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

Strong Links with Domestic Market-Weak Links with R&D: Results of A Survey in an Industrial District of an Emerging Economy

Ayşe Gözen (Yıldız Technical University)
Melike Bildirici (Yıldız Technical University)

Abstract  

The paper analyses the data collected from electronics, metal processing and textile SMEs in an industrial region of Istanbul, namely Davutpaşa.Frequency and cross-tab factor analysis and corresponding analysis are conducted. While there are some differences between the sectors,in general, it is found that the correlation is low between market success and level of R&D. The main reason to be found in the requirements of the target market being largely domestic market. Upgrading of technology is done by imports of machinery and equipment. As to be expected, electronics firms exibit stronger R&D infrastructure compared to the firms in the other two more traditional sectors. The results reinforce the doubts on the long-term vitality in traditional sectors of the emerging countries in the more competitive globalized markets.

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