Analysis of the Relationship between Employee Training and R&D Investments and Productivity by Multiple Regression Method

Çalışanlara Yönelik Eğitim ve Ar-Ge Yatırımlarının Verimlilik ile İlişkisinin Çoklu Regresyon Yöntemiyle Analizi

Abstract

Education and R&D investments that affect the development and productivity of human capital are mentioned as valuable investment items in the field of economic and social growth. Education is a process that directs individuals towards goals and provides individuals with the ability to change behavior based on knowledge. While the importance of education, which is believed to play a role in the progress of societies in terms of social and economic dimensions, has recently increased, investments in human capital, which is both the source and the recipient of educational activities, continue to stand out. Likewise, R&D investments are direct expenditures made by organizations in their efforts to develop, design and improve their human resources, products, services, technologies or processes, and are important investment items in making progress in both economic and social dimensions of societies.  The fact that it is insufficient to explain the economic welfare levels of countries and societies with physical capital alone has led organizations to invest in human resources, which are their employees. On-the-job training for the training of human resources, which is considered as a factor of production and also called human capital, has contributed to the growth of national income by improving the skills and productivity capacity of the workforce. Likewise, R&D investments, which have an important share in increasing the income levels of countries and societies and increasing the competitiveness of organizations, are an important investment item that enables them to increase the number of their own technological inventions and innovations. The purpose of this study is to determine the relationship between employee training and R&D investments and productivity. However, considering that foreign trade also has an impact on productivity, the foreign trade deficit variable was also added to the horizontal cross-section regression model. The horizontal cross-section regression model was used as the methodology in the study. All data belong to 2021, the last data release year. According to the findings of the study, a 1% increase in education expenditures increases productivity by 10%. In addition, each 1 million dollar increase in the foreign trade deficit increases productivity by 0.18%.