erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Product Innovation in the Turkish Manufacturing Industry: The Case of a Medium Sized Electirical Home Appliance Company

Özlem Er (Istanbul Technical University)
Arif Özver Engin (Istanbul Technical University)

Abstract  

The literature on technical change points out that incremental innovations and redesign of existing products are economically and commercially as important as radical innovations. Based on the findings of a recent study, this paper presents micro-level evidence on the conditions leading to product and process innovations in the Turkish manufacturing industry. In the absence of qualitative studies providing detailed knowledge on the dynamics of product innovation in the Turkish context, the study that this paper derives its data from, examined the internal and external dynamics of product innovation in the case of a medium-sized company. The paper outlines the factors which led an electrical motor manufacturing company to switch to producing electrical home appliances, gradually building capabilities to carry out product and process innovations emphasising particularly the role of industrial design. The paper also stresses the role of support programmes in the development of innovative products.

Economic Research Center
Middle East Technical University
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