Entrepreneurship and the National System of Innovation

Elif Bascavusoglu-Moreau

in Entrepreneurship, Innovation, and Economic Development

Published in print April 2011 | ISBN: 9780199596515
Published online September 2011 | e-ISBN: 9780191729133 | DOI:

Series: WIDER Studies in Development Economics

Entrepreneurship and the National System of Innovation

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This chapter focuses on the national system of innovation (NIS) as an important determinant of innovative performance of small and medium-sized enterprises in Turkey using data from a large-scale survey held amongst 50,000 Turkish SMEs in 2005. The chapter finds very low levels of innovative activities amongst Turkish small firms. The chapter argues that that the size of the shadow economy in Turkey is one of the obstacles to innovativeness as it limits firms' access to capital markets and traps potentially innovative entrepreneurs in low-productivity sectors. Furthermore the Turkish NIS is weak at fostering the innovative performance of SMEs. There is little stimulus to innovation coming from being located in industrial estates, and there is a lack of cooperation and linkages between different actors in the NIS. The elements of the innovation system are in place, but they do not interact sufficiently. The chapter reflects on policy implications to deal with these systemic weaknesses.

Keywords: national systems of innovation; SMEs; innovative capabilities; emerging economies; Turkey

Chapter.  10849 words. 

Subjects: Economic Development and Growth

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