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The Impact of Research and Development Expenditures on the Growth of Turkish Manufacturing Industry
Abstract
Emerging markets depend on technological development and innovation rather than cheap labor, as they are important instruments for sustainable economic growth. The most common indicators of technological development and innovation are the Research and Development (R&D) expenditures and the number of employees participating in research and development activities. The aim of this chapter is to measure the impact of research and development expenditures as a technological innovation indicator on the growth of firms in the Turkish manufacturing and non-manufacturing industry for the time period 2003 and 2007. In this framework, labor, investment, and R&D expenditures are used as factors, which affect the growth of the firms. Then, economic activities of manufacturing industries are classified with respect to technology intensity as high, medium-high, medium-low, and low technology level. Empirical findings indicate that R&D expenditures enhance firm growth, especially for the firms in low and medium technology level sectors.
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