Working Paper #2019-006
The middle-technology trap: The case of the automotive industry in Turkey
This paper argues that Turkey has fallen into a middle-technology trap
on the borders of a weak innovation system (IS) and strong global value
chains (GVCs). Detailed information from a primary R&D and innovation
funding agency is used to show that the technological characteristics of
the funded automotive R&D and innovation projects remained reasonably
stable between 1995 and 2011. This result is cross-validated with two
qualitative designs on beneficiary firms and automotive industry
experts. The qualitative designs aided in identifying three mechanisms
that explain how the Turkish automotive industry has fallen into a
middle-technology trap. Analysis at the project, firm, and expert levels
indicate that despite extensive upgrading and learning in manufacturing,
the automotive industry has failed to build innovation capabilities.
Turkey's delegated role in the automotive GVC, the joint venture (JV)
structure and the lack of complementarities collectively work in
creating a trap that impedes further technological development.
- Keywords
-
- Middle-technology trap
- automotive industry
- technology
- innovation
- Turkey
- JEL codes
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- O12
- O25
- O33
- L62
Cite this as
APA 7th ed.Akçomak, S., & Bürken, S. (2019). The middle-technology trap: The case of the automotive industry in Turkey (UNU-MERIT Working Paper No. 2019-006). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=8084