High technology intensive industries and international competitiveness in Turkey

Nowadays, it is very important for economies to gain international competitive advantage based on science and technology. In order to transform technological and scientific developments into economic gains, the classification according to technology intensity needs to be made quite accurately. Sectoral and product classifications are made by different institutions according to technology intensity with different methodologies. According to the technology intensities of the widely used Organization for Economic Co-operation and Development (OECD), goods and industry classifications have been prepared taking into account developed OECD countries. However, it is important to develop different alternatives to the classification of OECD by developing different classifications for developing countries, and to formulate strategies and policies through healthier analyzes. For the OECD classification, the ratio of research and development (R&D) expenditures to gross sales is taken into account. Different criteria can be important besides R&D in the industries that produce and /or use technology. Therefore, the classifications made considering only R&D activities may be insufficient. In this study, it was aimed to create a classification with TOPSIS method. Industries are arranged according to the technology intensity in this classification. This alternative classification is compared with OECD and Eurostat technology classifications. Then, the main indices to measure the structure and competitiveness of the trade and international competitiveness of these sectors were analyzed. It has been determined that the Turkey's "manufacture of electrical equipment" sector with Nace Rev. 2 digits and 27 codes is a high-tech sector. It has been determined that the 4-digit 2932 coded "manufacture of other parts and accessories for motor vehicles" and 1413 coded "manufacture of other outerwear" sectors are high-tech sectors. Competitiveness values of sectors determined to be high technology between 2000 and 2018 were calculated. In this way, foreign trade policy recommendations based on the place and importance of high-tech industries, which are determined by this study- specific analysis, and which have strategic importance in terms of competitiveness, are included.