Comparison of Tax Incentives for R&D Activities: A Study on Turkey and Selected Countries

Abstract

As a result of the Oil Crisis in 1973, serious transformations were experienced in the economic policies of the countries. While the neoliberal policies adopted in the new order limited the intervention of the state in the economy, it accelerated the transition to a free market economy. The limited role assigned to the state is to provide public order and to produce policies that encourage the free market by reducing its presence in the economy. In this context, the most important tool in the hands of the state is tax regulations. The competitive environment created by globalization and the fact that the level of technological development is the driving force in economic growth and development has made R&D tax incentives even more important for entrepreneurs. While R&D activities provide competitive advantage to businesses by reducing production costs; It is seen as the main factor in the development of existing products or the production of new products.

In this study, the share of R&D tax incentives applied in Turkey and selected countries (USA, China, Germany, Japan) and the share of R&D activities in GDP has been examined and Turkey's current situation has been determined and suggestions have been made for the future. As a result of the examinations, it was concluded that while direct R&D incentives such as loans and grants are generally applied in the selected countries, indirect R&D incentives such as tax reductions are preferred in Turkey. When the share of R&D expenditures in GDP is analyzed, it has been determined that Turkey is far behind compared to the selected countries.