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Institutional Environment, Economic Performance and Innovation in Turkey

Author

Listed:
  • Erkan Erdil

    (Department of Economics, Middle East Technical University)

  • M. Teoman Pamukçu

    (TEKPOL, Science and Technology Policy Studies, Middle East Technical University)

  • Dilek Çetin

    (Department of Economics, Kırıkkale University)

Abstract

This paper investigates the relationship between economic performance and innovation in Turkey, while also taking into account the crucial mediating effect of the institutional environment. We carry out an in-depth analysis of the recent shifts in STI policy making in Turkey. The emphasis is on the innovation support policy instruments, and their effectiveness, as well as on the formulation of national STI targets, sector priorities and targets in the field of human resources. A number of concerns are expressed for the effectiveness of policy instruments and for the attainability of national STI targets. In the second part using firm-level data from an innovation survey pertaining to 2008-2010, an econometric exercise is conducted in order to test for the effectiveness of innovation support in Turkey. Innovation support is treated alternatively as an exogenous and endogenous variable. Findings indicate a positive impact innovation support in general. Innovation support granted by local authorities is not effective while EU-funded projects lead to innovation although they constitute an extremely low share of total innovation supports.

Suggested Citation

  • Erkan Erdil & M. Teoman Pamukçu & Dilek Çetin, 2013. "Institutional Environment, Economic Performance and Innovation in Turkey," STPS Working Papers 1303, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Dec 2013.
  • Handle: RePEc:met:stpswp:1303
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    File URL: http://stps.metu.edu.tr/sites/stps.metu.edu.tr/files/TEKPOL%20WP%201303%20r2.pdf
    File Function: First version, 2013
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    References listed on IDEAS

    as
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    2. Hall, Bronwyn H. & Lerner, Josh, 2010. "The Financing of R&D and Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 609-639, Elsevier.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Metcalfe, J S, 1994. "Evolutionary Economics and Technology Policy," Economic Journal, Royal Economic Society, vol. 104(425), pages 931-944, July.
    5. Metcalfe, J S, 1995. "Technology Systems and Technology Policy in an Evolutionary Framework," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 25-46, February.
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    Cited by:

    1. Attila Varga & Mete Basar Baypinar, 2016. "Economic impact assessment of alternative European Neighborhood Policy (ENP) options with the application of the GMR-Turkey model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 153-176, January.

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    Keywords

    Institutional Environment; Science; Technology; Innovation; Economic Performance; CDM Model; Turkey;
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