R&D Spillovers, Exports and Employment: The Role of Buyer- Supplier Relationships

This project focuses on three related research themes. It examines the role of knowledge spillovers stemming from R&D conducted by a firm’s buyer and suppliers on its productivity. It examines whether utilizing high-quality inputs, sourced domestically from local suppliers or imported from abroad, enhances firm-level export diversity. It explores the consequences of using high-tech imported machinery for the employment structure of the firm, as well as its indirect propagating impact on other firms through the firm’s transactions with its buyers. To address these research questions, we utilize data from the Entrepreneurship Information System (EIS) provided by the Turkish Ministry of Industry and Technology. The dataset spans the years 2006 to 2022, covers the population of Turkish firms, and includes both VAT transaction data and employer-employee matched data. The project aims to generate evidence-based insights into the mechanisms of knowledge diffusion in buyer-supplier relationships, and to provide provide policy recommendations on how to leverage firm linkages to enhance productivity, innovation, and inclusive growth.