COUNTRY SPECIALISATION REPORT

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1 COUNTRY SPECIALISATION REPORT Country: Turkey Date: June 2006 ERAWATCH Network asbl: Project team: NIFU STEP, University of Sussex (SPRU), Joanneum Research, Logotech, FhG-ISI The opinions expressed in this publication are those of the individual authors alone and do not necessarily reflect the position of the European Commission. ERAWATCH is a registered Trade Mark. Reproduction of content is authorised provided the source is acknowledged. European Communities, Website:

2 Index COUNTRY SPECIALISATION REPORT - TURKEY...1 Main findings...1 Main R&D figures Total R&D expenditure...3 Public R&D statistics...4 GBAORD by socioeconomic objective...4 HERD by field of science...5 Business ENTERPRISE INTRAMURAL EXPENDITURE ON R&D (BERD)...6 Bibliometrics...9 Patents...11 Economic specialisation...12 Correlation analysis...15 Explanatory notes...20 ISIC v3 codes and sector description...20 How to read specialisation profile figures...21

3 Index of tables and figures Table 1. R&D expenditure by sector of performance and source of funds. Turkey and Million Euros. Current prices...3 Table 2. Correlation analysis. indexes BERD, Value added, Employment, Exports and patents. Turkey. Averages and Table 3: Profile...19 Figure 1. R&D expenditure by performing sector as per cent of GDP (left axis). GDP in million Euros (right axis). Turkey Figure 2. GERD by type of research. Turkey...3 Figure 3. Government Budget Appropriations or Outlays for R&D (GBAORD) by socio-ecomomic objective. profile. Turkey and Figure 4. Expenditure on R&D in the Higher Education Sector (HERD) by field of science. Turkey and Per cent of total HERD and in million Euro....5 Figure 5. Expenditure on R&D in the Government sector (GOVERD) by field of science. profile. Turkey. 1999, 2000 and Figure 6. Business enterprise intramural expenditure on R&D by industrial sector. 31 sectors. profile. Turkey. Averages and Figure 7. Shares of Business enterprise intramural expenditure on R&D (BERD) in the sector funded by government last available year in OECD statistics...7 Figure 8. Shares of total government funding of Business enterprise intramural expenditure on R&D (BERD) by industrial sectors Figure 9. Number of publications by scientific field. 24 Scientific fields. profile. Turkey. Averages and Figure 10. Shares of total publications by scientific field. 25 Scientific fields. Turkey and Figure 11. Number of citations by scientific field. 23 scientific fields. profile. Turkey. Averages and Five years citation window. (i.e. citations to papers published in the period and in the period Figure 12. Number of patents by industrial sector. 18 sectors in manufacturing. profile. Turkey. Averages and Based on correspondence matrix ISI- SPRU-OST Figure 13. Shares of total patens by industrial sector. 18 sectors in manufacturing. Turkey. Averages and Based on correspondence matrix ISI-SPRU-OST...11 Figure 14. Value added by industrial sector. 34 sectors. profile. Turkey. Averages and Million Euros. Current prices....12

4 Figure 15. Shares of total value added by industrial sector. 34 sectors. Turkey and Million Euros. Current prices...12 Figure 16. Employment by industrial sector. profile. Turkey. 34 sectors. Averages and Numbers engaged hundreds Figure 17. Shares of total employment by industrial sector. 34 sectors. Turkey and Numbers engaged hundreds Figure 18. Exports by industrial sector. profile. Turkey. 22 sectors. Averages and Thousand USD. Current prices...14 Figure 19. Shares of total exports by industrial sector. 22 sectors. Turkey and Thousand USD. Current prices...14 Figure 20. BERD versus Value added specialisation in all sectors. Turkey. Based on average values Figure 21. BERD versus patents. indexes. Turkey. Based on average values Figure 22. BERD versus exports. indexes. Turkey. Based on average values

5 COUNTRY SPECIALISATION REPORT - TURKEY MAIN FINDINGS 1

6 2

7 MAIN R&D FIGURES TOTAL R&D EXPENDITURE Figure 1. R&D expenditure by performing sector as per cent of GDP (left axis). GDP in million Euros (right axis). Turkey Not Available Source: OECD OFFBERD 2005 Table 1. R&D expenditure by sector of performance and source of funds. Turkey and Million Euros. Current prices. Not Available Source: OECD OFFBERD 2005 Figure 2. GERD by type of research. Turkey Not Available Source: OECD OFFBERD

