TSKB Publishes Report Titled “Understanding Technological Transformation”

The report prepared by TSKB Economic Research highlights the need to reassess technology and industrial policies in light of slowing global economic growth and Türkiye’s need to advance technologically. It identifies the key trends shaping technological transformation, examines the effects of artificial intelligence on productivity and employment, and offers recommendations for managing this transformation.

The report “Understanding Technological Transformation,” prepared by TSKB Economic Research, draws attention to the slowdown in the world economy’s potential growth rate and the need for industrial transformation. Emphasizing the importance of developing breakthrough technologies alongside expanding high-tech production, the study also underscores the need to prioritize technology policies that enable new technologies to spread throughout the economy. The report notes that although high-tech production in Türkiye’s manufacturing sector has increased, its share of total production remains limited, and the technology gap persists. It also points to growing global concentration in strategic technologies as artificial intelligence and digital technologies spread rapidly and stresses the importance of supportive policies addressing the potential employment impacts of AI-driven transformation, particularly on women and young people.

The study also notes that strategic areas such as artificial intelligence, semiconductors, critical minerals and clean technologies are increasingly shaping foreign direct investment. 

It argues that, to ensure the broad diffusion of technological transformation across the economy and achieve productivity gains, policies aimed at developing new technologies should be considered alongside approaches that support technology diffusion.

Key highlights of the report include:

• Between 2010 and 2025, real output in the manufacturing sector grew by an annual average of 5.5%, while high-tech output increased by 11.5%. Despite this strong growth, high-tech products accounted for only 3.6% of total manufacturing sales in 2025 because of their low starting point, and the trade deficit in this category persisted.
• Digitalization is gaining momentum as artificial intelligence spreads much faster than computers and the internet did; meanwhile, substantial global concentration is evident in model development, chip production and data centre infrastructure.
• An estimated one-fifth of global employment will be affected by generative artificial intelligence. Women account for a high proportion of workers in fields directly affected by generative AI, while employment among young people aged 22–25 is declining. Targeted support measures for these groups are therefore important.
• The share of strategic sectors—including artificial intelligence, semiconductors, critical minerals and clean technologies—in total greenfield investment rose from 16% in 2020 to 44% in 2025.

The full report is available here.