Transcript SCIENCE & TECHNOLOGY PARKS IN TURKEY Technology Infrastructure

Technology Infrastructure
SCIENCE & TECHNOLOGY PARKS
IN TURKEY
MUSTAFA ATİLLA
CEO, Ankara Cyberpark, Turkey
Knowledge Economy Forum IV
March 22-24, 2004
Istanbul, Turkey
TURKEY R&D CAPACITY
GERD / GDP: around %0.64
R&D expenditures by sector:
%60 in universities
%30 in private sector
%10 in public sector
Number of registered patents:
around 1,200 (less than 100 of
which are native patents)
Number of scientific
publications: more than 10,000
Number of people in R&D by Sector
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
Private Sector
Public Sector
(SSI, 2004)
Universities
TURKEY R&D CAPACITY
Source: OECD MSTI database, Nov. 2003
SOME R&D RELATED PROBLEMS OF TURKEY
Legislation (particularly inefficient and insufficient incentive
mechanisms) was the biggest barrier in front of R&D activities for many
years.
An important portion of R&D investment is made by governmental
institutions or universities
Insufficient financial resources and bureacuracy in access to existing
financial resources
Absence of incentive mechanisms for R&D commercialization
Weak innovation culture and poor R&D infrastructure
IT related products and software form an important import category.
There is a big negative imbalance in IT exports/imports.
The imbalance between the number of scientific publications and
patents is an important indicator showing Turkey’s inability to convert
the scientific research studies into applicable knowledge and
technological products.
HOW STPs EMERGED IN TURKEY?
Technopark concept taken in the agenda of Turkey only in the
mid 90’s (40 years after establishment of Silicon Valley!)
Like many developing countries, such as India, China, Malaysia,
Singapore, Taiwan, Thailand; Turkey also started to use STPs as
its primary strategy for;
 promoting research and development, and technology
transfer,
 reducing brain drain by providing employment for highskilled IT and R&D workers
 attracting foreign direct investment and generating foreign
exchange from selling software and R&D products for export
 generating sustainable economic growth and local know how
TECHNOLOGY DEVELOPMENT ZONES LAW
(LAW NO:4691), TURKEY
To promote the establishment of science and technology parks
under the guidance and lead of universities some legislations
were made by Ministry of Industry and Trade:
 Technology Development Zones (TDZ) Law (Law No:4691),
which came into force on 06.07.2001, and
 Application Regulation of this Law, which came into force on
19.06.2002.
With this law, companies are encouraged to invest more in R&D
and software development, through tax incentives.
Any kind of software development activity is considered as an
R&D activity according to the law.
In establishing a STP, involvement of an higher education or a
research institution as a founder is a mandatory requirement in
the law
TECHNOLOGY DEVELOPMENT ZONES LAW
(LAW NO:4691), TURKEY
The aim of the law is:
to increase synergy between universities, research institutes and industry,
to increase international competitiveness and export potential of industry
by adapting/developing high/advanced technologies,
to facilitate more innovations,
to increase the quality of technological products,
to increase productivity,
to commercialize technological knowledge,
to support technology based entrepreneurship,
to enable SMEs to adapt to new and advanced technologies,
to create investment opportunities in technology intensive areas,
to create employment opportunities for researchers and qualified persons,
to help technology transfer,
to provide technological infrastructure attracting foreign capital and
international firms providing high/advanced technologies.