8 PUBLIC R&D STATISTICS GBAORD by socioeconomic objective Figure 3. Government Budget Appropriations or Outlays for R&D (GBAORD) by socio-ecomomic objective. profile. Turkey and Not Available Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: OECD Basic Science and Technology Statistics 2005, own calculations. 4

9 HERD by field of science Figure 4. Expenditure on R&D in the Higher Education Sector (HERD) by field of science. Turkey and Per cent of total HERD and in million Euro. Not Available Source: OECD Basic Science and Technology Statistics Figure 5. Expenditure on R&D in the Government sector (GOVERD) by field of science. profile. Turkey. 1999, 2000 and Not Available Source: OECD Basic Science and Technology Statistics

10 BUSINESS ENTERPRISE INTRAMURAL EXPENDITURE ON R&D (BERD) Figure 6. Business enterprise intramural expenditure on R&D by industrial sector. 31 sectors. profile. Turkey. Averages and Other Business act Trade Office mach Financ. interm Water & electr. Furniture & rec Electr. Equip Machinery Basic - met Non-met Mining Community services Air Ships Instruments Petroleum IT services Construction Transport nec Electrical mach. Wood & Publishing Telecom Vehicles Fabricated met Hotels Food Source: Eurostat Database, S & T Data, 2005, own calculations 6

11 Figure 7. Shares of Business enterprise intramural expenditure on R&D (BERD) in the sector funded by government last available year in OECD statistics. Not available Source:OECD Basic Science and Technology Statistics 2005, own calculations 7

12 Figure 8. Shares of total government funding of Business enterprise intramural expenditure on R&D (BERD) by industrial sectors Ships Machinery Telecom IT services Real Estate Instruments Fabricated met Non-met Electr. Equip Basic - met Food Air Vehicles Water & electr. 10.1% 5.2% 3.2% 3.2% 3.2% 3.1% 2.3% 2.2% 2.1% 1.7% 1.2% 1.0% 1.0% 0.8% 0.5% 0.2% 0.1% 58.8% 0% 10% 20% 30% 40% 50% 60% 70% Source: Eurostat Database, S & T Data, 2005, own calculations 8

13 BIBLIOMETRICS Figure 9. Number of publications by scientific field. 24 Scientific fields. profile. Turkey. Averages and Psychology Physics Neurosciences Mathematics Law acology Materials Sc Social Sciences Plant & Animals Multdisciplinary Microbiology Mol Biology & Genetics Geosciences Immunology Education Environment Engineering Computer Science Economics Clinical Medicine Biology & Biochemistry Space Sc Chemistry Agricultural Sc Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: Thomson ISI, NSIODE 2005, own calculations. Figure 10. Shares of total publications by scientific field. 25 Scientific fields. Turkey and % 35% 30% 25% 20% 15% 10% 5% 0% Agricultural Sc Space Sc Biology & Chemistry Clinical Computer Economics Education Engineering Environment Geosciences Immunology Law Mol Biology & Microbiology Materials Sc Mathematics Neurosciences Multdisciplinary Physics Plant & acology Psychology Social Source: Thomson ISI, NSIODE

14 Figure 11. Number of citations by scientific field. 23 scientific fields. profile. Turkey. Averages and Five years citation window. (i.e. citations to papers published in the period and in the period Social Sciences Plant & Animals Physics Psychology Multdisciplinary acology Education Neurosciences Mol Biology & Genetics Biology & Biochemistry Materials Sc Geosciences Environment Engineering Economics Clinical Medicine Agricultural Sc Microbiology Immunology Space Sc Mathematics Chemistry Computer Science Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: Thomson ISI, NSIODE 2005, own calculations. 10

15 PATENTS Figure 12. Number of patents by industrial sector. 18 sectors in manufacturing. profile. Turkey. Averages and Based on correspondence matrix ISI- SPRU-OST. Transport Equip. Instruments Electrical mach. Furniture Vehicles Electr. Equip Office mach Machinery Fabricated met Basic - met Non-met Petroleum Food Wood & Publishing Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: European Patent Office 2005, own calculations. Figure 13. Shares of total patens by industrial sector. 18 sectors in manufacturing. Turkey. Averages and Based on correspondence matrix ISI-SPRU-OST. 25% 20% 15% 10% 5% 0% Food Wood & Publishing Petroleum Non-met Basic - met Fabricated met Machinery Office mach Electrical mach. Electr. Equip Instruments Vehicles Transport Equip. Furniture Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: European Patent Office 2005, own calculations. 11

