Contribution of R&D, innovation financing supports provided for smes in the process of technological product development to the employment: a research in Bursa automotive sector

SMEs, which constitute 99.8% of Turkey's enterprises, constitute the backbone of the economy. However, due to the globalization, economic instability and the problem of adaptation to the latest developments in technology, SMEs' financial, employment, production, problems are increasing. It is only possible with R&D and innovation studies that SMEs, who try to cope with these problems, survive and come to the point where they can compete. In this context, in view of the current situation of SMEs, R&D should be supported with indirect and direct financing support so that they can be involved in innovation activities. These supports include many expense items that will enable SMEs to continue their R&D activities without ny problems. Employment is an important part of these expense items. Because one of the reasons of the supports is to contribute to the increase in employment. However, there is no academic study on the extent to which these supports actually contribute to SMEs in real terms. In this context, firstly, the current situation of SMEs and innovation and R&D potentials have been examined. Turkey's present R&D structure and R&D support given to SMEs have been put forward. Since the said supporters had the intention of promoting employment, general employment incentives were examined first and then simulation work was carried out by explaining R&D, innovation employment incentives. Finally, from the main problem of the research, face-to-face interviews were conducted with 56 SMEs operating in the automotive sector in Bursa and benefiting from R&D, innovation project supports. The employment contribution of SMEs benefiting from R&D project supports in the talks and the commercial and economic effects of the project outputs on the business were examined. As a result, it has been revealed that R&D, innovation project support has increased employment in SMEs, achieved commercial gains and increased their competitiveness. Keywords: SME, R&D, Innovation, Financial Support, Project, Employment.