on the R&D Expenditures in Turkey: A Firm-Level Approach

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  • Mehmet Fatih Tras
  • Esra Balli
  • Ciler Sigeze

Abstract

Access to foreign technology is important for small and medium sized companies. Most small and medium sized firms face with constraints resulting from financial, institutional and structural issues. In developing countries, most firms tend not to invest in Research and Development (R&D), resulting in lack of innovation. Besides, R&D is important to enter in international markets, in the determination of firm¡¯s competition level, sustaining growth as well as to obtain a more advanced technology. Therefore, exhibiting the factors determining R&D level for companies becomes crucial to make well-targeted policies both in government and firm levels. This study aims to analyze the participation and expenditure decisions of Turkish manufacturing firms in R&D activities employing Heckman selection model taking region and industry effects into consideration. The results demonstrate that human capital, government funding of R&D and the scale of the firm are related to R&D decisions.

Suggested Citation

  • Mehmet Fatih Tras & Esra Balli & Ciler Sigeze, 2016. "An Investigation on the R&D Expenditures in Turkey: A Firm-Level Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(5), pages 48-54, May.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:5:p:48-54
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    References listed on IDEAS

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    2. Rajan, Raghuram G & Zingales, Luigi, 1998. "Financial Dependence and Growth," American Economic Review, American Economic Association, vol. 88(3), pages 559-586, June.
    3. Tor Jakob Klette & Jarle Møen, 1999. "From Growth Theory to Technology Policy - Coordination Problems in Theory and Practice," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 25, pages 53-74.
    4. Hall, Bronwyn & Van Reenen, John, 2000. "How effective are fiscal incentives for R&D? A review of the evidence," Research Policy, Elsevier, vol. 29(4-5), pages 449-469, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    R&D decision; Heckman selection model; Turkey;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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