IS THE “NEW” TURKEY PARADIGM SHIFTING FROM WEST TO EAST? AN ANALYSIS OF THE RELATIONSHIP BETWEEN EXPORTATION REGIONS AND INNOVATION

Knowledge is the most important resource and learning is the most important process to advance the level of development and technology within particular regions or countries. There are, of course, several ways in which countries can increase their technological levels. One of the most important ways is by exporting. This is called ‘learning by exporting’ in the relevant literature. Studies conducted in this area show that exporting not only contributes to technological learning and productivity, but also exports are important for obtaining the kind of knowledge that cannot be simply gathered from the domestic market. It is through this type of economic interaction that gives rise substantial increases in the various levels of innovation. A unique study of these economic realities is Turkey. Although the amount of exports from Turkey is increasing, the regions where exports are sent are changing significantly. Specifically, the rate of total exports with Near and Middle Eastern countries has continued to increase over the last decade. In sum, the rate of decline in exports to developed countries (like OECD and EU countries) is being replaced by exports to developing and underdeveloped countries. In other words, while the ratio of total exports to OECD and EU country groups declines, the proportion of Turkey’s exports to developing and underdeveloped countries increases. This economic picture is connected with the political discourse referred to as the “New” Turkey. The concept of the “New” Turkey finds its roots in Islamic and conservative values and also carries connotations that promote refocusing on developing relationships with the leadership of developing countries rather than increasing contact with developed Western countries. In this context, the aim of this study is to demonstrate the possible effects in the economic field on Turkey’s development in the midst of this political paradigm shift under the “New” Turkey slogan. The study aims to show statistically how the changes in the export regions within Turkey will be reflected in Turkey’s technology production and in its technological transfer process. Regression analysis was performed for the statistical data. The findings of the research reveal that the characteristics of the export regions have continued to have an impact on economic innovation. In this context, the results of the regression analysis show that exports to developed countries would indeed make the region more innovative. This research empirically reveals that the regional shift experienced within the framework of the “New” Turkey discourse will have a negative impact on Turkey’s innovation capacity and economic development. The analysis shows that countries that export to developed countries will experience increased innovative productivity. The conclusion that can be drawn from this is that the characteristics of the regions where economic contact is being fascilitated will either accelerate or slow the economic development of those countries. The findings of the study suggest that the location you turn to will affect your future. © 2020 Nova Science Publishers, Inc.