16 ECONOMIC SPECIALISATION Figure 14. Value added by industrial sector. 34 sectors. profile. Turkey. Averages and Million Euros. Current prices. Other Business act Financ. interm Food Transport Hotels Trade Water & electr. Mining Agriculture Community services R&D IT services Real estate Telecom Construction Furniture & rec Transport nec Air Ships Vehicles Instruments Electr. Equip Electrical mach. Office mach Machinery Fabricated met Wood & Publishing Basic - met Non-met Petroleum Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: OECD, STAN 2005, own calculations. Figure 15. Shares of total value added by industrial sector. 34 sectors. Turkey and Million Euros. Current prices. 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Agriculture Mining Food Wood & Petroleum Non-met Basic - met Fabricated Machinery Office Electrical Electr. Instruments Vehicles Ships Air Transport Furniture & Water & Constructio Trade Hotels Transport Telecom Financ. Real estate IT services R&D Other Community Source: OECD, STAN,

17 Figure 16. Employment by industrial sector. profile. Turkey. 34 sectors. Averages and Numbers engaged hundreds. Community services Other Business act R&D IT services Real estate Financ. interm Trade Water & electr. Ships Vehicles Machinery Transport Basic - met Food Agriculture Hotels Construction Furniture & rec Air Instruments Electr. Equip Electrical mach. Office mach Fabricated met Wood & Publishing Mining Non-met Petroleum Transport nec Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: OECD, STAN, 2005, own calculations. Figure 17. Shares of total employment by industrial sector. 34 sectors. Turkey and Numbers engaged hundreds. 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Agriculture Mining Food Wood & Petroleum Non-met Basic - met Fabricated Machinery Office Electrical Electr. Instruments Vehicles Ships Air Transport Furniture & Water & Constructio Trade Hotels Transport Financ. Real estate IT services R&D Other Community Source: OECD, STAN,

18 Figure 18. Exports by industrial sector. profile. Turkey. 22 sectors. Averages and Thousand USD. Current prices. Furniture Transport nec Air Vehicles Instruments Ships Electr. Equip Electrical mach. Office mach Machinery Fabricated met Basic - met Non-met Petroleum Wood & Publishing Mining Food Agriculture Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: UNIDO, INDSTAT4 2005, ISIC Rev3 and COMTRADE 2005, own calculations. Figure 19. Shares of total exports by industrial sector. 22 sectors. Turkey and Thousand USD. Current prices. 40% 35% 30% 25% 20% 15% 10% 5% 0% Agriculture Mining Food Wood & Publishing Petroleum Non-met Basic - met Fabricated met Machinery Office mach Electrical mach. Electr. Equip Instruments Vehicles Ships Air Transport nec Furniture Source: UNIDO, INDSTAT4 2005, ISIC Rev3 and COMTRADE 2005, own calculations. 14

19 CORRELATION ANALYSIS Table 2. Correlation analysis. indexes BERD, Value added, Employment, Exports and patents. Turkey. Averages and TR_BERD9395 TR_BERD02 TR_PAT9395 TR_PAT0103 TR_VA9395 TR_VA0103 TR_EMP9395 TR_EMP0103 TR_EXP9395 TR_EXP0103 TR_BERD TR_BERD TR_PAT TR_PAT TR_VA TR_VA TR_EMP TR_EMP TR_EXP TR_EXP Pearson Correlation 1 Sig. (2-tailed). Pearson Correlation,786(**) 1 Sig. (2-tailed),000. Pearson Correlation -,010,066 1 Sig. (2-tailed),972,814. Pearson Correlation -,134,113,413 1 Sig. (2-tailed),649,687,112. Pearson Correlation,601(**),440(*),219,129 1 Sig. (2-tailed),005,019,415,633. Pearson Correlation,356,256,223,042,634(**) 1 Sig. (2-tailed),124,189,407,878,000. Pearson Correlation,631(**),516(**),250,172,891(**),566(**) 1 Sig. (2-tailed),004,006,349,524,000,001. Pearson Correlation,432,406(*),386,258,629(**),600(**),762(**) 1 Sig. (2-tailed),065,036,140,335,000,000,000. Pearson Correlation,707(**),688(**),299,089,795(**),752(**),838(**),655(**) 1 Sig. (2-tailed),001,002,261,742,000,000,000,001. Pearson Correlation,760(**),835(**),053,132,626(**),551(**),748(**),583(**),851(**) 1 Sig. (2-tailed),000,000,845,625,002,010,000,005,000. ** Correlation is significant at the 0.01 level (2-tailed). 15

