Effects of R&D Expenditures on Economic Growth: An Econometric Analysis in Terms of Tax Incentives for Turkey and Selected Countries

Abstract

In this study; the effects of tax incentives for R&D expenditures on R&D investments and R&D investments on economic growth have been analyzed with three different models. In model 1; R&D investments of firms increased by 0.15% when R&D tax incentives for SMEs increased by 1% in the panel, whereas R&D investments by firms increased by 0.94% in Turkey. In model 2; R&D investments of firms increased by 0.17% when R&D tax incentives for large firms increased by 1% in the panel, whereas R&D investments of firms increased by 1.18% in Turkey. In model 3; GDP increased by 0.95% when R&D investments increased by 1%, while GDP increased by 1.08% in Turkey.