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Dr. Mustafa Atilla Cyberpark, (Bilkent University) CEO and Board Member, Cyberpark, (Bilkent University) CEO and Board Member, Mobilsoft (Meteksan Group)

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Presentation on theme: "Dr. Mustafa Atilla Cyberpark, (Bilkent University) CEO and Board Member, Cyberpark, (Bilkent University) CEO and Board Member, Mobilsoft (Meteksan Group)"— Presentation transcript:

1 Dr. Mustafa Atilla Cyberpark, (Bilkent University) CEO and Board Member, Cyberpark, (Bilkent University) CEO and Board Member, Mobilsoft (Meteksan Group) Turkey

2 Meeting Industry Demand for R&D and Technology SCIENCE & TECHNOLOGY PARKS IN TURKEY MUSTAFA ATİLLA CEO, Ankara Cyberpark, Turkey Innovation and Competitiveness Practitioners Workshop April 19 –21, 2004 The Marmara Hotel Istanbul, Turkey

3 TURKEY R&D CAPACITY (SSI, 2004) Number of people in R&D by Sector (SSI, 2004)

4 TURKEY R&D CAPACITY Source: OECD MSTI database, Nov. 2003

5 TURKEY R&D CAPACITY Some Facts: The amount of investment in R&D in comparison with developed countries is dramatically low An important portion of R&D investment is made by governmental institutions or universities Weak innovation culture and poor R&D infrastructure Legislation (particularly inefficient and insufficient incentive mechanisms) was the biggest barrier in front of R&D activities for many years. 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 Turkeys inability to convert the scientific research studies into applicable knowledge and technological products.

6 SCIENCE PARK? A Science Park is an organization managed by specialized professionals, whose main aim is to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge- based institutions. To enable these goals to be met, a Science Park stimulates and manages the flow of knowledge and technology among universities, R&D institutions, companies and markets; it facilitates the creation and growth of innovation- based companies through incubation and spin-off processes; and provides other value-added services together with high quality space and facilities. (IASP web page, 2003).

7 MAIN OBJECTIVES OF SCIENCE PARKS Stimulate the formation of start-up new- technology-based firms (NTBFs) Encourage the growth of existing NTBFs Foster the technologies of the future Create synergy between firms Create new jobs for the region Improve the performance of the local economy Improve the image of the location, particularly for areas of industrial decline Shift local / regional industrial base from declining to new industries Counter the regional imbalance of R&D capability, investment, innovation Improve national competitiveness level Stimulate science-based technological innovation Encourage spin-off firms started by academics Encourage and facilitate links between higher education institutions (HEI) and industry Facilitate technology transfer from academic institutions to park firms Commercialize academic research Increase the relevance to industry of HEI research Create employment and consultancy opportunities for academic staff and students Engender an entrepreneurial culture Attract inward investment, mobile R&D Provide an adequate and safe return on capital Generate income for the academic institutions Create convenient environments for the high-tech firms to conduct their R&D studies

8 TECHNOLOGY DEVELOPMENT ZONES LAW (LAW NO:4691), TURKEY Technopark concept taken in the agenda of Turkey only in the mid 90s. To promote 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 , and Application Regulation of this Law, which came into force on 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

9 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 decrease the costs of production, 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

10 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) TECHNOLOGY DEVELOPMENT ZONES LAW (LAW NO:4691), TURKEY

11 After the Law, 12 new science and technology parks (STPs) were approved by the Ministry of Industry and Trade : 1.Ankara Cyberpark (Bilkent University, Ankara) 2.METU Technopolis (METU, Ankara) 3.Hacettepe University Technopark (Hacettepe University, Ankara) 4.GOSB Technopark (Sabancı University + Kocaeli University, Kocaeli) 5.TÜBİTAK MRC Technopark (TÜBİTAK Marmara Research Center, Kocaeli) 6.İstanbul Technical University ARI Technopark (İTU, İstanbul) 7.İzmir Technopark (İzmir Institute of High Technology+9 Eylül Univ.+ Ege Univ., İzmir) 8.Yıldız Technical University Technopark (Yıldız Tech. University, İstanbul) 9.Kocaeli University Technopark (Kocaeli University, Kocaeli) 10.Eskişehir Technopark (Anadolu Univ.+Yunus Emre Univ., Eskişehir) 11.İstanbul University Technopark (İstanbul University, İstanbul) 12.Selçuk University Technopark (Selçuk University, Konya) SCIENCE & TECHNOLOGY PARKS IN TURKEY

