According to the "Turkey R&D Research", the 10 Largest Companies

Economy and Business World Portal Turkishtime, through its eighth "Turkey R&D Research" this year, has revealed where Turkey stands on its value-added journey, with 500 companies in the research increasing their R&D spending to TRY 16,995 million. While serious steps have been taken in Turkey in recent years regarding R&D activities, the "Turkey R&D 250 Research" launched by Economy and Business World Portal Turkishtime in 2013 has become one of the most important initiatives serving this purpose. As the research, which has included thousands of companies to date, enters its eighth year, it has added another stone to the vision of "creating an R&D memory in Turkey." Although there was a decline in the chart regarding Turkey's economy in 2020, a year overshadowed by the pandemic, the 500 companies covered by the research demonstrated stronger performance in R&D compared to 2019. As was the case last year, this year the research has been prepared based on notifications made by companies with R&D centers approved by the Turkish Ministry of Industry and Technology within the scope of the R&D 250 research, information provided by the top 500 companies in Turkey's export rankings, and disclosures made by Borsa Istanbul companies to the Public Disclosure Platform (KAP). The tradition remained unbroken, and the weight of the defense industry was felt once again most deeply.

ASELSAN in the Leadership Position

Defense industry companies, which serve as the locomotive of total R&D growth in the research, accounted for 60.7 percent of companies entering the top 50. Although this ratio was 62.6 percent in 2019, the defense industry maintained its lead. Looking at the top 50 again, the defense industry was followed by the automotive industry at 15.9 percent and white goods and consumer electronics at 6.4 percent. In light of 2020 data from companies, the research, which drew attention to the importance of R&D investments, saw ASELSAN, one of the important players in the defense industry, take the leadership position this year. Taking the flag from TUSAŞ Turkish Aeronautical Association Inc., which was first the previous year, the company made a significant contribution to Turkey's R&D ecosystem with R&D spending of TRY 3,356 million in 2020. TUSAŞ Turkish Aeronautical Association Inc., the leader in 2019, took the second place on the list in 2020, with the company allocating TRY 2,649 million to R&D during the period in question.

Tofaş, which ranked eighth with TRY 355,167 thousand in the previous research in which 2019 data was reported, climbed five places to third position. By allocating TRY 575,082 thousand to R&D in 2020, the company thus experienced a significant jump with 61.9 percent growth compared to the previous year. Roketsan, which ranked third in the previous research, ranked fourth on this year's list.

The company, which realized its R&D spending amount of TRY 525,252 thousand in 2019 as TRY 488,816 thousand in 2020, saw a decline of 6.9 percent in R&D investments compared to the previous year. TUSAŞ Motor Industry Inc. (TEI), which signed R&D spending of TRY 458,108 thousand in 2020, had allocated TRY 313,618 thousand to R&D in 2019. TEI TUSAŞ rose from eighth place to fifth place in the R&D ranking with a 46.1 percent increase shown between the two years. In the top 10 of the list, TEI TUSAŞ was followed respectively by Turkcell Technology (TRY 443,927 thousand), Ford (TRY 441,975 thousand), Havelsan (TRY 433,994 thousand), Vestel (TRY 335,131 thousand), and Arçelik (TRY 318,211 thousand).

Defense Industry: The Locomotive of Total R&D Growth

The defense industry, which has significantly increased its share in R&D over the years, remained the locomotive of total R&D growth this year as well. Looking at the sector-based ratios of total R&D investments of companies in the first 50 R&D investments to the total of the first 50 companies, it can be seen that the defense industry has a very high ratio of 60.7 percent. The figures show that between 2017 and 2020, the investments of the first 50 companies were realized by only five important companies such as ASELSAN, TUSAŞ, Roketsan, TUSAŞ TEI, and Havelsan at very high percentages of 50.8 percent, 49.7 percent, 58.2 percent, and 55.9 percent respectively. At this point, the defense industry demonstrated that R&D investments indirectly make serious contributions to the development of technology and innovation culture. In the sector ranking in the top 50 where the defense industry ranked first, the automotive industry at 15.9 percent and white goods and consumer electronics companies at 6.4 percent were represented.

The Automotive Big Three: Tofaş, Ford, Otosan

Following the defense industry, which is the locomotive of R&D, the second sector making its weight felt in this field is the automotive and automotive parts industry. Three major powers in automotive (Tofaş, Ford, Otosan) played a driving role in the automotive sector's R&D figures through the projects they implemented. With R&D investment of TRY 575,082 thousand realized in 2020, Tofaş ranked third in the overall ranking and stood at the top of its own sector. The company, which increased its 2019 R&D budget of TRY 355,167 thousand by 61.9 percent, planned R&D spending of TRY 883 million for 2021.

Female Employment: Deva One Step Ahead

Experts point out that when looking at 2020 figures, much higher rates of female engineers can be employed in R&D centers. Deva Holding had the highest proportion of female employees in the R&D department with a ratio of 60.3 percent, while Logo Software (43.4 percent) and Turkcell Technology (36.0 percent) also showed good levels of female employees in employment. At this point, experts state that other companies have many social initiative opportunities in the field in question.

Pharmaceutical Sector Peaked in R&D During the Pandemic

The pharmaceutical sector, which took 2.9 percent share of R&D investments in the sector ranking in the top 50, was topped by Deva Holding with TRY 117,544 thousand, followed respectively by Turgut Pharmaceutical, Nobel Pharmaceutical, Abdi Ibrahim, Sanofi, and World Medicine. R&D investments in the pharmaceutical sector by the top 50 companies rose to TRY 377.9 million in 2020, with Deva Pharmaceutical, which had the largest investment, contributing through its work under DEVAR-GE, along with R&D investments by Turgut Pharmaceutical, Nobel Pharmaceutical, Abdi Ibrahim, and Sanofi. Experts noting that among sectors with the highest R&D investment ratios to turnover globally, pharmaceuticals lead (more than 15 percent), emphasize that this ratio rises above 30 percent in biotechnology and biopharmaceuticals. Experts state that COVID-19 vaccine and treatment R&D work caused serious different orientations in the sector's 2020 investments, while many countries are now focusing on biotechnology, which also includes future technologies such as DNA/RNA synthesis, genetics, and cell and tissue engineering. Experts note that while Turkey may have been late for high-tech devices such as MRI and CT scanners, the medical device sector, whose importance was recognized during the pandemic, is also a high-potential R&D area to reduce foreign dependency and protect human health.