THE MAIN OBJECTIVE OF TURKEY’S INDUSTRIAL POLICY TOWARDS EU MEMBERSHIP:IS IT REALISTIC OR NOT?

Abstract

Generally, “industrial policy” can be defined as government interventions to promote industrial development beyond what would be realized by free market conditions. In the globalisation processes, physical-resource-based industries are declining, while high-tech industries and services are fastly increasing. In the new techno-economic paradigm based on information & telecommunications technologies, innovative activities such as absorption-reproduction of new technologies and industrial research and development (R&D) have become key to international industrial competitiveness. So that, Turkey’s industrial policy that integreted with technology policy should realize the technological competence and industrial deepening (structural change) as a shift from labour and resource-based products to high-tech-based products. In 2003, T.R Prime Ministry, State Planning Organization published a document is titeled Industrial Policy For Turkey (Towards EU Membership). The aim of this paper is to criticize “Industrial Policy For Turkey”. The objectives and principles of Industrial Policy For Turkey will be reviewed in the context that either theoretical framework or Turkey’s industrial structure, institutional framework, incentive instruments and legal-administrative measures.Industrial and Technology Policy; EU Industrial Policy; Turkish Industrial Policy