Download - Wb Cakmakci Mar12

12 March 2007 – TPE/WB

Supporting Private Sector ImpactSupporting Private Sector Impactin Turkish RTDIin Turkish RTDI

A. Mete ÇakmakcıA. Mete Çakmakcı

Technology Development Foundation of TurkeyTechnology Development Foundation of TurkeyWorld Bank Workshop - “World Bank Workshop - “Science, Technology and Innovation- Science, Technology and Innovation-

Challenges and Opportunities for TurkeyChallenges and Opportunities for Turkey””TPETPE - - Ankara, 12 March 2007 Ankara, 12 March 2007


One of the fastest growing tourist attractions in the world.One of the fastest growing tourist attractions in the world.Brand often associated with excotic fun.Brand often associated with excotic fun.

Can we develop a technology aspect to attract investment Can we develop a technology aspect to attract investment and talent?and talent?

The StoryThe Story

A blessing or a curse?A blessing or a curse?

Growth and job creationis an urgency. (urban population Growth and job creationis an urgency. (urban population

will be 85% in 2015) will be 85% in 2015)

There are over 50,000 Turkish students enrolled in There are over 50,000 Turkish students enrolled in

University Programs abroad. (Over 13,000 are in the US, University Programs abroad. (Over 13,000 are in the US,

%2,6 of all foreign students in the US, in the top 10)%2,6 of all foreign students in the US, in the top 10)

Ministry of Education and Higher Education Authority Ministry of Education and Higher Education Authority

have generous scholarship programs.have generous scholarship programs. (critical mass?) (critical mass?)

Our exports are driving up our imports.Our exports are driving up our imports.

Turkey is becoming a med-high tech manuf. specialist. Turkey is becoming a med-high tech manuf. specialist.

Sustainability?Sustainability?


OutlookOutlook

Competition is forcing the manufacturing sectors seek value inCompetition is forcing the manufacturing sectors seek value in

design and innovation. design and innovation.

Will strategic focus on R&D for early entry to the markets follow?Will strategic focus on R&D for early entry to the markets follow?

Some `sunset` sectors are shining again.Some `sunset` sectors are shining again.

Will textiles be next?Will textiles be next?

Turkey is excelling in production of light commercial vehicles.Turkey is excelling in production of light commercial vehicles.

Many facilities receiving `best in the world` awards. SectorMany facilities receiving `best in the world` awards. Sector

exports are leading, R&D is picking up.exports are leading, R&D is picking up.

Will consumer products be next?Will consumer products be next?


TTGV in Short

Technology Development Foundation of Turkey (TTGV) was established in Technology Development Foundation of Turkey (TTGV) was established in

1991 to promote global competitiveness of the private sector through 1991 to promote global competitiveness of the private sector through

supporting technology development and innovation projects. supporting technology development and innovation projects.

TTGV’s founders are 26 private companies, 6 government organizations, 10 TTGV’s founders are 26 private companies, 6 government organizations, 10

umbrella organizations ve 14 individuals.umbrella organizations ve 14 individuals.

TTGV is managed by a 15 member Board of Directors. 5 are appointed by TTGV is managed by a 15 member Board of Directors. 5 are appointed by government organizations, 10 are elected by the Founder’s Assembly from government organizations, 10 are elected by the Founder’s Assembly from among representatives of the private sector. among representatives of the private sector.

TTGV has 47 full-time employees however it contracts short-terms services TTGV has 47 full-time employees however it contracts short-terms services of a pool of 1,500 field experts.of a pool of 1,500 field experts.

TTGV is audited by four times annually by different institutions including one TTGV is audited by four times annually by different institutions including one by an International Auditing Company. by an International Auditing Company.


TTGV So Far

Since 1991, under the Technology Development Funding (TDF), over 530 Since 1991, under the Technology Development Funding (TDF), over 530

projects by around 450 companies were supported with commitments of 187 projects by around 450 companies were supported with commitments of 187

M USD, and disbursements as of January 2007 reaching 128,5 M USD. TTGV M USD, and disbursements as of January 2007 reaching 128,5 M USD. TTGV

helped creation of R&D volume in excess of 400 M USD in Turkey. helped creation of R&D volume in excess of 400 M USD in Turkey.

Technoparks of Bilkent University and İTÜ were provided with 12 M USD in Technoparks of Bilkent University and İTÜ were provided with 12 M USD in

funding through a WB project credit.funding through a WB project credit.

Two active VC operations, TURKVEN ve İşGirişim were invested with 7 M Two active VC operations, TURKVEN ve İşGirişim were invested with 7 M USD.USD.

Turkey’s obligations under the Montreal Protocol were supported through Turkey’s obligations under the Montreal Protocol were supported through

the PODS program with a 24,1 M USD grant from the GEF. Phasing out of the the PODS program with a 24,1 M USD grant from the GEF. Phasing out of the

ozone depleting substances succeeded %95 with the supports provide to the ozone depleting substances succeeded %95 with the supports provide to the

Turkish companies.Turkish companies.


