Does R&D Intensity Contribute to Technical Efficiency in Turkey?

The effect of R&D intensity and R&D spillovers on the technical efficiency of R&D performers has not been examined for the Turkish manufacturing sector. This study investigates whether R&D intensity and R&D spillovers contribute to firms’ technical efficiency. Employing stochastic frontier analysis, we use micro-level data for 2003-2007 R&D performers. We find that neither R&D intensity nor R&D spillovers exert a statistically significant effect on the technical efficiency of low-tech R&D performers. On the other hand for high-mid tech R&D performers R&D spillovers are found to affect technical efficiency of positively. Subcontracting work and having a large market share are also positively related with technical efficiency.