To innovate or to transfer? A study on spillovers and foreign firms in Turkey

Taymaz, Erol
FDI has been considered by many development economists as an important channel for transfer of technology to developing countries. It is suggested that modern, advanced technologies introduced by multinational firms can diffuse to domestic firms through spillovers. In this paper, we study innovation and technology transfer activities of domestic and foreign firms in Turkish manufacturing industries, and the impact of horizontal, vertical and labor spillovers on these activities. Our analysis shows that foreign firms are more innovative than their domestic counterparts, and transfer technology from abroad (mostly from their parent companies). Horizontal spillovers from foreign firms seem to be insignificant. The effects of foreign firms on technological activities of other firms in vertically related industries are ambiguous. High-tech suppliers tend to have a high rate of innovation when the share of foreign users is high, but the opposite is true for users: high-tech users supplied mainly by foreign firms tend to have a lower rate of innovation. Labor turnover is found to be the main channel of spillovers. Our findings reiterate the importance of tacitness of knowledge, and confirm that technology cannot easily be transferred through passive mechanisms.


The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation
Ballot, G; Taymaz, Erol (Springer Science and Business Media LLC, 1997-12-01)
We analyze the co-evolution of the performances of firms and of the economy in an evolutionary micro-to-macro model of the Swedish economy. The model emphasizes the interactions between human capital (or competences) and technological change at the firm level and their effects;on aggregate growth, taking into account the micro-macro feedbacks. The model features learning-by-doing, incremental and radical innovations, user-producer learning at the firm level, and a change in the techno-economic paradigm. We ...
Capitalism and democracy at a crossroads: the civilizational dimension
Ozveren, E (Springer Science and Business Media LLC, 2000-01-01)
This paper evaluates Schumpeter's grand vision as reflected in his Capitalism, Socialism ann Democracy, and elaborates it in conjunction with the so-called "globalization" trends characteristic of the wake of the twenty-first century. In addition to the evolutionary nature of his methodology, the institutionalist dimension of Schumpeter's definitions are brought to light. A case is made for a fundamental process of "uncreative destruction" as far as the institutional setup of the economy is concerned. The c...
Are small firms really less productive?
Taymaz, Erol (Springer Science and Business Media LLC, 2005-12-01)
Small and medium- sized establishments ( SMEs) account for a large proportion of industrial employment and production in almost all countries. Moreover, the recent literature emphasizes the role SMEs play in nurturing entrepreneurship and generating new products and processes. Although SMEs could be a source of new ideas and innovations, there are substantial productivity differences between small and large establishments. In this paper, we analyze three sources of productivity differentials: technical effi...
Relationship between oil prices, interest rate, and unemployment: Evidence from an emerging market
Dogrul, H. Gunsel; Soytaş, Uğur (Elsevier BV, 2010-11-01)
While the interrelation between oil price changes, economic activity and employment is an important issue that has been studied mainly for developed countries, little attention has been devoted to inquiries on fluctuations in the price of crude oil and its impact on employment for small open economies. Adopting an efficiency wage model for equilibrium employment that does not require any assumptions regarding labor supply, this paper contributes to the literature by investigating the causality between unemp...
The evolution of the distribution of plant size: Evidence from Luxemburg
Bertinelli, Luisito; Cardi, Olivier; Pamukcu, Mehmet Teoman; Strobl, Eric (Springer Science and Business Media LLC, 2006-12-01)
In a recent paper, [Cabral, L. M. B. and J. Mata, 2003, American Economic Review, 93, 1075-1090] using Portuguese manufacturing data have shown for the first time that the plant size distribution is significantly right-skewed at the early part of the life cycle and then changes to become more log-normal. Using a similar proxy for plant age we compare this stylised fact for both Luxembourg manufacturing and services. Use of plants' true age, however, reveals that the size distribution reverses back towards r...
Citation Formats
A. LENGER and E. Taymaz, “To innovate or to transfer? A study on spillovers and foreign firms in Turkey,” JOURNAL OF EVOLUTIONARY ECONOMICS, pp. 137–153, 2006, Accessed: 00, 2020. [Online]. Available: