The effects of investment incentives on defense industry: Example of Ankara province

This text outlines the general framework of a study that highlights the economic, technological, and security importance of the defense industry and examines the impact of investment incentives on the sector. The development process of Turkey's defense industry focuses on investments aimed at encouraging domestic production and the importance of support provided to the defense sector for strategic independence. The defense industry not only enhances a country's military strength but also plays a crucial role in economic development and technological advancement. Turkey's major projects in this sector are gaining attention not only in the domestic market but also in international markets. In this context, encouraging domestic production and focusing on technological innovations in the defense industry emerge as a key strategy for Turkey's independence goals. This study examined the effects of investment incentives provided for the defense industry and investigated its role in the development of the sector. The study includes a field study on the importance of incentive systems in the development process of the defense industry, one of the strategic sectors of our country. In the study, an analysis of the sector was made within the scope of Ankara province, interviews and in-depth interviews were conducted with 12 companies producing weapons and ammunition and having 100 or more employees and 24 sector representatives, and it was discussed how the effectiveness of the incentive mechanism should be by revealing the potential development areas shaped according to the perceptions of the participants. This discussion was carried out using qualitative and quantitative research techniques and the results obtained were analyzed and reported. The effects of investment incentives on the defense industry have been evaluated from many perspectives such as economic, technological, security and strategic independence. Within the scope of these evaluations, it has been concluded that the incentives increase value-added product production, R&D and innovation-focused investments, export potential, production efficiency and high technology use, and contribute positively to quality and accreditation processes. In this context, the effects of investment incentive mechanisms on the defense industry, which constitutes the operational area of security policy, have been analyzed with the study in question, and the development potential has been tried to be revealed with the incentives provided for the sector.