Economic analysis of the relationship between the tax incentive mechanisms with R&D activities and investments in Turkey

Tax incentives, which have an important place among fiscal policies, are used especially on foreign direct investments and export revenues. In developed and developing countries changes are made in taxation policies in order to increase the existing investment level and to support the production of high value added products by changing the production structure. Tax incentives included in economic policies in the short term can be subsidized in kind or in cash. In addition, tax incentives have become a tool that supports to competitive structures of global economies, accelerates R&D and innovation studies and ensures the continuity of these studies. Tax incentives, which have a large share under the development and settlement of the social state understanding are also described as state aids in this aspect. Tax incentives are of great importance in the realization of projects that are planned to be realized in many areas socially, politicially and economically. In addition, sectors with tax incentives are developing faster than other sectors. The most important place of tax incentives in our country's economic policies is to eliminate regional differences. Thanks to the tax incentives offered worldwide an advantage is provided in terms of technology investments, innovation and research and development activities.