The Effect of R&D Expenses on High Technology Product Exports: Panel Data Analysis for Transition Economies That Are Member of The EU and Turkey

The impacts of R&D spending upon the exports of the high tech products have attracted attention of the economic circles in the recent decade. This study analyzes the effects of the R&D activities upon the exportation of the high tech products with reference to ten EU countries in transition (Bulgaria, Checzia, Croatia, Hungary, Poland, Romania, Slovakia, Estonia, Latvia and Lithuania) as well as Turkey for the period of 2007-2017 by relying on panel data econometrics. The study finds that any increase in the variables of GDP, investment liberty, R&D spending level of education and human capital employed in the research sector positively affects the exportation of high technology products. The findings show that improvement in the structural reforms have the potential of contributing to the high tech manufacturing in these countries and to the economic development of these nations.