The share of low-technology intensive production in medium-sized industrial enterprises has increased by 4 percentage points to 50 percent, despite a fall in the last 10 years. The share of high technology on the other hand is in decline.
The increase in low technology intensity in the industry, which has been skidding in high technology for years, raises concerns. In the ISO Second Top 500, which mostly includes SMEs, half of the gross value added came from low-tech industries. The share of high-tech industries remained at 2.4 percent.
According to the ISO Second Top 500 survey, the share of low technology-intensive industries in the value-added created according to technology intensity reached 50 percent, the highest level since 2013, when the survey was first conducted.
In 2015, the share of low-technology-intensive industries declined to 42.3 percent, but rose to 49.2 percent in 2022. The share of high-technology-intensive industries, which rose to 6.6 percent in the same year, eroded over the years to 2.4 percent last year.
The share of “low” and “medium-low” technology increased to 74.5 percent
A compilation made by ECONOMY from the Istanbul Chamber of Industry’s Turkey’s Second Top 500 Industrial Enterprises-2022 survey reveals that the Turkish industry is still at the very beginning of its journey in high-technology intensive sectors.
According to the calculation made from the data of 491 organizations in the survey, the total gross value added was TRY 89 billion 206.8 million, while the highest share in the value-added created according to technology intensity was 49.2 percent for low-technology-intensive industries.
The 49.2 percent share of low-technology-intensive industries is noteworthy as the highest rate measured in the 10 years since the data started to be measured. Again last year, the share of medium-low technology-intensive industries was 25.3 percent, while the share of medium-high technology industries was 23.1 percent and the share of high technology was 2.4 percent. When considered as low and medium-low, the share of technologies was calculated as 74.5 percent in total.
The most favorable year in terms of high technology intensity is 2015. In that year, the share of low-technology-intensive industries in value added was 42.3 percent, while the share of medium low-technology-intensive industries was 26.9 percent, the share of medium high-technology-intensive industries was 24.1 percent and high-technology-intensive industries was 6.6 percent.
An analysis of the technology intensity of the value added created reveals a shift from low to medium-low technology, especially in recent years. However, there is a skid in the transition from medium-low to medium-high technology and from medium-high technology to high technology.
