TAX INCENTIVES IN RESEARCH AND DEVELOPMENT ACTIVITIES: TURKISH PRACTICE

In the current economies, technological innovations are one of the most important considerations because of development of countries. The countries should invest research and development (R D) activities in order to have the technological innovations. Owing to the failure of the market, the countries use some incentive instruments to encourage investments for R D activities. The one of these instruments is the tax incentives. In 2000’s, Turkey has provided important tax incentives for R D activities. These incentives usually include tax deduction and exception for R D activities. In this study, these incentives policies and their efficiency are investigated as comprehensive approach.