SMEs' Technological Innovations in Turkey

The political, legal, and economical condition of an environment directly affects the success of business in that environment. When these conditions are favorable, it benefits the business. When they are not, it affects the business negatively. Government legislation and laws determines the fate of a business. In this study, the effects of wrong government laws and legislations on the progress of technology and firms, and how these laws are to affect small and medium scale industries in the nearest future are evaluated. The aim of this paper is to discuss the ways of strengthening the technological capabilities of SMEs and how this will help develop the country's economy. To fulfill the gap in SMEs' technological innovations and activities, innovative efforts to increase the innovative decisions as well as improvement in clustering should be enhanced by the government. This paper, therefore, seeks to shed light on the effects of clustering on the technological advancement capabilities of firms in different parts of Turkey. Thereby, this study examines the small- and medium-sized firms operating in Turkey. The performance in technology and innovation and the challenges in creating employment opportunities, unfavorable economic conditions, low investments, and lack of entrepreneurial competence are also discussed.