Research and Innovation Outlook

of Turkey

RIOT 2020
www.ttgv.org.tr

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#TechnologyDevelopingTurkey
 This report was prepared by:
İbrahim Semih Akçomak, Serra Baykal, Beyza Bozyak, Erkan Erdil, Berker Karagöz,
Ayşe Şehnaz Kart, Cansu Korkmaz, Ezgi Kotan, Tuncay Serdaroğlu, Dilek Şahin and
Yağmur Yıldız.

Section 4.5 is based on an unpublished work by Ayşe Şehnaz Kart. The draft report
was finalized by İbrahim Semih Akçomak (TEKPOL, Middle East Technical
University) and Erkan Erdil (Department of Economics, Middle East Technical
University). The final read and corrections were done by by Esin Yazıcı,
Esra Kaya (TTGV) and İbrahim Semih Akçomak.

Acknowledgements:
This report is an initial attempt to generate periodical reports on Turkish Science,
Technology and Innovation (STI) system as detailed as possible, yet it may suffer
some limitations mainly because of the unavailability of the data and transparency
in policy-making processes. We thank our network and the alumni of TEKPOL
who assisted us in finding data and information regarding the Turkish STI system.
Without such assistance writing this report would not have been possible. This report
builds on the 2015 Research and Innovation Observatory (RIO) Country Report and
the 2012 and 2013 ERA-WATCH Country Reports of the European Commission.
Research and Innovation Outlook
of Turkey

RIOT 2020
06
 Table of Contents

Table of Contents
Preamble 1
Executive Summary 3

1. Introduction 15

2. Actors And The Science, Technology And Innovation (STI) System 21

2.1. Background of Turkish STI System 21
2.2. Performance of Turkey’s STI System 26
2.3. TARAL and ARBİS (Researcher Database) 27
2.4. Important National Studies, Reports and Documents on STI 28
2.5. The STI System and its Actors in Brief 31
2.5.1. Council of Science Technology and Innovation Policies (CoSTIP) 34
2.5.2. Ministry of Industry and Technology (MoIT) 34
2.5.3. Presidency of Strategy and Budget (SBB) 35
2.5.4. Scientific and Technological Research Council of Turkey (TÜBİTAK) 35
2.5.5. Ministry of Treasury and Finance (MoTF) 36
2.5.6. Ministry of Trade (MoT) 36
2.5.7. Other ministries 36
2.5.8. The Small and Medium-Sized Enterprises Development Organization 36
(KOSGEB)
2.5.9. Technology Development Foundation of Turkey (TTGV) 37
2.5.10. Turkish Patent and Trademark Office (TÜRKPATENT) 37
2.5.11. Turkish Standards Institute (TSE) 37
2.5.12. Regional development agencies 38
2.5.13. Health Institutes of Turkey (TÜSEB) 38
2.5.14. Turkish Accreditation Institute (TÜRKAK) 38
2.5.15. Turkish Statistics Institute (TÜİK) 39
2.5.16. Turkish Academy of Sciences (TÜBA) 39
2.5.17. Council of Higher Education (YÖK) 39
2.5.18. Universities 40
2.5.19. Research infrastructures 40
2.5.20. Technology Transfer Offices (TTO) 41
2.5.21. Continuing education centers 42

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2.5.22. Technology Development Zones (TDZ) 43

2.5.23. R&D and Design Centers 44

3. STI Policies in Turkey 47

3.1. A General Look on Policy Changes 50
3.1.1. From sector specific to technology specific focus 54
3.1.2. Indigenous & national production 58
3.1.3. From knowledge creation to commercialization 60
3.1.4. High-tech focus 62
3.1.5. Digital transformation 64
3.1.6. Co-creation 65
3.2. New Policy Tools 67
3.2.1. Economic and financial instruments 69
3.2.1.1. TÜBİTAK 69
3.2.1.1.1. Industry Innovation Network Mechanism Call (SAYEM) 69
3.2.1.1.2. Technology Focused Industrial Movement Program (HAMLE) 71
3.2.1.1.3. 1514-Venture Capital Support Program (Tech-InvesTR) 71
3.2.1.1.4. 1004-Excellence Centre Support Program 72
3.2.1.1.5. 1515-Frontier R&D Laboratory Support Program 73
3.2.1.1.6. Commissioned R&D Call 74
3.2.1.1.7. Patent-Based Technology Transfer Support Call 75
3.2.1.2. Small and Medium Enterprises Development Organization of 76
Turkey (KOSGEB)
3.2.1.2.1. R&D and Innovation Support Program 76
3.2.1.2.2. Strategic Product Support Program 76
3.2.1.2.3. SME Technological Product Investment Support Program 77
3.2.1.3. Technology Development Foundation of Turkey (TTGV) programs 77
3.2.2. Regulatory tools 79
3.2.2.1. Principle laws on science, technology and innovation 80
3.2.2.1.1. Law no. 5746 for Support of Research, Development and 80
Design Activities
3.2.2.1.2. Law no. 6676 on the Promotion of Research and 81
Development Activities and Amending some Laws and Decrees
3.2.2.1.3. Law no. 6550 on the Support of Research Infrastructures 81
3.2.2.1.4. Law no. 4691 on Technology Development Zones 82
3.2.2.1.5. Industrial Property Law no. 6769 82
3.2.2.2. Digital regulations, cybercrime and data protection 86
3.2.2.2.1. Law no. 6698 on Personal Data Protection (KVKK) 86

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3.2.2.3. Laws directly related to the legal STI setting of Turkey 88

3.2.2.3.1. Public Procurement Law No. 4734 88
3.2.2.3.2. Law No. 7033 Amending Some Laws and Decrees with 88
the Aim of Developing Industry and Supporting Production
3.2.2.3.3. Law no. 4059 on Financial Stability and Certain Regulations 89
3.2.2.3.4. Law no. 6563 Regulation on Electronic Commerce 89
3.2.2.3.5. Law no. 6493 on Payment and Securities Settlement Systems, 89
Payment Services and Electronic Money Institutions
3.2.2.4. Presidential decrees, Presidential decisions 90
3.2.2.4.1. Presidential Decree Amending the Presidential Decree No.59 90
on the Organization of the Presidency (dated Tuesday, April 14, cc
c 2020. Published in the Official Gazette numbered 31099).
3.2.2.4.2. President’s Decision no. 2248 on the Procedures and 91
Principles for Supporting Research Infrastructure Projects of
Foundation Universities by the Strategy and Budget Presidency
3.2.2.5. Statutory rules, Orders and Communiqués 91
3.2.2.5.1. Secondary legislation of Industrial Property Law 91
3.2.2.5.2. Statutory rule for the implementation of industrial 92
cooperation projects
3.2.2.5.3. Communiqué on Principles of Implementing Technology- 93
Oriented Industrial Action Program
3.2.2.6. Other legal observations 94
3.2.3. Soft tools 95
3.2.3.1. Public University Industry Cooperation (KÜSİ) 95
3.2.3.2. Deneyap workshops 96
3.2.3.3. Teknofest 97
3.2.3.4. Cyber security emergency drill 97
3.2.3.5. E-government services 97
3.2.3.6. TÜBİTAK workshops 98

4. Who Performs R&D And Innovation Activities? 101

4.1. R&D and Innovation Activities in the Business Sector 101
4.1.1. R&D performance of the business sector 101
4.1.2. Innovation performance of business Sector 105
4.1.3. Actors of the business sector 107
4.1.3.1. Technology Development Centre (TEKMER) 108
4.1.3.2. Business Development Centre (İŞGEM) 109
4.1.3.3. Technology Development Zones 109

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4.1.3.4. R&D centre 111

4.1.3.5. Design center 111
4.1.4. International indexes: Position of Turkey in business related indicators 112
4.1.4.1. Global Competitiveness Report 2019 112
4.1.4.2. Global Innovation Index 112
4.1.4.3. Doing Business Index 113
4.1.4.4. Global Entrepreneurship Index 113
4.1.4.5. Legatum Prosperity Index 114
4.1.4.6. European Innovation Scoreboard 114
4.1.5 General performance 115
4.2. Higher Education Sector 116
4.2.1. General performance of the higher education sector 116
4.2.2. Data, network and open access in HEIs 127
4.3. Government 129
4.4. Cooperation and Collaboration 131
4.4.1. National cooperation 134
4.4.1.1. University-University 134
4.4.1.1.1. Inter-University Collaboration Program (ÜNİP) 134
4.4.1.1.2. Farabi Exchange Program 135
4.4.1.1.3. MEVKA Inter-University Cooperation Program 136
4.4.1.2. University-Industry 136
4.4.1.2.1. University-Industry Cooperation Centres Platform (ÜSİMP) 136
4.4.1.2.2. TÜBİTAK 1503 - R&D Project Brokerage Events Grant Program 137
4.4.1.2.3. TÜBİTAK 1505 - University – Industry Collaboration Support 138
Program
4.4.1.2.4. TÜBİTAK 1513- Technology Transfer Office Support Program 138
4.4.1.2.5. TÜBİTAK 1601 - Capacity Building for Innovation and 139
c Entrepreneurship Grant Program
4.4.1.2.6. TÜBİTAK 2244 - Industrial Thesis Program (SANTEZ) 140
4.4.1.2.7. ASELSAN Academy 141
4.4.1.2.8. Vestel Technology Academy 141
4.4.1.3. Industry-Industry 142
4.4.1.3.1. KOSGEB (Collaboration Support Program/İş Birliği Güç 142
Birliği Destek Programı)
4.4.1.3.2. TÜSİAD SD2 143
4.4.1.4. University-Industry-Government 143
4.4.1.4.1. Public-University-Industry Cooperation Portal (KÜSİP) 143
4.4.1.4.2. TÜBİTAK 1512 - Entrepreneurship multi-phase program 144

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4.4.1.4.3. TÜBİTAK 1004 - Centre of Excellence Support Program 145

4.4.1.4.4. TÜBİTAK 1007 - Public Institutions Research Funding Program 145
4.4.2. International cooperation 146
4.4.2.1. Bilateral cooperation 147
4.4.2.2. Multilateral cooperation 149
4.4.2.2.1. PRIMA - Partnership for Research and Innovation in the 150
c Mediterranean Area
4.4.2.2.2. CORNET 150
4.4.2.2.3. COST - European Cooperation in Science and Technology 150
4.4.2.2.4. EMBO - European Molecular Biology Organization 151
4.4.2.2.5. ICGEB - International Centre for Genetic Engineering and 151
c Biotechnology
4.4.2.2.6. IRASME 152
4.4.2.2.7. Framework Program 152
4.4.2.2.8. ERA-NET 152
4.4.2.2.9. EUREKA 153
4.4.2.2.10. 1509 - TÜBİTAK International Industrial R&D Projects Grant 153
c Program
4.5. Talent Drain 154
4.5.1. Millionaires 157
4.5.2. Highly educated workforce, businesspeople, entrepreneurs 158
4.5.3. Academics, graduate, undergraduate and high school students 159
4.5.4. Policies directed at the talent drain problem 161

5. Who Funds R&I Activities? 165

5.1. Changes and Trends in R&I in Turkey, Compared with EU 165
5.2. Current Fiscal Policies 167
5.3. Sources of Funds, Statistics, Trends 169
5.3.1. Business enterprises 169
5.3.1.1. Increased private funding options for start-ups 174
5.3.2. Government 176
5.3.2.1. TÜBİTAK 186
5.3.2.1.1. ARDEB 190
5.3.2.1.2. TEYDEB 192
5.3.2.1.3. BİDEB 193
5.3.2.2. TTGV 197
5.3.2.2.1. Explore Investment Program 197
5.3.2.2.2. Hit Program 199

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5.3.2.2.3. Ideanest Program 200

5.3.2.2.4. Green Technology Projects (YETEP) Support Program 200
5.3.2.2.5. TTGV1 Co-Investment and Follow-On Investment Fund 200
5.3.2.2.6. The Technology Transfer Accelerator - TTA Turkey 201
5.4. International Funds 202
5.4.1. The 7th EU Framework Programme (2007-2013) 202
5.4.2. Horizon 2020 (H2020) 205
5.4.3. Horizon Europe: The Next EU Research & Innovation Investment 210
Program (2021-2027)

6. Concluding Remarks 215

List of Tables

Table 2.1. R&I Indicators for Turkey 22

Table 2.2. 11th Development Plan 2023 targets 24
Table 2.3. R&D expenditure in sectors and by financers in 2019 24
Table 3.1. Main goals and targets of STI policy 52
Table 3.2. Evaluation Criteria for Prioritized Technology Field Determination of Turkey 54
Table 3.3. Prioritized technology fields in National Plans & Studies 57
Table 3.4. Commercialization Program for Prioritized Areas (10th Development 61
Plan-Section 1.11)
Table 3.5. Technology Development and Indigenous Manufacturing by Public 63
Procurement Program
Table 3.6. Targets of manufacturing Industry for High Technology 63
Table 3.7. Digital Transformation Targets 64
Table 4.1. Sectoral distribution of R&D Expenditure (% in total) 102
Table 4.2. Gross domestic expenditure on R&D by sector and source of funds, 103
2011 and 2019
Table 4.3. Type of R&D expenditure of business (share within total Business R&D) 104
Table 4.4. R&D Personnel (share in total, sectoral shares) 105
Table 4.5. Innovative enterprises and types of innovation activities (%) 106
Table 4.6. Number of IPR applications received by TÜRKPATENT 107

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Table 4.7. Comparison of Turkey’s performance in European Innovation Scoreboard 115

Table 4.8. General Performance of Business Sector in R&I 116
Table 4.9. Quality of the Science and Research Base 117
Table 4.10. Country profiles according to STI collaboration indicators specified 133
in Global Innovation Index 2011-2019 and Global Competitiveness
Report 2011-2019
Table 4.11. Numbers of incoming and outgoing exchange students of Farabi 135
Exchange Program
Table 4.12. The list of countries to cooperate with under the Bilateral Cooperation 148
Programs
Table 4.13. Share of 20-44 age category within total immigration and emigration 157
Table 4.14. Countries with large net outflows of High-net worth individuals (HNWI), 158
2018
Table 5.1. Percentage of Gross Domestic Expenditure on R&D by Source of Fund 166
Table 5.2. Number of M&A transactions in 2018 173
Table 5.3. Capital Investment Funds by Type 175
Table 5.4. Expenditure on education R&D (as percent of GDP) 180
Table 5.5. Public procurement for innovation in selected countries, Community 182
Innovation Survey, 2014
Table 5.6. Comprehensive R&I funds available from different public institutions 184
Table 5.7. Maximum budget allocations of TÜBİTAK programs 188
Table 5.8. Support and Fellowship Programs for Students and Research Events 194
Table 5.9. FP7 Monitoring Results 203
Table 5.10. Horizon 2020 Monitoring Results for Turkey 207

List of Figures

Figure 2.1. R&D Expenditure on gross domestic spending for Turkey 23

Figure 2.2. R&D expenditures by sector of performance 25
Figure 2.3. R&D expenditures by source of finance 25
Figure 2.4. Innovators in G20 countries as a percentage of manufacturing firms 26
Figure 2.5. The Former and New Governmental Structure 32

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Figure 2.6. Actors of Turkey’s STI System 33

Figure 3.1. The number and frequency of Supreme Council of Science 48
Technology meetings between 1986 and 2016.
Figure 3.2. Results of Technology Fields Prioritization Study of CoSTIP 56
Figure 4.1. Share of business sector in total R&D expenditure (%) 103
Figure 4.2. International scientific collaboration, 2015 119
Figure 4.3. Change in human resources in 2019 relative to EU-28 in 2012 (%) 120
Figure 4.4. Change in research systems in 2020 relative to EU-28 in 2012 (%) 121
Figure 4.5. Relationship between Business R&D Expenditures and Human Resources 122
Figure 4.6. Relationship between Intellectual Assets and Attractive Research Systems 123
Figure 4.7. Higher Education Expenditure on R&D, 2015 (as a percentage of GDP) 125
Figure 4.8. Resources and Performance of Higher Education Sector in Turkey and 126
European Union (28 countries), Panel A (as of 2010), Panel B (as of 2017).
Figure 4.9. Turkey’s performance over time according to linkage indicators of EIS 131
(in percentage)
Figure 4.10. International Bilateral Cooperations - Interactive World Map 149
Figure 4.11. Turkey’s performance according to IMD World Talent Ranking 2019 155
Figure 5.1. R&D Growth and R&D Intensity of Selected Business Enterprises 171
Figure 5.2. Venture Capital and Angel Investors Deals as of 2020 176
Figure 5.3. Government Support for R&D, in national currencies 177
Figure 5.4. GERD financed by Government 178
Figure 5.5. Government Expenditures by sectors 2018 (billions of TL, nominal) 179
Figure 5.6. Government expenditures directed to R&D in each sector 2018 180
(% share in total expenditure)
Figure 5.7. General Government Procurement as a percentage of GDP 181
Figure 5.8. Number of applications to Academic Research Funding Program (ARDEB) 189
Figure 5.9. Applications to Directorate of Technology and Innovation Support 190
Programs (TEYDEB)
Figure 5.10. ARDEB funding over the years (million TL) 192
Figure 5.11. BİDEB Funding over the years (million TL) 196
Figure 5.12. Explore Investment Program 198
Figure 5.13. Hit Program 199

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Figure 5.14. TTGV1 201

Figure 5.15. FP7 Participation (number) 204
Figure 5.16. FP7 EU Financial Contribution (million Euro) 206
Figure 5.17. H2020 Participation by cities 207
Figure 5.18. H2020 Top Turkish Organizations 208
Figure 5.19. EU Participation to and funding from H2020 209
Figure 5.20. Turkish participation to and funding from H2020 209
Figure 5.21. The new program will be implemented through three pillars 211
Figure 6.1. Challenges in research, business and policy systems 220

List of Commonly Used Abbreviations 230

  ix
x
 Preamble

Preamble
Technology Development Foundation of Turkey (TTGV) was established in 1991 in
cooperation with public and private sectors with a mission to improve the international
competitive capacity of the private sector and promoting the technology and
innovation activities in Turkey. Through its activities, TTGV, aims to ensure that the
diversity in the ecosystem is well comprehended; brings together different players
and specialties to ideate in concert and enrich the ecosystem by means of common
interests; identifies the common problems as well as the genuine needs and seeks
solutions to these problems and needs. For further information on TTGV activities and
publications, you can get an insight at https://www.ttgv.org.tr/

In line with TTGV’s #TechnologyDevelopingTurkey mission, we carry out selective

studies in the subjects aligned with the needs and objectives of the technological
innovation ecosystem. In this context; we present Research and Innovation Outlook
Turkey 2020 (RIOT) as TTGV Policy Level Publication which has been compiled by
Middle East Technical University (METU) Science and Technology Policy Studies
(TEKPOL). RIOT aims to shed light on Science, Technology and Innovation (STI)
policies in Turkey after 2015 and analyze funders as well as performers in the field
of R&D and innovation. We wish RIOT to be useful and insightful to anyone who is
interested in the dynamics of Turkish innovation ecosystem.

  1
2
 Executive Summary

Executive Summary
Turkey witnessed important changes in its governance structure in the last decade.
Transition from the Parliamentary to the Presidential system occurred in a period of
rapid technological change that creates opportunities for firms and countries. The
COVID-19 pandemic even further accelerated this process of technological change
both in terms of using science and technology to tackle problems that we face and
the pace of how governments adapt to such changes. In such a narrative this report
aims to shed light on the changes in science, technology and innovation (STI) policy
in Turkey by focusing on the changes from 2015 onwards. The performers and the
funders of Research and Development (R&D) and innovation are analyzed in detail.
This report also assesses how Turkey responds to recent trends in STI policy-making
around the world.

STI system under the new governance

structure
Turkey’s last 20 year of STI policy-making mostly focused on creating actors of the STI
system. R&D tax benefits, subsidies and other forms of horizontal support schemes
available for technology-based firms aimed at increasing the STI performance of these
actors. Part of the actor generation process included creating new actors such as
Technology Development Centers (TEKMER), Technology Development Zones (TDZ),
Technology Transfer Offices (TTO) and changing the role of already existing actors,
like how The Scientific and Technological Research Council of Turkey (TÜBİTAK)
is transformed from supporting science and scientific research to supporting R&D
and innovation processes of both universities, individual researchers, firms and
entrepreneurs. Turkey’s current per capita Gross Domestic Product (GDP) of $28,133
(purchasing power parity) is about 58% of the EU average and its R&D/GDP ratio is
1.06% compared to the EU average of 2.20%. Looking at employment in knowledge-
intensive activities as a share of total employment (22.8%), exports of high technology
products as a share of total exports (2.4%), industry value added per worker ($43,453
in 2010 constant prices) Turkey is still short of the EU average. As of 2020, Turkey is a
moderate innovator in the European Innovation Scoreboard.

In 2018 the governmental system of Turkey changed from the Parliamentary to the
Presidential system which also brought changes in the governance structure of the

  3
Executive Summary

STI system. Turkey’s STI policy has long been devised by the Supreme Council for
Science and Technology (BTYK), the Ministry of Industry and Technology (MoIT) and
the State Planning Organization (SPO, continued later as Ministry of Development).
This structure significantly changed in 2018. Ministry of Development and the highest
STI policy-making body BTYK ceased to exist in the new system. The highest STI
policy-making body is now the Council of Science, Technology and Innovation
Policies (CoSTIP) established in July 2018 under the Presidency. This new structure
is slowly penetrating into the STI actor network where the most noticeable change
is the increased role of TÜBİTAK in both making and applying policy. It is too early to
assess how the Presidential system will affect the STI system and the actor network
in Turkey.

Policy-making and new policy tools

Looking at the strategy documents, reports and the recent behavior of MoIT and
TÜBİTAK, there are six recent trends in Turkish STI policy-making.

1. It is observed that the policy-making mindset and the new policy tools are
more inclined from sector-specific to technology-specific policies.

2. There is an increasing focus on indigenous and national (technology)

production.

3. Looking at the new policy tools, there is a shift from supporting knowledge
creation to commercialization activities.

4. New policy tools for both the existing Small and Medium-sized Enterprises
(SMEs), big firms and the entrepreneurs focus on producing high-tech and
high-value-added goods and services.

5. With the effect of COVID-19 pandemic, there is an increased awareness

of what digital transformation will bring and how we can cope with the
changes.

6. Increased attention on “co-creation” in performing STI activities where “co-

creation” sometimes “forces” actors to come together.

4
 Executive Summary

If a taxonomy to classify policy tools as economic and financial benefits, regulation

and soft tools is used, it is observed that there are quite a number of new tools that
gives economic and financial benefits to firms and actors in the STI system organized
both under TÜBİTAK and KOSGEB. The initiation of Industry and Innovation Network
Mechanism Call (SAYEM), Technology Focused Industrial Movement Program
(HAMLE), Commissioned R&D call, Patent-Based Technology Transfer Support
Program organized under TÜBİTAK are important in the sense that the government
signals change in policy mindset (more selective, focused, technology specific aiming
successful commercialization). Of course, there has been unprecedent changes in
the regulations. A new policy council has been established as the highest authority
of policy-making (CoSTIP) under the Presidency. Apart from these, there has been
amendments in Law no. 5746, now Promotion of Research, Development and Design
Activities, that now includes “design” in the activities that are entitled for financial
support and tax benefits. There has also been changes in Law no. 4691 on Technology
Development Zones and Industrial Property Law no. 6769. The changes in Law no.
6698 on Personal Data Protection (KVKK) is also worth mentioning, because for the
first time digitally collected data is accepted to be “personal data” and is subject to
the rules for the protection of personal data. Turkey has never been rich in terms of
soft tools that do not give direct monetary benefits to firms. The last decade is not an
exception in this sense.

Who performs STI activities?

There are three main performers of R&D according to the Organization for Economic
Co-operation and Development’s (OECD) Frascati Manual; the business, higher
education and government. The role of business in Turkey as a performer and funder
has gradually increased in the last decade at the expense of government and higher
education sectors. In 2015, about half of the R&D activities was conducted by the
business sector. This number has reached to 64% in 2019, but it is still short of many
European countries. One particular observation is the increased role of business in
funding higher education sector research. Though the number is still small, there is
an increasing trend in the past 10 years. The share of labor costs in R&D expenditures
of the business sector is almost half of its total expenditure and the increase in labor
costs has been at the expense of capital costs. On the human capital side of R&D,
the increase in business sector R&D personnel from 2015 onwards reflected as a

  5
Executive Summary

fall in R&D personnel in higher education. Especially in terms of Full-Time Equivalent

(FTE) statistics, about 60% of the R&D personnel has been employed in the business
sector as of 2019. According to Turkish Statistical Institute (TÜİK) Innovation Survey
2016-2018, 36% of the enterprises in Turkey are innovative. The patent applications
have also increased by 25% reaching to about 23,000 in 2019. When we look at the
actor side, we see that most of the STI activities has been executed in TDZs (i.e., the
technology parks), R&D and Design Centers. There are currently 72 active technology
parks sheltering 6,364 firms with 66,615 employees, about 85% of which are R&D
personnel. There are 1,244 R&D centers that employ 66,469 R&D personnel and
364 Design Centers that employ 7,861 personnel. When we look at the international
indices, we see that Turkey ranks 61st among 141 countries in Global Competitiveness
Index 2019 where Turkey’s innovation capability is ranked better (49th) based on its
position in commercialization and R&D activities. In Global Innovation Index 2020,
Turkey ranks 51st out of 80 countries and lost ground compared to 43rd in 2017.
Doing Business Index ranks Turkey in 33rd place out of 190 countries and Global
Entrepreneurship Monitor 44th out of 137 countries. As mentioned earlier, Turkey is a
moderate innovator in the European Innovation Scoreboard. All these statistics show
that Turkey is more or less a middle-ranked country in STI activities.

On the higher education side, Turkey also gained ground in terms of increasing
the number of R&D personnel (though its share in total has fallen). Percentage of
population aged 25-34 having completed tertiary education has increased and
converged to the EU average. However, in terms of efficiency and the quality of
the workforce, Turkey has still a long way to go. New doctorate graduates per 1000
population is slowly increasing but Turkey’s performance is lower than EU average
(in terms of growth). The story is pretty much the same when we look at scientific
publications among top 10% most cited, international scientific co-publications and
foreign doctorate students. Thus, in terms of a “research system” Turkey still needs to
invest in resources to increase both the quantity and the quality of R&D employees.

Though the role of government as a performer and funder of STI activities is increasing
in absolute terms, its share within total R&D expenditures has been declining since
2011 and is currently about 9% of total R&D expenditure. It is difficult to draw the line
between the roles of the government as a performer and funder of STI activities.
The cases of the fully electric vehicle, Türkiye Otomotiv Girişim Grubu (Turkey’s
Automobile Initiative Group, TOGG) and the research infrastructures established
under law no. 6550 are good examples. The initiation and the seed fund have come
from the government in both cases, but in statistical terms government is not the

6
 Executive Summary

performer. Apart from few examples such as the Institute of Health Data Research and
Artificial Intelligence Applications (TÜSEB) organized under the Ministry of Health and
R&D Centers of Ministry of Agriculture and Forestry, almost all government activity in
STI as a performer is organized under TÜBİTAK. There are 8 R&D Units and 3 R&D
Support Units organized under TÜBİTAK. These units generate about $750 million
revenue. Most of these R&D units are heavily funded by the government. Marmara
Research Centre (MAM), Informatics and Information Security Research Centre
(BİLGEM), Defense Industry Research and Development Institute (SAGE) and Space
Technology Research Institute (UZAY) differentiate from others both in terms of scale,
the amount of government funding they receive and the revenue they generate. At
the end of 2019, Institute of Rail Transport Technologies was established as another
R&D Unit under TÜBİTAK.