TECHNOLOGY DEVELOPMENT ZONES LAW
(LAW NO:4691), TURKEY
Tax Exemptions and Incentives provided with the law (till the end of
2013) :
Income and corporate tax exemptions for the operating company
Income and corporate tax exemptions for the incomes generated from
software development and R&D activities of the companies operating in these
zones
Income tax exemptions for the salaries of the researchers, software
development staff and R&D personnel working in these zones
VAT exemptions for the sofware development activities
Sponsored aid and donations for the individuals and institutions having R&D
activities in the zone
Right of recruitment of individuals from government research organizations
or universities in the zone with the approval of their organizations. (The
income obtained in the zone by academicians or research personnel are
exempted from the university revolving fund deductions)
Legal permission for academicians to establish firms or become a partner of
existing firms in the zones to commercialize their academic works (with the
approval of their university)
Similar R&D Tax Incentives in USA and
Europe
TDZs in TURKEY
(As of March 2005)
Ankara Cyberpark (Bilkent University, Ankara)
METU Technopolis (METU, Ankara)
Hacettepe Technopolis (Hacettepe University, Ankara)
GOSB Technopark (Sabancı University and Kocaeli University,Kocaeli)
TÜBİTAK MAM (TÜBİTAK MAM, Kocaeli)
İstanbul Teknik University ARI Technopolis (İTÜ, İstanbul)
İzmir TDZ (İzmir YTE, 9 Eylül Univ., Ege Univ., İzmir)
Yıldız Teknik Üniversitesi TDZ (YTÜ, İstanbul)
Kocaeli Üniversitesi TDZ (Kocaeli University, Kocaeli)
Eskişehir TDZ (Anadolu Univ., Yunus Emre Univ., Eskişehir)
İstanbul University TDZ (İstanbul University, İstanbul)
Selçuk University TDZ (Selçuk University, Konya)
Batı Akdeniz Univ. TDZ (Batı Akdeniz University, Antalya)
Karadeniz Teknik Univ. TDZ (Karadeniz Tek. Univ., Trabzon)
Erciyes University TDZ (Erciyes University, Kayseri)
Çukurova University TDZ (Çukurova University, Adana)
TDZS in TURKEY
(As of March 2005)
Active Technoparks:
1.Cyberpark
2.METU
3.Hacettepe
4.GOSB
5.TÜBİTAK MAM
6.İTU ARI
Technoparks at
Initial Dev. Stage:
7. İzmir
7
8. Yıldız
9. Kocaeli
10. Eskişehir
11. İstanbul
12. Selçuk
13. Batı Akdeniz
14. Karadeniz Teknik
15. Erciyes
16. Çukurova
8
11 6
9
5 4
14
1
10
2 3
12
15
16
13
TDZS in TURKEY
Number of Companies:
more than 300
Number of R&D
personnel: around 2500
Medical Sciences
2%
Advance Materials
2%
Telecommunication
3%
Electronic
13%
Number of support
personnel: around 1100
Defence Tech.
11%
Others
8%
IT
61%
HOW STPs ARE INTEGRATED WITH THE OTHER
COMPONENTS OF NATIONAL INNOVATION SYSTEM
OF TURKEY?
R&D support infrastructure in Turkey have been comprised of
some institutions providing R&D financing, while these supports
are usually very limited and diffucult to obtain.
After the Technology Development Zones Law providing
important incentives for companies located in STPs, STPs have
been important components added to our national innovation
system.
A new R&D loan : In 2005, more than 300 million USD R&D loan
is allocated from the governmental budget, which will be
distributed through TÜBİTAK.
INSTITUTIONS PROVIDING R&D
FINANCING
1. TTGV - Technology Development Foundation of Turkey
Technology Development Financing - Support R&D activities
on marketable product and process development /
improvement
Venture Capital
Technoparks -Innovation Centers – Start-ups
Training, Tech. Assist. and other activities
Sources of Fund:
Treasury-World Bank funded R&D Programs
UFT Undersecreteriat of Foreign Trade funded R&D Program
Own resources
INSTITUTIONS PROVIDING R&D
FINANCING
2. TÜBİTAK-TİDEB / Scientific and Technical Research Council Of
Turkey-Technology Monitoring and Evaluation Board
As of 2004, total support of around $ 160 M for 2000 R&D projects
Support on grant basis
From concept development to trial production stages, exclusively
the costs of the research activities
Sources of Fund:
UFT Undersecreteriat of Foreign Trade Fund (DEFİF*-Support and
Price Stabilization Fund)
New R&D Loan: > 300 million USD for 2005 (support mechanisms will
be determined soon)
INSTITUTIONS PROVIDING R&D
FINANCING
3. KOSGEB - Ministry of Industry and Trade / Small and
Medium Size Industry Development Organization
Technology R&D Support


Supports on Repayable Basis
Supports on Grant Basis
Source of Fund: State Budget
4. International Resources, like 6th Framework Program
HOW BEING LOCATED IN A STP
PROVIDES AN ADVANTAGE?
Some research findings (UKSPA 2003) show that STPs have a positive
affect on economic development of a region / country. Accordingly, STP
based companies :
Have higher growth rates than similar companies at other locations in
terms of employment, business potential and physical area.
Have better overall commercial performance than similar firms located
elsewhere.
Have higher proportion of qualified scientists and engineers than off-park
companies.
Have easier access to finance, like venture capital and governmental
grants on R&D.
Believe that STPs are prestigeous places to work on.
Believe that the joint facilities create a better working and living
environment.
