R&D activities of tax incentives and impact of innovation

Globalization and technological developments in the last century; It contains fundamental changes in the economic, technological and social fields. The main argument of long-term sustainable growth and development in the globalizing world economy is undoubtedly the competitiveness of countries and companies. The main factor determining competitiveness is the current technology levels of countries and companies. The ability of countries to increase their production and competitive power in an increasingly fierce global competitive environment is directly proportional to their investment in R&D and innovation. Depending on the tax incentives they will apply, countries provide a suitable R&D, investment and growth environment for the private sector, and only in this way can they gain a competitive advantage over other countries based on high added value production, R&D intensity and innovation skills. R&D and innovation activities provide countries with advantages such as obtaining new information and applying them to products, systems and processes, and thus gaining competitive power. In today's world where global competition conditions are getting more and more difficult, countries that cannot achieve competitive advantage in the field of R&D and innovation become technologically dependent on other countries that have competitive advantage. Tax incentives are an economic policy tool frequently used by developed and developing countries. Incentives are generally used for the sustainability of economic development and economic balance, as well as for solving problems such as regional imbalances and unemployment. When left to market conditions, the failure of companies to perform optimal R&D activities appears in the form of grants, loans, tax exceptions, exemptions, and discounts provided by state institutions in our country as in other countries. Countries and companies that want to increase their competitive power; They should switch to competitive advantage based on high value-added production, high R&D intensity, and high innovation skills. In this context, countries need to allocate a significant resource to R&D in order to catch technological innovation where intense competition is experienced in the national or international arena. In this study, some selected countries of the world in R&D and innovation activities contribute to promoting policies being implemented in Turkey will be evaluated. Keywords: R&D, Innovation, R&D Activities, Tax Incentives