One of Turkey’s weaknesses in terms of STI activities is cooperation and collaboration

activities. Though there are various policies and mechanism of cooperation and
collaboration under university-university, university-industry and industry-industry
relations, several international indices (e.g., Global Innovation Index, Global
Competitiveness Index, European Innovation Scoreboard) report a degrading position
for Turkey (compared to other countries) in STI cooperation activities. Most policy
tools in Turkey initiates and enables cooperation and collaboration, but do not really
drive cooperation and collaboration. This also seems to be changing with new policy
mechanisms like SAYEM of TÜBİTAK. The “co-creation” trend is slowly emerging.

One particular issue for Turkey that has taken great attention is the talent drain
problem. World Talent Ranking 2019 shows that Turkey decreased by 7 places
and now ranks 58th among 63 countries. According to this index, Turkey is losing
grounds in all subindices that measures the investment in and development of home-
grown talent, the extent to which a country taps into the overseas talent pool and
the availability of skills and competencies in the talent pool. According to Turkish
Statistical Institute (TÜİK) data, 1,085,807 people have left Turkey between 2016 and
2019, about 400,000 of whom are Turkish citizens. In 2019, foreign national emigrants
constitute three fourth of the total emigration from Turkey. Two out of every five
people who leave Turkey are in the 20-34 age range. What is more staggering is that,
when emigration and immigration numbers are compared for the 20-44 age category
within total, there is a difference of 10 percentage points almost every year (share of
20-44 age category in emigration is higher than immigration) indicating that three fifth
of the immigrants are leaving Turkey for mostly work and education reasons, which is
a rough indication of talent drain vis-a-vis immigration. There are only a few programs

  7
Executive Summary

that aim to reverse this trend, one of which is TÜBİTAK’s International Fellowship for
Outstanding Researchers Program with its new format announced in 2018. As a result
of the first phase, 127 leading scientists and researchers from 21 different countries,
29 of whom are foreign nationals were supported.

Who funds STI activities?

It has been already stated that business sector increased its dominance in both
performing and funding of R&D activities. Compared to 2015, the role of government
as a funder has slightly increased (share in total funds rose from 27.6% to 29.4% in
2019). Business sector share as a funder has also increased and reached 56.3% in
2019. These numbers are very close to EU average, but the share of business is
slightly higher and the share of government is slightly lower in EU. Central government
budget appropriations and outlays on R&D (GBOARD) are almost four times higher
today, compared to 2011 (in nominal terms. In US dollar terms it is stable around $3
billion). Direct and indirect R&D support was about 21 billion TL in 2019. The average
GBOARD in Turkey (about 0.35 of GDP) is lower than EU average (about 0.65 of
GDP). In terms of euro values, direct government budget allocations to R&D have
increased by 15% since 2011 and indirect supports have increased by 175%. Turkey is
catching up especially in terms of indirect R&D supports. Turkish government started
to increasingly use public procurement to support innovation activities. According
to TÜİK Innovation Survey statistics (2014), about 2% of firms undertake innovation
activities required as a part of public procurement contract which places Turkey in
the 4th position after Norway, Iceland and Finland. Given the high-tech focus in niche
areas and governments’ defined role in official strategy documents, it is expected that
the government’s direct and indirect R&D support will increase in the future.

Total GERD funded by business enterprises are mostly performed by business

enterprises – covering more than 98% of total GERD financed by business enterprises.
Business has also increased its role in financing higher education research (though
still very low). The top 5 firms (based on to R&D expenditure) spent €422 million
in 2014. This number has been reduced to €328 million in 2019. The average R&D
intensity of the big five has also been reduced. Of course, these numbers are very
low compared to R&D giants in the world. To give an idea, the levels of the total
R&D expenditure of Ford and TOFAS in Turkey is 1% of the total R&D expenditure of
Volkswagen.

8
 Executive Summary

On the entrepreneurship side, the developments are much positive in terms of

increased government funding, venture capital and angel investor funding. In 2020,
165 Turkish start-ups raised a record of $139 million. From 2011 on, angel investor
and venture capital funding has reached a total of about $750 million. In the past five
years, a total of 731 firms have raised on average about $700,000. The corporate
venture capital investment has also increased. It has reached to about $15 million
(average for 2018-2020) from nearly zero in 2012. The purchase of Peak Games by
Zynga for $1.8 billion has produced the first Turkish unicorn in 2020 and short after
getir has been announced the second unicorn from Turkey.

On the higher education side, the EU Framework Program will continue to be a

funding source for research and innovation activities. In the FP7, Turkey received
€196 million which accounts for 0.4% of total European Commission (EC) contribution.
Turkey’s Horizon 2020 performance was much better. Since 2014 Turkey has
contributed €265,.8 million to EU H2020 programs and for the first time net EU
contribution surpassed (€267,1 million) Turkey’s contribution. There is less work on
the side of non-profit sector as a funder, except Technology Development Foundation
of Turkey (TTGV). TTGV has a variety of funding options on almost the entire process
of innovation from R&D, seed-funds to commercialization and scaling.

Recent trends in STI policy-making

There are five recent trends in STI policy-making.

1. The policy tools are moving towards selecting technologies, niche areas,
even products. Thus, the policies are more selective moving away from
horizontal policies that aim a general stock of firms.

2. Since the problems are becoming complex, the technological solutions to

such problems are also becoming complex and may encompass a wide
array of sectors and disciplines of science. In such case, the policy mix that
are composed of various policy tools are increasingly used.

3. Complex technological solutions and coping with grand challenges

necessitate an active role for government in creating technologies and
markets as opposed to a more regulative role.

  9
Executive Summary

4. Public procurement for innovation as a tool of demand side policies to spur

innovation is increasingly being used by the governments around the world.

5. Mission-oriented as opposed to diffusion-oriented policies are in rise

especially with the recent attempt of the EU in moving towards creating
missions. The most recent example is the new FP 2021-27, Horizon Europe,
that is designed and organized in a mission-oriented policy setting.

When the six recent trends in Turkish STI policy-making (see the section above,
Policy-making and new policy tools) is analyzed together with the five recent trends
in STI policy-making around the world, one can say that Turkey is following the trends
towards using selective policies, policy-mixes and public procurement to support
innovation. Turkey’s STI policy has also become selective and policy mixes are
increasingly being used (for instance, supporting technology production in renewable
energy). Especially in the last decade, Turkey also engaged in public procurement
for innovation trend but of course there is a long way to go. There are also signs
for an active government in creating technologies and markets, the case of TOGG,
the establishment of Turkish Space Agency, the research and innovation efforts of
TÜBİTAK R&D Units and the establishment of Directorate of Indigenous Technology
under MoIT could be examples towards a more active government. However, such
attempts are not organized and currently relates to few products (e.g., TOGG, a
number of defense industry products). It would not be wrong to say that Turkey has no
organized attempts in terms of mission-oriented policies. Especially in the case of an
active government, policy-mix and mission-oriented policies for spurring innovation
and developing technological capabilities, the government has to pass to a new mode
that requires huge research and innovation finance, sustainability in policy-making,
coordination between government units and dynamic capabilities in the government.
Turkey needs to develop in all of the four areas above.

Challenges of the Turkish STI system

The review of the recent policy initiatives shows that Turkey needs to take significant
steps to enhance its STI capabilities. This is crucial for escaping from the mid-
technology trap that prevents Turkey to produce and export high value-added
products and services. The existence of relevant bodies that design and implement

10
 Executive Summary

policies towards STI and entrepreneurship is an important asset. However, the

underperformance of Turkish STI system indicates that the allocation of roles
among actors (particularly in governmental bodies) should be reviewed. Besides,
the abundance of policy papers, which recite identical or very similar measures, and
overlapping funding programs point to a lack of communication and coordination
This should be improved and all stakeholders within the quadruple helix (university,
industry, government and civil society) should be represented in policy-making. The
lack of systematic policy assessments prevents the design of more effective and
influential policies. The completed and ongoing policies and programs should be
assessed, and the results of these studies should be shared with the public and used
to shape both new and ongoing policy initiatives. In addition, STI policies should be
prepared and implemented in coordination with other policy areas such as education,
industry, and trade.

The need to improve human capital has always been on the agenda of the Turkish
government. However, further efforts and diversified measures are needed to improve
human resources in a way that the absorptive capacity of companies is enhanced, the
quantity and quality of researchers are increased, and the changing demand of new
technologies such as automation, AI, and biotechnology is met. The low quality of
education at all levels should be addressed in parallel with the observed increase in
enrolment rates.

The weak collaboration and interaction among the innovation system actors,
particularly between university and industry, appear as one of the most important
challenges. The creation and improvement of interface structures (TDZs and TTOs,
etc.) were crucial steps in this regard and helped creating scale and awareness. Yet, the
policies should move beyond creating interfaces and focus on creating collaborations.
To cope with the cultural and institutional factors that hamper collaboration, specific
policies should be designed to initiate or drive collaborations in priority (or niche)
areas and create scale that such practices diffuse. Practices covering horizontal as
well as vertical collaboration and open innovation applications should be encouraged.
The establishment of research infrastructures open to all users, support for cluster
activities, and shared labs in some TDZs are promising activities. Yet, this progress
should be improved with other types of open innovation applications such as living
labs and technology platforms that get all stakeholders including users and enhance
interaction among them. In short, the mindset of “give me money to do innovation”
should be transformed into “provide me the environment to do innovation”. The policy
makers could start to signal such a transformation.

  11
Executive Summary

In addition to the problems regarding regulatory and business environment, the

underdeveloped Venture Capital (VC) and business angel markets may negatively
affect technology-based entrepreneurship. The private investments in VC markets are
low, and most of the VC funds and business angels in Turkey invest only in the seed
and Series A rounds of a start-up. There is now a stronger need from International
Financial Institutions (IFI) to sustain funding to the VC funds that will invest in innovative
start-ups. Moreover, the need for growth stage VC funds and Series B and later stage
investment rounds to increase the scale of innovative start-ups should be addressed.

Turkey needs to increase not only the diversification of its exports, but also the number
of sophisticated (or core) goods and services in its export basket. R&D and innovation
capabilities of the private sector, particularly of Micro Small and Medium-Sized
Enterprises (SME) needs to be increased. It is important to conceive and implement
specific policies for enhancing learning capabilities and absorptive capacities of
the firms. In addition to firms that operate in high-technology fields, the innovation
capabilities of the firms in low- and medium-technologies should be escalated. In
this regard, the non-technological innovation (organizational, marketing, etc.) needs
should also be promoted.

Both the central government and local administrative units should apply well-defined
technology adoption and diffusion policies for innovative products besides the
tools used for public procurement of innovation to enhance the domestic demand
for innovative products and services. The size and sophistication of the market are
important factors for encouraging companies to innovate and attract Foreign Direct
Investment (FDI). Although there has been an important progress towards the use of
public procurement to promote innovation, these efforts should be supplemented by
long-term plans. Research activities could be integrated with long-term procurement
plans.

There is a need to enhance regional capabilities through focusing on regional strengths

and weaknesses and paying attention to the role of low- and medium-technologies and
non-technological innovations. In Turkey, the same menu of incentives and supports
are presented in all regions. There should be specific supports in accordance with
regional needs. The first step could be preparing mapping of needs and regional
innovation strategies in accordance with the smart specialization framework.

Turkey’s current story in STI policy-making is creating an environment (actors,

financing, intermediate organizations, entrepreneurs, support personnel) that
enables research and innovation activities to flourish. In accordance with this story,

12
 Executive Summary

in the last two decades the STI policy-making in Turkey created many nodes (actors:
entrepreneurs, firms, intermediate organizations, new public institutions) but little
interaction. Following complex policy trends such as an active government mode,
policy-mixes and mission-oriented policy requires good interactions among actors
as well as dynamic capabilities on the government side. In this manner, Turkey’s STI
policy-making needs a new story that focuses on creating interactions between the
actors to sustain and further develop the STI system. The general policy prescription
in this sense is to design and implement policies that aims at the interaction between
actors rather than the actor itself.

  13
1

14
 1. Introduction

1. Introduction
In the last decade Turkey has witnessed important changes in its governance
structure. Transition from the Parliamentary to Presidential system occurred in a
period where technological advancements created many opportunities for firms and
countries and economic structure slowly adapts to such opportunities. The COVID-19
pandemic brought rapid change both in terms of using science and technology to
tackle problems that we face and the pace of how governments and countries adapt
to such changes. In such a narrative, this report aims to shed light on the changes in
science, technology and innovation (STI) policy in Turkey in the last decade focusing
on the changes from 2015 onwards. Viewing the network of STI-related actors,
infrastructure, physical and human capital and investment as a system and using the
OECD’s Frascati and Oslo Manual framework of collecting and presenting R&D and
innovation data, this report studies the performers and funders of STI activities as well
as the recent changes in STI policy in Turkey.

This report is composed of 6 chapters. In the second chapter actors in the STI system
in Turkey are analyzed focusing on the recent change in the governance structure and
how the STI system is organized under Presidency. The following chapter investigates
the recent STI policy changes in Turkey, providing details of new policy tools from
2015 onwards. Third chapter also includes a detailed account of the recent changes
in STI-related laws and regulations. Fourth chapter investigates the performers of
R&D and innovation activities in Turkey using the Frascati and Oslo Manual framework
on actors (business, higher education sector and the government). This chapter also
includes cooperation and collaboration activities among the performers and a short
section on talent drain which is a burning issue in Turkey. Chapter 5 looks at STI
activities from the funder’s side and includes a detailed account of the government
involvement in funding STI activities. Information on international funds focusing on
EU Framework Programs as a funder of research activities in Turkey is also provided.
The final chapter concludes by looking at the recent trends in science and technology
policy around the world and how Turkey adapts to such changes. Chapter 6 also
includes a short discussion on recent changes in Turkey’s policy towards STI, drawing
from earlier reports such as the Research and Innovation Observatory (RIO) country
report for Turkey.

After a brief summary of the background and performance of the Turkish STI system,

  15
1. Introduction

especially in the last decade, Chapter 2 presents a list of national studies, reports and
documents on STI. Then it gives a full account of the actors in the STI system focusing
on the change in the government structure. The former and the new government
structures are compared and the STI-specific actors are further detailed. This chapter
includes a short description of governmental and non-governmental STI system actors
under the Presidential system. The roles of these actors in policy-making, performing
and funding R&D and innovation activities are discussed in the following chapters.

Chapter 3 discusses the recent changes in policy-making from both the governance
angle and the mindset. Turkey’s STI policy has long been devised by the Supreme
Council for Science and Technology (BTYK), the Ministry of Industry and Technology
(MoIT) and the State Planning Organization (SPO). This structure significantly changed
in 2018. SPO, Ministry of Development and the highest STI policy-making body BTYK
ceased to exist in the new system. The current highest STI policy-making body, the
Council of Science, Technology and Innovation Policies (CoSTIP) is established in July
2018 under the Presidency. The chapter, then, discusses six recent trends in Turkish
STI policy-making: sector specific to technology specific focus, indigenous & national
(technology) production, policy shift from knowledge creation to commercialization,
high-tech high-value-added focus, preparing for digital transformation and co-
creation in performing STI activities. The chapter details new policy tools under three
broad groups: economic and financial incentives, regulation and soft policy tools. This
chapter also includes a very detailed discussion on the recent changes in laws and
regulations related to STI policy-making.

Chapter 4 looks at the STI system from the performer side. There are three main
performers of R&D and innovation activities in Turkey: the business, higher education
and government. This chapter presents a detailed account and statistics on each
of these sectors and especially actors in the business sector. It also includes a
short discussion on Turkey’s position in international indices such as the Global
Competitiveness Report, Global Innovation Index, Doing Business Index and European
Innovation Scoreboard. Chapter 4 includes separate sections on two other topics that
are related with the performance and the performers of STI activities. The first one
is the cooperation and collaboration activities of actors in the STI system. Various
policies and mechanisms of cooperation and collaboration are discussed under
university-university, university-industry and industry-industry relations. Secondly,
talent drain and the migration of skilled labor force are burning issues in Turkey
especially in relation to STI actors. Thus, this chapter also covers statistics regarding
the current position of Turkey in relation to migration of skilled people and policies
directed at the talent drain problem.

16
 1. Introduction

Chapter 5 investigates the funders of STI activities in Turkey. Business sector has
become a major player in STI activities both as a performer and funder. However, the
government, through direct and indirect supports, also plays a vital role in funding
of such activities. This chapter includes information on the funding mechanisms in
Turkey scattered around different government and non-governmental organizations
such as the Scientific and Technological Research Council of Turkey (TÜBİTAK), MoIT,
Small and Medium Enterprises Development Organization (KOSGEB) and Technology
Development Foundation of Turkey (TTGV). Chapter 5 also includes a section on
international funding to scientific activities where Turkey’s performance in European
Union’s Framework Programs (especially FP7 and Horizon 2020) is discussed.

The final chapter briefly summarizes how Turkey responds to recent trends in STI
policy-making around the world. Chapter 6 introduces five of such world-wide trends:
more selective and focused policies rather than horizontal policies, use of policy-mix
rather than policy tools, the increased role of government in supporting technology
development, the importance of public procurement for innovation, and the rise of
mission-oriented policies. For each of these trends Chapter 6 briefly discusses where
Turkey stands. This final chapter also elaborates the findings of this report taking stock
of earlier reports on the STI activities in Turkey such as the Research and Innovation
Observatory (RIO) Country Report for Turkey and various others. In the light of existing
analytical works and main indicators related to Turkish STI system, the following STI
challenges have been identified:

• Skilled and sustainable human capital growing mechanisms

• Effective and efficient commercialization for university research output

• Increasing survival rates for high-growth innovative start-ups

• Increasing R&D and innovation capabilities of the private sector

• Increasing demand for innovation and improving the conditions for the
uptake of innovations

• Fostering university-industry collaborations on priority and focused areas

• Strengthening the entrepreneurship ecosystem for VC and business angel

industry

  17
1. Introduction

• Strengthening regional innovation capabilities and overcoming regional

disparities

• Supporting open innovation ecosystems

• Improving coordination of innovation policies

• Scarcity of systematic and periodic studies for impact evaluation and

enhancing the knowledge base for evidence-based policy making

• Adaptability of private sector to digital transformation, especially Micro

SMEs

• The harmony among different innovation systems

• Policies regarding the nature and society

18
1. Introduction

  19
2

20
 2. Actors and The Science, Technology and Innovation (STI) System

2. Actors and The Science,

Technology and Innovation
(STI) System

2.1. Background of Turkish STI System

Turkey is an upper middle-income country with a per capita income level of $28,133
(purchasing power parity, PPP) as of 2019, implying 58.8% of the EU average. Despite
several geopolitical headwinds and a number of adverse shocks in the recent years,
average growth rate was realized as 4.1% during the last five years (2015-2019). In this
period, while the share of industry and services sectors in Gross Domestic Product
(GDP) has increased, the share of agricultural sector has diminished gradually. While
the share of agriculture was 6.4% in 2019, the shares of industry and service sector in
GDP were 21.9% and 61.7%, respectively.

Turkey’s population is 83 million with a median age 32.4, where working age
population accounts for 67.8% (population between 15-64). The population growth
rate has decelerated to 0.139% compared to previous years.

Turkey is highly integrated with the European Union (EU) market through trade and
investments and has made progress to cope with competitive market forces within
the EU. Some advances were realized in research and development (R&D) spending,
education sector and physical capital infrastructure. On the other hand, R&D
personnel, employment in high and medium-high technology manufacturing sectors
and employment in knowledge intensive activities are still growing, yet they are
still short of EU average. Full-time equivalent (FTE) R&D personnel in private sector
increased 2.79 times since 2009. Important STI statistics for Turkey is presented in
Table 2.1.

  21
2. Actors and The Science, Technology and Innovation (STI) System

Table 2.1. R&I Indicators for Turkey

EU 27 avr.
Indicator 2005 2010 2015 2016 2017 2018 2019
(2019)
GDP per capita (€) 5,897 7,972 9,906 9,852 9,409 8,148 8,287 31,279
GERD (million €) 2,287 4,642 6,814 7,370 7,245 6,752 7,228 307,845
GERD as % of the
0.57 0.80 0.88 0.94 0.96 1.03 1.06 2.20
GDP
GERD (EUR per
33.6 64.0 87.7 93.6 90.8 83.5 88.1 688.7
capita)
R&D personnel
(FTE) as a
0.24 0.33 0.42 0.46 0.50 0.55 0.58 1.40
percentage of active
population
Employment in high
and medium-high
tech. manufacturing --- 3.0 3.3 3.3 3.3 3.5 3.6 6.2
sectors as a share of
total employ. (%)
Employment in total
knowledge-intensive
activities as a share --- 18.3 20.5 21.6 21.2 24.2 25.8 39
of total employment
(%)
Exports of high
technology products
--- 2.0 1.9 1.9 2.9 2.4 --- 17.9
as a share of total
exports (%)
Manufacturing value
16.9 15.1 16.7 16.6 17.6 19.0 18 14.0
added (% of GDP)
Industry value added
per worker (constant, 30,287 32,144 39,770 41,123 43,689 43,453 44,427 73,693
2010 USD)

Sources: Turkstat, Eurostat, World Bank (World Development Indicators). GERD: Intramural R&D
expenditures (all sectors). FTE: Full time equivalent. GERD: Gross Expenditure in R&D. FTE: Full time
equivalent. GDP: Gross Domestic Product. GDP per capita is calculated as GDP in current prices (millions
of €) divided by population 1st of January. The definitions of active population, human resources in S&T,
high and medium-high technology and knowledge-intensive activities are available from Eurostat.

22
 2. Actors and The Science, Technology and Innovation (STI) System

In 11th Development Plan, Turkey set its R&D expenditure on gross domestic spending
target as 1.8 for 2023 (see Table 2.2). This ratio was 0.82 in 2013, which then was
targeted to be 2.00 in 2023. Similarly, the expected R&D expenditure as a percentage
of GDP in 2018 was 1.8 but it actually occurred as 1.03. Turkey has the largest gap
between the target and the realized ratio compared with 35 OECD countries. Although
the targets have not been achieved, it is an important milestone for Turkey to exceed
the critical point of %1 GERD to GDP ratio and %50 of private sector share in total R&D
expenditure. Figure 2.1. shows the gross domestic spending on R&D for Turkey from
2000 onwards (in red), where the black line indicates the OECD average and grey
lines show various countries.

Figure 2.1. R&D Expenditure on gross domestic spending for Turkey

3.5

3.0

2.5 2.475
2.355 2.419
2.179 2.247 2.291 2.252 2.282 2.275 2.301 2.322 2.313 2.312
2.098 2.135 2.111 2.116 2.089 2.119 2.148
2.0

1.5

1.02 1.064
1.0 0.938 0.953
0.804 0.794 0.794 0.826 0.812 0.856 0.877
0.686 0.687
0
0.468 0.522 0.509 0.465 0.497 0.564 0.553

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Turkey OECD average

Source: OECD Science, Technology and R&D Statistics: Main Science and Technology Indicators

  23
2. Actors and The Science, Technology and Innovation (STI) System

Table 2.2. 11th Development Plan 2023 targets

2018 2023
R&D expenditure on gross domestic spending (%) 1.03 1.80
FTE R&D Personnel 172,000 300,000
PhD and above FTE R&D personnel per million people 352* 863

Note: * denotes 2017 data

When the R&D expenditure is analyzed in terms of sectors and financers in Figures
2.2 and 2.3 respectively, it is seen that the business sector constitutes the highest
share in expenditure and finance (see also Table 2.3). R&D law put into action in 2008
and new government support and funding mechanisms, especially by The Scientific
and Technological Research Council of Turkey (TÜBİTAK) may explain this trend. After
the changes in the R&D law in 2016, this trend is expected to continue in favor of the
business sector. Business sector’s main R&D activity is on manufacturing technologies
with 59% of total business R&D expenditures, followed by the ICT technologies with
a share of 27%.1

Table 2.3. R&D expenditure in sectors and by financers in 2019

R&D expenditures by
R&D expenditure in sectors financers
Amount
Amount (millions of % (millions of %
euro)* euro)*
Private sector 4,077.50 64.19 4,077.50 56.34
Higher Education Institutes 2,124.07 29.18 924.65 12.77
Government 729.98 6.62 2,124.07 29.35
Foreign - - 134.75 1.34

Source: TÜİK. *Constant, 2019 average euro exchange rate: 6.35 TL

1. Calculated from the data available at www.tuik.gov.tr.

24
 2. Actors and The Science, Technology and Innovation (STI) System

Figure 2.2. R&D expenditures by sector of performance

80
% share in total R&D expenditures

70

60

50

40

30

20

10

0
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019
Business Governmnet Higher Education

Source: TÜİK

Figure 2.3. R&D expenditures by source of finance

60
% share in total R&D expenditures

50

40

30

20

10

0
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Business Governmnet Higher Education Abroad

Source: TÜİK

  25
2. Actors and The Science, Technology and Innovation (STI) System

2.2. Performance of Turkey’s STI System

Turkey has made progress on STI capacity building in the last 10 years. As presented
in section 2.1, R&D expenditure, FTE R&D personnel and business involvement in R&D
has grown steadily. Increased entrepreneurship activities and finance options, use of
ICT competency and skills in national education programs and encouraging broader
participation in STI policy design are important highlights of the Turkish STI system.

According to European Innovation Scoreboard 2020, Turkey is regarded as a

Moderate Innovator. The performance is better than that of in 2012. Turkey performs
better compared to EU average in indicators measuring innovators, firm investments,
and innovation-friendly environment which are the strongest innovation dimensions.
Especially non-R&D innovation expenditures and SME’s product/process, marketing
and in-house innovation indicators are above EU average. This indicates a developing
system for innovation in Turkey where SMEs constitute more than 99% of the private
firms. However attractive research systems, intellectual assets and employment
impacts are the weakest innovation dimensions of Turkey. As compared to 2012 scores,
in 2020, Turkey underperformed in finance and support indicators and sales impact
due to decrease in R&D expenditure in the public sector and decreased sales of new-
to-market and new-to-firm innovations. There is also a decrease in the indicators of
enterprises providing ICT training, the scientific publications among top 10% most cited
publications worldwide and design applications compared to 2012. Detailed information
about STI funders and performers are given in sections 4 and 5 respectively.

Figure 2.4. Innovators in G20 countries as a percentage of manufacturing firms

60
50
40
(%)

30
20
10
0
Fed.
Canada

Germany

Italy

Australia

Argentina

UK

France

China

USA

Indonesia

Japan

Turkey

Brazil
Rep. of
Korea
South
Africa
India
Russian

Mexico

Product innovators Process innovators Organizational innovators Marketing innovators

Source: UNESCO Institute for Statistics, April 2017

26
 2. Actors and The Science, Technology and Innovation (STI) System

When the performance and structure of the economy is considered, as of 2018,

service sector constitutes nearly one-third of the employment. Knowledge intensive
activities’ share in service sector is 25% (EU average 39%). The manufacturing
activities’ share of employment is 18% where employment in high and medium-high
manufacturing technologies in total employment is 3.6% which is below EU average of
6.3%. Innovation is higher in organizational and marketing activities of manufacturing
sector, which necessitates less R&D compared to product and process innovations.
Figure 2.4 compares the share of manufacturing firms according to innovation types
in G20 countries. Product and process innovators constitutes approximately 20% of
all manufacturing firms in Turkey.2

Initiatives on Turkish Research Area (TARAL) and strategy documents which are
introduced below are important to understand the background of current Turkish STI
system.

2.3. TARAL and ARBİS (Researcher

Database)
TARAL (Turkish Research Area) is a public investment initiative put into action in 2004
in order to gather the resources and strategically guide system actors (business
enterprise and public sectors, together with Non-Governmental Organizations,
NGOs) to collaborate in R&I activities. It is a conceptual integrity that enables science,
technology and R&D activities to be carried out within a strategic framework to create
synergies. Since TARAL, national STI strategy and implementation plans and budget
are coordinated systematically. In 2017, more than half of the government expenditure
on technology activities were used from TARAL budget. TARAL budget includes
Scientist Training and Development Program, Industry R&D Support Program, Science
and Technology Awareness Program, Academic and Applied R&D Support Program,
Defense and Space R&D Support Program, Public R&D Support Program and EU
Project Award, most of which are implemented by TÜBİTAK.

