The document discusses supporting private sector research and development (R&D) in Turkey. It notes that Turkey has many talented students studying abroad and is becoming a manufacturing specialist, but needs to focus more on R&D and innovation to drive sustainable growth. The Technology Development Foundation of Turkey (TTGV) was established to promote R&D and innovation in the private sector through various funding programs. TTGV has supported over 500 projects with over $128 million USD in funding, helping generate over $400 million in total R&D spending in Turkey. However, the document argues Turkey needs to further increase investment in strategic large-scale R&D projects and learning regions to boost the country's competitiveness.

1. Supporting Private Sector Impact in Turkish RTDI A. Mete Çakmakcı Technology Development Foundation of Turkey World Bank Workshop - “ Science, Technology and Innovation- Challenges and Opportunities for Turkey ” TPE - Ankara, 12 March 2007

2. One of the fastest growing tourist attractions in the world. Brand often associated with excotic fun. Can we develop a technology aspect to attract investment and talent? The Story A blessing or a curse? Growth and job creationis an urgency. (urban population will be 85% in 2015) There are over 50,000 Turkish students enrolled in University Programs abroad. (Over 13,000 are in the US, %2,6 of all foreign students in the US, in the top 10) Ministry of Education and Higher Education Authority have generous scholarship programs. (critical mass?) Our exports are driving up our imports. Turkey is becoming a med-high tech manuf. specialist. Sustainability?

3. Outlook Competition is forcing the manufacturing sectors seek value in design and innovation. Will strategic focus on R&D for early entry to the markets follow? Some `sunset` sectors are shining again. Will textiles be next? Turkey is excelling in production of light commercial vehicles. Many facilities receiving `best in the world` awards. Sector exports are leading, R&D is picking up. Will consumer products be next?

7. Technology Development Funding - TDF Regional Breakdown of TTGV Supported Projects

8. Statistics on TDF - I “ Meaningful R &D” Average size of TTGV supported projects is 300 K USD.

9. Ratio of First Time Companies to TTGV TDF Support Statistics on TDF - II

10. Support Pipeline For Support Impact a Continuum of Succeeding Support Devices to Better Match / Follow Company Development

11. 2010 Objectives Source : EU Trendchart on Innovation, 2005 Catching up and keeping up with EU-27 ? Technology added value in manufacturing ? Technology balance of payments 1,24 (CY) 11,4 (DE) - 6,6 Employment in mid-high & high-tech manufacturing (% of total) 2,7 (LU) 55,5 (MT) 1,8 17,8 Exports of high-tech products (% of total) 1,45 (PT) 4,85 (SE) - 3,19 Employment in high-tech services (% of total) 0,001 (CZ) 0,065 (FI) - 0,025 (EU-15) Early Stage VC (% of GDP) 0,2 (MT) 31,4 (BG) 22,0 6,6 University R&D expenses financed by business (% of total) 0,7 (PL) 18,7 (FI) - Enterprises receiving public funding for innovation (% of total) 50,3 (RO) 93,7 (SE) - 89,2 (EU-15) Share of med-high & high-tech R&D (% of total) 0,08 (MT) 2,93 (SE) 0,19 1,26 Business R&D Expenses (% of GDP) EU min EU max TR EU-25

12. R&D Driven Growth Take-off Source : U. M üldür, EC %1 of GDP in R&D Spending is accepted as a structural refraction point. Old ways will not longer work as a sustainable state! We estimate our current level ~0,87%...

13. From Research to Market We must develop “research” as an economic activity.

14. A Comparison of Knowledge Metrics Source : WB Knowledge Assesment Methodology Homepage : http:// www.worldbank.org/kam Effects of Globalization will be the hardest on populations of 50M – 100 M!

15. Structural Trends - I Source : OECD STI, 2005

16. Structural Trends - II Percentage of University Researchers to all Researchers (OECD STI Scoreboard, 2005) Turkey : %75 Spain : %51 Korea : %16 Germany : %25 USA : %12 Source : TUIK, 2004

17. Structural Trends - III

18. Attracting Global R&D Source : OECD STI, 2005

19. Innovation Synergy Strategic projects to create sectoral synergies : eg. `a light commercial future platform`

20. Diffusion of R&D

22. Policy for Growth SMEs Source : Erkko Autio, 2006 Industry, Competition and Innovation Policies Industrial, Social and Employment Policies Other Policy Liason Supporting against social cost of failure Preventing bankrupcy and failure Failure for the Enterprise Encouraging investment and capital Easing the tax burden Financial Favoring growing enterprises Protecting small enterprises Administrative Facilitating growth Simplifying new business establishment Main Objective Regulation Emphasis Prioritization for potential Equality in access Selectivity Criteria Strategy, Globalization and Growth Basic Business, Planning, Operations Complementary Supports R&D and innovation aids, Venture Capital Grants, Subsidies, Loans Devices Public private integrated Public dominant Source Supports Growth friendly Small enterprise friendly Business Environment Only the better More enterprise Enterprise Right enterpreneurs More enterpreneurs Enterpreneurship Policy Targets High Growth SME Traditional SME

23. Learning Innovation Regions

25. Spanish Fund of Funds Program Source : NEOTEC / EIF TTGV is working with the EIF to setup a similar program called “iVCi” in Turkey. Spanish Blue-Chips

27. Technology Development Foundation of Turkey Cyberpark, Cyberplaza B-Blok Kat:6 Bilkent, 06800 Ankara www.ttgv.org.tr Photo Kind Courtesy of METUTECH