Our Supports Technology Development SupportsTechnology Development Supports

Technology Development Projects (TDF) Support Technology Development Projects (TDF) Support (1M USD, 24 Months, 4 Years)(1M USD, 24 Months, 4 Years)

Commercialization Support Commercialization Support (1M USD, 12 Months, 4 Years)(1M USD, 12 Months, 4 Years)

Joint Technology Development Projects Support Joint Technology Development Projects Support (2,5M USD, 24 Months, 4 Years)(2,5M USD, 24 Months, 4 Years)

Environmental Technologies SupportsEnvironmental Technologies Supports Environment Friendly / Clean Production Technologies Projects Support Environment Friendly / Clean Production Technologies Projects Support (1M USD, (1M USD,

18 Months, 4 Years)18 Months, 4 Years)

Energy Efficiency Projects Support Energy Efficiency Projects Support (1M USD, 18 Months, 4 Years)(1M USD, 18 Months, 4 Years)

Renewable Energy Projects Support Renewable Energy Projects Support (1M USD, 18 Months, 4 Years)(1M USD, 18 Months, 4 Years)

Technology Enterprenuership Supports Technology Enterprenuership Supports Pre-Incubation Support Pre-Incubation Support

Risk Sharing SupportRisk Sharing Support

Start-up SupportStart-up Support


Technology Development Funding - TDFTechnology Development Funding - TDF

Regional Breakdown of TTGV Supported ProjectsRegional Breakdown of TTGV Supported Projects


Statistics on TDF - I

“Meaningful R&D”

Average size of TTGV supported projects is 300 K USD.Average size of TTGV supported projects is 300 K USD.


Ratio of First Time Companies to TTGV TDF SupportRatio of First Time Companies to TTGV TDF Support

Statistics on TDF - II


Support Pipeline

For Support Impact a Continuum of Succeeding Support DevicesFor Support Impact a Continuum of Succeeding Support Devicesto Better Match / Follow Company Developmentto Better Match / Follow Company Development


2010 Objectives

EU-25EU-25 TRTR EU maxEU max EU minEU min

Business R&D Expenses (% of GDP)Business R&D Expenses (% of GDP) 1,261,26 0,190,19 2,93 (SE)2,93 (SE) 0,08 (MT)0,08 (MT)

Share of med-high & high-tech R&D (% of total)Share of med-high & high-tech R&D (% of total) 89,2 (EU-15)89,2 (EU-15) -- 93,7 (SE)93,7 (SE) 50,3 (RO)50,3 (RO)

Enterprises receiving public funding for Enterprises receiving public funding for innovation (% of total)innovation (% of total) -- 18,7 (FI)18,7 (FI) 0,7 (PL)0,7 (PL)

University R&D expenses financed by business University R&D expenses financed by business (% of total)(% of total) 6,66,6 22,022,0 31,4 (BG)31,4 (BG) 0,2 (MT)0,2 (MT)

Early Stage VC (% of GDP)Early Stage VC (% of GDP) 0,025 (EU-15)0,025 (EU-15) -- 0,065 (FI)0,065 (FI) 0,001 (CZ)0,001 (CZ)

Employment in high-tech services (% of total)Employment in high-tech services (% of total) 3,193,19 -- 4,85 (SE)4,85 (SE) 1,45 (PT)1,45 (PT)

Exports of high-tech products (% of total)Exports of high-tech products (% of total) 17,817,8 1,81,8 55,5 (MT)55,5 (MT) 2,7 (LU)2,7 (LU)

Employment in mid-high & high-tech Employment in mid-high & high-tech manufacturing (% of total)manufacturing (% of total) 6,66,6 -- 11,4 (DE)11,4 (DE) 1,24 (CY)1,24 (CY)

SourceSource : EU Trendchart on Innovation, 2005 : EU Trendchart on Innovation, 2005

Catching up and keeping up with EU-27Catching up and keeping up with EU-27

?? Technology added value in manufacturingTechnology added value in manufacturing

?? Technology balance of paymentsTechnology balance of payments


R&D Driven Growth Take-off

Asian economies' S&T take-off: Growth in R&D Intensity

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Japan

Korea

Taiwan

Singapore

China

Turkey

Source: DG RTD Data: OECD MSTI, national statistical of f ices, etc.

SourceSource : U. : U. MMüldür, ECüldür, EC

%1 of GDP in R&D Spending is accepted as a structural refraction point.%1 of GDP in R&D Spending is accepted as a structural refraction point.

Old ways will not longer work as a sustainable state!Old ways will not longer work as a sustainable state!

We estimate our current level ~0,87%...We estimate our current level ~0,87%...


From Research to Market

We must develop “research” as an economic activity.We must develop “research” as an economic activity.


A Comparison of Knowledge Metrics

SourceSource : WB Knowledge Assesment Methodology Homepage : http:// : WB Knowledge Assesment Methodology Homepage : http://www.worldbank.org/kamwww.worldbank.org/kam

Effects of Globalization will be the hardest on populations of 50M – 100 M!Effects of Globalization will be the hardest on populations of 50M – 100 M!