TARAL triggered a particular kind of mobilization, both in terms of resources and

in guiding system actors towards socio-economic goals, which continues to be
instrumental in Turkish STI system. To make such a mobilization possible, TARAL
targets were determined as bolstering:

2. G20 Innovation Report 2016, OECD

  27
2. Actors and The Science, Technology and Innovation (STI) System

• the share of R&D expenditures in Gross Domestic Product (GDP),

• the demand for R&D,

• the number of qualified R&D personnel.

Researcher Information System (ARBİS) is a web-based application designed by

TÜBİTAK in order to create an up-to-date researcher database of Turkey. It has been
in use since 2004. Researchers from public institutions, industry and academia, both
in Turkey and abroad, register to the system and provide information on areas of
interest, publications, patents, projects and other sorts of scientific activities. The
main aim of ARBİS is to reach researchers working in various governmental and
non-governmental organizations as well as private firms and universities. With the
increasing number of researchers using the database, important statistical data is also
collected which is then used for the design and even implementation of R&I policies.

TÜBİTAK Research Infrastructure Information System (TARABİS) is another web-

based application designed by TÜBİTAK aiming to create a database for machine/
system/device stock related to research, experimental development, test/analysis,
diagnosis activities and R&D project. By means of TARABİS, it is possible to obtain
coded information about features, location, and capacity of machine/system/device
related to research, experimental development, test/analysis, diagnosis activities and
industrial business line in which this potential could be used along with the products
and technologies developed.

2.4. Important National Studies, Reports

and Documents on STI
In this section of the report, a brief summary of important national STI strategy
documents and main results from these documents are given. These documents
not only explain the economic rationale of the policies implemented, but also show
the capacity of the STI system in Turkey, its development and the trajectory. The
documents are all interrelated and complement each other to accomplish predefined
policy and aim. The details and the outputs of such strategy documents will further be
discussed in chapter 3 when analyzing the STI policy changes in the past few years.

28
 2. Actors and The Science, Technology and Innovation (STI) System

The most important STI document in Turkey is Vision 2023 Project, which was
conducted in 2001. It is a big project composed of many sub-projects including human
capital, research infrastructure and technology foresight studies.

In national STI strategy documents for the periods of 2005-2010 and 2011-2016, R&D
and innovation capacity and need-oriented approaches are set for short-term targets
with funding mechanisms and programs structured accordingly.

S&T Human Resources Strategy 2011-2016 is also an important study that was carried
out to set policies for both increasing the number and improving the sectoral and
occupational distribution of the R&D personnel.

Entrepreneurship activities constitute an important element of Turkey’s STI system. A

special study, the Entrepreneurial and Innovative University Index is carried out every
year by TÜBİTAK. Also, Entrepreneurship Information System (GBS) is coordinated by
Ministry of Industry and Technology (MoIT) to guide and monitor the rapidly developing
entrepreneurship ecosystem.

Technology Prioritization Study 2019 reveals an important political change in the STI
system that the sector-specific funding mechanisms are transformed to technology
specific funding mechanisms (see section 3.1.1).

There are also special studies for industry and industry-government collaborations
to accelerate the growth performance attained so far. The Technology Transfer
Accelerator Turkey (TTA Turkey) - an initiative managed by European Investment
Fund (EIF) – was another program aimed to commercialize applied research output
of universities and scale up the technology transfer market in Turkey, with a particular
focus on spillovers to less developed regions. The program, that launched in 2014
and ended in 2017, had capacity and business development studies that were put
into action to create a working technology transfer system covering all stakeholders
in Turkey. A non-exhaustive list of official documents that are relevant to the Turkish
STI system for the last five years are presented below. Policy aim changes throughout
this period can also be traced within these documents.

• Vision 2023

• National STI Strategies (UBTYS) 2011-2016

• 10th Development Plan 2014-2018

  29
2. Actors and The Science, Technology and Innovation (STI) System

• 11th Development Plan 2019-2023

• The New Industrial Revolution: Smart Production Systems Technology

Roadmap

• Turkey Public-University-Industry Cooperation Strategy and Action Plan

2015-2018

• Turkey Biotechnology Strategy Document and Action Plan 2015-2018

• Turkey Entrepreneurship Strategy and Action Plan 2015-2018

• National Cyber Security Strategy and Action Plan 2016-2019

• Turkey Software Strategy and Action Plan 2017-2019

• National Broadband Strategy and Action Plan 2017-2020

• 2023 Digital Turkey Roadmap

• Information Society Strategy and Action Plan 2015-2018

• Action Plan / National Employment Strategy 2017-2019

• Roadmap Document for The Protection of Critical Infrastructures 2014-2023

• Turkey Industrial Strategy Document 2015-2018

• Turkey Textile, Apparel and Leather Products Sectors Strategy Document

and Action Plan 2015-2018

• National Geographical Indication Strategy Document and Action Plan 2015-

2018

• National Intellectual Rights Strategy Document and Action Plan 2015-2018

• National Metrology Strategy and Action Plan 2015-2018

• Productivity Strategy and Action Plan 2015-2018

• Science and Technology Human Resources Strategy 2011-2016

• SME Strategy and Action Plan 2015-2018

• Technology Prioritization Study 2019

30
 2. Actors and The Science, Technology and Innovation (STI) System

• Turkey Automotive Sector Strategy and Action Plan 2016-2019

• Turkey Software Industry Strategy and Action Plan 2017-2019

• Turkish Pharmaceutical Sector Strategy Action Plan 2015-2018

• National Recycling Strategy Document and Action Plan 2014-2017

• Design Strategy Document and Action Plan 2018-2020

After giving a brief information about the history, the capacity and the development of
the system, the main actors and their roles in the STI system is discussed in the next
section.

2.5. The STI System and its Actors in Brief

After the 2018 elections, the structure of the government has changed significantly
from Parliamentary to Presidential system. The former and new government structure
and changes on governmental bodies are shown in Figure 2.5. The change in
affiliations of the organizations through Ministries and their relations are displayed in
colors. The most important change is the formation of a new Council for STI policies
which directly reports to the President and is responsible for the central coordination
of all STI activities. The recent changes in STI policies are discussed in section 3.

  31
2. Actors and The Science, Technology and Innovation (STI) System

Figure 2.5. The Former and New Governmental Structure

Before Presidential System After Presidential System

President President
PM
BTYK CoSTIP
MoSIT MoIT
TÜBİTAK TÜBİTAK
KOSGEB KOSGEB
TPE TPE
TÜBA TÜBA
TSE TSE
RDA
MoF MoTF
UoT TÜİK

MoNE MoNE
MoD SBB
RDA
TÜİK
MoCT MoT
MoND MoND
SSM SSB
MoH MoH
TÜSEB
MoFA MoFA
TÜRKAK TÜRKAK
MoENR MoENR
MoFAL MoAF
MoTr MoTI
YÖK YÖK
Universities Universities

BTYK Supreme Council of Science Technology and Innovation MoTI Ministry of Transport and Infrastructure
CoSTIP Council of Science Technology and Innovation Policies MoTr Ministry of Transport
KOSGEB Small and Medium-Sized Enterprises Development PM Prime Minister
Organization RDA Regional Development Agencies
MoAF Ministry of Agriculture and Forestry SBB Presidency of Strategy and Budget
MoCT Ministry of Customs and Trade SSB Presidency of Defense Industries
MoD Ministry of Development SSM Undersecretariat of Defense Industries
MoENR Ministry of Energy and Natural Resources TPE Turkish Patent Institute
MoF Ministry of Finance TSE Turkish Standards Institute
MoFA Ministry of Foreign Affairs TÜBA Turkish Academy of Sciences
MoFAL Ministry of Food Agriculture and Livestock TÜBİTAK Scientific and Technological Research Council of
MoH Ministry of Health Turkey
MoIT Ministry of Industry and Technology TÜİK Turkish Statistics Agency
MoND Ministry of National Defence TÜRKAK Turkish Accreditation Agency
MoNE Ministry of National Education TÜRKPATENT Turkish Patent and Trademark Office
MoSIT Ministry of Science, Industry and Technology TÜSEB Health Institutes of Turkey
MoT Ministry of Trade UoT Undersecretariat of Treasury
MoTF Ministry of Treasury and Finance YÖK Higher Education Council

32
 2. Actors and The Science, Technology and Innovation (STI) System

In Figure 2.6, national STI system of Turkey is presented. In this new structure, the
main policy-making body on STI activities is the Council of Presidency Science
Technology and Innovation Policies (CoSTIP), which works as an advisory board to the
President. The Council is composed of representatives from public bodies, industry,
academia and NGOs. The public bodies may also take part in policy-making through
their representatives in the council. The council gives policy recommendations to
the President and is also responsible for monitoring and reporting the implemented
activities to the President.

TÜBİTAK, which provides technical support to the Council, Presidency of Strategy and
Budget (SBB) and Ministry of Industry and Technology (MoIT) are the other important
policy-making bodies working together with the Council.

Figure 2.6. Actors of Turkey’s STI System

President
Policy
Maker Presidency of Council of Presidency Ministry of
Strategy and Science Technology and Industry and TÜBİTAK
Budget Innovation Policies Technology

Ministry Ministry of Ministry Ministry of Ministry Ministry Ministry of

Policy of Energy Agriculture of Treasury Ministry Industry of of Ministry Ministry Transport
Implementer and Natural and and of and of and
National National of Trade Health
Resources Forestry Finance Economy Technology Education Defense Infrastructure

TAEK Ministry TÜBİTAK KOSGEB YÖK TÜSEB

Funder of Treasury TTGV* TAA
BOREN and Finance RDA SSB

Universities Training and

R&D R&D R&D R&D Research Hospitals R&D
Performer Institutes Institutes Institutes Infrastructures Institutes
TDZs

Business Angels
Complement- TÜRKAK TÜİK TSE TTOs TÜRKPATENT TTOs TÜBA
er/Accelerator
Venture Capitals

Firms and Private R&D Centers

Source: Modified from the Expertise Thesis of Mehmet Cem Fendoğlu, Ministry of Development, July 2018.
*Technology Development Foundation of Turkey is an NGO.

Note: See Figure 2.5 for abbreviations. BOREN: National Boron Research Institute, TAEK: Turkish Atomic
Energy Authority
  33
2. Actors and The Science, Technology and Innovation (STI) System

After approval by the President, the policies are put into action by the Ministries and
their affiliated/associated institutions. Policies are implemented by the Ministries
according to the duties and responsibilities assigned to them. Apart from the
governmental bodies, there are also private business financers and NGOs that
feed the system with complementary and acceleratory activities, especially for the
formation of the system and commercialization of R&I activities.

The STI actors are categorized into five groups as policy makers, policy implementers,
funders, performers and intermediate organizations (complementors) as depicted in
Figure 2.6. In the next section, the responsibilities of these actors are summarized.
The responsibilities presented below are only given in the framework of STI activities.

2.5.1. Council of Science Technology and

Innovation Policies (CoSTIP)
After 2018 Presidential elections, the Council of Presidency Science Technology
and Innovation Policies has become the highest governmental actor in Turkey’s
STI system. It has 5 permanent members from business, academia and
government. The Council gives guidance to public institutions and organizations
on STI policies, monitors the implementation of policies and prepares reports to
the President. The Council first convened in September 2019.

There are offices working for the Council which conduct research before
designing and implementing policies and prepare various policy and strategy
documents. The Council develops policies and after the approval of the
President, the ministries and their affiliated governmental organizations are
responsible for the implementation of these policies.

2.5.2. Ministry of Industry and Technology (MoIT)

Ministry of Industry and Technology is one of the most important actors
in Turkey’s STI system, not only due to its role in policy-making, but also in
implementation of the STI policies. Many of the support programs, including
industry clusters, research infrastructures, R&D centers, design centers,
technoparks (technology development zones, TDZ), techno-entrepreneurship,
techno-investment, technology driven industry projects (HAMLE program)
are implemented by MoIT. Considering also the coordination of government-

34
 2. Actors and The Science, Technology and Innovation (STI) System

industry cooperation activities, MoIT is a major actor in the system, along with
its affiliated organizations.

2.5.3. Presidency of Strategy and Budget (SBB)

SBB was established following the 2018 parliamentary election, after which the
Ministry of Development was abandoned, with its duties being transferred to
SBB and MoIT. SBB reports directly to the President and it designs national
development plans and medium-term programs which includes the R&I
strategies of the government. The other government bodies are responsible
for implementing the approved programs and plans. SBB has also central role
in allocating resources, therefore is important for R&I finance.

2.5.4. Scientific and Technological Research

Council of Turkey (TÜBİTAK)
TÜBİTAK leads the R&D and innovation activities in Turkey at the operational
level. It takes role in facilitation of policy experimentation and learning,
knowledge development, knowledge diffusion, guidance of search and
selection, market formation and mobilization of resources. It provides grants for
R&D, innovation, R&D and innovation networks and science and society. These
grants aim to facilitate experiments and learning as well as development and
mobilization of resources. The support programs are for academia, industry,
individual researchers, entrepreneurs as well as for intermediaries such as
accelerators and TTOs. TÜBİTAK is an affiliated organization of MoIT.

TÜBİTAK also conducts R&D activities via its research units; Marmara Research
Centre (MAM), Information and Information Security Advanced Technologies
Research Centre (BİLGEM), Defense Industry Research and Development
Institute (SAGE), Space Technologies Research Institute (UZAY), National
Metrology Institute (UME), Rail Transport Technologies Institute (RUTE) and
Basic Sciences Research Institute (TBAE).

There are 7 institutions in Marmara Research Centre; Materials Institute, Food

Institute, Chemical Technologies Institute, Earth and Marine Sciences Institute, Energy
Institute, Environment and Cleaner Production Institute, Genetic Engineering and
Biotechnology Institute. Turkey Industrial Management Institute (TÜSSİDE) performs
training, consulting, research and publication in the area of administrative sciences.

  35
2. Actors and The Science, Technology and Innovation (STI) System

There are also R&D support units in TÜBİTAK. National Academic Network
and Information Centre (ULAKBİM), operating a high-speed computer network
enabling interaction within the institutional elements of the National Innovation
System (NSI), also provides information technology support and information
services to help scientific production. TÜBİTAK National Observatory (TUG) is
a ground-based astronomical observatory, located in Antalya. Bursa Test and
Analysis Laboratory (BUTAL) provides testing and analysis services with the
aim of helping the industry, governmental and private research centers and
institutions, service sector and scientists.

2.5.5. Ministry of Treasury and Finance (MoTF)

According to the R&D Law No.5746, MoTF regulates R&D tax incentives. Firms,
having R&D activities, can benefit from tax exemption for personnel, goods and
services and investments.

2.5.6. Ministry of Trade (MoT)

MoT supports export-oriented product development activities. Trademark,
competitiveness and entrance to market supports are coordinated by MoT. It
also conducts specific programs for niche areas like mobile gaming.

2.5.7. Other ministries

Besides the ministries mentioned above, some others also have their own
research institutes like Ministry of Agriculture and Forestry (MoAF) and
Ministry of Energy and Natural Resources (MoENR). Some of them have their
own R&D support programs like Energy Sector Research and Development
Projects Support Program (ENAR) and Productivity Increasing Projects (VAP)
Support.

2.5.8. The Small and Medium-Sized Enterprises

Development Organization (KOSGEB)
KOSGEB is a public institution established to increase the role and
effectiveness of small and medium sized enterprises in the economy,
increase their competitiveness and realize their integration in the industry

36
 2. Actors and The Science, Technology and Innovation (STI) System

to enhance economic development. KOSGEB is an affiliated organization of

MoIT. It has support programs on R&D, technology and domestic production,
entrepreneurship, SME finance, incubation and laboratory services.

2.5.9. Technology Development Foundation of

Turkey (TTGV)
TTGV was founded as a public-private partnership in 1991 with a mission to
promote and support technology development and innovation activities of
private companies. TTGV designs, develops and implements activities to
provide reference and build capacity for value added operations, processes and
products to support the vision of “Technology Developing Turkey”. Founders’
Committee consists of 56 reputable members that are representatives of public
institutions, private sector companies, associations, foundations, chambers
and private persons.3

2.5.10. Turkish Patent and Trademark Office

(TÜRKPATENT)
Turkish Patent and Trademark Office carries out the procedures related to
industrial and intellectual property rights. In the STI system, it has a role of
supporting the technological development in Turkey through knowledge
diffusion and of establishing and protecting of industrial property rights.4

2.5.11. Turkish Standards Institute (TSE)

Turkish Standards Institute is a public institution and the sole authorized body for
standardization in Turkey. It operates in diverse fields of the quality infrastructure
that includes certification, testing, training as well as surveillance and inspection
activities. TSE has the responsibility of providing standardization, conformity
assessment, test and calibration activities independently, effectively and reliably.
Its role in the STI system is to increase Turkey’s competitiveness and to facilitate
trade at national and international levels.5

3. See the official website https://www.ttgv.org.tr/tr

4. See the official website https://www.turkpatent.gov.tr/TURKPATENT/commonContent/History
5. See the official website https://www.tse.org.tr

  37
2. Actors and The Science, Technology and Innovation (STI) System

2.5.12. Regional development agencies

Development agencies have been founded in early 2000s to reduce
inequalities between regions and to ensure regional development throughout
Turkey. Its main task is to support the cooperation between the public,
private sector and non-governmental organizations and to ensure that local
potential is revealed. Currently, there are 26 development agencies in Turkey.
The Ministry of Industry and Technology is responsible for the coordination of
development agencies in Turkey. They are responsible for the implementation
of development plans, including R&D activities. So far three agencies have
adopted innovation strategies according to Research and Innovation Strategies
for Smart Specialization (RIS3) which are Western Black Sea, Eastern Marmara
and Ankara RDAs.6 İzmir RDA is currently preparing innovation strategy
according to RIS3.

2.5.13. Health Institutes of Turkey (TÜSEB)

TÜSEB is an affiliated institute of Ministry of Health, founded to conduct and
fund domestic and international research and cooperation, contribute to
scientific development and build an ecosystem for scientific research in the field
of health sciences in Turkey. There are 7 institutes in TÜSEB; Turkish Cancer
Institute, Turkish Biotechnology Institute, Turkey Mother, Child and Adolescent
Health Institute, Turkey Institute of Public Health and Chronic Diseases, Turkey
Traditional and Complementary Medicine Institute, Turkey Health Care Quality
and Accreditation Institute and Turkey Institute of Health Policies. TÜSEB also
has a clinical research center which aims to be the major body to conduct,
coordinate and fund these studies.

2.5.14. Turkish Accreditation Institute

(TÜRKAK)
TÜRKAK deals with the accreditation of organizations and laboratories.

6. Erdil, E. and Çetin, D. (2019), Smart Specialization and R&I Policy Framework in Turkey,
in Casairo, N. and Santos, D. (eds). Smart Specialization Strategies and the Role of
Entrepreneurial Universities, IGI Global, Hershey: USA. DOI: 10.4018/978-1-5225-6152-1.
ch009.

38
 2. Actors and The Science, Technology and Innovation (STI) System

2.5.15. Turkish Statistics Institute (TÜİK)

TÜİK is responsible for providing statistical information related to R&D,
innovation and industrial activities.

2.5.16. Turkish Academy of Sciences (TÜBA)

TÜBA works as an advisory board for STI actors and gives recommendations
on STI activities, makes investigations to determine the priority areas, proposes
regulations to the President.

2.5.17. Council of Higher Education (YÖK)

The Council of Higher Education (YÖK) was established by Law No. 2547 dated
November 6, 1981. This law commenced the restructuring process of academic,
institutional and administrative aspects in higher education.

This report only provides brief information on the types of Higher Education
Institutions and academic units all of which are actors in the STI system.7

Faculty (College): A division conducting higher education, scholarly research

and publication. Various departments and programs may be connected to it.
Students obtain a Bachelor’s degree at the end of an educational program that
lasts for at least four years.

Graduate School: An institution in universities concerned with graduate

education, scholarly research and applications. Graduate schools award MA,
MSc or PhD degrees.

Conservatory: An institution of higher education in which artists are trained for

music and the performing arts. It lasts for eight semesters.

Post-Secondary Vocational School: An institution of higher education that is

aimed at developing human capacity in specific professions and provides
instruction lasting four semesters.

7. See for details: https://www.yok.gov.tr/Documents/Yayinlar/Yayinlarimiz/2019/Higher_

Education_in_Turkey_2019_en.pdf

  39
2. Actors and The Science, Technology and Innovation (STI) System

Research and Application Centre: An institution of higher education carrying

out research and applied studies to meet the applied study needs of various
areas and to provide preparatory and support activities for various professional
areas, with the aim of supporting education in institutions of higher education.

2.5.18. Universities
There are 203 universities in Turkey as of 2020. 130 of them are state universities
and 73 on them are non-governmental foundation universities. Every year YÖK
publishes a report on the monitoring and evaluation performance of each
university. The evaluation is based on 5 main criteria; education, R&D, project
and publications, internationalization, budget and financing, community service
and social responsibility. There are 96,199 PhD students, 394,174 master
students and 4,420,699 undergraduate students enrolled in higher education
programs.8 There are also student exchange programs, research mobility
programs and scholarship programs at the undergraduate and graduate levels.

As of 2013, a study is being performed by TÜBİTAK to measure the innovativeness

and entrepreneurship activities of universities. TÜİK, Council of Higher
Education, MoIT, TÜRKPATENT, TÜBA, KOSGEB and TTGV also contributed to
the study. The entrepreneurial university Index, ranks universities according to
their entrepreneurship and innovation performances, thus contributes to the
entrepreneurship and innovation-oriented competition among universities,
thereby improving the entrepreneurship ecosystem. The index has 5 sub-
indices; scientific and technological research competency, intellectual property
pool, cooperation and interaction, economic contribution and commercialization.
There are 23 indicators under the index.9 The study has been renewed every
year since then and the methodology is shared with the public.

2.5.19. Research infrastructures

Considering the importance of the role it plays in scientific and technological
development, and being compatible with national and regional priorities, in line
8. Council of Higher Education, Higher Education System in Turkey, January 2019
(www.yok.gov.tr)
9. For an academic analysis of the entrepreneurial university index see Gür, U., Oylumlu, İ.S.
and Kunday, Ö. (2017). Critical assesment of entrepreneurial and innovative universities index
of Turkey: Future directions. Technological Forecasting and Social Change, 123, 161-168.

40
 2. Actors and The Science, Technology and Innovation (STI) System

with the needs of the public and private sector, establishment and development
of “research infrastructures” are supported within the scope of investment
programs by the Ministry of Development (ceased to exist as of 2019, see
section 2.5, but now operates under SBB, see section 2.5.3.). For this purpose,
approximately 6 billion TL (app. €1.4 billion) has been allocated in 2017 prices.

In 2014, a new law 6550, known as the “R&D Infrastructures Law”, was put
in action. The law mainly introduces a system approach to monitor and
evaluate the performance of research infrastructures and to support them on
a performance basis. Two types of research infrastructure supports are given
under investment programs:10 i) thematic research laboratories specializing on a
certain scientific field, capable of carrying out research activities at national and
regional levels, ii) central research laboratories where research infrastructures
of different units in universities are shared.

There are 93 thematic research laboratories, 92 central research laboratories

and 16 governmental research laboratories in Turkey. Their sectoral distribution
is; 31 in Health, 19 in Food and Agriculture, 15 in Energy, 12 in ICT Technologies,
9 in Environment and Earth Systems, 7 in Machine and Manufacturing, 6 in
Aviation and Space, 5 in Nanotechnology, 5 in Automotive, 4 in Materials
Science, 3 in Basic Sciences, 2 in Defense, and 1 in Transportation, 1 in Metrology.

2.5.20. Technology Transfer Offices (TTO)

TTOs are organizations, usually in universities, which play an intermediary role in
the STI system, by enabling the outputs of academic research to commercialize.
They construct a bridge between academia, entrepreneurs, industry and private
financial investors. In Turkey, TTOs supported by the TÜBİTAK grant program
create, develop and support R&D projects within the framework of university-
industry cooperation, register and protect intellectual and industrial property
rights (IPR), involve in marketing, commercialization and venture capital support,
provide incubation and accelerator service, business guidance, consultancy and
training services, and organize and broadcast activities that raise awareness.

10. See for details: T.C. Kalkınma Bakanlığı Üniversite Ve Kamu Kurumları Araştırma
Altyapıları”, May 2017
http://www.sbb.gov.tr/wp-content/uploads/2018/11/Universite_ve_Kamu_Kurumlar%C4%B1_
Arastirma_Altyapilari.pdf

  41
2. Actors and The Science, Technology and Innovation (STI) System

A performance-oriented support process was designed to encourage the

transfer of accumulated knowledge in universities to industry and enhance
technology production capabilities and capacities of universities so that
knowledge creates economic value. In the updated support mechanism of
TÜBİTAK (as of 2019), TTOs have institutionalized their business processes and
created revenue models which are expected to effectively protect inventions
in higher education institutions (HEI) and manage their portfolio of intellectual
rights. In this context, transferring the inventions of HEIs to the industry or
commercializing them within the premises of the university are important
performance indicators for TTOs.

TÜBİTAK has a support program for TTOs, titled “1513 - Technology Transfer
Offices Support Program”. There is also another call program for the TTOs
which are in establishment phase; “1601 Capacity Building for Innovation and
Entrepreneurship Grant Program”. “Patent-Based Technology Transfer Funding
Call – Patent Licensing” is another important tool, first launched in April 2020,
stating that TTOs can take part as technology provider for the transfer of
patented technologies acquired by the academia to private sector, to be used
in product development and commercialization processes.

TÜBİTAK as an R&D performer (as well as its mainly acknowledged function,

funding) also has its own TTO that was founded in 2016. Its main aim is to
protect the IPR owned by the institution, determining the commercialization
processes and managing the technology transfer processes within this context.

2.5.21. Continuing education centers

They are the centers in universities that are carrying out continuing education
programs in all areas that the universities have specialization and knowledge.
They satisfy life-long education and learning needs of the society, the
government and business employees. There are 92 continuing education
centers in state universities and 26 in non-profit foundation universities.11

11. See for details: http://www.tusemkonseyi.org.tr/

42
 2. Actors and The Science, Technology and Innovation (STI) System

2.5.22. Technology Development Zones (TDZ)

Technopark concept in Turkey was introduced in the 1980s. Technology
Development Centers (TEKMER) started to be established in the 1990s as
a first step of creating technocities within the framework of cooperation
between KOSGEB and universities. The legal framework on technocities was
established in 2001 with the enactment of the law numbered 4691. Law No.
4691 uses the term “Technology Development Zones (TDZ)” instead of the
concept of technocity or technology park. However, the term “technopark” is
preferred to be used in this report. By January 2021, there are 87 TDZs, 72 of
which are currently in operation and 15 of them are working on infrastructure
establishment (see also section 4.1.3.3).

