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Impact of SME policies on innovation capabilities: The Turkish case

  • Elif Bascavusoglu-Moreau

    ()

    (Centre for Business Research, Judge Business School, University of Cambridge)

  • Mustafa Colakoglu

    ()

    (TTGV Turkey Technology Development Foundation)

Registered author(s):

    The purpose of this paper is to explore the determinants of innovative capabilities in an emerging country context. We focus more particularly on the impact of recent changes in SME policies in Turkey. Using a unique firm-level survey conducted on 45.000 SMEs, innovative capabilities of firms are assessed at three different levels; their innovation efforts, innovation decision and innovative intensity. We analyze and compare the impact of two different incentive schemes; one a purely financial support, and the second, consultancy and technological assistance coupled with financial facilities. Whereas all firms seem to benefit from financial support, only less innovative firms take full advantage of the advisory services. Overall, the determinants of innovative capabilities depend considerably on the type of firms, suggesting the need for differentiated policy measures.

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    File URL: http://www.stps.metu.edu.tr/sites/stps.metu.edu.tr/files/1105_0.pdf
    File Function: First version, 2011
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    Paper provided by STPS - Science and Technology Policy Studies Center, Middle East Technical University in its series STPS Working Papers with number 1105.

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    Length: 26 pages
    Date of creation: May 2011
    Date of revision: May 2011
    Handle: RePEc:met:stpswp:1105
    Contact details of provider: Postal: Ankara 06531
    Phone: +90 (312) 210 2003
    Fax: (312) 210 1244
    Web page: http://www.stps.metu.edu.tr
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