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R&D IN FUNCTION OF DIRECT PUBLIC SUPPORTS TO SMEs: AN EXPLORATORY STUDY IN TURKEY

Author

Listed:
  • Filiz Giray

    () (Uludag University)

  • Mehmet Çinar

    () (Uludag University)

  • Simla Güzel

    () (Uludag University)

Abstract

The globalization has increased the importance of research and development (R&D) activity and of technological advancements, especially in information and communication technologies. This case is valid for small and medium- sized enterprises (SMEs) which have taken a crucial place in all economies. Since R&D activities have high costs and public features, these activities cannot be carried out by firm, especially SMEs’ fiscal sources. Direct supports play a key-role in most countries. In related literature, many researchers have stressed that direct public supports to -wards R&D activities are important for SMEs. Recently, the requirement of public support in R&D activities has been increased in Turkey, just as in most countries. The study investigated both the relationship between direct public supports and R&D in SMEs and the factors determining the using level of R&D supports with an empirical study for Turkey as a sample. A survey of 600 SMEs in Turkey was con -ducted by a research company on behalf of the authors. The survey data have been estimated by logistic regression analysis and allow us to indicate the factors which determine the using level of direct public supports of SMEs. According to the logistic regression model, the deter -miner factors are the information level of firms on R&D supports, available convenient support kind, the number of licenses and patents, sup -ply of new product to market etc., in order to in -crease the possibility for benefit from supports. The most important factor is the fact that SMEs obtain licenses and patents. These results pro -vide contribution to improving R&D activities in SMEs.

Suggested Citation

  • Filiz Giray & Mehmet Çinar & Simla Güzel, 2015. "R&D IN FUNCTION OF DIRECT PUBLIC SUPPORTS TO SMEs: AN EXPLORATORY STUDY IN TURKEY," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 13(1), pages 29-36, May.
  • Handle: RePEc:tuz:journl:v:13:y:2015:i:1:p:29-36
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    References listed on IDEAS

    as
    1. Dirk Czarnitzki & Bernd Ebersberger & Andreas Fier, 2007. "The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1347-1366.
    2. Martínez Ros, Ester & Corchuelo, Beatriz & Busom, Isabel, 2011. "Tax incentives and direct support for R&D : what do firms use and why?," INDEM - Working Paper Business Economic Series id-11-03, Instituto para el Desarrollo Empresarial (INDEM).
    3. Katrin Hussinger, 2008. "R&D and subsidies at the firm level: an application of parametric and semiparametric two-step selection models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 729-747.
    4. Hottenrott, Hanna & Lopes-Bento, Cindy, 2014. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," Research Policy, Elsevier, vol. 43(6), pages 1055-1066.
    5. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    6. Czarnitzki, Dirk & Fier, Andreas, 2001. "Do R&D subsidies matter? Evidence for the German service sector," ZEW Discussion Papers 01-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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    More about this item

    Keywords

    R&D level; direct public supports; logistic regression;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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