TDZs aim to produce technology and enhance R&D and innovation activities
of firms by creating synergy within the zone and between the firms and the
university.12

As of January 2021, the number of companies carrying out R&D activities

in technoparks has reached 6,364. 45% of these companies operate in the
software industry, 7% in Life Sciences (including agriculture), 3% in Computer
Hardware and 3% in Biotechnology. There are also firms in Medical, Energy,
Chemistry, Food, Defense and Automotive sectors. 66,615 personnel are
employed in the TDZs and the technological product exports of the companies
to the most developed countries of the world such as the USA, Japan, Israel,
England and Germany have reached approximately $5.6 billion as of January
2021. There are 322 foreign/foreign partner companies in the Technology
Development Zones. The number of patents registered by the companies
operating in the zones is 1,262 and the number of patents whose application
process is continuing is 2,775.13

12. See for details: https://www.tgbd.org.tr/

13. The statistical data is taken from the MoIT website https://www.sanayi.gov.tr/istatistikler/
istatistiki-bilgiler/mi0203011501

  43
2. Actors and The Science, Technology and Innovation (STI) System

2.5.23. R&D and Design Centers

According to the law no: 5746 (R&D Law) in 2008, private firms can establish
R&D Centers and benefit from various government supports. With an update in
the law in 2016, Design Centers was also included in the law (see also section
4.1.3.4 and 4.1.3.5). There are R&D, tax and employment incentives by the MoIT for
R&D and design centers. The criteria to become an R&D or Design Centre are as
follows:

• For R&D Centre to employ minimum 15 FTE R&D personnel in researcher

and technician positions, where this number is 10 for Design Centre
• to perform R&D activities in Turkey
• to have the facility to prove that the personnel is physically in the center
• The R&D center is organized as a separate unit and is located in a single
campus or physical space

As of January 2021, there are 1,244 R&D Centers in Turkey. 67,007 personnel
work in these centers, 1,122 of whom are PhD holders. There are 210 foreign/
foreign partner companies. 7,058 patents registered and 17,476 patents are in
evaluation process. Looking at the sectoral distribution, it is seen that 174 of the
R&D centers are in the machinery sector, 127 are in automotive sub-industry, 113
in software, 83 in computer and communication, 78 in textile, 77 in electronics,
72 in chemical, 61 in food, 40 in defense and 34 in pharmaceuticals industry.14
80% of the R&D centers are located in 5 cities: İstanbul, Bursa, Kocaeli, Ankara
and İzmir.

There are 364 Design Centers as of January 2021. Of the 7,861 personnel
working in these centers, 24 hold PhDs. There are 29 foreign/foreign partner
companies. 177 patents registered and 312 patents are in evaluation process.
When a sectoral analysis is made, it is seen that 65 of the Design Centers are
in textile sector, 46 are in engineering and architecture, 45 in manufacturing, 37
machinery and equipment, 19 furniture, 19 in automotive sub-industry, 19 in media
and communication.15 78% of the Design Centers are located in 5 cities: İstanbul,
Ankara, İzmir, Bursa and Kocaeli.

14. Data available on https://sanayi.gov.tr/istatistikler/istatistiki-bilgiler/mi0203011502

15. Data available on https://sanayi.gov.tr/istatistikler/istatistiki-bilgiler/mi0203011503

44
2. Actors and The Science, Technology and Innovation (STI) System

  45
3

46
 3. STI Policies in Turkey

3. STI Policies in Turkey

State Planning Organization (SPO) established in 1960s made the first attempts to
formulate Science and Technology (S&T) policies with the introduction of the First Five
Year National Development Plan in 1963. TÜBİTAK was established in the same year
for the purpose of organizing, coordinating and promoting basic and applied research,
directing research activities to reach the targets of the national development plan and
setting research priorities. During the 1960s and 1970s, the S&T policy in Turkey was
mainly based on the promotion of basic and applied research in natural sciences. In this
early phase, the S&T policies were formulated by TÜBİTAK without any official policy
document through a tacit consensus with the government. The concept of technology
policy and its integration within the industrial, employment and investment policies
has been introduced in the Fourth Five-Year National Development Plan covering
the period of 1973–1977. The first detailed S&T policy document in Turkey entitled,
“Turkish Science Policy: 1983–2003”, was prepared in 1983. This was the first time the
role of technology for development was explicitly recognized and priority technology
areas were suggested. Although this study was not a foresight exercise, it can be
regarded as the first attempt towards defining “critical” or “priority” technologies in
Turkey. Subsequently, the Supreme Council for Science and Technology (BTYK) was
established.

As the highest S&T policy-making body, BTYK enabled designing policies with the
participation of various actors. But BTYK had its first operational meeting only in 1989,
six years after its establishment. In the mid-1990s, BTYK started to play an active
role in formulating the national S&T policy to enhance the NSI. In its second meeting
in 1993, BTYK approved the document titled “Turkish Science and Technology
Policy: 1993–2003”. This document paved the way for new policy initiatives, such
as R&D support programs in the 1990s. This was a turning point in the history of S&T
policymaking in Turkey as there was a paradigm shift from “building a modern R&D
infrastructure” to “innovation-oriented national S&T policies”. The policies formulated
in this document were further elaborated in 1995 with “A Project for Impetus in Science
and Technology”, which formed the S&T chapter of the Seventh Five Year National
Development Plan for the period of 1996–2000.

In its sixth meeting on December 13, 2000, BTYK underlined the fact that superiority
in S&T is a must for the welfare of the Turkish society. Along these guidelines, BTYK

  47
3. STI Policies in Turkey

decided that new S&T policies should be formulated, and priority areas should be
set for the time period covering 2002–2023. As the general secretariat of the BTYK,
TÜBİTAK detailed the project accordingly, with the title “Vision 2023: Science and
Technology Strategies”. The project was approved by the BTYK a year later in its
seventh meeting on December 24, 2001. The implementation of the project started in
January 2002, and the draft strategy document was brought to the agenda of the 10th
meeting of the BTYK held on September 8, 2004.16

The number and frequency of BTYK meetings can be seen in Figure 3.1. Nine meetings
had been held during the first 20-year period (1983 – 2004) annual meetings on a
regular basis held afterwards until the duties of the council were handed to the newly
established Council of Science Technology and Innovation Policies (CoSTIP) in 2018
under the presidency.

The BTYK gathered on 17th of February 2016 for the 29th and the last time.17 The two
main decisions taken at this last meeting were:18

1. Studies to be carried out on smart production systems,

2. Development of a National Nuclear Development Plan 2016-2023

Figure 3.1. The number and frequency of Supreme Council of Science Technology
meetings between 1986 and 2016.

1 2 3 4 5 6 78 9 10 111213141516171819 2021 22 23 24252627 28 29

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

Source: https://TUBITAK.gov.tr/tr/kurumsal/icerik-bilim-ve-teknoloji-yuksek-kurulu

16. Özcan Sarıtaş, Erol Taymaz, Turgut TÜMER, Vision 2023: Turkey’s national Technology
Foresight Program: A contextualist analysis and discussion, Technological Forecasting &
Social Change 74 (2007) 1374–1393
17. https://TÜBİTAK.gov.tr/tr/kurumsal/bilim-ve-teknoloji-yuksek-kurulu/toplantilar/icerik-bilim-
ve-teknoloji-yuksek-kurulu-29-toplantisi-17-subat-2016 (access date; May 15, 2020)
18. Information for some of the recent BTYK meetings (25th-28th meetings) can be found
in RIO Country Report for Turkey 2015 https://rio.jrc.ec.europa.eu/country-analysis/Turkey/
country-report.
48
 3. STI Policies in Turkey

Launching of the Turkish Research Area (TARAL) in 2004 to gather the resources and
strategically guide research system actors is also one of the important milestones for
S&T, as well as innovation policy (see section 2.3). The activities planned between
2005-2010 are documented under S&T Policies Implementation Program. 7 strategic
goals were reported in the document and related course of actions was also
determined for each goal.

• Development of science and technology awareness and culture

• Training and advancement of scientists
• Supporting result-oriented and quality research
• Activation of national science and technology management
• Strengthening the science and technology performance of the private
sector
• Development of R&D infrastructure and environment
• Activation of national and international networks

Within the period of 2011-2016, disseminating the culture of multilateral and

multidisciplinary R&D and innovation cooperation, stimulating sectoral and regional
R&D and innovation dynamics, encouraging SMEs to become stronger actors within
the NSI, and enhancing the contribution of research infrastructures to the knowledge
creation capacity of TARAL are defined as the main focus points within the NSI and
National STI Strategy (UBTYS) 2011-2016 document that was approved in the 22nd
meeting of BTYK. To address these focus points, within the National STI Strategy
(2011-2016), mission-oriented approaches in areas with strong R&D and innovation
capacity, need-oriented approaches in areas with a demand for gaining acceleration
and bottom-up approaches including basic, applied and frontier research have been
identified.19

19. For further information see https://TUBITAK.gov.tr/en/about-us/policies/content-national-

sti-strategy-2011-2016

  49
3. STI Policies in Turkey

3.1. A General Look on Policy Changes

In 2018, the parliamentary system ended as a result of a referendum and the presidential
system came into force as mentioned earlier in section 2. As a consequence, science
and technology policy actors, their responsibilities and relations between these
governmental bodies have been reorganized accordingly (see section 2.3). The
highest S&T policy-making body in Turkey, BTYK has been abrogated and Council
of Science, Technology and Innovation Policies (CoSTIP) was established by a law
decree (dated July 10, 2018, number 1) instead.

CoSTIP has been founded as one of the nine policy councils under the Presidential
organization. Each council consist of minimum three members. The President is
the head of the councils, assigns the members and appoints a deputy within these
members. The first members of CoSTIP were assigned in October 2018.

CoSTIP is in charge of developing suggestions to the President on STI related issues

and doing the required work (e.g., design policies, propose regulation) for the policies
and strategies. Developing policy and strategies against unexpected changes caused
by global competition, giving opinions to related public organizations, monitoring
applied policies and reporting to the President, having extended meetings with
ministries, institutions, experts and representative of NGOs, conducting studies on
impact evaluations are some other tasks of the council.20

Although the policy-making actor BTYK has been reconstructed as CoSTIP, “National
Science and Technology Policies: 2003–2023 Strategy Document” is still the top
policy document which is an output of the Vision 2023 project; the first-ever national
Foresight Program of Turkey. The program focuses mainly on determining the priority
technology areas. This document has been prepared around three essential elements
of focus:

1. Focusing on strategic (priority) technology areas

2. Increasing R&D expenditure (with specific targets for both public and private
sector share)
3. Development of R&D human capital (with specific targets)

20. Akman Ç. (2019). Policy councils in the presidential government system: An evaluation
through social policy councils, Route Educational and Social Science Journal, 6(3).

50
 3. STI Policies in Turkey

Vision 2023 process has mobilized a considerable number of people from industry,
academia and public bodies. It also attracted the attention of mass media to a certain
extent. In this way, some intangible outcome of the exercise, such as raising awareness
and increasing commitment to S&T issues have been achieved during the process of
implementation. However, this momentum was by no means sustainable, in the way
that the current attitude of the stakeholders to STI issues is not significantly different
from the past.

These observations constitute yet another example of the interrelatedness of context

and the process of change. The fact that Turkey has mainly been a technology user
rather than a producer has made the process susceptible to changing priorities and
to the attitude of decision makers.

Although the initially envisaged outcome of the Vision 2023 project could not be
fully realized, the process itself was instrumental for the accumulation of knowledge
and capabilities regarding STI policy-making in Turkey. Part of this knowledge and
capabilities were codified in the form of outputs of analysis (e.g., lists of strategic
technology fields). Moreover, two on-line databases, one on the researchers in Turkey
and the other on the research infrastructure, were prepared as a result of the project.
These two databases ARBİS & TARABİS (see section 2.3) now provide information
necessary for any further study on STI policies. Via the capabilities accumulated
during the Vision 2023 process, TÜBİTAK was actively involved in the organization of
UNIDO-led foresight training programs.

Finally, the Vision 2023 project in general, and the Technology Foresight Program in
particular, constituted an important step towards harmonization of Turkish STI system
with that of the European Union.21

Apart from National Science and Technology Policies: 2003–2023 Strategy Document,
National Development Plans are important for STI policies in Turkey. The State
Planning Organization (SPO) was responsible for preparation and implementation of
Development Plans until 2011 and its mission proceeded as Ministry of Development
thereafter. In 2018, within the scope of new organizational changes by the presidential
system, Presidency of Strategy and Budget (SBB) was founded (see section 2.5.3) and
become the responsible actor for the National Development Plans.

21. Sarıtaş, Ö., Taymaz, E., Tümer, T. (2007). Vision 2023: Turkey’s national Technology
Foresight Program: A contextualist analysis and discussion, Technological Forecasting &
Social Change. 74, 1374–1393.

  51
3. STI Policies in Turkey

The 10th Development Plan (2014-2018) and the 11th Development Plan (2019-2023)
are in the scope of this report. These two plans are examined for recent changes and
also the 9th Development Plan (2007-2013) is taken into consideration to have an idea
of the evolution of STI policies. Subject wise, 11th Development Plan is more specific
and has detailed action items especially in comparison with the 9th Development Plan.
The main targets of three development plans are shown below in Table 3.1. While
the focus is on private sector in the 9th Development Plan, forming an ecosystem is
prioritized in the 11th Development Plan. Another remarkable difference is that, STI
policy targets shifted from increasing R&D expenditures to commercialization and
supporting high value-added products.

Table 3.1. Main goals and targets of STI policy

9th Development Plan 10th Development Plan 11th Development Plan

(2007-2013) (2014-2018) (2019-2023)
to design R&D activities to enhance the power of to create an effective research and
intended for market in a way competitiveness in a global innovation ecosystem
to produce innovation for scale
competitiveness and efficiency. to increase research and
to increase technology and innovation activities to a level
to increase the rate of R&D innovation activities for that supports high value-added
expenditure in GNP and to benefit, focusing on the products and services
increase the weight of private private sector
sector in these expenditures. to enhance the capability of
to commercialize research knowledge production & use
the main target is to increase results by creating an
innovation creation capability ecosystem based on
of private sector. innovation and with
technology- intensive
products with trademarks
no emphasis on emphasis on emphasis on high value-added
commercialization commercialization products
no emphasis on creating an emphasis on both the private emphasis on creating an ecosystem
ecosystem sector and creating an
ecosystem compatible with new trends
such as increasing collaboration,
supporting interdisciplinary
work, getting prepared for future
technologies, industry 4.0

52
 3. STI Policies in Turkey

Creating an ecosystem has become a priority in the 11th National Development Plan
as mentioned in Table 3.1. For this purpose, several Ad-Hoc Specialized Commissions
were formed and out of these three were directly related to STI: Entrepreneurship,
R&D and Innovation, and Economic Growth Dynamics. These commissions were in
charge of examining the present ecosystem and making comparisons with developed
countries and providing analyses, recommendations and tangible outputs in order to
design, strengthen and manage an ecosystem producing technology and transforming
it into one that produces high value-added.22

Industry and Technology Strategy 2023 by MoIT is also another major document for
STI policy, which has been published in 2019. In this strategy document, a program
that covers the fields of industry and technology with a holistic approach has been
designed in order to accelerate the growth performance in previous years especially
in the 2000s. It aims for a comprehensive development according to the dynamics
of the country providing wide participation and reinvigorating the society. National
Technology Act is the focus of the strategy that emphasizes the importance of
indigenous and national technology production. The sub-components of the strategy
are defined as high technology and innovation, digitalization, entrepreneurship,
human capital and infrastructure.23

After reviewing the policy documents and programs/projects based on these policies
briefly, some highlights of the recent changes in S&T Policies can be listed as follows:

• From sector specific to technology specific focus

• Indigenous & national (technology) production
• From knowledge creation to commercialization
• High-tech, high-value added focus
• Digital transformation
• Co-creation

22. http://www.sbb.gov.tr/wp-content/uploads/2020/04/Ar Ge_ve_

YenilikEkosistemininGuclendirilmesiOzelIhtisasKomisyonuRaporu.pdf (access date; June 30,
2020)
23. https://www.sanayi.gov.tr/assets/pdf/SanayiStratejiBelgesi2023.pdf (access date; June 30,
2020)

  53
3. STI Policies in Turkey

3.1.1. From sector specific to technology

specific focus
Critical and prioritized technologies have been determined in recent STI policy
documents as along with prioritized sectors. CoSTIP has conducted a study24
in 2019 with a systematic approach to determine prioritized technology fields.
Technologies have been assessed in terms of their impact and feasibility.
Indicators for these two dimensions have been determined and weight of each
indicator has been assigned as in Table 3.2.

Table 3.2. Evaluation Criteria for Prioritized Technology Field Determination of Turkey

Evaluation Dimensions
Impact Feasibility
financial impact (%50) academic knowledge accumulation (%15)
social benefit impact (%15) private sector project capability (%15)
national security impact (%35) research infrastructures (%10)
patent accumulation (%15)
qualified human resources (%15)
easiness of access to funding (%15)
Technology Readiness Level (TRL) of related technology in
Turkey (%15)

27 technology fields have been chosen for the assessment regarding national
requirements and focused technology fields in international technology
foresight studies for developed & developing countries. Numerous quantitative
and qualitative analysis using statistical data and expert opinions have been
used to determine high impact and feasible technologies to focus R&D and
24. https://www.sabanciuniv.edu/sites/default/files/ankaraprojeofisi/Hasan%20Mandal%20
Sunum.pdf (access date; May 20, 2020)

54
 3. STI Policies in Turkey

innovation efforts on. 11 technology fields with high impact and high feasibility
were determined as a result. These fields are; information security, energy
storage, advanced functional materials & energetic materials, biotechnological
medicine, broadband technologies, electro mechanic systems, artificial
intelligence & machine learning technologies, micro-nano optic electronic
systems, robotics, mechatronics & automation, motor technologies, big data
and data analytics and internet of things (see Figure 3.2). It has been decided to
prepare technology roadmaps, to provide education and scholarship priorities,
production and incentive opportunities for these chosen technology fields. An
official strategy document, including the method of the study, has not been
published yet but studies in all selected fields have already started such as
preparing a roadmap for advanced functional materials & energetic materials
and artificial intelligence strategy.

The technology-based policies have also been included in recent National

Development Plans. Prioritized sectors (Chemistry, Pharmacy & Medical
Equipment, Machinery & Electrical Equipment, Automotive, Electronic & Rail
System Vehicles) in 11th Development Plan has been chosen from middle-high
and high technology fields as a sign of increased attention on technology
specific policies. Critical technologies have been evaluated as a discrete
section in the plan and action items to enhance these technologies have
been mentioned in detail. Artificial Intelligence, Internet of Things, Big Data,
Cyber Security, Energy Storage, Advanced Materials, Robotics, Micro-Nano-
Opto Electronic, Biotechnology, Quantum Sensor Technologies and Additive
Manufacturing Technologies have been determined as critical technologies. It
has been suggested to prepare roadmaps, enhance infrastructure and human
resources to improve these technologies. It has also been decided to intensify
R&D and innovation supports on critical technologies as well as prioritized
sectors.

  55
3. STI Policies in Turkey

Figure 3.2. Results of Technology Fields Prioritization Study of CoSTIP

Low Impact - High Feasibility High Impact - High Feasibility

Information Security Energy Storage

Advanced Functional Biotechnological Medicine
Materials & Energetic Electromechanic Systems
Biomedical Equipment Materials
Micro Nano Optic
Solar Energy Broadband Technologies Electronic Systems
Power Electronics Artificial Intelligence Robotics, Mechatronics &
& Machine Learning Automation
Technologies
Big Data & Data Analytics
Motor Technologies
Internet of Things

Low Impact - Low Feasibility High Impact - Low Feasibility

Bioenergy Agriculture & Animal

Biotechnology
Wind Power
Propulsion and Power
Additive Manufacturing Systems Quantum Technologies
CBRN Defense Modelling & Simulation Technologies
Invisibility Technologies
Technologies Cloud Computing
Blockchain Technologies

Directed & Intense Energy Technologies

Coal Technologies
(in speciality of carbon capture & storage)

Vision 2023 Strategy Document has also mentioned eight strategic

technologies: Information and Communication Technologies, Biotechnology &
Gene Technologies, Nanotechnology, Mechatronic, Production Processes and
Technologies, Materials Technologies, Energy & Environment Technologies,
Design Technologies. Subfields to be focused under each main field was also
included in the document (for instance, boron technologies, composite materials,
polymer technologies, smart materials, magnetic, electronic, optoelectronic
materials, light and high strength materials under materials technology field).

Table 3.3 gives a summary of prioritized technology fields in the 11th National
Development Plan, Vision 2023 and Technology Fields Prioritization Study of
CoSTIP.

56
 3. STI Policies in Turkey

Table 3.3. Prioritized technology fields in National Plans & Studies

Vision 2023 11th Development Plan CoSTIP Technology

Fields Prioritization
Study
Information and Artificial Intelligence Information Security
Communication Technologies
Internet of Things Energy Storage
Biotechnology & Gene
Technologies Big Data Advanced Functional
Materials &
Nanotechnology Cyber Security Energetic Materials

Mechatronic Energy Storage Biotechnological

Medicine
Production Processes and Advanced Materials
Technologies Broadband
Robotics Technologies
Materials Technologies
Micro-Nano-Optoelectronic Electro Mechanic
Energy &Environment Systems
Technologies Biotechnology
Artificial Intelligence
Design Technologies Quantum Sensor Technologies Machine Learning
Technologies
Additive Manufacturing Technologies
Micro-Nano Optic
Electronic Systems

Robotics

Mechatronics &
Automation

Motor Technologies

Big Data and Data

Analytics and
Internet of Things.

  57
3. STI Policies in Turkey

3.1.2. Indigenous & national production

One of the most prominent developments in STI policies is the emphasis on
indigenous and national production. National Automobile, National Combat
Aircraft, National Space Agency are some of the striking examples of this new
policy orientation. Technology Focused Industrial Movement Program has been
built and actualized as a large-scale incentive in order to promote indigenous
production (see section 3.2.1 for details of the program). The establishment of
Directorate of Indigenous Technology under MoIT in late 2020 is also a signal
toward the importance of indigenous & national production.

The 11th Development Plan has handled national production in a separate title
under which detailed action items were determined. Some of these action
plans are as follows:

• A strong institutional structure to support indigenous production and

technological transformation shall be formed.

• “Industrialization Executive Board” shall be established headed by

the President to take higher level decisions for enhancing indigenous
production and technological transformation.

• MoIT shall make middle and long-term needs analysis for public
procurement and determine critical technologies and products that
can be produced locally; prepare a specification pool and capability
inventory; cooperate with firms in order to enhance product quality and
prepare technology roadmaps.

• Public procurement shall be used as a leverage to increase indigenous

production in priority domains.

• Local firms performing activities on high technology fields and having

high growth potential shall be paired with international investors and
their investments based on technology transfer shall be supported.

For instance, the State Supply Office has actualized “Techno Catalogue”
application as a smart public purchase tool in 2017. Techno Catalogue is a
peculiar sales channel for entrepreneurs who has Technological Product
Practice Document, has completed TÜBİTAK TEYDEB projects, are registered

58
 3. STI Policies in Turkey

to Cyber Security Cluster, operate at TDZs and produce mid-high & high
technologies locally.25

Other targets /studies for indigenous and national production in the 11th
Development Plan can be listed as follows:

• Incentive mechanisms to be developed for indigenous automobile

project.
• Manufacturing of national electric train series to be completed by 2020.
• Serial production of national electric locomotive to be started by 2022.
• Prototype of national high-speed train to be completed by 2023.
• 80% of indigenous production in all kinds of railway vehicles by 2023.
• 100% indigenous production to be provided in critical technologies of
the defense industry.
• National Space Program, National Smart Network Management System
(National SCADA) for Energy institutions, National Electronic Messaging
Platform, National Open Data Portal for Public Data to be prepared.
• Indigenous Air Defense Systems and Sea Platforms to be provided.
• Indigenous production of high value-added aluminum products for
aviation, defense and automotive industry to be encouraged.
• Indigenous production for 5G Technologies to be provided.
• Indigenous satellite technologies to be improved.
• Indigenous production of advanced materials to be encouraged.
• Use of indigenous composite materials to be encouraged in nuclear
plant installations.
• National policy for the production and use of artificial intelligence to be
generated.
• National solutions for cyber security to be provided.

National Space Agency has been established under MoIT in 2018 for the
preparation and actualization of National Aerospace Plan. Rail Transport

25. https://www.dmo.gov.tr/Files/TeknoKatalog/ (access date May 20, 2020)

  59
3. STI Policies in Turkey

Technologies Institute has been established in 2019 by TÜBİTAK in compliance

with the targets in the 11th Development Plan. Private sector companies have
gathered as a consortium for manufacturing indigenous automobile in 2017
and the first use is planned to be in 2022 (The TOGG named after the Turkish
abbreviation of Turkey’s Automobile Initiative Group).26 The newly established
Institute of Artificial Intelligence by TÜBİTAK is in charge of uniting all ecosystem
stakeholders in the field of artificial intelligence with common goals in line with
the needs of the business sector.

3.1.3. From knowledge creation to

commercialization
Although policies for supporting R&D activities progressed until 2014, the
need of enhancing commercialization has been emphasized in the 10th
Development Plan: “It is critical to create competitive, new semi and final
technological products and brands by commercialization of R&D and innovation
activities at the international level.” There was no significant expression on
commercialization and branding in the 9th Development Plan. However, as
can be seen in Table 3.4, commercialization and branded technology products
have become a main target for Turkish STI policies in the 10th Development
Plan and a commercialization plan for prioritized areas (health, energy, aviation
& space, automotive & rail systems, defense) has been included under the
general coordination of MoIT in cooperation with Ministry of Economy.

26. https://resmigazete.gov.tr/eskiler/2018/12/20181213-1.pdf (access date; June14, 2020)

https://rute.TUBITAK.gov.tr/tr/kurumsal/tarihcemiz-0 (access date; June14, 2020)
https://tr.wikipedia.org/wiki/TOGG (access date; June14, 2020)

60
 3. STI Policies in Turkey

Table 3.4. Commercialization Program for Prioritized Areas (10th Development Plan-
Section 1.11)

Main Targets Indicators

To increase the number of technological The number of new products, trademarks and
products and trademarks in prioritized sectors. patents
To increase the share of prioritized areas for The share of prioritized areas in production and
production and exports exportation of manufacturing industry
To raise qualified researchers and to increase The number of researchers with a PhD degree
their employment in private sector
To increase the number of research, incubation, The number of accredited research, measurement
accelerator, technology and innovation centers and test centers
To render TDZs sector focused The number of clusters in prioritized areas
To enhance innovative entrepreneurship The number of entrepreneurs
To increase technology transfer interfaces The number of technology transfer offices and
the number of companies that take service from
these offices, the amount of license income of
the offices

There are also concrete action items in the 11th Development Plan including;

• Research projects with high commercialization potential of high-tech

platforms, formed by research infrastructures in cooperation with private
sector R&D centers and public R&D units, will be supported under the
centers of Excellence Program.

• There shall be informative programs, especially for the researchers

in universities on subjects such as government incentives and IPRs,
in order to accelerate the commercialization process. Incentives and
support shall be provided especially for transferring capability on
defense electronic to civilian areas, signifying dual-use.

• The legal barriers reducing the efficiency of revenue sharing and

commercialization stages, with regards to the industrial property rights
developed within universities or through the cooperation of universities
and other public institutions or private sector will be eliminated.

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3. STI Policies in Turkey

3.1.4. High-tech focus

In the 11th Development Plan, it was decided that firm consortiums shall be
supported for high-tech products and commercialization with special focus
on prioritized areas by the Industry Innovation Network Mechanism Program
(known as SAYEM) which later was launched by TÜBİTAK (see section 3.2.1
for details of the program). This program is one of the most important and
comprehensive policy tools for developing high technology products and
processes. As a smart specialization study, TÜBİTAK-1004-Excellence Centre
Support Program in which Higher Education Research Infrastructures in priority
areas are supported to become excellence centers, is another noteworthy
progress. (see section 3.2.1 for details of the program)

There are also other decisions for improving high technology in the 11th
Development Plan.

• Institutional capacity and need-based monitoring of domestic companies

with specific high technology capabilities will be developed and policies
will be formed in accordance with economic security and self-sufficiency.

• Incentive programs shall be prepared to increase foreign direct

investments (FDI) regarding indigenous production of high-tech
products.

• R&D and innovation support system shall be transformed into a

structure that comprehends all the process from focused research to
commercialization, considering sector requirements and development
potential.

