The Effect of Government Subsidies on Innovation Activities of Medical SMEs in Turkey

Abstract

Purpose –  The study aims to examine the effect of government support in innovation (R&D) and research and development activities of small and medium-sized enterprises (SMEs) operating in the medical sector and producing medical products and to what extent they benefit from government support.

Design/methodology/approach – In the study, we reached seven SMEs operating in the medical sector in Ankara and Istanbul. The data were analyzed by applying multiple case analyses, which is one of the qualitative research methods. In order to obtain detailed information about the main problem of the study, the interview method was used by interviewing the business managers/owners to collect the data in the study.

Findings –  Based on the data obtained from the study, which proposed suggestions with a general evaluation regarding the government supports offered to SMEs. The significant results that emerged within the scope of the study are that financial resources are crucial for innovation and R&D activities, resources are limited in achieving innovation and competitive advantage, government supports are not sufficient, and they have not benefited sufficiently from the government supports due to bureaucratic procedures and slowness. It has concluded that SMEs will be more innovative with the regulations and developments regarding government supports.

Discussion –  As a result, the study has concluded that government support and incentives are crucial for businesses that tend to make R&D and innovation, access the resources they need, and be more innovative.