Abstract
In the sequel of technological breakthroughs as advanced in recent years, the notion of mileage have started to eradicate on Earth. Created knowledge and innovations disseminate along distinct people or institutions promptly. Fast paced technological advancements of communication and attaining have brought countries closer so as to transform the world to a, so to say, global village. In this new world's order, where economical and social circumscriptions fade out gradually, the economy shall be undertaken as an entirety as circumscriptions are being glossed over. Knowledge and innovations of a company which the same are created by disseminate promptly in the new world's order which is being unfold, and introduce positive influences to the other companies and industries. The influences, here concerned are, observed on the closely positioned companies and industries along with the ones so remotely positioned to each other. In this study, the presence of a limited number of studies on externalities taking place in the Turkish manufacturing industry, the importance of externalities, will be a related topic aimed to generate resources for research. In line with this idea and with consider to NACE Rev.2 classification, knowledge externalities that arise in Turkish manufacturing industry are analyzed for the entirety of the industry and for each sub-sector distinctively within the 2003-2013 years of period. With regard to the test results of GMM estimator, where the tests were conducted separately for each of the sub-sectors of manufacturing industry; MAR, Jacobs, Porter, and III variable might have both positive and negative influences. MAR knowledge externalities (resulting from specialization) were probed to be meaningful in 9 sectors; whereas Jacobs's (resulting from diversity) in 7 sectors, and Porter's (resulting from competition) in 6 sub-sectors of the manufacturing industry. Also, III variable (resulting from innovation) was proved to be meaningful for the 9 sub-sectors of the manufacturing industry.
Highlights
IntroductionKnowledge externalities which occur with the knowledge created via innovative activities performed by manufacturing industry, and the benefits of which these activities facilitate for the other industries or financial units that do not bear the costs of these activities as they are being performed, are of much importance conceptually and should be valued during policy administration processes of the decision making units
In the sequel of technological breakthroughs as advanced in recent years the concept of mileage has started to eradicate in Turkey as well as on Earth
Turkish manufacturing industry in the period 2003-2013 has been tested using the knowledge externalities and sub-sectors of occurring and the effects of changes in the value added of the factors that may affect these externalities, time series analysis and panel data analysis
Summary
Knowledge externalities which occur with the knowledge created via innovative activities performed by manufacturing industry, and the benefits of which these activities facilitate for the other industries or financial units that do not bear the costs of these activities as they are being performed, are of much importance conceptually and should be valued during policy administration processes of the decision making units. To this regard, knowledge externalities which usually arise as positive externalities are the substantial moving forces of modern economic growth and development. Manufacturing industry is quite important in consideration of positive externalities which it facilitates for both national and regional development along with the industrialization
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