Although in the Public Procurement Law, there was a 15% price advantage in
favor of local producers, public procurement was not able to support technology
transfer and development of industry at the desired level. Public procurement
is a broadly used policy instrument that supports technology development
and indigenous production in developed countries (and recently in developing
countries). “Technology Development and Indigenous Manufacturing by Public
Procurement Program” was included in the scope of the 10th Development
Plan.

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 3. STI Policies in Turkey

Table 3.5. Technology Development and Indigenous Manufacturing by Public

Procurement Program

Main Targets Indicators

To increase the share of local firms in public The share of indigenous production in public
procurement for middle-high and high- procurement
technology sectors
To support trademarks in high technology The share of indigenous industry in foreign
fields at the international level and to increase procurement by offset application
products that have trademark.
To increase R&D expenditure via public The share of indigenous production in public
procurement purchase guarantee in total purchase

The share of SMEs in public procurement

To increase foreign direct investments by The number and value of offset agreements
policies on public procurements

Source: 10th Development Plan, Section 1.12.

The targets for the high technology industry in the 10th Development Plan are
given in Table 3.5. Exports of high technology products as a share of total
exports (%) is given in Table 2.1 (R&I Indicators for Turkey) whereas the rate of
high-tech industry in manufacturing exports is given in Table 3.6.

Table 3.6. Targets of manufacturing Industry for High Technology

2006* 2012* 2013* 2018** 2023**

The share of mid-high tech. industry in
30.8 31.4 31.4 36.4 44.2
manufacturing export
The share of high technology industry in
5.6 3.7 3.7 3.2 5.8
manufacturing export
The share of mid- high & high tech. sector
NA NA NA 4,8 13
in total credits

*Data source: 10th Development Plan, ** data source: 11th Development Plan

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3. STI Policies in Turkey

3.1.5. Digital transformation

While the focus was on e-government applications in former plans, digital
transformation has become a subject of importance in the 11th Development
Plan. The basic goal is enhancing productivity and competitive edge through
accelerating digital transformation in prioritized areas. Some of the action
items for digital transformation are;

• Forming industrial cloud platforms in the prioritized sectors to be supported.

• The development and use of required smart products and systems in

industry’s digital transformation process.

• Competence and digital transformation centers to be established in

TDZs and Organized Industry Zones to provide consultancy services
and bring technology providers and users together.

Targets for digital transformation in the 11th Development Plan is presented in

Table 3.7.

Table 3.7. Digital Transformation Targets

2018 2023
Number of SMEs getting service from Industrial Cloud Platform in
- 10,000
prioritized areas (cumulative)
Number of competence and digital transformation centers
1 14
(cumulative)
Number of digitalization projects developed by SMEs (operating
in prioritized sectors) in cooperation with local product and service - 20,000
providers

Data source; 11th Development Plan

Moreover, 2023 Digital Turkey Roadmap was prepared under the leadership of
MoIT with the contribution of all relevant public and private stakeholders. This
roadmap aims to plan and realize digital transformation process effectively to
increase the competitiveness of the manufacturing industry.

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 3. STI Policies in Turkey

Organized Industrial Zones, Industry Regions, TDZs and private sector R&D
centers will take on a leading role in the process of digital transformation
affecting structure of the manufacturing industry.

The first two years of the roadmap are composed of short-term actions to be
performed, and it consists of concrete steps to increase readiness for digital
transformation. Medium term (3-5 years) vision of the roadmap is designated as
closing the gap on digitalization primarily in prioritized sectors and in selected
technologies. The long-term vision (6-10 years) is to be a regional or global
leader in digitalization in specific sectors and technologies. This long-term
vision is composed of six main components:

• Human: Education, infrastructure development and qualified workforce

cultivation
• Technology: Technology and innovation capacity development
• Infrastructure: Data communication infrastructure development
• Suppliers: Supporting national technology suppliers
• Users: Supporting users of digital transformation
• Governance: Strengthening corporate governance”27

3.1.6. Co-creation
Co-creation holds real promise as a way to facilitate innovation in the public
sector. In the traditional model of public sector, a public entity receives resources
through budgetary allocation and then uses those resources to deliver services
to stakeholders through a set of work processes—filing a form, responding to a
customer request on the phone, and so forth. The people at the receiving end
of those processes are largely passive. Co-creation starts from the experience
of each actor and strives to discover new modes of interaction that will improve
the experience for all actors simultaneously. The process often leads to a
reconfiguration of roles: Recipients of services become service providers, and
vice versa. To develop and sustain these new modes of interaction, participants
typically create special platforms for community engagement (many of which
incorporate supporting technology tools).28

27. https://www.gmka.gov.tr/dokumanlar/yayinlar/2023_Dijital-Turkiye-Yol-Haritasi.pdf (access

date June 30, 2020)
28. https://ssir.org/articles/entry/co_creation_in_government (access date; November 2,
2020)   65
3. STI Policies in Turkey

Co-creation as opposed to collaboration and exchange-based knowledge is

a recent rising approach in Turkish STI policy. The importance that TÜBİTAK
has given to the establishment of co-creation models has been represented in
initiatives such as the TÜBİTAK 1004 Call for High Technology Platforms prior to
the COVID-19 pandemic. The first phase of 17 High Technology Platforms that
were already launched in the leadership of research universities and research
centers with competence under Law 6550 on Support of Research Infrastructure,
has already included platforms on drug and vaccine development. In particular,
diagnostic kits, drug and vaccine development including those for influenza-
based infections as well as bio-indicator and high technology drug products
and prototype vaccines are among the focus areas for the research programs
of these platforms.

As a fast-track option with a particular focus on COVID-19, a sub-platform

under the coordination of TÜBİTAK Marmara Research Centre (MAM) Genetic
Engineering and Biotechnology Institute has been established, namely the
COVID-19 Turkey Platform. This sub-platform brings together projects and
competencies that can be transformed for an effective response against the
COVID-19 infection with a particular focus on medicine, vaccines, and innovative
treatment approaches. Remarkably, the orchestration of researchers for the
COVID-19 Turkey Platform and the time for the implementation of the projects
have been completed in only 10 days.

Such a scientific coalition brings together researchers from universities, public

R&D units, and the industry to work on drug repurposing, drug development,
innovative treatment approaches, and vaccine development against COVID-19.
The platform currently involves 7 different vaccine and 8 different drug
development projects where both chemical and biotechnological methods
are applied. Multiple methods that have the potential of enabling an effective
response in support of combating the COVID-19 infection are undertaken.
For the grand goal of supporting an effective, science-based response to the
COVID-19 pandemic, hundreds of researchers from 24 universities, 8 public
R&D units, and 8 private sector firms are working diligently. There are currently
225 researchers with tasks in the platform of whom 116 are from universities,
62 are from public R&D units, and 47 are from the private sector. Overall, the
platform involves a total of 15 projects that are being supported for a duration
of up to 9–12 months.29

29. Mandal, H. (2020), Mobilizing the research ecosystem for scientific advances towards
positive impact in the context of the COVID-19 Pandemic, Turkish Journal of Medical Sciences,
50: 485-488.
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 3. STI Policies in Turkey

TÜBİTAK commissioned R&D Call (section 3.2.1.1.6), Patent-Based Technology

Transfer Support Call (section 3.2.1.1.7), Industry Innovation Network Mechanism
Call (SAYEM) (section 3.2.1.1.1) and National& International Leader Researcher
program are other important initiatives of co-creation models that have recently
been designed.

3.2. New Policy Tools

There are three general categories of instruments used in public policy according
to Borrás and Edquist30 (1) regulatory instruments, (2) economic and financial
instruments, and (3) soft instruments. The recent policy tools within this report have
been categorized according to this taxonomy.

(1) Economic and financial instruments (hard tools) provide specific pecuniary
incentives (or disincentives) and support specific social and economic activities.
They may involve economic means in cash or forms of finance, and they may
also be based on positive incentives (encouraging, promoting certain activities)
or on disincentives (discouraging, restraining certain activities). Economic and
financial instruments have been extensively used in the field of STI policy.

(2) Regulatory instruments, use legal tools for the regulation of social and market
interactions. The logic behind this type of instrument is the willingness of
the government to define the frameworks of the interactions taking place
in the society and in the economy. Naturally, there are many different types,
but common characteristic of these regulatory instruments (laws, rules,
directives, etc.) is that they are obligatory in nature, meaning that actors are
obliged to act within some clearly defined boundaries. Regulatory instruments
using law and binding regulations are important in the field of STI policy, for
example the regulation of IPR in particular, but not only, patent regulations,
the regulation of research and higher education organizations like universities
and public research organizations (most importantly the statutory nature of the
organizations, and researchers’ employment regulations), competition (anti-
trust) policy regulations concerning R&D and innovative activities of firms in the

30. Borrás, S. and Edquist, C. (2013) The Choice of Innovation Policy Instruments,
Technological Forecasting and Social Change, 80(8), 1513-1522.

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3. STI Policies in Turkey

market, bioethics and other ethical regulations related to innovative activities,

and last but not least, some specific industrial sector regulations with effects
on innovative activities.

(3) Soft instruments are characterized by being voluntary and non-coercive. With
soft instruments, those who are ‘governed’ are not subjected to obligatory
measures, sanctions or direct incentives or disincentives by the government or
its public agencies. Instead, soft instruments provide recommendations, make
normative appeals and offer voluntary or contractual agreements. Examples
of these instruments are campaigns, codes of conduct, recommendations,
voluntary agreements and contractual relations, and public and private
partnerships. These instruments are very diverse, generally based on
persuasion, mutual exchange of information among actors, but less on
hierarchical forms of cooperation between the public and the private actors.
These instruments have been increasingly used in STI policy-making for the
past two decades. However, it is important to keep in mind that even if their
relative importance is increasing, these instruments complement regulatory
and economic instruments. Nonetheless, they might constitute important new
forms and new approaches to public action with regards to STI policy.

The focus on instrument mixes (or “policy mix”) has received considerable attention
from policy makers in the past few years. Policy-mix can be defined as the specific
combination of innovation-related policy instruments which interact explicitly or
implicitly in influencing innovation intensities. Policy-mixes are specifically designed
and implemented for specific problems and tend to follow distinct patterns of national
policy styles. There are several instances where the government initiates mixed
policy designs. The National Technology Act for instance involves many hard and
soft tools, and regulations. A good example is TOGG that aims to produce a fully
electric “Turkey’s Automobile” by 2022. The TOGG initiative involves government
regulations31, massive government funding, promotional tools and infrastructure
building and also has multiple aims such as producing indigenous technology, reduce
trade deficit, enhance cooperation between government-university-industry. Likewise,
there are many policy tools that support entrepreneurship (especially technology-
based or innovation-based). Such policy tools under different organizations aim to
create an entrepreneurial society complementing each other. This report reviews
the recent attempts in STI policy design under economic and financial instruments,
regulations and soft tools.

31. https://www.resmigazete.gov.tr/eskiler/2019/12/20191227-2.pdf

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 3. STI Policies in Turkey

3.2.1. Economic and financial instruments

There are various mechanisms providing financial support for R&D and
innovation activities of private sector, universities and other related actors of the
STI system. TÜBİTAK, KOSGEB, SSB, and TTGV are the well-known institutions
that execute financial support programs/projects for changing needs of the
actors. Programs are revised in compliance with STI policies from time to time.
Although there are many new economic and financial instruments, only the
most effective and important programs that are developed recently is included
in this section.

3.2.1.1. TÜBİTAK
TÜBİTAK has transformed two of the most applied industry programs
so that there will be calls with specific budget two times a year. One
of them is 1501 - Industrial R&D Projects Grant Program and the other
is 1507 - SME RDI Grant Program. The purpose of this change was to
provide better budget management, to select the best projects by
competition, to use various tools in an effective and flexible manner at
the project selection stage and to direct financial resource to projects
in predetermined areas complying with national targets and needs.
Additionally, at the evaluation stage of the proposals, the weight of
“commercialization” has been increased.

3.2.1.1.1. Industry Innovation Network Mechanism

Call (SAYEM)

TÜBİTAK has launched Industry Innovation Network Mechanism

Call (known as SAYEM) in 2018 to develop high value-added
products or product groups in compliance with national high
technology targets exercised by forming innovation networks
where government, universities and private sector cooperate.
Only high technology areas that have been determined by NACE
codes below are in the scope of the program;

• Manufacture of basic pharmaceutical products and

pharmaceutical preparations (NACE 2 code21)
• Manufacture of computer, electronic and optical products
(NACE 2 code 26)

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3. STI Policies in Turkey

• Manufacture of other transport equipment (NACE 2 code 30)

Only roadmaps for products or product groups with Technology

Readiness Level32 5 (preferably TRL 6) and above (except TRL
8&9) are in the scope of this call.33

The main applicants of the consortium are either universities,

public research institutions or private firms which are subject to
some additional conditions (being an R&D Centre, having a weighty
turnover in the sector, developing products and having a broad
sales network, having noticeable IPR for the basic technology of
the targeted product, having applied for TÜBİTAK 1004 Excellence
Centre support program). Related TTOs, entrepreneurs, SMEs,
start-ups, potential customer representatives could also join the
consortium.

There are two phases of the call; first phase includes forming the
network and cooperation, capacity building, preparing roadmaps
and the second phase mainly involves making the product
ready and prepare for manufacturing. The applications for first
phase of the call were completed at the end of 2018. Among 47
applications, 28 projects were selected to be supported with 2.5
million TL budget for phase 1. In the second phase of the program,
the projects of the selected roadmaps can apply to different calls
of TÜBİTAK and Strategic Product R&D Support calls without
providing application criteria. Thus, SAYEM aims to enhance
production of high value-added goods and services by forming
networks that are expected to cooperate on research, innovation
and production.34

32. Technology Readiness Level (TRL) is a method for estimating the maturity of technologies
during the acquisition phase of a program, developed at NASA during the 1970s. A
comprehensive approach and discussion of TRLs has been published by the European
Association of Research and Technology Organisations (EARTO).
33. NACE (Nomenclature of Economic Activities) is the European statistical classification
of economic activities. NACE groups organizations according to their business activities.
Statistics produced on the basis of NACE are comparable at European level and, in general, at
the world level in line with the United Nations’ International Standard Industrial Classification
(ISIC). (Reference https://siccode.com/page/what-is-a-nace-code).
34. For more information on SAYEM see https://www.TUBITAK.gov.tr/sites/default/files/292/
sayem_sunum_31102018_web_.pdf
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 3. STI Policies in Turkey

3.2.1.1.2. Technology Focused Industrial Movement

Program (HAMLE)

Technology Focused Industry Movement Program is a special

program targeting increased value-added by managing the support
and incentives of MoIT and related institutions from a single window,
to focus on middle-high and high-technology fields. The main aim is
to increase the manufacturing of products in middle-high and high-
technology critical sectors determined as machinery, chemistry,
pharmacy, computer technologies, electronic-optic technologies,
electrical equipment and transportation vehicles. The mission of the
program is to decrease the foreign dependency in these sectors,
especially imported inputs, and to enhance limited or non-existing
manufacturing capabilities in niche products and contribute to the
development of industry through backward and forward linkages.
The sectors and products that have significant impact on the
current account deficit are prioritized. If R&D activities are required
for the eligible projects, TÜBİTAK may provide R&D incentives for
projects. If the applicant firm of an eligible project is an SME, the
investment part of the project could also be supported by KOSGEB
up to 5 million TL.

The first call of the program for the machinery sector has been
announced and applications have started by 3rd of October, 2019
and evaluations are to be completed by June, 2020.35

3.2.1.1.3. 1514-Venture Capital Support Program

(Tech-InvesTR)

The new Tech-InvesTR Venture Capital Support Program has been

designed to add value to Turkish economy through providing
capital to early-stage start-ups in the process of commercialization
newly developed R&D products and technologies. The program
entered into force along with the agreement signed between
TÜBİTAK and The Ministry of Treasury and Finance on 14.06.2018
and Tech-InvesTR-2018 Venture Capital Support Program Call
was launched on the same day

35. For more information about HAMLE see the Official Gazette https://www.resmigazete.gov.
tr/eskiler/2019/09/20190918-7.htm

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3. STI Policies in Turkey

The application period for the call was completed on 30.09.2018.

Within the scope of the call, 34 project proposals have been
received from 23 institutions including; 13 TDZs, 9 TTOs and 1
research infrastructure.

It is planned that the ministry will commit a maximum of 400

million TL, to selected VC funds, within the next 5 years. After the
Ministry of Treasury and Finance’s evaluation, the participation
protocols between the Ministry of Treasury and Finance and the
VC funds will be signed. At the same time TÜBİTAK and TTO/TDZ/
Research Infrastructures will sign the project support agreements.
Investments are aimed to start after the establishment of these
funds, in order to commercialize the R&D results of early-stage
technology-based enterprises established in Turkey. With the
contribution of the domestic and international resources, Tech-
InvesTR VC funds are expected to reach 980 million TL at the first
closing and approximately 1.8 billion TL at the final closing. Within
the scope of TÜBİTAK Tech-InvesTR Venture Capital Support
Program, about 300 early-stage technology-based ventures are
aimed for investment.

3.2.1.1.4. 1004-Excellence Centre Support Program

The purpose of the Excellence Centre Support Program is to

support excellent scientific research with high commercialization
potential in Higher Education Research Infrastructures in priority
areas determined by TÜBİTAK in accordance with national
priorities. In compliance with national targets, this program aims to
create Excellence Centers cooperating with R&D/Design Centers
and Public R&D units. There are two phases of the program. In the
first phase, activities to form the research program are supported.
Preparation of the strategic research program, roadmaps
including key steps for the use of developed technology and
management model of the cooperation platform are the expected
outputs of this phase. In the second phase, R&D and innovation
activities in line with the roadmap are supported. The activities
shall be in high technology fields from TRL 3 to 6. The budget of
the first phase is for service procurement, consumables and travel

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 3. STI Policies in Turkey

expenses. Machinery, equipment, software publication purchase,

consumption goods, consultancy & service procurement, travel,
personnel, project output publication expenses are supported in
the second phase.36 Prioritized areas are biomedical equipment,
drugs and vaccines, solar energy technology, nanotechnology,
advanced material technologies, sensor technologies, RF
technologies, Industry 4.0 Technologies, 3D Printers and
regenerative/personalized medicine. 17 programs have been
supported under phase one and 9 of them are eligible to apply
to phase two. These 9 projects are under two NACE codes:
Manufacture of basic pharmaceutical products and pharmaceutical
preparations (NACE 21) and Manufacture of computer, electronics
and optical products (NACE 26).

3.2.1.1.5. 1515-Frontier R&D Laboratory Support

Program

The 1515 Program applies an integrated perspective that extends

beyond a consideration of the initial, establishment phase of
an R&D laboratory. Since R&D laboratories flourish with long-
term commitments, the support of the 1515 Program extends
to the phase of sustaining the activities of R&D laboratories in
the long run. The 1515 Program offers an entirely grant-based
financial model to cover up to 75% (for personnel expenditures,
in some cases up to 100%) of the operating expenses of the R&D
laboratory in Turkey with up to 10 million TL for each calendar year
for a duration of 10 years at most.

The program is designed to “facilitate” the process of allowing

leading firms to undertake frontier R&D activities in their
laboratories in Turkey. The basic expectations after a positive
evaluation are that the R&D laboratory puts into place a research
plan to realize the following:

• Expand the boundaries of existing scientific understanding

• Bring new scientific understanding to natural phenomena

36. See for details: https://TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/

icerik-1004-mukemmeliyet-merkezi-destek-programi

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3. STI Policies in Turkey

• Conduct research activities that are directed to providing

solutions to existing scientific challenges or those that are
probable in the future

• Conduct research that have the potential to influence new,

emerging technological trends

• Perform basic and/or applied research for “proof of

concept” activities and/or those that are directed to the
establishment of new scientific frameworks.

The presence of the R&D laboratory in Turkey will further open

the possibility of benefiting from TÜBİTAK’s any other grant-based
support mechanisms. These mechanisms, including call-based
programs in areas of priority, are open for the application of all
research entities in Turkey. In addition to the grant that is provided
for the budget under the relevant R&D support programs, the R&D
laboratory will qualify to receive a “Project Incentive Premium” for
each R&D project.

3.2.1.1.6. Commissioned R&D Call

Commissioned R&D 2020-1 is a call to support partnered

projects in which potential customers are ready and innovative
products will be developed by SMEs through conducting R&D.
R&D projects that can quickly turn into products and have high
commercialization potential will be supported. There is no subject
and sector limitation in the commissioned R&D call.

The selected firms/organizations will carry out R&D activities

and the project output will be commercialized by the “customer”
organization. The customer will contribute to the R&D costs, along
with TÜBİTAK. The total of accepted budget of the projects will be
30 million TL maximum. The total budget of a project (funded by
TÜBİTAK) will be 2.5 million TL maximum.

Project is planned in two stages 1) product/process development

and 2) commercialization. The product/process development
phase shall be 24 months maximum. The commercialization

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 3. STI Policies in Turkey

phase uses the results of the first phase but expenses related to
this phase would not be supported. The initial commercialization
period for all projects will be 24 months maximum.

While the SMEs develop the product by conducting R&D, the

customer organization will support the execution of the R&D project
as intended. Thus, information will be shared, disseminated and
quickly transformed into a product. It is expected that the culture
of business cooperation will develop and become widespread
with the supported R&D projects. The call opened on May 14,
2020 for project applications.

3.2.1.1.7. Patent-Based Technology Transfer Support

Call

The program aims knowledge transfer and commercialization of

patented technologies which are developed by HEIs, research
infrastructures, public enterprises, public research centers and
institutes, and early-stage technology-based firms to established
firms located in Turkey through licensing or assignment methods.

Support rate is determined differently according to each patent

licensed or assigned in the scope of the project. Base rate of the
support is minimum 25%. There is a 15% additional support rate
which will be provided in case the client is an SME, another 15%
additional support if patent is a high-technology product or service
and another 10% if the patent is registered to EPO, USPTO, JPO,
CNIPA or KIPO. Finally, in case there is a bundle of patents in the
license agreement, there will be an additional 10% support. Total
budget of the project will be 2 million TL maximum.

For the patents subject to license or assignment, the application

to TÜBİTAK could be made by the certificate of registration or the
search report if not registered yet. License or assignment fees
of the patents that are submitted with the search reports, will be
supported after the patent is registered during support period.
Patents subject to the project should have at least a 10-year
protection time period.

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3. STI Policies in Turkey

3.2.1.2. Small and Medium Enterprises

Development Organization of Turkey (KOSGEB)
KOSGEB has launched three new support programs.

3.2.1.2.1. R&D and Innovation Support Program

R&D and Innovation Support Program has been launched in 2020.

The purpose of the program is to develop technology-based new
ideas and inventions of SMEs and entrepreneurs and to support
the projects about development of new products, new processes,
information and/or services. Rent, machinery & equipment,
hardware, raw materials, software and service procurement costs,
staff cost, start-up capital, project development cost (consultancy,
test, industrial & intellectual property, etc.) are supported by the
program.37

3.2.1.2.2. Strategic Product Support Program

KOSGEB Strategic Product Support Program has been launched

in 2017. The purpose of the Program, which is in the scope of
Technology-Oriented Industry Movement Program conducted
by MoIT, is to support the investment to the products that are
identified in the MoIT’s priority product lists, which consist of
products within the medium-high and high-technology industries
that has critical importance and future potential for Turkey. During
investment project period, support up to 5 million TL (whereof 1.5
million TL is non-reimbursable and 3.5 million TL is reimbursable)
with a support rate of 60% (whereof 30% is non- reimbursable and
70% is reimbursable) provided. Machinery & equipment, software
expenses support, staff cost support (whereof support rate is
100% and all amount is non- reimbursable), reference specimen
support, service procurement expense items are provided.38

37. See for more information https://en.kosgeb.gov.tr/site/tr/genel/destekdetay/1229/rd-and-innovation-

support-programme.
38. See for more information: https://en.kosgeb.gov.tr/site/tr/genel/destekdetay/6492/
strategic-product-support-programme

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 3. STI Policies in Turkey

3.2.1.2.3. SME Technological Product Investment

Support Program

SME Technological Product Investment Support Program has

been launched in 2017. The production and commercialization of
products resulting from R&D and innovation activities in the fields
of low-technology and medium-low technology are supported up
to 1 million TL. The production and commercialization of products
in the fields of medium-high and high-technology that will
contribute to the closing of current account deficit are supported
up to 5 million TL. Machinery-equipment, production line design
expenses, software expenses, staff expenses, training and
consultancy, promotion and marketing expenses (reimbursable &
non-reimbursable in different ratios) are supported.39

3.2.1.3. Technology Development Foundation of

Turkey (TTGV) programs
Technology Development Foundation of Turkey (TTGV), a non-profit
intermediary/implementing agency-not primarily prioritizing profit, gives
support for strengthening the system with programs not only based on
financial incentives but also using different tools for the changing needs
of the innovation system.

Ideanest, the first donation-based crowd-funding platform of Turkey has

been launched in 2017 by TTGV. The program was designed to support
innovation-based projects to raise funds. Through Ideanest, project
owners and researchers may aggregate necessary funding for their
specific needs. Furthermore, project owners and researchers can boost
their idea development process by using Ideanest as a hub to reach
technical competencies and expertise. In 2018, TTGV’s new “Xnovate”
Program, new Investment Program called “HIT” and “Make Tomorrow
Program” were launched. “Xnovate” Program aims at disseminating the
best practices in innovation processes that will create competition in the
fields of technology, product management and innovation, while raising

39. See for more information: https://en.kosgeb.gov.tr/site/tr/genel/destekdetay/6443/sme-

technological-product-investment-support-programme

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3. STI Policies in Turkey

human resources. Xnovate offers environment and tools in which new

ideas and methods will be discussed and implemented in a community
that learn and develop together with innovators. Xnovate program
consists of five sub-brands in total. Xnovate Circle is a community
of practice that speak, share, raise issues, learn and try to develop
solutions about technology and innovation. Xnovate Fellows is a one-
year program that consists of 4 modules and 1 summit. The program
is designed to train innovation leaders who will make a difference.
Xnovate Lab is a platform that offers different and unique applications
that support the development of innovation processes. Xnovate Havadis
is a news channel where you can follow up information about innovative
ideas from companies, different working techniques, examples from
around the world and developments in corporate innovation. Xnovate
Hands-on is a platform where new ideas, unique methods, innovation
tools are discussed and shared by people who are involved in TTGV’s
target group, innovation and technology professionals.

TTGV’s new investment program called “HIT” aims at accelerating start-

ups or entrepreneurs that already has a working prototype (MVP) in the
thematic field chosen and provide them with early phase investment.
The thematic field of the first year is “health” and the program will soon
extend to other priority fields. HIT as a venture development program
in selected vertical technology markets contributing to new ventures
securing their first market/customer. With direct participation of industry
professionals, mentors and consultants, the program implements a
TTGV proprietary venture development methodology. HIT program is
a translational development/investment model where TTGV develops
early access to promising new ventures for its investment programs.
Qualified start-ups with a valid business plan will be accepted to “Initial
Market Entry Program”. The program finances business development
activities up to maximum $50.000 for one-year period. In this context, if
the accepted start-ups are funded by an independent investor within five
years of acceptance to the program, TTGV has the right to join the
investment as a co-investor based on the valuation of the investor, up to
$1 million at a 10% discount rate. Throughout the operational processes
of the program, TTGV will contribute directly to the cost of any business
development product or service. During program implementation, TTGV
team works together with sector professionals, consultants, mentors

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and organizations who will be appointed for each start-up for various
business development activities.

Make Tomorrow Program is a digital transformation training program

for students. Lecturers who have previously worked on Arduino kits
or a similar platform join the program voluntarily and prepare projects
with their students. The volunteer groups start working on their project
demos aimed at providing solutions for identified problems in the areas
of health, environment and energy, and smart cities. The Exhibition
and Award Ceremony of the first term finalist projects were held. This
program, in its functioning, resembles the recently established Design
Factory at the Middle East Technical University (METU).