Structural Trends - I

SourceSource : OECD STI, 2005 : OECD STI, 2005


Structural Trends - II

Percentage of UniversityPercentage of UniversityResearchers to all Researchers to all ResearchersResearchers(OECD STI Scoreboard, 2005)(OECD STI Scoreboard, 2005)

Turkey : %75Turkey : %75Spain : %51Spain : %51Korea : %16Korea : %16Germany : %25Germany : %25USA : %12USA : %12

SourceSource : TUIK, 2004 : TUIK, 2004


Structural Trends - III


Attracting Global R&D

SourceSource : OECD STI, 2005 : OECD STI, 2005


Innovation Synergy

Strategic projects to create sectoral synergies : Strategic projects to create sectoral synergies : eg. à light commercial future platformèg. à light commercial future platform`


Diffusion of R&D


A small percentage of SMEs create the A small percentage of SMEs create the

most of new quality employmentmost of new quality employment

They succeed in becoming global enterprises They succeed in becoming global enterprises

High Growth SMEs

Strong global vision and will to growStrong global vision and will to grow

30% - 50% annual endogenous growth30% - 50% annual endogenous growth

Global niche marketsGlobal niche markets

High capacity to adapt and leadHigh capacity to adapt and lead

Can selectivity be applied with early detection of the potential?Can selectivity be applied with early detection of the potential?Can selectivity be applied with early detection of the potential?Can selectivity be applied with early detection of the potential?


Policy for Growth SMEs

Traditional SME High Growth SME

Policy Targets

Enterpreneurship More enterpreneurs Right enterpreneurs

Enterprise More enterprise Only the better

Business Environment Small enterprise friendly Growth friendly

Supports

Source Public dominant Public private integrated

Devices Grants, Subsidies, Loans R&D and innovation aids, Venture Capital

Complementary Supports Basic Business, Planning, Operations Strategy, Globalization and Growth

Selectivity Criteria Equality in access Prioritization for potential

Regulation Emphasis

Main Objective Simplifying new business establishment Facilitating growth

Administrative Protecting small enterprises Favoring growing enterprises

Financial Easing the tax burden Encouraging investment and capital

Failure for the Enterprise Preventing bankrupcy and failure Supporting against social cost of failure

Other Policy Liason Industrial, Social and Employment Policies Industry, Competition and Innovation Policies

Source : Erkko Autio, 2006


Learning Innovation Regions


Program Design - Trends

Buttom-up design and project development : beneficiaries have a stronger Buttom-up design and project development : beneficiaries have a stronger

say in program design >>> a capability to identify and design programs say in program design >>> a capability to identify and design programs

Open flexible architecturesOpen flexible architectures

Integrated more dimensional programs Integrated more dimensional programs

Beneficiary-driven and defined open structure Innovation Programs Beneficiary-driven and defined open structure Innovation Programs

Strategic large scale early market R&D Programs with Strategic large scale early market R&D Programs with

a phased approacha phased approach

Vertically integrated, Vertically integrated,

Multi-Agency Programs : Irish Bioventure Multi-Agency Programs : Irish Bioventure

Program Program


Spanish Fund of Funds Program

SourceSource : NEOTEC / EIF : NEOTEC / EIF TTGV is working with the EIF to setup a similar program TTGV is working with the EIF to setup a similar program

called “iVCi” in Turkey.called “iVCi” in Turkey.

TTGV is working with the EIF to setup a similar program TTGV is working with the EIF to setup a similar program

called “iVCi” in Turkey.called “iVCi” in Turkey.

Spanish Blue-ChipsSpanish Blue-Chips


Concluding Remarks

There is an urgency to create critical mass for R&D in private sector for There is an urgency to create critical mass for R&D in private sector for

strategic projects in early technologies - with collaboration of early strategic projects in early technologies - with collaboration of early

international research networks : integrated multi component programsinternational research networks : integrated multi component programs

Integration to global knowledge skills network : expats, immigration, Integration to global knowledge skills network : expats, immigration,

acqusitionacqusition

More emphasis to advanced learning regions : clusters, next stage More emphasis to advanced learning regions : clusters, next stage

development of technoparks and capacity building on management development of technoparks and capacity building on management

companies including in international promotion, mentoring and technology companies including in international promotion, mentoring and technology

transfer.transfer.

Quick revision of bottleneck legislation in tax code, higher education and Quick revision of bottleneck legislation in tax code, higher education and

VCVC


Technology Development Foundation of TurkeyTechnology Development Foundation of TurkeyCyberpark, Cyberplaza B-Blok Kat:6Cyberpark, Cyberplaza B-Blok Kat:6

Bilkent, 06800 AnkaraBilkent, 06800 Ankara

www.ttgv.org.trwww.ttgv.org.tr

Photo Kind Courtesy of METUTECHPhoto Kind Courtesy of METUTECH