Transition into knowledge based economic growth in Turkey

This thesis aims to analyze the fundamentals of a knowledge based economy and attempts to offer a knowledge based growth strategy for Turkey. In chapter I, firstly, major schools of economic thought on technological change and innovation are reviewed. Secondly, microeconomic and macroeconomic fundamentals of technological change and innovation are analyzed in light of the contemporary economic theories. Finally, a further focus is given to major growth models to explore the relation between technological change and economic growth. In the second chapter, Turkey?s main science, technology and innovation indicators are examined with comparative data drawn from primarily OECD countries. These comparative analyses suggest that Turkey lags far behind the developed knowledge economies regarding almost every economic indicator in question and needs to devise a rather ambitious development strategy in order to catch up with the developed economies. In this chapter, critical overviews of the literature on national innovation systems are also employed to propose an efficient innovation system for Turkey. Turkey?s science, technology and innovation policies and the institutional and legal frameworks of its national innovation system are scrutinized in the third chapter of the study. These analyses mainly reveal the core shortcomings of Turkey?s national innovation system and its science and technology policies. Upon those theoretical background and empirical findings a knowledge based growth strategy is proposed for Turkey to materialize the endogenous economic growth driven by technological change and innovation. It is concluded that the transition into knowledge based economic growth strategy necessitates a clear cut development agenda accepted by society and the main stakeholders, and that comprehensive institutional and legal reforms should be carried out to overhaul the national innovation system which balances imperatives for various economic policies, ensures horizontal integration and vertical coordination, facilitates intersectoral, regional and international cooperation on innovative activities, and comprises the evaluation and learning mechanisms