3.2.2. Regulatory tools

Both Constitution-wise and STI regulation-wise; the legal setting of Turkey has
gone through major changes in the last years. The complexity, dynamics and
intricacy of the legal structure well-endowed with a plethora of policy tools
may sometimes lead to confusion among stakeholders. The sheer purpose of
this sub-section is to present clear-cut, timely and up-to-date information on
regulatory tools and familiarize readers to the legal surroundings in Turkey.
This sub-section consists of six parts:

1. Principle STI laws (consisting of five main sub-sections as Laws 5746,

6676, 6550, 4691, and 6769 including five sub-sections within);

2. Digital Regulations, cybercrime and Data Protection Law (KVKK);

3. Related STI Laws (consisting of five main sub-sections as Laws 4734,
7033, 4059, 6563 and 6493);

4. Presidential decrees, presidential decisions;

5. Statuary Rules, orders and communiqués;
6. Other legal observations.

Only the legal novelties and modifications of the last five years are examined
within the purposes and scope of this report.

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3.2.2.1. Principle laws on science, technology and

innovation
3.2.2.1.1. Law no. 5746 for Support of Research,
Development and Design Activities40

The Law No. 5746 provides the opportunity for businesses to

write down their expenditures on R&D projects as expenses, as
well as providing high income tax withholding support. Under the
regulation, which also provides insurance premium support to
employers, purchases made by businesses are exempt from all
kinds of customs duties and fees. Moreover, employees working
in these businesses do not pay stamp duty. In addition to all these
advantages, the regulation also provides staff support to companies
and a gross wage for two years to the salaries of basic science
graduates to be employed in R&D centers established under the
Law intra vires the MoIT.

With the amendments made within the scope of the R&D reform
package which came into force on February 26, 2016, arrangements
were made to improve the R&D and innovation ecosystem of
Turkey, especially with the enactment of the Law no. 5746 on the
Promotion of Research, Development and Design Activities. At
the heart of these regulations, design activities are included in the
same scope of support as R&D activities. Within the scope of this
law, the concept of Design Centre has entered into legislation and
many important supports have been introduced to design centers.

R&D center certificates started being issued with the Law no. 5746
in order to define the areas in which private sector organizations
cannot benefit from infrastructures especially like TDZs; and to
enable companies carrying out R&D to benefit from similar support.
The purpose of the support in the law is to “create an economic
environment that is focused on innovation, to develop highly-
skilled workforce, to produce high added value products, that
have high efficiency and competitive advantage”. Increasing the
international competitiveness of Turkey, developing innovation
40. https://www.mevzuat.gov.tr/MevzuatMetin/1.5.5746.pdf

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capacity and establishing industrial infrastructure suitable for

keeping in tune with times in the verge of a new age. The Law also
provides opportunities for foreign capital companies to develop
new technologies by structuring their R&D units in Turkey.

3.2.2.1.2. Law no. 6676 on the Promotion of Research

and Development Activities and Amending some Laws
and Decrees41

Within the Information Society Strategy, the action “providing

effectiveness in incentives and support for the IT sector” has been
included. The impact analysis of the supports given by the MoIT
has been carried out and the necessary improvements have been
made with the Law no. 6676 to increase the effectiveness of the
supports. On the other hand, there is still a need to coordinate,
monitor and control the incentives, including the entire value
chain, from R&D to production and exports.

3.2.2.1.3. Law no. 6550 on the Support of Research

Infrastructures42

The Law no. 6550 for the Support of Research Infrastructures,

prepared by the Ministry of Development entered into force via its
publication in the Official Gazette dated July 10, 2014. No recent
changes are observed in the Law, but it still is a fundamental law
designing research infrastructures.

Secondary legislation of the Law was published in the Official

Gazette dated August 28, 2015. Three regulations entered into
force regulating the general principles of the application of
this law, procurement and tender processes and budget and
accounting transactions.

Under the Law no. 6550, for more effective use of research
infrastructures established or developed within the institutions
of higher education and to ensure sustainability; proficiency

41. https://www.resmigazete.gov.tr/eskiler/2016/02/20160226-1.pdf
42. https://www.mevzuat.gov.tr/MevzuatMetin/1.5.6550.pdf

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was given to 4 research infrastructures by the Board of Research

Infrastructure, having acquired legal personality. Proficiency was
given for a period of 5 years in accordance with the Decision No.
2017/1 of the Board of Research Infrastructures dated 16/08/2017.
Middle East Technical University Micro-electro-mechanical
Systems Research and Application Centre (METU-MEMS), Dokuz
Eylül University İzmir International Biomedicine and Genome
Institute (IBG), Bilkent University National Nanotechnology
Research Centre (UNAM) and Sabancı University Nanotechnology
Research and Application Centre (SUNUM) are the infrastructures
awarded with proficiency. The evaluation process for other
research infrastructures under the law is ongoing.

3.2.2.1.4. Law no. 4691 on Technology Development

Zones43

Within the scope of Law no. 4691 on Technology Development

Zones and Law no. 6170 amending the Law on Technology
Development Zones, a large number of TDZs have been
established and started to operate in Turkey. Some recent
statistics on TDZs are presented in Section 2.5.22. There has been
a recent amendment in Technology Development Zones law on
03.02.2021. With this new amendment subsidies and exemptions
under law 4691 and 5746 are prolonged till 31/12/2028. The
most important change within this recent amendment is that,
from 01.01.2022 onwards, firms and R&D and Design Centers
which report more than 1 million TL revenue must transfer 2%
of their revenue to a venture capital fund that aims to fund local
entrepreneurs or to invest in start-ups located in incubators.44

3.2.2.1.5. Industrial Property Law no. 676945

The Industrial Property Law was adopted by the General Assembly

of the Turkish Grand National Assembly on December 22, 2016
and entered into force upon publication in the Official Gazette on

43. https://www.mevzuat.gov.tr/MevzuatMetin/1.5.4691.pdf
44. https://www.resmigazete.gov.tr/eskiler/2021/02/20210203-11.htm
45. https://www.mevzuat.gov.tr/MevzuatMetin/1.5.6769.pdf

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 3. STI Policies in Turkey

January 10, 2017. A participatory approach has been put forward

by holding various workshops and meetings in order to take the
views and suggestions of stakeholders and to reflect these views
and suggestions into text during the legislative process of the law.

The main characteristic that distinguishes the Industrial Property

Law structurally from the previous legislation is the consolidation
and harmonization of issues that are similar to each industrial
property component under the Book of Common and Other
Provisions. In this way, a compact law has been introduced
that constitutes integrity among all industrial property rights.
Transactions related to industrial property applications made
before the date of the entry into force of the Industrial Property
Law are carried out according to the abolished Decree-laws
within the scope of the Provisional Article 1 of the Law.

The novelties introduced by the Industrial Property Law for each

industrial property component are as follows:

i) Legal novelties under the Book of Trademarks

In order to shorten the registration processes, the period of

announcement in the Bulletin has been reduced from 3 months
to 2 months. With the aim of protecting the will of the applicants
to co-exist in the market; if the previous trademark owner clearly
consents to the registration of the application, the application
shall not be rejected if the notarized permit is submitted to the
institution. To ensure more effective use of registered trademarks
in the market and to prevent the application of trademark
registration for goods and services that are not intended to be
used; a regulation has been introduced which allows the request
for the submission of information and documents relating to the
use from the party objecting to the publication. The cases of
invalidation and annulment were arranged separately in parallel
with EU legislation and international regulations.

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3. STI Policies in Turkey

ii) Legal novelties under the Book of Geographical Indication

and Traditional Product Names

Regulation on the protection of registered traditional specialty

names through registration has been introduced. The
advertisement fees, which constitute the bulk of the registration
cost, were eliminated by the publication of the application in the
Bulletin. The announcement period was reduced from 6 months
to 3 months and the registration process was shortened. It grants
the right to oppose the institution’s decisions. The frequency of
inspection of geographical indications has been reduced from
10 years to 1 year. An arrangement to the emblem to be used
together with the geographical Indication and the traditional
product name has been introduced. Thus, it is aimed to increase
awareness of geographical indications and to enable the control
system. A regulation has been made that allows changes in
product specifications to be recorded in the register in the cases
of scientific and technological developments, development of
new methods in production, climate change etc.

iii) Legal novelties under the Book of Industrial Designs

The phrase “industrial designs” in KHK No. 554 and related

legislation has been replaced with the phrase “designs”.
Arrangements have been made to comply with the EU Community
Design Charter. Regulation on the formal rejection of designs
contrary to public order or general morality has been introduced.
In order to protect the original design works by registration, the
application for the formal rejection of the design applications,
which are not understood to be new, has been introduced. The
6-month notice period for published design registrations has
been reduced to 3 months and the registration process has been
shortened. In accordance with EU legislation, the invisible parts
of the combined product and the use of the combined product
for repair are excluded from the scope of design protection. In
order to uncover the current design potential in universities for
economic use, the right ownership of the designs of the university
members has been given to HEIs, with at least 50% of the revenue
generated from the design being owned by the designer.

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 3. STI Policies in Turkey

iv) Legal novelties under the Book of Patents and Utility Models

Regulations have been made in order to solve the problems

encountered in practice and to simplify and speed up the process
of patent issuance. The right ownership of the inventions of the
university members is given to the HEIs, with at least one third
of the income generated from the invention belonging to the
inventor. This is done to uncover the existing invention potential
in universities and to bring the inventions to the economy by using
the institutional infrastructure of universities through patents.
A framework regulation was introduced on the ownership of
the inventions in projects supported by public institutions and
organizations, with the goals of promotion of inventions, and
encouragement of participation to R&D efforts supported by
public institutions and organizations at a high level in order to
encourage the cooperation between public institutions and
commercial companies. The patent system without review, which
causes serious legal problems in practice between the rights
holders and the companies and is open to misconduct, has been
abolished. The patents granted can be contested after registration.
Thus, after the patent has been granted, the procedure of going
to court only for cancellation has been changed and an appeal
period of 6 months has been introduced. Application of research
reports for utility model applications has been introduced. Thus, it
is aimed to give a more robust right by preventing useful models
from being given to inventions that do not meet the protection
criteria. In order to prevent the loss of rights often experienced in
annual fee payments, the application of compensatory time and
fee has been introduced. Regulation on the reestablishment of
rights has been introduced.

v) Legal novelties under the Book of Common and Other

Provisions

Several Decree-Laws were organized as one single law. Topics

such as public representative, legal processes, the infringement of
industrial property rights, right to be judged by a competent court,
persons authorized to act, the notification and fee provisions were

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3. STI Policies in Turkey

converted into Common Provisions. Arrangements were made to

address the problems related to the storage and conservation of
items subject to crime. In order to solve the problems experienced
by the institution during the notification phase, a new notification
procedure was envisaged. Due to the Constitutional Court’s
annulment decisions and the legal loophole caused by the failure
to comply with the Turkish Penal Code, the defendants were
forced to make legal arrangements regarding the suspected
criminal items in question as a result of the criminal acts, the items
confiscated as a result of these acts are occupied as items of
crime and not returned.

3.2.2.2. Digital regulations, cybercrime and data

protection
Existing Turkish digital policies are generally in line with international
standards while implementation challenges still exist. Turkey as a
general principle formulates its digital regulations in compliance with
EU policies and international standards. Turkish intellectual property
(IP) laws have been in line with international IP protection policies, and
the law is regularly updated to comply with international standards.
WIPO Copyright Treaty has been in force in Turkey since 2008. The
law recognizes electronic signatures, which speed up administrative
processes. The Information and Communication Technologies Authority
(BTK) has issued a regulation and closely monitors the enforcement of
maintaining net neutrality by the internet service providers.

Cybercrime is treated seriously in Turkey, as a signatory of the anti-

cybercrime Budapest Convention, the Turkish Penal Code addresses
many digital offenses, resulting in adequate legal enforcement.

3.2.2.2.1. Law no. 6698 on Personal Data Protection46

(KVKK)

Some of the data collected digitally is “personal data” and is

subject to the rules for the protection of personal data. In terms

46. https://www.mevzuat.gov.tr/MevzuatMetin/1.5.6698.pdf

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 3. STI Policies in Turkey

of Turkish law, KVKK covers this area of application. Below are

general novelties regarding the scope of KVKK:

• Procedures and principles to obtain, store and process

personal data,
• Permission for processing personal data as long as data
provider’s consent is obtained,
• Fines up to $350,000 in cases of breaches,
• Introduction of a new Personal Data Protection Authority
for law enforcement,
• Compliance with EU Data Protection Directive 95/46/EC.

Transfer of personal data abroad can only be made if the data

subjects explicitly consent to such transfer or if processing of
personal data does not require explicit consent because it may
be adjusted with one of the exceptions in the legislation, the
country that the personal data will be transferred to shall have an
adequate level of protection.

Under KVKK, companies operating in financial services and

telecom sectors cannot store customer data outside the country.

The regulations are not definitive on the application of KVKK in

public activities. Therefore, sector experts indicate that start-ups
working with the public sector refrain from using global cloud
services and opt for more expensive and less efficient solutions
in order to avoid discontinued operations or fines. Turkish private
consumers on the other hand can utilize international cloud
services without many restrictions or regulatory barriers.

In the 2018 OCC Report47, it is argued by the ecosystem

participants that arbitrary interventions reduce international
confidence and increase perceived country risk, which influence
the investment decisions of domestic and international investors
in related technologies.

47. https://www.occstrategy.com/media/1302/turkiyeteknogisimcilikekosistem.pdf

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3. STI Policies in Turkey

Much anticipated regulation relating to electronic payments,

e-commerce and personal privacy and data protection came into
effect in 2015 and 2016. Timely guidance on how regulations will
be implemented and enforced is critical to alleviate uncertainties
and allow for sound business and investment decisions. Delays
in Turkish digital laws enactments hold back entrepreneurs from
experimenting in new areas and technologies until the appropriate
policy framework is established.

3.2.2.3. Laws directly related to the legal STI setting

of Turkey
3.2.2.3.1. Public Procurement Law No. 473448

The application of price advantage in favor of domestic

companies in public procurement is considered as a policy tool
for the development and support of domestic products and
services. However, it is useful to evaluate this application once
again in a multifaceted way. The change in Article 63 of Law no.
4734 in 2017 made it mandatory to apply a price advantage of up
to 15% in favor of domestic firms. The 15% advantage approach
for domestic–national product procurement has become an
incentive mechanism that cannot be used in practice, especially
as it increases the purchase costs of public institutions.

3.2.2.3.2. Law No. 7033 Amending Some Laws and

Decrees with the Aim of Developing Industry and
Supporting Production49

Grand National Assembly of Turkey adopted the law numbered

7033 on June 18, 2017. It was promulgated on July 1, 2017 in
the Official Gazette numbered 30111. In Article 3, enterprises
producing information technology and software were included in
the definition of industrialists in the Industrial Registry Law50. By

48. https://www.mevzuat.gov.tr/MevzuatMetin/1.5.4734.pdf
49. https://www.resmigazete.gov.tr/eskiler/2017/07/20170701-21.htm
50. https://www.mevzuat.gov.tr/MevzuatMetin/1.3.6948.pdf

88
 3. STI Policies in Turkey

the regulation stated in Article 74 a provision in favor of bidders

offering domestic software product, 15% price advantage has
been introduced.

3.2.2.3.3 Law no. 4059 on Financial Stability and

Certain Regulations51

For start-up or growth stage Capital Ventures who have difficulties

in accessing finance, support program has been established
by Law No. 4059 by the Under Secretariat of Treasury. This is a
financial tool which supports individual participation, participation
of angel investors and the persons, institutions and organizations
subject to this clause and regulates their activities.

3.2.2.3.4. Law no. 6563 Regulation on Electronic

Commerce52

Some of the main subjects treated by this law are as following;

Obligations for e-commerce firms to provide clear information on
products/services, terms and conditions, data storage and dispute
resolution mechanisms, guidance on commercial communications
via electronic communication devices (except e-mails for certain
purposes), introduction of ETBIS (E-Commerce Information
System) to collect certain data from e-commerce firms. With the
adoption of Law no. 6563, compliance with EU distance selling
regulations was also achieved.

3.2.2.3.5. Law no. 6493 on Payment and Securities

Settlement Systems, Payment Services and Electronic
Money Institutions 53

This law stipulates obligation to deploy data servers in Turkey

for banks and financial institutions to oversee the monetary
operations and protect Turkish consumers. The regulations bear
resemblance with related EU regulations.

51. https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=4059&MevzuatTur=1&MevzuatTertip=5
52. https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=6563&MevzuatTur=1&MevzuatTertip=5
53. https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=6493&MevzuatTur=1&MevzuatTertip=5

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3.2.2.4. Presidential Decree, Presidential Decisions

3.2.2.4.1. Presidential Decree Amending the
Presidential Decree No. 59 on the Organization of the
Presidency54 (dated Tuesday, April 14, 2020. Published
in the Official Gazette numbered 31099).

For the first time, two new head offices were created within the
MoIT, which are critical for carrying out national technology moves,
strategic research and efficiency. The Directorate of Indigenous
Technology and the General Directorate of Strategic Research
and Productivity were established.

Thus, the “National Technology Act” entered into legislation.

The ministry will establish policy proposals and strategies for

the digital transformation of individuals and firms and for the
development of the digital economy at the national level, will take
measures to establish cooperation and co-direction between
stakeholders in implementing strategies (public, private sector,
universities, etc.) and carry out programs and projects to develop
the digital economy and digital transformation ecosystem.

In addition, in order to increase the economic benefit of

digitalization, it will take the necessary measures in cooperation
with relevant public institutions and organizations to develop
digital economy practices and to grow the ecosystem in this
area. The Ministry will contribute to the creation of legislation and
carry out programs and projects for the development of digital
economy infrastructures and applications in parallel with digital
technologies and trends.

The MoIT will take measures to increase the competence of

individuals and companies in the field of big data and artificial
intelligence and implement support and incentive programs,
carry out programs and projects to develop and disseminate
intelligent applications based on these technologies. The Ministry
will support and encourage the activities carried out in this field

54. https://www.resmigazete.gov.tr/eskiler/2020/04/20200414-15.pdf

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to increase the production of scientific, indigenous and unique

advanced technology products and systems, contribute to the
creation of the necessary infrastructures, and determine the
procedures and principles for the support.

3.2.2.4.2. President’s Decision no. 2248 on the

Procedures and Principles for Supporting Research
Infrastructure Projects of Foundation Universities by
the Strategy and Budget Presidency55

This Decision dated March 4, 2020, was prepared with the aim
of supporting the research infrastructure projects of foundation
universities and sustainment of research infrastructures already
established by supporting them in order to increase the
contribution of the scientific and technological accumulation in
the universities that are established and funded by foundations
for economic and social development of the country.

3.2.2.5. Statutory Rules, Orders and Communiqués

3.2.2.5.1. Secondary Legislation of Industrial Property
Law

Following the Industrial Property Law, which came into force on

January 10, 2017, regulation works were carried out. The following are
the legislative regulations enacted in the process following the law:

i) Regulation on the Application of Industrial Property Law56

ii) Regulation on the boards of the Turkish Patent and Trademark

Authority re-examination and Evaluation Department57

iii) Regulation on Employee Inventions, Inventions made in Higher

Education Institutions and Inventions made in Publicly Funded
Projects58

55. http://arastirma.sbb.gov.tr/wp-content/uploads/2020/04/2020-Vakif-Usul-Esaslari.pdf
56. https://www.resmigazete.gov.tr/eskiler/2017/04/20170424-5.htm
57. https://www.resmigazete.gov.tr/eskiler/2017/05/20170512-22.htm
58. https://www.resmigazete.gov.tr/eskiler/2017/09/20170929-6.htm

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iv) Turkish Patent and Trademark Authority Professional Rules and

Disciplinary Statutory Rule of Patent Attorneys and Trademark
Attorneys59

During the preparation process of these regulations, a participatory

approach has been adopted and the opinions of the parties have
been taken. The outputs of the workshops with the stakeholders
were reflected in the regulation, especially in the preparation
process of the regulation on employee inventions which are
closely related to many different sectors, inventions realized in
HEIs and inventions arising from public-sponsored projects.

3.2.2.5.2. Statutory Rule for the Implementation of

Industrial Cooperation Projects

With the Law no. 6518, “purchases of goods and services

containing industrial participation practices aimed at ensuring
innovation, decentralization and technology transfer in public
procurement” were deployed to be an exception from the Public
Procurement Law. With the Law no. 7033, the scope of this
exception was expanded to include “construction works”.

Regulations are needed in the directions of adoption for

implementation of the industrial cooperation program by public
administrations, the development of the middle and high
technology production infrastructure, maximization of the use of
opportunities and capabilities within the country, increase of the
domestic production rate and the achievement of the sustainability
of industrial and technology progress. In this context, legislation
intended to develop a new implementation model for industrial
cooperation programs was published in the Official Gazette of
February 17, 2018 with the number 3033560. The new legislation
sets forth:

• Application of a technology development and

decentralization project management approach, where
elements such as R&D, design, production, testing are

59. https://www.resmigazete.gov.tr/eskiler/2017/05/20170518-2.htm
60. https://www.resmigazete.gov.tr/eskiler/2018/02/20180217-2.htm

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addressed holistically rather than the classic acquisition-

oriented approach in high-tech purchases of the public,
especially in transportation, energy and health sectors,
which require a great deal of cost

• Focus on the development and decentralization of

intersecting critical technologies, especially the key
technologies that play a role in the development of many
sectors

• It is aimed to make maximum use of the opportunities and

capabilities in the country and to increase the participation
of local companies, especially the subsidiary industry and
SMEs, in the projects.

3.2.2.5.3. Communiqué on Principles of Implementing

Technology-Oriented Industrial Action Program61

This Communiqué was published in the Official Gazette no.

30892 dated September 18, 2019. It states: “The Program is a
special program aimed at intensifying the support and incentives
provided by the Ministry and its affiliated/related institutions to
medium and high technology sectors in order to increase the
value-added production in Turkey. The program aims to improve
the production capacity of products that are critical for Turkey
and have high future potential in the country. Within this context,
several criteria were determined by the Ministry such as reducing
import dependency, the intensification of competition, domestic
production capabilities, the development trend of the global
demand and potential future. Investment incentives and TÜBİTAK
and KOSGEB financial supports regarding the ‘Product Priority
List’ will be re-organized under a single-window mechanism. It is
aimed to implement investment projects that will contribute to the
technological development that Turkey needs within the scope
of the program with end-to-end governance and support model.”

The Technology-Oriented Industry Action Program has been built

on bureaucratic simplicity-convenience with the goal of removing

61. https://www.resmigazete.gov.tr/eskiler/2019/09/20190918-7.htm

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all obstacles to the production and industrialization of technology

in Turkey.

3.2.2.6. Other legal observations

• Amendments to the Turkish Commercial Code62 have enabled
smoother procedures for establishing a business. Recent reforms
and digitization efforts have simplified various business procedures
in order to stimulate the business environment, though some are
not yet fully in effect. New reforms enabled individuals to set up
“Joint-Stock Company” and “Limited Liability Company” as single
owners, and allowed companies to have operations outside their
field of activity.

• Turkish Commercial Code, which was enacted in 2011, enabled

holding Board of Directors and General Assembly meetings
online as well as carrying out commercial transactions through
electronic signature. Furthermore, General Communiqué No. 397
of the Tax Procedural Law63 enables Joint-Stock Companies and
Limited Liability Companies to keep and present their invoices in
electronic format.

• Paid-in capital requirements were also lowered to 25%, compared

to 100% before the reforms passed. Some sectors, such as
FinTech, require higher paid-in capital, but this is appropriate
given the sensitivity of the sector.

• Regulations regarding foreign investments in Turkey such as

Law on Foreign Direct Investment No. 487564 and Law on
Encouragement of Investments and Employment and Amendment
of Certain Laws No. 508465 welcome foreign investors and
protect their rights by providing freedom of investment and equal
conditions with local investors.

62. https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=6102&MevzuatTur=1&MevzuatTertip=5
63. https://www.gib.gov.tr/node/88067
64. https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=4875&MevzuatTur=1&MevzuatTertip=5
65. https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=5084&MevzuatTur=1&MevzuatTertip=5

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 3. STI Policies in Turkey

• While professionals with adequate business experience

and familiarity with procedures consider current company
establishment procedures straightforward, less experienced
individuals feel the need for better guidance.

• Compliance with the current regulatory obligations is proving

burdensome for early-stage start-ups. Social security, VAT,
and withholding tax obligations are concerns of ecosystem
participants, as well as legal fees and bankruptcy procedures.
Obligations increase start-ups’ death and reduce their chances
to survive for longer periods. Certain measures are being
implemented to reduce burden of regulatory obligations.

• The Turkish Ministry of Trade in its “Entrepreneurship Strategy

& Action Plan for 2015-2018” included plans to reduce burdens
with grants to entrepreneurs in advance, removing regulatory
obstacles, easing liquidation procedures in case of bankruptcy,
and giving a second chance to failed entrepreneurs.

• The Ministry of Finance introduced a tax reduction law for

entrepreneurs under 29 years old that allows first-time
entrepreneurs to deduct TRY 75,000 from their profits before
paying taxes for three years.

3.2.3. Soft tools

3.2.3.1. Public University Industry Cooperation
(KÜSİ)
The MoIT initiated the Public University Industry Cooperation (KÜSİ)
project in 2014 to enhance the synergy between the stakeholders in
public-university-industry cooperation. A planning and development
board was established within this regard. In addition to the incentives
offered by the MoIT, KÜSİ specialized on public-university-industry
cooperation aiming at increased cooperation and interaction and access
of stakeholders to R&D funds, researchers, investors and information
through a single point. Users who are members of the KÜSİ platform
are regularly informed about cooperation and investment opportunities,

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3. STI Policies in Turkey

success stories, new incentives, R&D and innovation and events

organized by ministries, TDZs, industrial parks, chambers of commerce
and industry, universities and non-governmental organizations.66

3.2.3.2. Deneyap workshops

Within the framework of the first 100-day execution program of the
presidency, 100 Deneyap (try-and-make) technology workshops were
established in 81 provinces. Cooperation has been established between
the MoIT, the Ministry of Youth and Sports, TÜBİTAK and the Turkish
Technology Team Foundation (T3 Foundation). With the contributions
of these four institutions that contribute to the development of young
people in Turkey, especially in the field of technology, Deneyap Turkey
has been implemented.

The main objective of Deneyap Turkey is to train young individuals who

are capable of producing technology that will form the driving force of
the National Technology Act. (see section 3.1).

The training model of Deneyap technology workshops is designed for

students of two age groups to gain skills such as entrepreneurship,
creative thinking, critical thinking, solving complex problems, effective
communication and teamworking. In the experiments, young people
starting secondary and high school receive 36 months of free training
in 10 subjects such as design and manufacturing, robotics and coding,
electronic programming and the internet of things, nanotechnology and
materials science, and aerospace technologies. In this 3-year period,
they gain both basic technology competencies, while deepening in
special interest areas, and ability to produce ideas and projects.

The first phase study of Deneyap Turkey; Adana, Ankara, Antalya, Edirne,
Eskişehir, Erzurum, Hakkari, İzmir, Konya, Manisa, Muğla and Trabzon
provinces began in July 2019 and training continues with 1920 students.67
In the second phase of the study, preparations are continuing to start
training in 18 provinces including Adıyaman, Afyonkarahisar, Antalya,
Ağrı, Çanakkale, Çorum, Elazığ, Gaziantep, Isparta, Kahramanmaraş,
66. See the web page of the platform for details: https://kusip.gov.tr/kusip/views/portal
67. See the web page of Deneyap for details: https://www.deneyapturkiye.org

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 3. STI Policies in Turkey

Kastamonu, Malatya, Rize, Sakarya, Samsun, Şanlıurfa, Tokat and Yozgat

as of spring 2020.

