Evaluating effectiveness of public support to business R & D in Turkey through concepts of input and output additionality

Abstract EN

It is the purpose of this paper to examine the impact of direct public support granted to business R&D not only on the R&D expenditures of enterprises (would the recipients of incentives have carried out the same amount of R&D expenditures even in the absence of subsidies?) but also on the output of R&D expenditures of these enterprises (would the recipients of R&D subsidies have recorded growth rates -or exported or hired people-to the same extent if they had not received these subsidies?) We will use enterprise-level data for the Turkish economy over the period 2003-2006–a time span where a substantial increase occurred in funds aimed at supporting business R&D–and a semi-parametric matching technique to examine the effectiveness of R&D incentives given to private R&D as far as their effects on R&D expenditures (input additionally) and output of R&D activity (output additionally) is concerned.