Template-type: ReDIF-Paper 1.0 Author-Name: Akçomak, Ibrahim Semih Author-Email: akcomak@metu.edu.tr. Author-Workplace-Name: TEKPOL, Middle East Technical University Author-Name: Bürken, Serkan Author-Email: burken@metu.edu.tr. Author-Workplace-Name: TEKPOL, Middle East Technical University Title: The middle-technology trap: The case of the automotive industry in Turkey Abstract: This paper argues that Turkey has fallen into a middle-technology trap on the borders of a weak innovation system (IS) and strong global value chains (GVCs). Detailed information from a primary R&D and innovation funding agency is used to show that the technological characteristics of the funded automotive R&D and innovation projects remained reasonably stable between 1995 and 2011. This result is cross-validated with two qualitative designs on beneficiary firms and automotive industry experts. The qualitative designs aided in identifying three mechanisms that explain how the Turkish automotive industry has fallen into a middle-technology trap. Analysis at the project, firm, and expert levels indicate that despite extensive upgrading and learning in manufacturing, the automotive industry has failed to build innovation capabilities. Turkey's delegated role in the automotive GVC, the joint venture (JV) structure and the lack of complementarities collectively work in creating a trap that impedes further technological development. Classification-JEL: O12, O25, O33, L62 Keywords: Middle-technology trap, automotive industry, technology, innovation, Turkey Series: UNU-MERIT Working Papers Creation-Date: 20190307 Number: 2019-006 File-URL: https://unu-merit.nl/publications/wppdf/2019/wp2019-006.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2019006