3.2.3.3. Teknofest
Turkey’s largest technology gathering, the İstanbul Aviation, Space and
Technology Festival (TEKNOFEST İstanbul), 2019, was held at Ataturk
Airport on September 17-22. The event, led by MoIT and T3 Foundation
received great attention with 1.7 million visitors and became the world’s
largest aviation festival. In the event, where 19 technology competitions
were held in 44 categories, 17,373 teams and 50 thousand contestants
competed. People from 122 countries and 81 provinces of Turkey
attended the event. The event was held in Gaziantep in 2020. The event
received more than 20 thousand applicants (teams, about 100 thousand
people in total) from 81 cities and 84 countries.68

3.2.3.4. Cyber security emergency drill

One of the recent highlights in technology has been “cybersecurity”
activities. A cyber security exercise was carried out under the coordination
of the Ministry of Transport and Infrastructure and The Information
Technology and Communication Authority (BTK), while measures against
the growing threat of cyber-attacks were strengthened.

Cyber-attack vulnerabilities and malicious software were detected

through the scenarios. The technical infrastructure and scenarios were
prepared entirely by the National Cyber Incident Response Center
(USOM) under BTK. A “cyber shield” has been strengthened against
possible attacks that have the potential to affect many areas, from energy
facilities to financial institutions, from military units to communications
infrastructure.

3.2.3.5 E-government services

Opportunities in technology have also been reflected in the services
offered via the e-government portal. With 944 new services integrated in

68. For more information see https://www.teknofest.org/en/

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3. STI Policies in Turkey

2019, the number of services in e-State reached 5,180, while the number
of users reached 45,072,811. The number of entries to e-government,
which was 5,747 in 2008, reached 3,825,074,210 in 2019. 2,600 of the
services are provided by government agencies, 2,123 by municipalities,
403 by private institutions and 54 water and sewerage services. The
number of services is scheduled to increase further in 2020 with
concept, location, and process-based improvements.69

3.2.3.6. TÜBİTAK workshops

On-foot workshops are activities held in portable experiment stations.
These experiment stations can be set up in exhibition galleries or
anywhere in Science Centers.70 Many experiments can be carried out
at a station, as well as experiments associated with exhibitions when
installed in the exhibition space. Any visitor can be involved in the
experiments. One-to-one communication occurs between the visitors
and the attendants, and the visitors perform the experiments individually.
These stations are organized to cater to every age group and aim
promotion of science and technology and different types of learning.
The purpose of the on-foot workshops is to stir up excitement towards
science and technology. TÜBİTAK also organizes travelling exhibitions.
In 2019 Confronting Mars, Dinosaurs’ Age, Sultans of Science and Earth
Exploration exhibitions were organized in Kocaeli, Konya, Üsküdar,
Kayseri, Bursa.71

69. https://www.aa.com.tr/tr/turkiye/e-devlet-te-2023-hedefi-53-milyon-kullanici/1693593
70. See the web page of Bilim Merkezleri for details: https://bilimmerkezleri.TUBITAK.gov.tr/
Icerik/bilim-merkezi-nedir-140
71. See the web page of Gezici Sergiler for details: https://bilimmerkezleri.TUBITAK.gov.tr/
Icerik/gezici-sergiler-167

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4

100
 4. Who Performs R&D and Innovation Activities?

4. Who Performs R&D and

Innovation Activities?

4.1. R&D and Innovation Activities in the

Business Sector
This section provides brief information and statistics on the performance of the
business sector regarding R&D expenditures, R&D personnel, innovation activities
and patents. Statistics on R&D expenditure can be used to determine who conducts
and funds R&D, presenting a more actor centric approach. IPR statistics are also
presented as an input indicator. Statistics from the TÜİK Innovation Survey (IS) and
Community Innovation Survey (CIS) and European Innovation Scoreboard present a
more output oriented look. This section also provides brief information on various
indices such as the Global Innovation Index and Doing Business Index presenting
data and rankings on sub-indices and indicators on innovation in general and the
state of business sector in particular. In this way, one can see Turkey’s position in the
world when various indicators are considered.

4.1.1. R&D performance of the business sector

The business sector accounts for the largest share of R&D expenditures in
industrialized economies. Turkey’s pattern of both expenditure and funding of
R&D by the business sector has a rising trend but is still short of industrialized
countries. The Business Expenditure on Research and Development (BERD) in
Turkey in 2019 reached €4.64 billion and BERD per inhabitant accounted for
€56.6 (see Table 4.8). As can be seen in Table 4.1, the share of R&D expenditure
of the business enterprise sector in all R&D expenditure doubled, from 33.74% to
64.12%, between 2001 and 2019. Unlike the business sector, the share of higher
education has halved mirroring the increase in BERD. The share of government
in overall R&D expenditure is relatively low around 10% but reduced about 3
percentage points from 2018 to 2019 which may seem contradicting with state
attempts of indigenous technology production especially in the past 3 years.

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4. Who Performs R&D and Innovation Activities?

Table 4.1. Sectoral distribution of R&D Expenditure (% in total)

2001 2006 2011 2015 2016 2017 2018 2019

Business 33.74 37.03 43.19 50.01 54.21 56.88 60.44 64.12
Government 7.36 11.68 11.33 10.34 9.49 9.57 9.24 6.62
Higher Education 58.90 51.30 45.48 39.66 36.30 33.55 30.32 29.18

Source: TÜİK, R&D Statistics

The share of the expenditure on R&D performed by the business sector has
increased over time (64.1%) and caught other EU countries: 68.9% in Germany,
62.3% in Italy, 62.8% in Poland, 66.3% EU average (see Figure 4.1). Considering
also the leading role of non-EU countries in R&D and innovation, the share of
BERD is at a much higher rate: 80.2% in South Korea, 79.4% in Japan, 77.4% in
China and 72.5% in the USA.72

The matrix, presented in Table 4.2, shows the R&D expenditures and sources
of funds by sectors in 2011 and 2019. Besides the increase in the share of
the business sector in both R&D expenditures and source of funds, there are
some changes in terms of interaction by sectors of performance. For instance,
compared to 2011, the contribution of the business sector in higher education
in terms of funding increased five folds and now accounts for about 2% of total
funding.

Additionally, the share of foreign funds in all R&D expenditures has been
reducing and is now only 1.5%. The contribution of foreign funds in BERD rose
from 0.76% in 2011 to 5% by 2017 and has been reducing since then (in 2019
only 1.5%) even though the private sector participation in international research
programs (i.e., Horizon 2020) has increased over the years. There is not a
notable change in foreign funds allocated to the government. Foreign funds
allocated to the higher education sectors has been reducing since 2014 (from
2.8% to 1.7%).

72. Calculated from Eurostat Data on Research and development expenditure, by sectors of
performance in 2017, Accessed June 12, 2020 https://ec.europa.eu/eurostat/databrowser/
view/tsc00001/default/table?lang=en

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 4. Who Performs R&D and Innovation Activities?

Figure 4.1. Share of business sector in total R&D expenditure (%)

70

60

50

40

30

20

10

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019
European Union Germany Italy Netherlands Poland Turkey

Source: Eurostat, Research and development expenditure- by sectors of performance

Table 4.2. Gross domestic expenditure on R&D by sector and source of funds, 2011 and 2019

Source of funds (millions of TL)

National Abroad
Sectors Total Sub-total Business Government Higher Other
national education
funds
2011
Total 11,154.15 10,959.43 4,416.50 4,668.28 1,869.96 4.69 194.72
Business 4,817.27 4,780.43 4,347.22 429.31 1.42 2.49 36.84
Government 1,263.50 1,253.54 24.95 1,228.01 0.04 0.54 9.96
H. Education 5,073.37 4,925.45 44.34 3,010.96 1,868.49 1.67 147.92
2019
Total 45,953.69 45,260.39 25,892.37 13,487.89 5,871.57 8.55 693.29
Business 29,500.71 29,053.11 25,582.78 3,460.98 4.11 5.25 447.59
Government 3,044.48 3,035.51 83.69 2,950.71 0.70 0.46 8.97
H. Education 13,408.29 13,171.76 225.89 7,076.19 5,866.84 2.84 236.73

Source: TÜİK, R&D Statistics   103

4. Who Performs R&D and Innovation Activities?

The distribution of R&D expenditures has been changed over the years. The
type of R&D expenditure of the business sector can be seen below in Table
4.3. Labor costs, which was the smallest portion of R&D expenditures in 2001
now constitutes half of the R&D expenditures of the business sector. This trend
is mirrored by the fall in capital costs from about half to less than 10% of the
R&D expenditures. The dramatical drop of the share of capital cost in total may
warrant optimal labor-capital allocations in R&D activities.

Table 4.3. Type of R&D expenditure of business (share within total Business R&D)

2001 2006 2011 2015 2016 2017 2018 2019

Labor costs 19.55 37.24 47.97 51.15 48.27 52.67 49.08 49.90
Other current costs 34.54 50.49 36.95 39.55 43.58 40.82 42.20 42.78
Capital costs 45.91 12.28 15.08 9.30 8.15 6.51 8.71 7.31

Source: TÜİK, R&D Statistics

Regarding the human resources devoted to R&D activities, the weight of the
business sector has increased through the years (Table 4.4). The share of the
business sector has grown from 11.52% in 2001 to 42.44% in 2019 in terms of
total number of R&D personnel, and from 20.24% in 2001 to 62.85% in 2019 in
terms of total full-time equivalent (FTE) researchers.

In terms of the number, the majority of R&D personnel are employed by higher
education. The great increase in the number of universities in Turkey in the last
decade may explain this partially. However, considering the FTE researchers,
which excludes the teaching and other related activities, the share of R&D
personnel stock in higher education is much lower. One particular trend is that
the share of the government in R&D personnel stock is continuously declining.
It seems that the government is slowly departing from active involvement in
R&D activities which is questionable given that Turkey is still a developing
country in middle-technology trap and that the government is more willing to
actively be involved in market creating rather than market fixing activities.73
73. Ye, L. and Robertson, P. (2016) Identifying prisonners of the middle-income trap, voxeu.
https://voxeu.org/article/identifying-prisoners-middle-income-trap

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 4. Who Performs R&D and Innovation Activities?

Table 4.4. R&D Personnel (share in total, sectoral shares)

2001 2006 2011 2015 2016 2017 2018 2019

Head count
Business 11.52 21.34 33.49 34.58 34.63 38.05 41.02 42.44
Government 11.25 11.04 8.57 6.34 5.52 4.81 4.45 3.42
Higher Education 77.23 67.62 57.94 59.08 59.85 57.13 54.54 54.13
Full-Time Equivalent (FTE)
Business 20.24 33.11 48.93 54.52 53.00 57.26 60.64 62.85
Government 19.11 17.82 12.66 10.08 8.62 7.39 6.61 4.86
Higher Education 60.65 49.06 38.41 35.40 38.39 35.36 32.75 32.28

Source: TÜİK, R&D Statistics

4.1.2. Innovation performance of business

sector
According to the most recent statistics, the results of the TÜİK Innovation Survey
(2016-2018), 36.0% of all enterprises are innovative in Turkey. The percent of
innovative enterprises account for 39.0% in industry and 32.4% in the service
sector (see Table 4.5).

According to NACE classification, scientific research and development (NACE

72) have the highest percentage on innovative enterprises followed by
information and communication (NACE J: 58-63), manufacturing (NACE C: 10-
33) and financial and insurance activities (NACE K: 64-66).

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Table 4.5. Innovative enterprises and types of innovation activities (%)

Scientific
General Industry Service Research

2016 – 2018
Innovative enterprises 36.0 39.0 32.4 78.0
Ongoing innovation active enterprises 24.6 26.8 21.9 59.7
Product innovative enterprises 20.9 24.0 17.0 46.3
Process innovative enterprises 29.0 31.8 25.5 63.4
2008-2010
Innovative enterprises 51.4 52.2 50.3 84.0
Ongoing innovation active enterprises 14.6 14.7 14.4 48.1
Product innovative enterprises 24.4 25.7 22.7 60.2
Process innovative enterprises 27.4 29.0 25.5 48.1

Source: TÜİK, Innovation Statistics

Compared to 2008-2010 period, it is observed that the values for the 2016-2018
period are much lower. However, it is highlighted by TÜİK that, there are radical
changes in the types of innovation and questionnaires with the publication of
the 4th version of the Oslo Manual in 2018.74 A better comparison is provided
in Table 4.7 that summarizes the business-related indicators and benchmarks
in the European Innovation Scoreboard. According to this, Turkey performs
better compared to 2012 EU average in SMEs product/process innovations and
SMEs marketing/organizational innovations and SMEs innovating in-house (see
section 4.1.4.6).

Among the innovative enterprises in general, 39.9% registered a trademark.

This is followed by patent application (24.7% of the firms), utility model
application (13.7% of the firms), copyright application 10.4% (of the firms) and
industrial design registration (9.5% of the firms).75
74. http://www.tuik.gov.tr/PreTablo.do?alt_id=1039
75. TÜİK Press Release on Innovation Survey 2018, Accessed June 10, 2020 http://www.tuik.
gov.tr/PreHaberBultenleri.do?id=30581

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 4. Who Performs R&D and Innovation Activities?

Table 4.6. Number of IPR applications received by TÜRKPATENT

Type of
2001 2006 2011 2015 2016 2017 2018 2019
Application
Patent and
3,874 7,616 12,313 15,622 19,307 17,621 19,110 22,885
Utility Model
Trademark 29,105 66,855 117,723 110,679 107,176 121,108 120,008 134,353
Industrial
13,902 31,321 41,536 46,413 46,500 46,853 42,345 46,188
Design

Source: TÜRKPATENT, Patent Statistics

When the sectoral distribution of the patent and utility model applications is
analyzed, pharmaceutical industry is leading (12.5%), followed by household
equipment (7.1%), medical devices (6.5%), machinery (5.8%) and chemicals
(5.6%).76

According to the WIPO Intellectual Property Indicators ranking (2019), in terms

of intellectual property filing activity by origin, Turkey ranks 23rd in the global
ranking of patent applications, 10th in trademark application and 7th industrial
design applications.77

4.1.3. Actors of the business sector

The creation of intermediary actors to enhance R&D activities of the business
sector started to be an important policy tool in the 1990s with the establishment
of TEKMERs. In the 2000s, the legal infrastructures of intermediary actors were
regulated by Law on the Support of Research and Development Activities No:
5746 and Law on the Technology Development Regions No. 4691. TDZs, R&D
and design centers, technology transfer offices (TTOs), incubation centers
and accelerators are vital elements of the NSI today together with the actual
R&D and innovation performers (firms). Besides providing financial support,

76. TÜRKPATENT, Official Statistics, Accessed June 21, 2020 https://www.turkpatent.gov.tr/

TURKPATENT/statistics/
77. WIPO, World Intellectual Property Indicators 2019, Accessed on June 20, 2020 https://
www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2019.pdf

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4. Who Performs R&D and Innovation Activities?

these intermediary organizations contribute to developing R&D culture among

different types of business actors, including corporate companies, SMEs, and
start-ups. This section provides a non-exhaustive list of such intermediary
organizations complementing the discussion in section 2.5 and Figures 2.5
and 2.6.

4.1.3.1. Technology Development Centre

(TEKMER)
The public support programs for the entrepreneurs began with
the establishment of Technology Development Centre (TEKMER)
in the early 1990s by KOSGEB. TEKMERs are regarded as one of
the forerunners of intermediary actors in the NSI. The main aims
behind the establishment of TEKMERs were to create and support
technology-based SMEs and academic start-ups by providing
support for R&D and innovation and industrial implementation
activities especially through university-industry collaboration.
KOSGEB established TEKMERs in cooperation with universities
and regional actors such as chambers of commerce and industry,
and more recently regional development agencies. TEKMERs offer
office space, physical infrastructure as well as consultancy services
and education activities for capacity building. Easy access to
government support programs for technology-based entrepreneurs
is another benefit of TEKMERs.

The operations of TEKMERs continue in 41 centers. 78 However,

compared to the 1990s, the establishment of the TEKMERs has
slowed down in the recent years and even has stopped in the past
few years due to “accelerator” trend and the entrepreneurship
programs of TÜBİTAK. The KOSGEB Strategic Plan includes a
series of actions to restructure the TEKMERs to increase their
effectiveness and qualifications. KOSGEB has started to focus on
the restructuring of TEKMERs by working on a new model to adapt
them to recent conditions and to make them the center of attraction
for SMEs again. This new model is based on outsourcing TEKMER

78. KOSGEB Strategic Plan 2016-2020, Accessed June 3, 2020 kosgeb.gov.tr/Content/

Upload/Dosya/Mali%20Tablolar/KOSGEB_STRATEGIC_PLAN_(2016-2020)_.pdf

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 4. Who Performs R&D and Innovation Activities?

activities to universities but maintaining the KOSGEB financial

supports for the tenants.79

4.1.3.2. Business Development Centre (İŞGEM)

Business development centers (İŞGEM) are a kind of business support
platform in which entrepreneurs can benefit from low-priced office space,
shared coaching, consultancy and administrative services, easy access
to finance, and management support. The first centers in Turkey were
established by the support of the World Bank in 1997. These centers
had important missions in the 1990s to reduce unemployment after the
privatization operations and to support female entrepreneurship.80 Since
1997, total of 19 İŞGEMs have been established and 3300 personnel
employed by 450 enterprises are located in İŞGEMs.81

4.1.3.3. Technology Development Zones82

Technology Development Zones Law No. 4691, enacted in 2001,
forms the legal framework of the TDZs (technoparks). It fosters the
establishment of technoparks in higher education institutes or research
centers to enhance knowledge circulation and create synergy within
technoparks and between firms and universities. Besides providing
physical infrastructure and opportunity for being part of the R&D and
innovation environment, firms in technoparks are provided with certain
financial advantages:

79. For a recent review of TEKMERs see Akçomak, İ.S. and Koçak, K. (2020). Türkiye’de
Kuluçkalar: Eski Yapılarla ve Yeni Yapılar Birarada Yaşayabilir mi? in Akçomak, İ.S., Beyhan, B.,
Çetindamar, D., Tandoğan, V.S. (eds), Türkiye’de Yenilik Tabanlı Girişimcilik, Bilgi Üniversitesi
Yayınları in press.
80. KOSGEB Annual Report 2019, Accessed May 18, 2020 https://www.kosgeb.
gov.tr/Content/Upload/Dosya/Mali%20Tablolar/Faaliyet%20Raporlar%C4%B1/
KOSGEB_2019_Y%C4%B1l%C4%B1_Faaliyet_Raporu.pdf
81. Demirhan, D., Temel, S. and Durst, S. (2019). The Role of Public Entrepreneurship Programs
in Fostering Technology-based Entrepreneurship: A Turkish Case Study, Dana, L.-P. and
Ratten, V. (eds.) Societal Entrepreneurship and Competitiveness, Emerald Publishing Limited,
pp. 5-28.
82. Accessed November 3rd, 2020 https://www.sanayi.gov.tr/istatistikler/istatistiki-bilgiler/
mi0203011501

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4. Who Performs R&D and Innovation Activities?

• Tax exemptions under the law are temporary and limited until
2028.

• Corporate tax exemption of the profits derived from the operations,

exclusively from the software, design and R&D activities in the
premises of technoparks,

• Value-added tax (VAT) exemption of deliveries and services in

the form of system management, data management, business
applications, sectoral, internet, mobile, and military command-
control application software,

• Exemptions on half of the employer’s share of social security

premium for the employees who work in firms operating in the
technoparks,

• Exemption on stamp tax and duties for the products imported for
use in R&D, innovation, and design projects,

• The personnel of public institutions, agencies, and universities

who serve as research staff for activities in technoparks, can
be employed part-time or full-time, with the permission of their
institution,

• Academic staff can establish firms, partner with a company and/or

take part in the management of a company in the technoparks in
order to commercialize the output of their academic research.

The number of technoparks has reached 87 as of January 2021. While

72 of the technoparks are active, 15 technoparks are under construction.
The number of companies performing R&D in all technoparks has
reached 6,364 with 66,615 employees. 54,562 of these are classified
as R&D personnel. When the sectoral distribution of the companies is
analyzed, ICT and software development is leading (45%), followed by
natural science and engineering (7%).

There are 322 foreign firms or firms with foreign shareholders within
the premises of technoparks. The number of patents received (national/
international) by the companies located in the technoparks is 1,262.
The total export of all companies in technology development zones has
reached $5.6 billion.

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 4. Who Performs R&D and Innovation Activities?

4.1.3.4. R&D centre83

Law No. 5746 on Support of the R&D and Innovation Activities came into
force in 2008. Unlike TDZs, R&D centers only receive financial support
on tax deduction, income tax exemption, social security premium
support, and stamp tax exemption.

R&D centers have an important role in the Turkish NSI. The number of
R&D centers reached 1,244 as of January 2021. The total personnel
employed in the R&D centers is 66,469, 13,269 of whom have master’s
and/or doctoral degrees. The number of completed and ongoing
projects in all R&D centers are 53,863. The overall number of patents
generated by R&D centers is 24,454; 7,058 of which are registered and
17,476 are in the application phase. From the viewpoint of attracting
foreign direct investment (FDI), there are 210 R&D centers that belong
to a foreign firm or a firm with foreign shareholders.

Considering the sectoral distribution of R&D centers in Turkey, the

forefront sectors are machinery (174) and automotive supply industry
(127), followed by software (113), computer and communication (83),
textile (78), electric-electronic (77), chemicals (72), food (61), defense (40),
pharmaceutical (34) and energy (28). A large number of R&D centers
(420) are located in İstanbul, followed by the major manufacturing hubs
Bursa (130) and Kocaeli (126), respectively.

4.1.3.5. Design center84

In 2016, the amendment on the Law on the Support of Research and
Development Activities No: 5746 was extended to include design
activities being eligible for incentives and supports granted to R&D
centers. As of January 2021, the number of design centers reached 364
with 7,861 personnel employed in these centers. Master’s and doctoral
degree holders are about 9% of the personnel.

83. Accessed September 10, 2020 https://www.sanayi.gov.tr/istatistikler/istatistiki-bilgiler/

mi0203011502
84. Accessed September 10, 2020 https://www.sanayi.gov.tr/istatistikler/istatistiki-bilgiler/
mi0203011503

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4. Who Performs R&D and Innovation Activities?

When considering the sectoral profiles, 65 design centers are in

the textile sector, 46 of them are in engineering and architecture
services, 45 design centers in manufacturing, 37 in the machinery and
equipment sector, 19 in furniture, 19 in media-communication and 19 in
the automotive supply industry. Depending on the sectoral distribution
being predominant in the textile and manufacturing industries, design
centers are concentrated in İstanbul, Ankara, İzmir, Bursa, and Kocaeli.

29 design centers are owned by foreign firms or firms with foreign

shareholders. The number of completed and ongoing projects in all
design centers are 9,538. The number of patent applications (national/
international) by the design centers, is 489, 177 of which are registered.

4.1.4. International indexes: Position of Turkey

in business related indicators
4.1.4.1. Global Competitiveness Report 201985
In the 2019 edition of The Global Competitiveness Report, which
is published by the World Economic Forum, Turkey, with a slight
improvement compared to the previous years, ranked 61st among 141
countries. Turkey’s performance was mixed, with significant progress
in some dimensions while losing ground in some others. Considering
business-related indicators, Turkey’s position on innovation capability
(49th) was relatively better than the overall performance. Under
the innovation capability pillar, Turkey scored relatively well in
commercialization (49th) and research and development (38th), but
relatively bad in interaction and diversity (93rd).

4.1.4.2. Global Innovation Index

The Global Innovation Index determines and ranks the innovation
capabilities of world economies by measuring 80 of innovation-related
indicators. In 2020 according to the overall performance, Turkey ranked 51st
out of 131 economies, which was 49th in 2019, 50th in 2018, 43rd in 2017.86
85. The Global Competitiveness Report 2019, Accessed April 3, 2020 http://www3.weforum.
org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
86. Global Innovation Index 2020, Accessed September 10, 2020 https://www.
globalinnovationindex.org/userfiles/file/reportpdf/gii-full-report-2020.pdf
112
 4. Who Performs R&D and Innovation Activities?

When the indicators are grouped into innovation inputs and innovation
outputs, Turkey’s performance is almost the same level in innovation
outputs (53rd) and inputs (52nd). While Turkey performs the best in the
pillars on market sophistication, human capital-research and creative
outputs; institutions, business sophistication, and knowledge-technology
outputs are the weaknesses of Turkey’s innovation capabilities.

4.1.4.3. Doing Business Index

The World Bank’s Doing Business Index provides a base of comparison
for the general policy environment for businesses across 190 countries.87
Turkey ranks 33rd among 190 economies. Turkey scores relatively well
on protecting minority investors (21st), enforcing contracts (24th), paying
taxes (26th) and registering property (27th). However, in “starting a
business”, one of the important indicators of the index, Turkey ranks only
79th.

4.1.4.4. Global Entrepreneurship Index

The Global Entrepreneurship Index is an annual index of the Global
Entrepreneurship and Development Institute that measures the health
of the entrepreneurship ecosystems in various countries. According to
the Global Entrepreneurship Index 2019, Turkey ranks 44th out of 137
countries losing seven places compared to 2018.88 The best rankings in
the sub-indices are in product innovation, high growth and start-up skills,
whereas Turkey performs relatively bad in risk acceptance, competition
and networking.89

87. Doing Business 2020 – Economy Profile Turkey, Accessed May 16, 2020 https://www.
doingbusiness.org/content/dam/doingBusiness/country/t/turkey/TUR.pdf
88. Global Entrepreneurship Index 2019, Accessed May 6, 2021 https://thegedi.org/wp-
content/uploads/2021/02/2019_GEI-2019_final_v2.pdf
89. For an analysis of Turkey’s position in the Global Entrepreneurship Monitor see Karadeniz,
E. (2020), Türkiye’de girişimcilik faaliyetleri ve girişimcilik ekosistemi, in Akçomak, İ.S.,
Beyhan, B., Çetindamar, D., Tandoğan, V.S. (eds), Türkiye’de Yenilik Tabanlı Girişimcilik, Bilgi
Üniversitesi Yayınları in press.

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4. Who Performs R&D and Innovation Activities?

4.1.4.5. Legatum Prosperity Index90

Legatum Prosperity Index evaluates the strengths and weaknesses of
the countries by sorting them under 12 economic and social indicators.
According to the index in 2020, Turkey is 94th among 167 countries.
Turkey performs most strongly in the investment environment and living
conditions but is weakest in safety-security, personal freedom, and
social capital. Comparing the overall performance, Turkey’s position on
business-related pillars is relatively better. Turkey ranks as 52nd in the
investment environment, 54th in market access and infrastructure, and
58th in enterprise conditions. Turkey has moved down the rankings by
21 places since 2010.

4.1.4.6. European Innovation Scoreboard91

Turkey is classified as a moderate innovator country in the European
Innovation Scoreboard 2020. Compared to 2020, Turkey’s performance
is better in the overall index. Innovators, firm investments and innovation-
friendly environment indicators are the strongest innovation dimensions.
However, Turkey is weak in scientific publications, employment impacts,
and attractive research systems indicators.

90. The Legatum Prosperity Index 2019, Accessed May 23, 2020 https://prosperitysite.s3-
accelerate.amazonaws.com/8115/8635/0367/The_Legatum_Prosperity_Index_2019.pdf
91. European Innovation Scoreboard 2020, Accessed September 10, 2020 https://ec.europa.
eu/docsroom/documents/41900

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 4. Who Performs R&D and Innovation Activities?

