Selected countries and Turkey of R&D and innovation activitiescomparison of tax incentives

Countries that want to increase production aim to increase the quality and quantity of production by spending R&D and innovation. As a result of R&D and innovation activities, a new process, method or invention can be realized. This situation causes the production costs to decrease, the additional time allocated to production to be transferred to other sources, and effective and efficient production. The private sector does not want to engage in R&D and innovation activities due to reasons such as short-term costs and profitability not being easily detected, and the risk of failure. Countries generally encourage R&D and innovation activities by providing economic and financial incentives. It is seen that especially the countries encourage R&D and innovation activities by providing financial incentives. The main reason for this is that economic incentives are thought to affect the free market economy. Tax incentives are the primary financial incentives offered by countries. Tax incentives are seen in different practices between countries. Applications such as tax deduction, tax credit, tax holiday and patent box incentive are seen. European countries especially adopt the tax credit application. Tax deduction of R & D and innovation activities as a means of promoting their application is seen in Turkey. While some countries choose one of these applications selectively, some countries implement all of these applications. Germany, France, the Netherlands, Italy, England, South Korea, Japan and America use tax credit as R&D and innovation incentives. Turkey and China use a tax deduction China. All countries selected outside of China and the USA benefit from patent incentives. Social security contributions and withholding tax applied to wages of employees support the Netherlands, France, and is an important place by Turkey. The aim of this study was to compare the performance of Turkey's R & D and innovation with selected countries, successful countries in R & D and innovation activities, an assessment of Turkey's incentive system with a system of incentives. R & D and innovation performance in terms of making assessments of the successful countries, offers a variety of models on promoting Turkey's essential. Keywords: Research and development (r&d) and innovation incentives; research and development in the World and in Turkey; research and development in the selected countries and in Turkey; importance of research and development; R&d and tax incentives