CHANGE OF RESEARCH AND DEVELOPMENT (R&D) EXPENDITURES ACCORDING TO R&D EMPLOYEES AND ITS EFFECT ON MANUFACTURING VALUE ADDED IN TURKEY

Abstract

Aim: In this research, it was aimed to evaluate change of Research and Development (R&D) expenditures according to R&D employees and its effect on manufacturing value added in turkey.

Methods: R&D expenditures (RDEX) R&D employee (RDEMP) and manufacturing value added (MVA) series were used from the World Bank Country Report from 1996 to 2022 in the research. Spearman’s rho correlations were performed for relationship analysis between research parameters.

Results: R&D expenditure range was 0.36% to 0.96% of GDP for research time interval with 0.66±0.19 mean value. R&D employee value per million people range was 304.34 to 1379.41 for research time interval with 725.31±364.48 mean value. MVA value mean was 17.69±1.91 with 15.05-22.27 range. Spearman’s rho correlation analysis results showed that MVA was negatively correlated with RDEX (r=-0.722; p<0.01) and RDEMP (r=-0.735; p<0.01). According to correlation coefficients, relationship between MVA and ARGEEMP was higher. This result suggests that there have been a renovation process for the country.

Originality: Although researches express the importance of R&D process on production, this article argues that the transformational process may reduce conventional production. For this reason, this research underlines the danger of R&D expenditures and employee in order to prevent reduces in production. The negative impact of R&D expenditures on production may be due not only to the nature of R&D expenditures, but also to production variation. Therefore, the research is important in terms of demonstrating the need to re-evaluate the effectiveness of R&D expenditures.