The Limits of R&D Internationalization and the Importance of Local Initiatives: Turkey as a Critical Case

The growth of R&D in East Asia has triggered the notion of a new innovation geography, where R&D is no longer a privilege of the traditional OECD countries. What does this mean for mid-sized emerging economies, without the scale advantages and bargaining power of India or China? This paper uses Turkey as a case to examine the continual unevenness of international R&D investments. By analyzing opportunities and limitations for local initiatives in the telecommunications, pharmaceutical, and automotive industries the paper finds that active private capital, a sufficient scale of production, and focused public policies are needed to attract international R&D.