Alignment of sustainable public policy with the interests of the Smart Money - Legacies of the Global Crisis A. Mete ÇAKMAKCI Technology Development Foundation of Turkey 9 th International Entrepreneurship Forum İstanbul, 18 September 2009
An Engineer’s View of the Crisis towards a New World Order of Peace and Prosperity Emotions are running high… Panic Despair & Confusion A Confident Vision Disgust Regulation Restructuring Reform Smart Choices & Policies Rejection of old ways… An Account of the Past Realities of Today A Sustainable Future
We feel the pain <ul><li>Contracted demand for goods and services, swollen inventories. </li></ul><ul><li>Increased payment delays </li></ul><ul><li>Shortage of working capital, decreased liquidity </li></ul><ul><li>Increased insolvencies and bankruptcies </li></ul><ul><li>Reduced demand for credit to finance </li></ul><ul><li>Tightened lending conditions and increased cost of finance </li></ul>Rush to government ‘rescue’ programs is causing reflexes and funding problems – crowding out of routine innovations?
Fighting the Reflexes <ul><li>Government intervention should target long term capital investments (including intellectual capital) to promote innovation, should avoid urges of ‘cheap populist financing’. (respect competitive market powers and innovation cycles) </li></ul><ul><li>Consumption and trade should be integrated to support the long term investments, should avoid ‘hay flame’ type of consumerism. </li></ul><ul><li>Growth should be designed to be sustainable and organic. (must avoid past models of growth on steroids.) </li></ul>
Putting Public Money to Work Governments are talking … Smart money is listening …
What is Cleantech? Source : GreenTech Media Cleantech is a rich but complex innovation domain …
Cleantech is still Fragile Source : McKinsey And cleantech is still away from market parity.
VC for Cleantech Source : Cleantech Group In 2008 China’s share of global cleantech investments was 8%.
A Vision for Public Policy <ul><li>Global crisis must provoke a new thinking of public policy. </li></ul><ul><li>There is still need for a strong public policy vision, however the new vision should support and yield initiative to `smart money`. </li></ul><ul><li>New statism should involve interim and flexibly adopting government roles to provoke sustainable commercial ecosystems of innovation. </li></ul><ul><li>We need to think beyond direct financial measures into policy infrastructures such as in public procurement, taxation and market deregulation in support of young innovative companies with new business models. </li></ul>
Who is TTGV? TTGV A foundation Teknoloji Yatırım A.Ş. A dedicated start-up investment vehicle managed by an independent team TURKVEN - TPEF 1 İŞ Gir iş im iVCi I stanbul Venture Capital Initiative A dedicated Fund-of-funds SIF structure for VC/PE funds focusing on Turkey managed by the EIF TDF A soft loan scheme upto 1 M USD per project almost 250 M USD disbursed since 1991 Shareholder Investor Investor Shareholder Administrator/ Co-lender Regional and Sectoral Capacity Development Programs Social Capital, Clustering, RIS Facilitator