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Impact of R&D Activities of Firms on Productivity: Findings from an Econometric Study of the Turkish Manufacturing Sector

Author

Listed:
  • Elif Dayar

    (Department of Economics, Atilim University)

  • Mehmet Teoman Pamukçu

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

Abstract

In this paper we are investigating the following question for Turkey: “How does the increase in R&D capital stock and how do foreign knowledge spillovers affect labor productivity?” Our sample is composed of R&D performers only, hence the Heckman two stage procedure with the instrumental variables technique for panel data is implemented (Semykina and Wooldridge, 2010). Appropriate instruments are used in regressions for the endogenous variables. Our findings signal that the indigenous efforts of R&D performers and their physical capital stock intensity exert a positive effect on firm-level labor productivity. However, neither foreign ownership nor foreign knowledge spillovers are found to affect R&D performers’ labor productivity positively. On the other hand, skill exerts a strong positive impact on productivity, pointing to the significant role of educated staff in R&D performing firms. We can conclude that Turkish R&D performers are dependent on their accumulated physical capital stock intensity and their own R&D efforts when it comes to increasing labor productivity.

Suggested Citation

  • Elif Dayar & Mehmet Teoman Pamukçu, 2014. "Impact of R&D Activities of Firms on Productivity: Findings from an Econometric Study of the Turkish Manufacturing Sector," STPS Working Papers 1402, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Dec 2014.
    • Handle: RePEc:met:stpswp:1402
    as

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    References listed on IDEAS

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