R&D activity and financing constraints: Evidence from Turkey

Abstract

We analyze the relationship between financing constraints and firms' R&D activity using a rich and comprehensive firm-level balance sheet and income statement data set of manufacturing firms in Turkey for the period 1996 to 2013. Using a firm-specific, time-varying financing constraints index, we find that financing constraints have a negative relationship with firms' R&D activity, after controlling for other determinants of R&D such as firm size, capital intensity and export market participation.

Upgrading business investment in Turkey

“…Concerning the policy avenues available to improve the performance of this type of firms, international research suggests that well-designed basic management training programmes can help improve their management practices and their productivity (Hampel-Milagrosa and Reeg, 2016 [21]; Cravo and Piza, 2016 [22]), as also stressed by Turkey's Productivity Strategy and Action Plan 2015-18 (Ministry of Science Industry and Technology, 2015 [23]). Simple and user friendly digital management tools are becoming available for them.…”

Technology Perspectives and Innovative Scenarios Applied in the Amazon Region

“…Available research suggests concern with not only the evaluation of conceptual scenarios with respect to the use of innovation, but also with the application of innovation in different contexts. These include health care (Papa, Mital, Pisano, & Del Giudice, in press;Svensson & Hartmann, 2018), research and development (R&D) activities (Gezici, Orhangazi, & Yalçın, 2018) and egovernment (Chen, Hu, Tseng, Juang, & Chang, 2019;Distel, 2018;Wirtz & Daiser, 2018). Education policies in developing countries have focused deeply on the importance of technology in this new environment (Jones, 2018).…”