20 * Correlation is significant at the 0.05 level (2-tailed). 16

21 Figure 20. BERD versus Value added specialisation in all sectors. Turkey. Based on average values Value Added Water & electr. 50 Trade Mining Hotels BERD 0 Basic-met1 Construction Other Business act Financ. interm Community Non-met services Food -50 Transport Vehicles nec Electr. Equip Electrical mach. Furniture Ships Wood & Publishing & rec IT services Machinery Fabricated met Air Office mach -100 Instruments Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: Own calculations Figure 21. BERD versus patents. indexes. Turkey. Based on average values Patents Machinery 50 BERD Electrical mach. Food Instruments Wood & Publishing 0 Fabricated met Vehicles Non-met Basic-met Electr. Equip -50 Office mach -100 Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: Own calculations 17

22 Figure 22. BERD versus exports. indexes. Turkey. Based on average values Exports Non-met 50 Basic-met Ships BERD Fabricated met 50 Food 100 Air Transport nec Instruments Electrical mach. Wood & Publishing Office mach Mining Electr. Equip Machinery Vehicles Notes: index with EU15 as reference. Max specialisation: Min. specialisation: Source: Own calculations 18

23 Table 3: Profile Areas of specialisation BERD* Patents Increase 2423; Fast growing sectors >4.9% Stable Losing 55; 72; 25; 34; 23; Increase 25; 28; 29; 31; 33; 34; Medium-Low growth sectors =<4.9% Stable Value Added 23; 50-52; 55; 60-63; 2423; 45; 40-41; 01-05; 10-14; Employment 23; ; 50-52; 60-63; 26; Exports 25; 26; ; Losing Increase Declining sectors <0 Stable 15-16; 26; 27; 29; 32; 36-37; 17-19; 15-16; 20-22; 24ex2423; 17-19; 15-16; 24ex2423; 26; 27; 32; 17-19; 01-05;15-16;27; 17-19; 01-05; 10-14; 15-16; 17-19; Losing Red numbers: Decrease specialisation from specialised to non specialised Blue numbers: Increase specialisation from non specialised to specialised *: For the ISIC sectors 23, 28, 30, , 40-41, 45, 50-52, 64, 65-67, 74 and there are no available time series data, so the trend for specialization BERD for these sectors is not presented in table 3. 19

24 EXPLANATORY NOTES ISIC v3 codes and sector description Agriculture Mining Food Wood & Publishing Petroleum 23 excluding pharmaceuticals 24ex2423 aceuticals Non-metal minerals 26 Basic metals 27 Fabricated metals 28 Machinery nec 29 Office machinery 30 Electrical mach. 31 Electr. equip. 32 Instruments 33 Motor vehicles 34 Ships 351 Aerospace 353 Transport nec Furniture & recycling Water & Electricity Construction 45 Trade Hotels 55 Transport Telecoms 64 Financial intermediation IT services 72 R & D 73 Other Business activities 74 Community services

25 How to read specialisation profile figures Plotting specialisation indexes against each other is a method for visualising differences in specialisation patterns. The most interesting analytical dimension in this report is comparing business enterprise intramural R&D expenditure specialisation patterns with specialisation patterns in value added, employment, exports and technological specialisation (patents). The result of the plots is four distinct specialisation quadrants showing: 1. Sectors with neither specialisation in BERD nor in the other analytical dimension (lower left quadrant) 2. Sectors with a specialisation in BERD and in the other analytical dimension (upper right quadrant) 3. Sectors with a specialisation in BERD but none in the other analytical dimension (lower right quadrant) 4. Sectors that display a specialisation in the other analytical dimension but not in BERD (upper left quadrant) If there is a good match between BERD and, say, value added specialisation patterns we expect to find all sectors either in the lower left or in the upper right quadrant. Sectors in the upper left or in the lower right of the graphs indicate anomalies, that is, specialisation in one dimension and non-specialisation in the other. If there are many sectors in these quadrants the graph indicates lack of correlation between BERD and, say, economic specialisation. BERD and Value Added specialisation an example Sectors with a specialisation in VA but not in BERD Value Added 100 Sectors with both BERD and VA specialisation 50 Vulnerable competitive position? Strengthening the strengths? BERD Sectors with no specialisation in BERD and VA -50 Sectors with a specialisation in BERD but not in VA Neglected sectors? Further decline in the future? Efforts concentrated in niches? Opportunities for catching up?

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