12 Active STPs: 1.Cyberpark 2.METU 3.Hacettepe 4.GOSB 5.MRC 6.İTU ARI Initial Dev. Phase: 7. İzmir 8. Yıldız 9. Kocaeli 10.Eskişehir 11.İstanbul 12.Selçuk TDZ applications of Batı Akdeniz University (Antalya), Blacksea Technical University (Trabzon), Erciyes University (Kayseri) have also been recently approved! SCIENCE & TECHNOLOGY PARKS IN TURKEY

13 When were Science Parks created? (IASP, 2002) TURKEY (active STPs) STPs in the World (* Announced as TDZ) SCIENCE & TECHNOLOGY PARKS IN TURKEY

14 Science / Technology Parks area (IASP, 2002) TURKEY (active STPs) STPs in the World SCIENCE & TECHNOLOGY PARKS IN TURKEY

15 STPs: Number of tenants (IASP, 2002) TURKEY (active STPs) STPs in the World SCIENCE & TECHNOLOGY PARKS IN TURKEY

16 TURKEY (active STPs) STPs in the World Employees in Science Parks (IASP, 2002) SCIENCE & TECHNOLOGY PARKS IN TURKEY

17 TURKEY (active STPs) STPs in the World Technology Sectors in Science Parks (IASP, 2001) SCIENCE & TECHNOLOGY PARKS IN TURKEY

18 The TDZ Law enforces involvement of universities for establishment of STPs All of the STPs in Turkey are situated within or near the lands (within < 5 km radius) of universities, in order to create close relationship with university community. TURKEY (active STPs) STPs in the World STP and University: Location (IASP, 2002) STP and University: Distance (IASP, 2002)

19 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 (Cyberpark, ARI technopark) Other international credits and funds like World Bank InfoDev Incubator Initiative (Cyberpark Technology Incubator) KOSGEBs support for TEKMERs SUPPORT MECHANISMS FOR TECHNOPARKS AND INCUBATORS

20 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. Except one incubator (Ericssons Creaworld) there is no private or PPP incubator Cyberpark technology incubator will be unique with its governance model by being first incubator with public private partnership and having a private management. Cyberpark incubator has been shortlisted for app 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

21 MAIN CHALLENGES AND RECOMMENDATIONS Poor Institutionalization: Still many universities are planning to establish new STPs. However, the focus should be on quality rather than quantity. Most of the STPs suffer from insufficient know-how and best practices. Most of the STPs are established as land development projects, so the required institutional development has not been achieved (technology and business support mechanisms, incubators, consultancy on IPR, access to financial resources, etc. are absent) An NGO is required to provide a platform for cooperation and sharing best practices. (Turkish Science and Technology Parks Association) Too much focus on ICT. Attracting other technologies is crucial to have crosssectoral R&D. The main attraction argument in most STPs is tax advantages (other attraction elements providing the permanent success of the zones are mostly absent!) Special purpose STPs are required. Regional capacities and priorities should be considered. (Agroparks, mediparks, etc.) Lacking Synergies: Most of the universities impose barriers for their academics to work in other universities science parks

22 Assurance of financial support for initial setup: Existing governmental support is not sufficient to meet the required investment even for a single STP. Total governmental budget is around 2 million USD, which should be more than 50 million USD. World Bank credit through the Industrial Technology Project was very limited and only covered a part of construction costs of two STPs (Cyberpark, İTÜ technopark), so new WB financed projects may have larger components. There is no support for commercialization of R&D. TTGV may devise new support mechanisms and tools for commercialization of R&D results. Similarly, there is no support mechanism for private incubators. Knowledge Economy Project may reserve some funds for supporting private incubators. Tax incentives in STPs may be given not only for software companies and companies having R&D activities but for support organizations such as venture capital funds as well. International recognition and attraction of FDI. MAIN CHALLENGES AND RECOMMENDATIONS

23 Dr. Mustafa Atilla Cyberpark, (Bilkent University) CEO and Board Member, Cyberpark, (Bilkent University) CEO and Board Member, Mobilsoft (Meteksan Group) Turkey


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