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The role of innovation policies in SME internationalization: Evidence from Türkiye

Author

Listed:
  • Seda Koymen
  • Amelia U. Santos-Paulino
  • Claudia Trentini
  • Berna Dogan

Abstract

This research note investigates the relative innovation performance and international presence of small and medium-sized enterprises (SMEs) in Türkiye. Using administrative data for the period 2006–2020, the empirical analysis shows that government support for research and development (R&D) correlates positively with firms’ innovation activities and R&D expenditure. The results also suggest that innovation activities increase the probability of outward foreign direct investment. The results have important policy implications for Türkiye and developing countries in general. The findings highlight the key role of public incentives in targeting innovative activities towards internationalization of SMEs.

Suggested Citation

  • Seda Koymen & Amelia U. Santos-Paulino & Claudia Trentini & Berna Dogan, . "The role of innovation policies in SME internationalization: Evidence from Türkiye," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    • Handle: RePEc:unc:tncjou:104
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    References listed on IDEAS

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    1. Hande Karadag, 2015. "The Role and Challenges of Small and Medium-sized Enterprises (Smes) in Emerging Economies: An Analysis from Turkey," Business and Management Studies, Redfame publishing, vol. 1(2), pages 179-188, September.
    2. Alberto Onetti & Antonella Zucchella & Marian Jones & Patricia McDougall-Covin, 2012. "Internationalization, innovation and entrepreneurship: business models for new technology-based firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 337-368, August.
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