How Does R&D Expenditure Affect Employment and Growth? Understanding the Impact of Sectoral R&D Expenditures: The Case of Turkey

Year 2024, Volume: 8 Issue: 2, 779 - 806, 24.05.2024

Hakan Saraç , Ebuzer Arslan

https://doi.org/10.25295/fsecon.1432766

Abstract

R&D, which is an indicator of technological developments, is an important factor in the production process. R&D expenditures may lead to changes in the employment structure of the relevant sectors by affecting production factors. In this study, in order to determine the effect of R&D expenditures on employment and growth, R&D expenditure amounts, production income, and number of employments for thirteen different sectors, which their data were obtained from the NACE Rev2 classification system using TURKSTAT data for the period 2013-2022, were analyzed by creating a panel data set with these data. As a result of the analysis, it was found that there is a long-run relationship between R&D expenditures and growth. In the model, the long-run parameters are determined as 0.128 for R&D and -1.468 for the constant coefficient, and both variables are significant. Therefore, R&D expenditures affect the growth variable in the long run. A 1% increase in R&D expenditure increases production by approximately 13%. In addition, it can be said that when sectoral R&D expenditures increase, the Manufacturing, Electricity, Education, and Arts and Entertainment Services sectors are positively affected and increase the amount of production, while it decreases the amount of production in the Professional Scientific and Technical Services sector. There is no long-run relationship between R&D expenditures and employment, but when the sectors are evaluated separately, it is found that R&D expenditures have a positive effect on employment in Mining, Manufacturing, Electricity, Information Communication, and Arts and Entertainment Services, while they have a negative effect on employment in Construction and Wholesale-Retail Trade sectors.

Keywords

Production, Employment, R&D, Panel Data Analysis

Ar-Ge Harcamaları İstihdam ve Büyümeyi Nasıl Etkiler? Sektörel Ar-Ge Harcamalarının Etkisini Anlamak: Türkiye Örneği

Abstract

Teknolojik gelişmelerin göstergesi olan Ar-Ge üretim sürecinde önemli bir faktördür. Ar-Ge harcamaları üretim faktörlerini etkileyerek ilgili sektörlerin istihdam yapısında değişikliğe yol açabilir. Araştırmada Ar-Ge harcamalarının istihdam ve büyüme üzerindeki etkisini tespit etmek amacıyla 2013-2022 dönemi TÜİK verileri kullanılarak NACE Rev2 sınıflandırma sistemine göre verilere ulaşılan on üç farklı sektöre ilişkin Ar-Ge harcama tutarları, üretim geliri ve istihdam sayısı ele alınmış ve söz konusu verilerle panel veri seti oluşturularak analiz yapılmıştır. Yapılan analiz sonucunda Ar-Ge harcamaları ve büyüme arasında uzun dönemli ilişkinin olduğu tespit edilmiştir. Oluşturulan modelde uzun dönem parametreleri sırasıyla Ar-Ge için 0,128 sabit katsayı için -1,468 olarak tespit edilmiş ve her iki değişkeninde anlamlı olduğu görülmektedir. Dolayısıyla uzun dönemde Ar-Ge harcamaları büyüme değişkenini etkilemektedir. Ar-Ge harcamasındaki %1’lik artış üretimi yaklaşık %13 arttırmaktadır. Ayrıca sektörel Ar-Ge harcamaları arttığında İmalat, Elektrik, Eğitim ve Sanat Gösteri Eğlence Hizmetleri sektörleri olumlu etkilenerek üretim miktarını artırırken; Mesleki Bilimsel ve Teknik Hizmetler sektöründe ise üretim miktarını azalttığı söylenebilir. Ar-Ge harcamaları ve istihdam arasında uzun dönemli ilişkin olmadığı fakat sektörler ayrı ayrı değerlendirildiğinde Ar-Ge harcamalarının Maden, İmalat, Elektrik, Bilgi İletişim ve Sanat Gösteri Eğlence Hizmetleri alanlarında istihdamı olumlu etkilerken; İnşaat ve Toptan-Perakende Ticaret sektörlerinde ise istihdamı olumsuz etkilediği tespit edilmiştir.

