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Cakmakci Feb2011


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Cakmakci Feb2011

  1. 1. Is Innovation a Turks' Game<br />to Avoid Middle Income Trap?<br />A. Mete Çakmakcı<br />GIST Initiative Leadership Circle Working Group Meeting, Kuala Lumpur<br />February 23rd, 2011<br />
  2. 2. Where is the Brand Equity?<br />A future mutual partnership?<br />A place of limitless exotic fun?<br />A curious tease?<br />An economic partner from a safe distance?<br />
  3. 3. The Story : Demographics<br /><ul><li> In 2009, 2,731,878 students were registered in undergrad university programs. 397,884 graduated from undergrad programs.
  4. 4. 28,681 master and 3,744 PhD degrees were awarded.</li></ul>Source : US Census Bureau, 2010<br /><ul><li> In 2009, 13,263 Turkish students were enrolled in the US universities, (10,2% increase from 2008 and 8th most populous group)
  5. 5. Many return with business ideas.</li></li></ul><li>Converting High-Tech to Low-Tech<br /><ul><li>Share of high-tech in manufacturingexports from 1992 to 2008 only increased from 1,2 % to 1,7 %. Poland’s increased from 3,7 % to 5,2 %; Brazil’s increased from 5,4 % to 12 %. </li></ul>Source : OECD STI Scoreboard, 2008<br />Source : TUSİAD, (2008) “Türkiye Sanayiine Sektörel Bakış”<br /><ul><li>Turkey’s exports increased from 14,7 Billion USD in 1992 to 127 Billion USD in 2008. (2008 imports were 202 Billion USD )</li></li></ul><li><ul><li>Cheaperborrowingis trigerring more R&D investments & spending</li></ul>1416 Million TL in Public R&D Investments<br />Investing in R&D<br />X 5 in private R&D spending <br />2002<br /> x 3,5 increase in TUBİTAK grants to private companies<br />2009<br />2010<br />286 Million TL in Public R&D Investments<br />Source : State Planning Organization, 2010<br />
  6. 6. Promoting Private Sector R&D<br /><ul><li>Law # 4691 on Technology Development Zone and Law # 5746 on R&D Promotion grants generous taxdeductions/exemptionsfor R&D activities.
  7. 7. 28 active TDZs support 1515 firms employing 13,000 R&D staff generating 540 Million USD in exports. (mostly software companies)
  8. 8. 76 R&D centers facilitated 1,9 Billion TL in R&D spending by the private sector</li></ul>Source : OECD STI Scoreboard, 2008<br />
  9. 9. SMEs andEntrepreneurship<br /><ul><li>The National SME Administration was established in 1990 as a SME support organization, over the years turned into a funding organization.
  10. 10. In 2010 provided 260 Million TL in SME and Enterpreneurship supports as grants, loans and interest subsidies
  11. 11. In 2009 themandatewas expanded to support non-manufacturing SMEs (+1,100,000 enterprises)
  12. 12. The Ministry of Industry and Trade is operating a «Techno» Enterprenuership 100 K grant for recent university program graduates. Funding for 2011 is increased to 30 Million TL.</li></li></ul><li>Evolving System of Supports<br />Critical-Mass Development<br />Investment and Infrastructure Development<br />Institutional Capacity Development<br />2000<br />2005<br />1990<br /><ul><li>The system reached a maturity level for an extensive review of programs andmandates. Develop linkages between S&T policies and other policy domains (regional, industrial etc.)</li></ul>TUBİTAK<br /><ul><li>Vertical (fast-track etc.) and horizontal (segmentation) linkages are missing between variousprograms</li></ul>KOSGEB<br />RDAs<br />SMEs<br />MoIT<br />MoIT<br />KOSGEB<br />RDAs<br />UFT<br />RDAs<br />?<br />Entrepreneurship<br />Clusters<br />
  13. 13. Technical & Non-technical Innovation<br />Innovation Activities<br /><ul><li>For most companies purchasing technology is the innovation activity.</li></ul>Source : OECD STI Scoreboard, 2008<br />Non-technical Innovation Activities<br />
  14. 14. Systemic Linkages<br />Firms collaborating on innovation with higher education institutions by size, 2004-06<br />Firms collaborating on innovation activities by size, 2004-06<br />Firms collaborating on innovation with government institutions by size, 2004-06<br />Source : OECD STI Scoreboard, 2008<br />
  15. 15. R&D Human Resources<br />Number of FTE Researchers increased from 29,000 in 2002 to 73,500 in 2009.<br />Source : OECD STI Scoreboard, 2008<br />
  16. 16. Global Benchmarking<br />Source :<br />
  17. 17. European Benchmarking<br />Source : European Innovation Scoreboard 2008<br />
  18. 18. Knowledge Regions<br />
  19. 19. Lessons Learned<br /><ul><li>Top political ownership is essential; but does not guarantee good program practice (many «me too» programs)
  20. 20. Program development should focus on «what should be done»; not «what can be done» (Law #4691 and Law #5746)
  21. 21. More funding does not guarantee better projects («less with more» vs «more with less»)
  22. 22. Programs should be alligned with the interests of the market players (i.e. focus on creating value, rather than «safe» accounting)
  23. 23. More projects means more refereeing for professors. Should be careful not to distract research focus.
  24. 24. Evaluation should be part of the support cycle, not «archeology» (hard to track money afterwards)
  25. 25. System should be open, accountable and flexible toaccommodateprogram agencies (facilitate «innovation» in the system)</li></li></ul><li>About TTGV<br />Technology Development Funding<br />Soft-Loan to Private Company’s Technology Development and Commercialization Projects<br />Program Management Agency<br />Co-finance Provider<br />İş Girişim A.Ş.<br />Shareholder<br />TTGV<br />iVCi<br />“Istanbul Venture Capital Initiative”<br />Turkey’s first and only dedicated fund of funds<br />TURKVEN TPEF-1<br />Investor<br />Sponsor<br />Teknoloji Yatırım A.Ş.<br />Early Stage Technology Focus Investment Vehicle<br />Shareholder<br />Finance Provider<br />Facilitator<br />Environment and Energy Projects Funding<br />Soft-Loans to Private Company Energy Efficiency, Clean Production and Renewable Energy Projects<br />Demand Side Capacity Projects Supply Side Studies<br />TTGV is foundation co-established by government agencies, Turkish blue chips,<br />umbrella organisations.<br />
  26. 26. Türkiye Teknoloji Geliştirme Vakfı<br />Cyberpark, Cyberplaza B-Blok Kat : 6 <br />Bilkent 06800, Ankara<br /><br />