Technological and Innovative Structure and Capabilities of Türkiye’s Automotive Industrial Sector: An Exploratory Study

Abstract

The automotive sector ranks as the 4th largest contributor to the global economy, accounting for approximately 5% of the world’s Gross Domestic Product (GDP). Additionally, employment in the automotive industry generates a fivefold multiplier effect on job creation in other sectors. This study focuses on the sustainable science, technology, and innovation indicators relevant to Türkiye’s automotive industry, which holds the 7th position in terms of its contribution to the country’s GDP. Drawing on previous research and 33 years of data that reflect the state of Türkiye's automotive sector, as well as its science and technology landscape, this research identifies 10 key indicators that influence the sector’s technological development and innovation capacity. To analyze the similarities and differences among these indicators, a hierarchical cluster analysis (HCA) method was initially employed. Subsequently, a non-hierarchical cluster analysis (NHCA) was conducted to validate the HCA findings. Additionally, multidimensional scaling (MDS) was utilized to assess the similarities and distances among the economic, science, and technology indicators. The formation of 2 clusters was later verified through correlation analysis and factor analysis. The research findings indicate that the R&D and science-related parameters in Türkiye operate in a cohesive manner as anticipated. The percentage changes in the production of automobiles, commercial vehicles, and total domestic output show similar trends, forming a distinct group. In contrast, the indicators for high-technology exports and automotive exports are influenced by different dynamics, displaying separate and unique patterns. Based on these results, the study concludes with recommendations for sector-specific improvement initiatives.