SOME PERFORMANCE INDICATORS
OF STPs in TURKEY
Research among different Turkish STPs showed that:
Through tax incentives, companies are encouraged to invest more
in R&D and software development, so R&D expenditure of the onpark companies have generally increased.
IT related activities and the establishment of new companies
working on software development increased
Since the cost of R&D personnel have decreased, employment of
qualified staff has increased among on-park companies, as well
as increased employment through newly established companies
Positive effects to universities: increased image, additional
income, increased joint R&D projects with private sector
Increased usage of university resources (academics, students,
laboratories, social facilities etc.) by on-park companies
FACTORS AFFECTING THE
SUCCESS OF STPs
Legislation, particularly related to incentives and tax exemptions
Existence of qualified human resources and scientific know-how in
the region
Existence of supporting research and higher education institutions
Sufficient financial resources to make the necessary investment
Entrepreneurship and business know-how in the region to convert
the scientific studies into commercial products and services
Geographical factors such as the location of the park, as well as the
local community’s social, cultural and economic status
Supporting governmental and non-governmental organizations
Demand for high technology and technological products in the
region
Overall macro-economic situation of the country/region
FINANCIAL SUPPORT MECHANISMS FOR
TECHNOPARKS AND INCUBATORS IN
TURKEY
Governmental aids through Ministry of Industry and Trade,
for land acquisition, infrastructure and management
building construction costs
World Bank credit to STPs by Industrial Technology Project
through TTGV (only to Cyberpark, ARI technopark)
Other international credits and funds like World Bank
InfoDev Incubator Initiative (Cyberpark Technology
Incubator)
KOSGEBs support for TEKMERs
INCUBATORS IN TURKEY
Parallel to the poor entrepreneurial culture, incubation culture is
too poor as well.
Currently available incubators (12) in Turkey, called TEKMERs
(Technology Development Centers), are managed by KOSGEB (SME
Development Organization), a governmental agency.
There is no private or PPP incubator except Cyberpark Technology
Incubator which has been granted with 250,000 USD WB grant
through InfoDev Incubator Initiative Program.
Only two TEKMERs are located in STPs and have tax incentive
advantages.
Grants available for incubatees for many purposes, however access
is relatively bureaucratic and limited.
Services provided by KOSGEB in TEKMERs are rapidly improving, but
still an effective private or PPP model incubation is required.
MAIN CHALLENGES & RECOMMENDATIONS
Insufficient know-how and best practices in STP management
Insufficient financial resources for land and institutional
development (limited governmental support, need for
international loans with favorable conditions, like from WB, EIB,
etc.)
Need for support mechanism for private incubators (Knowledge
Economy Project may reserve some funds for supporting private
incubators.)
Need for effective R&D finance mechanisms like seed or venture
capital funds
Establishment of most of the STPs as land development projects
Poor Institutionalization, insufficient technical infrastructure and
support services in existing STPs (absence of technology and
business support mechanisms, incubators, consultancy on IPR,
access to financial resources, etc.)
Need for being a Business Park before being a STP
MAIN CHALLENGES & RECOMMENDATIONS
Wrong location selection for some STPs (absence of required R&D
and industrial capacity, insufficient scientific, technological,
cultural and social infrastructure in the selected zone)
Need of more emphasis to modify the existing education system education of academics to have more entrepreneurial skills
Requirement of an NGO to provide a platform for cooperation and
best practice sharing (Turkish Science and Technology Parks
Association)
Too much focus on ICT, need for attracting other technologies to
have crosssectoral R&D.
Need for other attraction elements, other than tax advantages,
providing the permanent success
Need for implementing auto control mechanisms – incentives are
open to abuse!
MAIN CHALLENGES & RECOMMENDATIONS
Requirement for special purpose STPs by considering regional
capacities and priorities (Agroparks, mediparks, etc.)
Lacking synergies among different STPs and host universities
(Most of the universities impose barriers for their academics to
work in other universities’ science parks)
Need for funding of commercialization of R&D studies
Need for promotion of collaborative studies & international
cooperations especially to direct funds to more relevant activities
(like FP6)
Requirement for additional tax incentives to some crucial support
organizations like venture capital funds
Importance of international recognition and attraction of FDI.
THANK YOU !
Cyberpark / Contact Information
Tel
: (312) 265 00 40
Fax
: (312) 265 00 48
Address : Cyberpark Cyberplaza B Blok Kat 1
Bilkent 06800 ANKARA
Web
: www.cyberpark.com.tr
E-mail : [email protected]