Keywords

Üretim, İstihdam, Ar-Ge, Panel Veri Analizi

References

• Aktaş, Cengiz. (2009). Türkiye’nin İhracat, İthalat ve Ekonomik Büyüme Arasındaki Nedensellik Analizi, Kocaeli Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, (2), 35-47.
• Barbieri, L., Piva, M. & Vivarelli, M. (2016). The Employment Impact of Different Forms of İnnovation: Evidence from Italian Community Innovation Survey. Milan: Vita E Pensiero.
• Bayraktar, Y., Dündar, N. & Özyılmaz, A. (2022). The Relationship between R&D Expenditures and Economic Growth in BRICS-T Countries. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 17(3), 893-910.
• Bilas, V., Bosnjak, M. & Cizmic, T. (2016). Relationship Between Research and Development and Economic Growth in the EU Countries. 13th International Scientific Conference on Economic and Social Development, Barcelona, Spain, 14–16 April.
• Blundi, D., Nonato, A. C., Loureiro, da S., Medeiros, S. R. de, Carvalho, P. de, Jorge, M. F., Lopes, F. V., Travassos, G., Silva, P. da & Orind, V. (2022). IP Use and Technology Transfer in the Brazilian Mining Sector. A. Daly, D. Humphreys, J. Raffo & G. Valacchi (Eds.), Global Challenges for Innovation in Mining Industries (202-230). Cambridge University Press: Cambridge.
• Bogliacino, F., Piva, M. & Vivarelli, M. (2011). R&D and Employment: Some Evidence from European Microdata. IZA Discussion Paper.
• Brutschin, E. & Fleig, A. (2016). Innovation in the Energy Sector-The Role of Fossil Fuels and Developing Economies. Energy Policy, 97, 27-38.
• Calzada Olvera, B. & Iizuka, M. (2023). The Mining Sector: Profit-Seeking Strategies, Innovation Patterns, and Commodity Prices. Industrial and Corporate Change, dtad020.
• Cao, X. (2018). The Relationships between Research and Development (R&D) Investment and Regional Economic Growth. Anthropologist, 31(1-3), 34-47.
• Chirwa, T. G., & Odhiambo, N. M. (2018). Exogenous and endogenous growth models: A critical review. Comparative Economic Research. Central and Eastern Europe, 21(4), 63-84
• Dinçer, H., Yüksel, S., Adalı, Z. & Aydın, R. (2019). Evaluating the Role of Research and Development and Technology Investments on Economic Development of E7 Countries. Organizational Transformation and Managing Innovation in the Fourth Industrial Revolution. IGI Global.
• Eberhardt M. & Bond S., (2009). Cross-Section Dependence in Nonstationary Panel Models: A Noel Estimator, MPRA WP 17870.
• Eberhardt M. & Teal F., (2010). Productivity Analysis in Global Manufacturing Production, Department of Economics, University of Oxford, WP.
• Greenhalgh, C., Longland, M. & Bosworth, D. (2001). Technological Activity and Employment in a Panel of UK Firms. Scottish Journal of Political Economy, 48(3), 260-282.
• Grossman, G.M. & Helpman, E. (1991). Quality ladders in the theory of growth, The Review of Economic Studies, 58(1), 43–61.
• Hafeez, A., Syed, K. B. S. & Qureshi, F. (2019). Exploring the Relationship between Government R & D Expenditures and Economic Growth in a Global Perspective: A PMG Estimation Approach. International Business Research, 12(4), 163-174.
• Ju, J. (2014). The Effects of Technological Change on Employment: The Role of ICT. Korea and the World Economy, 15(2), 289-307.
• Konya, S., Şakalak, A. & Karaçor, Z. (2022). Can R&D Activities Trigger Economic Growth and Employment? Empirical Evidence from Selected Countries. Journal of Management and Economics Research, 20(3), 351-372.
• Kunapatarawong, R. & Martínez-Ros, E. (2016). Towards Green Growth: How Does Green Innovation Affect Employment?. Research Policy, 45(6), 1218-1232.
• Lachenmaier, S. & Rottmann, H. (2011). Effects of Innovation on Employment: A Dynamic Panel Analysis. International Journal of Industrial Organization, 29(2), 210-220.
• Lin, D. J., Yu, W. D., Wu, C. M., & Cheng, T. M. (2018). Correlation between intellectual capital and business performance of construction industry–an empirical study in Taiwan. International Journal of Construction Management, 18(3), 232-246.
• Mankiw, N.G., Phelps, E.S. & Romer, P.M. (1995), The growth of nations, Brookings Papers on Economic Activity, 1995(1), 275–326.
• Manga, S. & Tuna, A. (2023). Yükselen Piyasa Ekonomilerinde Teknolojik Gelişim ve İşsizlik İlişkisinin İncelenmesi: Dinamik Panel Veri Analizi. İstanbul Gelişim Üniversitesi Sosyal Bilimler Dergisi, 10(2), 555-570.
• Martin, L. & Nguyen-Thi, T. U. (2015). The Relationship Between Innovation and Productivity Based on R&D and ICT Use: An Empirical Analysis of Firms in Luxembourg. Revue Économique, 66(6), 1105-1130.
