Influence of tax incentives on r&d activities in Turkey

In globalizing world, the main key to exist is to create innovation. Thus, global rivalry is rising in the new world and this occasion forces the countries to adapt technological advancements in terms of protecting their assets and making differences. This can only be possible via increasing research and development(R&D) activities. R&D activities are supported either directly or with tax incentives indirectly. Incentives applied for R&D activities have increased competitive capacity of countries and created important impacts on financial development. This study aimed to examine R&D systems applied in Turkey and selected countries and to applied tax policies oriented these systems. In accordance wıth this purpose, income tax law, corporate tax law, 4691 numbered technology development areas law and 5746 numbered R&D activities support law are analyzed as part of applied tax incentives to R&D activities in Turkey. The influence of R&D tax incentives on defense industry, SME and technocities in technology development areas has been mentioned. Also, influence of R&D tax incentives was measured with the R&D expenditure and method of b index Key words: R&D, Tax Incentives, B Index, R&D expenditure