Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/130116 
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper No. 2015/11
Publisher: 
Turkish Economic Association, Ankara
Abstract: 
This chapter analyzes the effect of intangible investment on firm efficiency with an emphasis on its software component. Stochastic production frontier approach is used to simultaneously estimate the production function and the determinants of technical efficiency in the software intensive manufacturing firms in Turkey for the period 2003-2007. Firms are classified based on the technology group. High technology and low technology firms are estimated separately in order to reveal differentials in their firm efficiency. The results show that the effect of software investment on firm efficiency is larger in high technology firms which operate in areas such as chemicals, electricity, and machinery as compared to that of the low technology firms which operate in areas such as textiles, food, paper, and unclassified manufacturing. Further, among the high technology firms, the effect of the software investment is smaller than the effect of research and development personnel expenditure. This result shows that the presence of R&D personnel is more important than the software investment for software intensive manufacturing firms in Turkey.
Subjects: 
Intangible assets
Software investment
Efficiency
Software intensive firms
Stochastic frontier analysis
Production Function
Firms
Turkey
JEL: 
L21
L22
L23
L25
Document Type: 
Working Paper

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