A System Dynamics Approach for Technology Improvement Policy Analysis: The Case for Turkey

Abstract

Technology has been one of the most important factors of the economic and social growth and globally scaled competitiveness, although not respected as a separate factor by traditional economists until recently. It is now widely accepted that technology improvement plays a very major role on national growth. Technology has a number of interactive and conflicting variables and parameters, which are not allowing an analysis with quantitative tools only. Complex dynamic analysis seems to be a proper tool to handle this sophistication. A system dynamics model constructed for policy analysis in Turkey with respect to technology improvement and comparison of various technology improvement policies. Under the scope of this paper; the elements effecting technology improvement are identified and analyzed by qualitative/quantitative methods, the key relations among these elements are identified, the influence model and the system model are drawn and some scenario analysis are performed for the comparison of possible technology improvement policies.System Dynamics, Economic Growth, Technological Capability, Technology Improvement, Technology Policies