• Matthess, M. & Kunkel, S. (2020). Structural Change and Digitalization in Developing Countries: Conceptually Linking the Two Transformations. Technology in Society, 63, 101428.
• Medda, G. (2020). External R&D, Product and Process Innovation in European Manufacturing Companies. The Journal of Technology Transfer, 45(1), 339-369.
• MÜSİAD. (2012), Küresel Rekabet İçin Ar-Ge ve İnovasyon. Müsiad Araştırma Raporları: 76. İstanbul.
• OECD. (2015). Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development, The Measurement of Scientific, Technological and Innovation Activities. OECD Publishing, Paris. https://doi.org/10.1787/9789264239012-en
• OECD. (2005). Eurostat, Oslo Klavuzu: Yenilik Verilerinin Toplanması ve Yorumlanması için İlkeler (3.Baskı). Ankara, TÜBİTAK.
• OECD. (2023). Gross Domestic Spending on R&D. https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm (07.12.2023)
• Pesaran, M. H. & Smith, R. (1995). Estimating Long-Run Relationships from Dynamic Heterogeneous Panels. Journal of the American Statistical Association, 94, 621-634.
• Piva, M. & Vivarelli, M. (2018). Is Innovation Destroying Jobs? Firm-Level Evidence from the EU. Sustainability, 10(4), 1279.
• Romer, P. M., (1990). Endogenous Technological Change, The Journal Of Political Economy, 98(5, Part 2), 71-102.
• Uçak, S., Kuvat, Ö. & Aytekin, A. G. (2018). Türkiye’de Arge Harcamaları-Büyüme İlişkisi: ARDL Yöntemi. Manisa Celal Bayar Üniversitesi Sosyal Bilimler Dergisi, 16(2), 129-160.
• Sezgin, F. H. (2020). Analysis of the Relationship Between R&D Expenditure and Economic Growth: Comparison Between Developing and Developed Countries. The Effects of Technological Innovations on Competitiveness and Economic Growth.
• Sew, G. S., & Meng, C. C. (2007). Bridging the gap between R&D and construction industry. Master Builders (1st Quarter), 54-68.
• Szarowská, I. (2016). Impact of Public R&D Expenditure on Economic Growth in Selected EU Countries. The 9th International Scientific Conference Business and Management.
• Şahin, E. (2015) The Relationship between R&D Expenditures and Economic Growth: Panel Data Analysis 1990-2013. EY International Congress on Economics 11 “Growth, Inequality and Poverty”, Ankara.
• Tatoğlu Yerdelen, F. (2023). İleri Panel Veri Analizi Stata Uygulamalı (5. Baskı). Beta Basım Yayım Dağıtım, İstanbul.
• Triguero, Á., Cuerva, M. C. & Álvarez-Aledo, C. (2017). Environmental Innovation and Employment: Drivers and Synergies. Sustainability, 9(11), 2057.
• Tuna, K., Kayacan, E. & Bektaş, H. (2015). The Relationship Between Research & Development Expenditures and Economic Growth: The Case of Turkey. Procedia-Social and Behavioral Sciences, 195, 501-507.
• Tunç, T., Nas, Ş. & Demir, E. E. (2022). Türkiye’de Bilgi ve İletişim Teknolojileri Sektörü Kapsamında Bir Girdi-Çıktı Analizi. Sosyoekonomi, 30(53), 425-445.
• TÜİK. (2022). Araştırma Geliştirme Faaliyetleri Araştırması. https://data.tuik.gov.tr/Bulten/Index?p=Arastirma-Gelistirme-Faaliyetleri-Arastirmasi-202249408#:~:text=Gayrisafi%20yurt%20i%C3%A7i%20Ar%2DGe,670%20milyon%20TL'ye%20y%C3%BCkseldi.&text=Gayrisafi%20yurt%20i%C3%A7i%20Ar%2DGe%20harcamas%C4%B1n%C4%B1n%20GSYH%20i%C3%A7indeki%20oran%C4%B1%202021,oran%C4%B1%20%251%2C32%20oldu (07.12.2023)
• TÜİK. (2022). Küçük ve Orta Büyüklükteki Girişim İstatistikleri. https://data.tuik.gov.tr/Bulten/Index?p=Kucuk-ve-Orta-Buyuklukteki-Girisim-Istatistikleri-2022-49438 (26.01.2024)
• TÜİK. (2023). https://biruni.tuik.gov.tr/medas/?locale=tr (29.01.2024)
• Uçan, O. (2013). Döviz Kuru Dinamikleri (1. Baskı).
• Van Reenen, J. (1997). Employment and Technological İnnovation: Evidence from UK Manufacturing Firms. Journal of Labor Economics, 15(2), 255-284.
• Vivarelli, M. (1995). The Economics of Technology and Employment: Theory and Empirical Evidence. The Economics of Technology and Employment. Edward Elgar Publishing.
• Vivarelli, M. (2015). Innovation and employment, IZA World of Labor.
• Woltjer, G., Van Galen, M. & Logatcheva, K. (2021). Industrial Innovation, Labour Productivity, Sales and Employment. International Journal of The Economics of Business, 28(1), 89-113
• Yazgan, Ş. & Yalçinkaya, Ö. (2018). The Effects of Research and Development (R&D) Investments on Sustainable Economic Growth: Evidence from OECD Countries (1996-2015). Review of Economic Perspectives, 18(1), 3-23.
• Yüksel, S. (2017). The Impacts of Research and Development Expenses on Export and Economic Growth. International Business and Accounting Research Journal, 1(1), 1-8.