Table 4.7. Comparison of Turkey’s performance in European Innovation Scoreboard

Relative to EU (2012) Relative to EU (2019)

Modest Innovator Moderate Innovator
Summary Innovation Index 55.2 62.3
Business-related indicators
Innovation friendly environment 85.8 69.0
R&D expenditure in the business sector 25.5 36.4
Non-R&D innovation expenditures 250.2 178.5
Medium and high-tech exports 43.2 55.4
Knowledge-incentive services export 16.5 37.6
SMEs product/process innovations 94.8 129.8
SMEs marketing/organizational 106.2 164.4
innovations
SMEs innovating in-house 77.5 161.5
Intellectual assets 18.8 21.7

Source: European Innovation Scoreboard 2020. Country Profile: Turkey

Considering the EU average of business-related indicators in 2012 and

2019, Turkey’s performance is relatively better on knowledge-incentive
services export, intellectual assets and SMEs’ innovating activities (see
Table 4.7).

4.1.5 General performance

Table 4.8 summarizes some of the indicators discussed earlier and includes
others to present a general understanding of the R&D and innovation
performance of the business sector. In spite of the increasing trend, BERD is still
low compared to the EU average, especially in terms of per capita spending.
The share BERD in total R&D expenditure and the share of R&D employment
in the business sector in total R&D employment is slowly converging to the EU
average and expected to catch-up the EU average soon. In terms of output

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4. Who Performs R&D and Innovation Activities?

indicators such as share of high-technology exports there is still a long way to

go. Table 4.8 complement Table 2.1 in section 2.1.

Table 4.8. General Performance of Business Sector in R&I

EU27
2006 2011 2015 2016 2017 2018 2019
average
Business expenditure on R&D
(BERD)(million euro) 900 2,060 3,407 3,995 4,120 4,080 4,640 7,561

Business expenditure on R&D

11.4 27.2 43.9 50.7 51.6 50.5 56.6 456.3
(BERD) per inhabitant (Euro)
Share of business expenditure on
R&D in total R&D expenditure 37.3 43.2 50.0 54.3 56.9 60.4 64.1 66.3
(%)
R&D personnel in business sector
as a share of total R&D personnel 33.1 48.9 54.5 53.0 57.3 60.6 62.8 59.5
(%)

Source: OECD, Main Science and Technology Indicators

4.2. Higher Education Sector

4.2.1. General performance of the higher
education sector
Table 4.9 reveals the quality of the science and research base in Turkey
compared to the EU, based on the methodology adopted by the European
Innovation Scoreboard (EIS).

The EIS 2020 framework distinguishes between four major types of innovation
performance indicators together with 10 related dimensions. Framework

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 4. Who Performs R&D and Innovation Activities?

conditions identify the main drivers of innovation that are external to the firm
and define the basis for innovative activities. Two of these dimensions in the
framework conditions are represented by human resources and attractive
research systems.92

Table 4.9. Quality of the Science and Research Base

Relative to EU in
Actual performance within the year
2012
Human Resources 2012 2015 2016 2017 2018 2019 EU 28 TR EU
(2019) Change* Change*
New doctorate graduates 0.35 0.41 0.48 0.48 --- --- 2.1 9.0 10.1
per 1000 population aged (2017)
25-34
Percentage population aged 23.8 26.5 29.4 30.5 32.1 33.5 40.5 80.2 27.3
25-34 having completed
tertiary education
Percentage population 3.9 5.5 5.8 5.8 6.2 --- 11.1 31.1 4.4
aged 25-64 involved in (2018)
lifelong learning
Research Systems
International scientific 86.4 104.9 117.4 118.1 123.9 142.8 1171.8 8.1 51.9
co-publications per
million population
Scientific publications 5.01 4.97 5.32 5.52 --- --- 10.79 -0.8 1.8
among the top 10% (2017)
most cited publications
worldwide as % of total
scientific publications of
the country
Foreign doctorate 3.8 6.5 7.4 8.4 --- --- 21.4 38.2 14.6
students as a % of all (2017)
doctorate students

Source: European Commission, European Innovation Scoreboard, 2020

* Change refers to difference in normalized scores between the most recent period and 2012.

92. The third dimension in this framework is represented by innovation-friendly environment

that evaluates the business environment in which firms operate and measures the degree of
entrepreneurial activities. Two variables in this dimension are broadband penetration among
enterprises and opportunity-driven entrepreneurship.   117
4. Who Performs R&D and Innovation Activities?

Human resources dimension has three indicators measuring the

availability of a high-skilled and educated workforce using three
variables: new doctorate graduates, population (aged 25-34) with
completed tertiary education and population (aged 25-64) in education
or training.

Second dimension is the attractive research systems composed of three

indicators, which is a measure of the competitive strength of the science
base in a country. This dimension also uses three variables: international
scientific (co)publications, the quality of the publications proxied by
scientific publications in the top 10% most cited publications and the
number of foreign doctorate students.

As for human resources, Turkey has rapidly converged to the EU average

by rising its high-skilled workforce implying a high potential for increasing
living-standards in the long-term if human resources are conducive for
innovation (see the last two columns of Table 4.9). However, the same
performance is not achieved in increasing the new doctorate graduates
that are regarded as more relevant in conducting basic and applied
research activities. Lifelong learning programs has become particularly
important in the age of digital technologies as the countries need to
transform their active labor force to secure competitive strength and
avoid unemployment. The EIS 2020 figures suggest that although the
growth rate of the population aged 25-64 involved in lifelong learning is
robust, it remains almost half of the figure for the EU in 2018. Therefore,
Turkey needs to prepare its own roadmap and define the procedures on
how to support firms and individuals to accelerate active education and
training programs, which is now more important due to the increased
pace of digitalization in the COVID-19 era.

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 4. Who Performs R&D and Innovation Activities?

Figure 4.2. International scientific collaboration, 2015

%
60

50

40

30

20

10

0
LUX
ISL
CHE
BEL
AUT
SWE
DNK
NLD
CHL
NOR
IRL
FIN
NZL
FRA
GBR
PRT
AUS
DEU
EST
CAN
ESP
GRC
ISR
HUN
ITA
ZAF
SVN
SVK
MEX
CZE
USA
LVA
BRA
IDN
POL
KOR
JPN
RUS
CHN
TUR
IND
Domestic-led international collaboration
Foreign-led international collaboration
Percentage of international collaboration, 2005

Source: OECD (2017)

Research systems dimension in Turkey displays a weaker feature compared

to the EU. In addition, the development over time in respective indicators
fell short of EU relative to its level in 2012. It is observed that the quality of
scientific publications has declined relative to 2012, suggesting international
competitiveness of scientific base measured as scientific publications among
the top 10% most cited publications has decelerated. One explanation for having
a low share in the quality publications might be that international scientific
collaboration as a percentage of domestically authored documents was very
low in Turkey as of 2015 and did not change much in the last decade (Figure 4.2).
According to OECD (2017), scientific research collaboration is highly correlated
with citation impact at the country level. Hence, participation more intensively
in global scientific networks is suggested to enlarge the limited scale of the

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4. Who Performs R&D and Innovation Activities?

most cited publications. Another explanation is that increases in the number

of faculties and universities have not been met by the number of skilled and
qualified researchers. One of the favorable developments was achieved in
increasing the number of foreign doctorate students in Turkey as international
mobility of highly educated people is accepted as a major driver of knowledge
circulation between countries. As of 2015, the share of international doctoral
students in natural sciences, engineering and ICT was about 40% and display
a similar pattern for domestic doctoral students (OECD, 2017).

These two dimensions of framework conditions highly associate with each

other, as countries with strong human resources are more likely collaborate
with international counterparts and generate higher quality knowledge. One
remarkable observation is that the countries that are the leaders in innovation
as defined by EIS 2020 are the ones that have also improved their quality of
science and research base much further than the moderate innovator countries
(See Figure 4.3 and Figure 4.4). Turkey is classified as a moderate innovator
country, nevertheless fell short of improving its performance relative to the
2012 level of EU compared to its counterparts regarding both dimensions,
suggesting more emphasis on restructuring the higher education sector to
strengthen the foundations of knowledge creation.

Figure 4.3. Change in human resources in 2019 relative to EU-28 in 2012 (%)

250

200

150

100

50
Switzerland
Sweden
Denmark
Finland
United Kingdom
Luxembourg
Spain
Netherlands
Ireland
Norway
France
Iceland
Austria
Estonia
Israel
Belgium
Slovenia
EU28
Lithuania
Cyprus
EU27_2020
Germany
Portugal
Slovakia
Greece
Malta
Czechia
Latvia
Poland
Serbia
Croatia
Italy
Bulgaria
Ukraine
Hungary
Turkey
Montenegro
North Macedonia
Romania

Source: European Commission, European Innovation Scoreboard, 2020

120
 4. Who Performs R&D and Innovation Activities?

Figure 4.4. Change in research systems in 2020 relative to EU-28 in 2012 (%)

250

200

150

100

50
Switzerland
Luxembourg
Denmark
Netherlands
Sweden
Iceland
United Kingdom
Belgium
Norway
Finland
Ireland
Austria
Cyprus
France
Portugal
Israel
EU28
Estonia
EU27_2020
Italy
Germany
Spain
Slovenia
North Macedonia
Malta
Czechia
Greece
Hungary
Montenegro
Slovakia
Lithuania
Latvia
Crotia
Serbia
Turkey
Poland
Romanis
Bulgaria
Ukraine
0

Source: European Commission, European Innovation Scoreboard, 2020

Quality of the science and research is also known as the basis for innovation
activities of the business sector as implied by the strong correlation between
framework conditions and invention and innovative activities of the business
sector. The countries above the EU average on these dimensions have also
outpaced in the scale of business R&D expenditures and intellectual assets for
patent, trademark and design applications that are implied by human resources
and attractive research systems at the country level (Figure 4.5 and Figure 4.6).
Relative performance of the countries with respect to innovation activities invites
policy intervention in Turkey aiming at constant improvement of the quality of the
science and research base that sustains and stimulates R&I activities.

The indicators for research systems as defined by EIS 2020 may also reflect the
performance of the countries’ higher education systems in terms of governance,
resource allocation and international attractiveness. Further, it is the key
for improving the quality of the science and research base which provides a
basis for the scale of business R&D expenditures as well as intellectual assets.
Therefore, investing more in higher education is the key for Turkey to increase its
international competitiveness. This is considered as a highly relevant instrument
for realizing competitive production and high productivity objectives of Turkey,
that have been emphasized in the 11th Development Plan.

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4. Who Performs R&D and Innovation Activities?

Figure 4.5. Relationship between Business R&D Expenditures and Human Resources

1.10
EU Average

1.00 IL

SE CH
0.90
AT

0.80 DE
DK

0.70
Business R&D expenditure

BE FI

0.60
EU Average
SI IS
0.50

CZ NOUK
0.40
HU

0.30 IT

PL PT ES LU
EE
0.20 TR BG EL
SK
HR
0.10 RS MT LT
RO UA
CV
MK LV
0.00

0.20 0.40 0.60 0.80 1.00

Human resources

Source: EIS 2019

122
 4. Who Performs R&D and Innovation Activities?

Figure 4.6. Relationship between Intellectual Assets and Attractive Research Systems

0.80 EU Average

MT CH
0.70 DK
SE LU
FI
DE AT
0.60

EE
NL
0.50
Intellectual assets

IL CY EU Average
IT
0.40
BE
FR
BG SI UK
PT
0.30 PL
ES
CZ IS
NO
LT IE
0.20
SK
EL
HR
0.10 RO RS
MK
UA LV
TR
0.00
0.20 0.40 0.60 0.80 1.00 1.20
Attractive research systems

Source: EIS 2019

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4. Who Performs R&D and Innovation Activities?

The HEIs cover all universities, colleges of technology and other institutions
conducting formal tertiary education programs, as well as all research institutes
and centers whose R&D activities are under the direct control of HEIs. Public
general university funds (GUF) represent funding share granted to universities
from the central budget to support research and teaching activities. Higher
education sector R&D expenditures (HERD) is associated more likely with the
basic research, which refers to experimental or theoretical work carried out
mainly to generate new knowledge without a particular application of new
findings. Hence, it opens a window for applied research to be undertaken by
the private sector for technological innovations (OECD, 2017).

In OECD countries, R&D expenditures carried out by HEIs (HERD) account for
0.35% of GDP, which is similar to the level of EU28 as of 2015 (0.32% in Turkey
as of 2017). However, higher education expenditure spending on R&D has risen
more in EU than the OECD average compared to 2005 (Figure 4.7). HERD in
Turkey accounts for approximately one third of total R&D expenditure. This
implies that, slightly less than one third of resources are allocated to conducting
basic research in Turkey. The target of doubling the total R&D expenditures at
the end of the 11th Development Plan period has the potential to enhance R&D
expenditure of the higher education sector.

On average, 70% of the resources for HERD are granted from central
government budget in OECD countries (often through general university
funds). In addition to this, HEIs also raise their own funds from tuition revenues
or receive transfers from other HEIs to finance R&D activities. This is notable
in Turkey, where 46% of R&D funds of HEIs are either covered by collaborating
HEIs or universities’ own funds (OECD, 2017).

124
 4. Who Performs R&D and Innovation Activities?

Figure 4.7. Higher Education Expenditure on R&D, 2015 (as a percentage of GDP)

%
1

0,8

0,6

0,4

0,2

0
DNK
CHE
SWE
AUT
FIN
ISL
CAN
NLD
AUS
EST
NOR
PRT
SVK
DEU
ISR
BEL
CZE
EU28
FRA
GBR
OECD
JPN
KOR
NZL
ITA
USA
GRC
TUR
ESP
LVA
IRL
POL
LUX
SVN
ZAF
HUN
CHL
CHN
MEX
RUS
HERD 2015 GUF component estimate not available
Of which funded out of public general university funds (GUF) HERD 2005

Source: OECD (2017)

In addition to providing higher education and conducting basic research, HEIs

have been undertaking an increasing role in applied research, innovation activities
and diffusion of knowledge as private sector also begin to engage in financing
of HERD, which is an indication of R&D collaboration between these two sectors
(OECD, 2018; see also Figure 4.2).

Despite the wide dispersion among OECD countries, government funds have still
been the main source of academic research activities. Although, it tended to decline
after the global crisis in 2009, many economic and social challenges globally call for
new technological and social innovations that require public funding. The earliest
taxonomy for government funding for R&D distinguishes between competitive
(i.e. funding research projects selectively) and non-competitive (institutional
block grants) funding types. However, public funding has evolved recently in a
way that more funds are allocated to competitive projects and non-competitive
institutional funding are provided to HEIs based on certain performance-based
variables. Turkey is not very different in this sense. Providing institutional funding
based on strategic components, is no longer considered as non-competitive. With
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4. Who Performs R&D and Innovation Activities?

the conditionality of public funds in some countries (i.e., Sweden, Norway), it is

aimed a better alignment between research activities and national priorities, while
preserving institutional autonomy (OECD, 2018).

Figure 4.8 compares the inputs and the performance of higher education sector
in Turkey and the European Union with respect to 2010 and 2017. In both panels,
general university funds constitute the main source of higher education research
expenditures, while business sector funding increases slightly as of 2017. The figure
implies that higher education sector is the main beneficiary from the central budget
for R&D expenditure in Turkey. Business sector financing for higher education
sector R&D expenditure is more than fivefold in European Union compared to
Turkey. Higher education researchers as a percentage of national total researchers
have both declined in Turkey and the EU that implies a rising research activity in
the business sector. Policy implication follows that stronger network connections
and collaborative mechanisms between higher education and business sector
need to be built up in Turkey to generate more funds towards higher education
sector that is assumed to increase the R&D performance. This also questions the
impact of university-industry collaboration policy tools in Turkey that have been
implemented for a long time. Strengthened collaborative mechanisms on the
other hand is expected to favor research needs of business sector in technology
development.

Figure 4.8. Resources and Performance of Higher Education Sector in Turkey and
European Union (28 countries), Panel A (as of 2010), Panel B (as of 2017).

Panel A: 2010 Panel B: 2017

HERD as a HERD as a
percentage of percentage of
GDP GDP
70 70
60 60
Percentage of 50 Percentage Percentage of 50 Percentage
GERD performed 40 of HERD GERD performed 40 of HERD
by the Higher 30 financed by the by the Higher 30 financed by the
Education 10 business Education 10 business
sector sector sector sector
0 0

General Higher Education General Higher Education

University Funds researchers as University Funds researchers as
(GUF) as a a percentage of (GUF) as a a percentage of
percentage of Civil national total percentage of Civil national total
GBARD GBARD

Turkey European Union (28 countries)

Source: OECD Stat, Main Science and Technology Indicators

126
 4. Who Performs R&D and Innovation Activities?

4.2.2. Data, network and open access in HEIs

Turkish Academic Network and Information Centre (ULAKBİM) aims to
manage a high-speed computer network that enables interaction between the
institutional elements of the national innovation system and provide information
technology support and information services to assist scientific production.
ULAKBİM also provides technological facilities like computer networks,
information technology support, and information/document delivery services,
so that the information requirements of universities and research institutions
can be met, and the efficiency and productivity of their end users can be
increased.93 ULAKBİM also manages the biggest scientific research support
programs of Turkey, Incentive Program for International Scientific Publications
Originating from Turkey (UBYT), where researchers receive certain amount
of money from TÜBİTAK if they publish in web of science indexed journals.
This support reaches up to 15,000 TL depending on the journal and its impact
factor.94

Turkish National Research and Education Network (ULAKNET), conducted

by Network Technologies Department of ULAKBİM ensures that network
services are always one step ahead of the expectations of its users and today
approximately 111,000 lecturers, researchers and over 2,500,000 university
students benefit from this service. Moreover, Network Technologies Department
also provides an R&D networking platform for innovative demands from the
research elements of the innovation system.

Turkish National Science e-Infrastructure (TRUBA) is a national e-infrastructure

that provides scientific research by promoting high-performance computing,
grid computing, and data-intensive computing services to over 1300 researchers
in 106 universities, and developing projects in cooperation with a variety of
public institutions.

JournalPark Project, conducted by TÜBİTAK ULAKBİM, provides users with web-

based publications of academic journals and an online journal management
system. The project, aims to enable nationwide service to meet a variety of
requirements within this context rapidly.

93. For more information see TUBITAK ULAKBİM. (2020). Ulusal Akademik Ağ Ve Bilgi
Merkezi. Retrieved 21 May, 2020, from https://ulakbim.TUBITAK.gov.tr/
94. See more information at https://cabim.ulakbim.gov.tr/ubyt/

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4. Who Performs R&D and Innovation Activities?

Thanks to the hosting service offered by ULAKBİM, the whole process starting
from the submission of an article to its publication can be carried out in an
electronic environment, with an infrastructure compatible to international
standards.

Education Roaming (EDUROAM) aims to provide using the network for the
users of Eduroam member institutions in other educational institutions. Owing
to Education Roaming, users of Eduroam member institutions can be connected
to the network from another institution (Guest Institution) which is a member of
Eduroam with the username and password that they use to connect to the
network in their institutions.

TÜBİTAK Open Science Policy was accepted recently in January 2019.95

The policy constitutes the management, storage, archiving, compilation and
digital preservation of the publications and research data produced by the
projects carried out or supported by TÜBİTAK. The policy implementation
started immediately in selected programs in 2019 and now covers all TÜBİTAK
programs. Open Science Policy follows the Green Road Open Access
requirement based on self-archiving.96 To support the access of open science
documents, all project related documents need to be uploaded to TÜBİTAK
Open Archive (https://aperta.ulakbim.gov.tr/). Though it is recommended that
research data and publications from the projects could be open access, there
is no specific funding from TÜBİTAK and the HEIs for open access publications.

Open Science Policy is an important step of TARAL’s compliance with European

Research Area (ERA). It is expected that the policy will increase the visibility and
impact of Turkey’s scientific publications.

95. See for details https://ulakbim.TUBITAK.gov.tr/en/haber/TUBITAK-open-science-policy-

accepted.
96. The Open Science Policy could be found at https://ulakbim.TUBITAK.gov.tr/sites/images/
Ulakbim/TUBITAK_open_sciency_policy-eng.pdf

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 4. Who Performs R&D and Innovation Activities?

4.3. Government
Though the scale of government as a performer and funder of STI activities is
increasing in absolute terms, its share within total R&D expenditures has been
declining since 2011 and is currently about 7% of total R&D expenditure (see Table
4.1). As a funder, government’s role has been degrading since 2016. Currently about
29% of available funds in R&D activities is government oriented (see Table 5.1). Direct
government spending on R&D activities has doubled in the past five years (2015-
2019) and indirect government allocations of the government has tripled (2015-2018)
in nominal TL terms. But in terms of US dollars, the total government allocations to
R&D activities is fixed around $3 billion (Figure 5.3).

It is difficult to draw the line between the roles of the government as a performer
and funder of STI activities. Turkey’s attempt to produce a fully electric car - Türkiye
Otomotiv Girişim Grubu (Turkey’s Automobile Initiative Group, TOGG) is a good case.
The attempt, the initial organization and the early-stage investment is government
led. In mission-oriented policy jargon the government is creating a market. However,
in statistical terms, the performer is actually a firm: consortium of five industrial firms
and the biggest NGO, The Union of Chambers and Commodity Exchanges (TOBB).
Thus, most such government attempts and organizations are in fact covered in
section 4.1 where business STI activities are discussed and in section 5.3.2 where the
government’s role as a funder is discussed. Another case is the recent government
attempt of creating research infrastructures (see section 3.3.2.1.3 on law 6550)
complementing university research. The funder and the initiator are the government
but the performer in statistical terms is the HEIs or the business depending on the
structure of the research infrastructure.

Apart from some few examples such as the Institute of Health Data Research and
Artificial Intelligence Applications (TÜSEB) organized under the Ministry of Health
almost all government activity in STI as a performer is organized under TÜBİTAK.
There are 8 R&D Units and 3 R&D Support Units organized under TÜBİTAK.

R&D Units at TÜBİTAK

• Marmara Research Centre (MAM)
• Informatics and Information Security Research Centre (BİLGEM)
• Defense Industry Research and Development Institute (SAGE)
• Space Technology Research Institute (UZAY)

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4. Who Performs R&D and Innovation Activities?

• National Metrology Institute (UME)

• Rail Transport Technology Institute (RUTE)
• Research Institute for Fundamental Sciences (TBAE)
• Turkish Institute for Management Sciences (TÜSSİDE)

R&D Support Units at TÜBİTAK

• National Academic Network and Performance Centre (ULAKBİM)
• Bursa Test and Analysis Laboratory (BUTAL)
• National Observatory (TUG)

R&D Units and R&D Support Units generate about 5.2 billion TL of revenue of which
90% is generated at the R&D Units. Revenues include projects, education, service
and direct government transfers as well. Most of these R&D Units are funded by the
government. 71% of the revenue of UZAY, 61% of the revenue of MAM and 97% of the
revenue of TBAE comes from direct transfers of government. In total about 40% of
revenues of R&D Units are direct transfer from the government. Among these R&D
Units, three stand out in terms of scale: SAGE, MAM and BİLGEM. 34% of the generated
revenue comes from these three R&D Units. In terms of the share of project revenue
in total, two R&D Units stand out, SAGE and MAM.97

Among R&D Support Units, ULAKBİM stands out in scale. These support units are
mostly funded by the government and ULAKBİM takes the lion’s share (92% of direct
government transfer goes to ULAKBİM alone).

57% of TÜBİTAK personnel is classified as R&D personnel (2,987 researchers as of

2019) and 26% is classified as R&D support personnel (1359 personnel as of 2019).
In total, about 80% of TÜBİTAK personnel is either R&D or R&D support personnel.98
Compared to 2009, both the absolute number and the share of R&D related personnel
within the total has increased.

In the last decade there is only one recent addition to R&D Units at TÜBİTAK which is
the Institute of Rail Transport Technologies, that was established at the end of 2019.
The institute, established in TÜBİTAK Gebze campus, aims to follow the developments
in the world and carry out R&D and innovation activities in the field of safe, fast and
efficient rail transport technologies. Indigenous technology production within the field
of rail transport technologies is a central focus of the institute.

97. https://www.TUBITAK.gov.tr/sites/default/files/18842/TUBITAK_2019_yili_faaliyet_raporu.pdf
130 98. https://TUBITAK.gov.tr/sites/default/files/18842/2020-pp.pdf
 4. Who Performs R&D and Innovation Activities?

4.4. Cooperation and Collaboration

Universities, industry and the government are three main actors that perform and
fund STI activities by cooperating and collaborating with each other. It is essential
that these three actors interact closely and collaborate effectively in the innovation
process to promote economic development by both enhancing the environment for
R&D and innovation activities and increasing inputs and outputs of the innovation
process via transfer of technology and knowledge.99

Figure 4.9. Turkey’s performance over time according to linkage indicators of EIS (in percentage)

100
90
Linkages
80
70 [a] Innovative SMEs
60 collaborating with others

50 [b] Public-private-co-
publications
40
30 [c] Private co-funding of
public R&D expenditures
20
10
0
2011 2012 2013 2014 2015 2016 2017 2018

Source: European Innovation Scoreboard 2019, 3. Innovation activities, 3.2. Linkages

The linkages dimension of European Innovation Scoreboard (EIS) measures the

public-private cooperation and collaboration of countries. Turkey’s cooperation and
collaboration performance over time is demonstrated in Figure 4.9. Looking at the
linkages dimension we can say that Turkey has an overall increase in collaboration. Both

99. Etzkowitz, H., Leydesdorff, L. (1995). The Triple Helix - University-Industry-Government Relations:
A Laboratory for Knowledge Based Economic Development. EASST Review, 14(1), 14-19. Available at
SSRN: https://ssrn.com/abstract=2480085; Etzkowitz, H., & Leydesdorff, L. (2000). The dynamics of
innovation: from National Systems and “Mode 2” to a Triple Helix of university–industry–government
relations. Research Policy, 29(2), 109-123. https://doi.org/10.1016/S0048-7333(99)00055-4; Etzkowitz,
H. (2007). University–industry–government: The Triple Helix model of innovation. EOQ Congresses
Proceedings. 51st EOQ Congress, 22–23 May, 2007. Prague. Retrieved from http://www.eoq.org/
fileadmin/user_upload/Documents/Congress_proceedings/Prague_2007/Proceedings/007_EOQ_
FP_-_Etzkowitz_Henry_-_A1.pdf   131
4. Who Performs R&D and Innovation Activities?

public and private collaborations of SMEs have increased significantly ([a] in Figure
4.9), especially in the recent years. The amount of increase in academic publications
resulting from collaboration of private sector and public sector researchers ([b] in
Figure 4.9) is very low. Turkey is well below the EU average in the public-private co-
publication activities. When private co-funding of public R&D expenditures is taken
into consideration, Turkey’s state is even worse ([c] in Figure 4.9), placed among the
last three countries out of 36.

Other indicators demonstrating collaborations in STI are also included in the 2019
versions of Global Competitiveness Report and The Global Innovation Index. Table
4.10 summarizes some countries’ scores and world rankings, according to indicators
that measures STI cooperation in 2011 and 2019. As one of the sub-indicators of
the innovation linkages dimension in The Global Innovation Index, “5.2.1 university/
industry research collaboration” represents countries’ performance in terms of R&D
cooperation between universities and the private sector. According to this indicator,
Turkey is ranked 88th among 129 countries with a score of 37 out of 100 in 2019.
Furthermore, as part of the innovation capacity pillar in the Global Competitiveness
Report, the “12.04 multi-stakeholder collaboration” indicator shows the cooperative
performance of countries’ national stakeholders in activities ranging from knowledge
production to innovation. Accordingly, Turkey scored 3.6 out of 7 in multi-stakeholder
collaboration by ranking 86th among 141 countries in 2019. But most remarkably,
according to both indicators, Turkey’s ranking in STI cooperation has declined from
2011 to 2019.

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 4. Who Performs R&D and Innovation Activities?

Table 4.10. Country profiles according to STI collaboration indicators specified in Global
Innovation Index 2011100-2019101 and Global Competitiveness Report 2011102-2019103

Global Innovation Index Global Competitiveness Report

5.2.1 University/industry research 12.04 Multi-stakeholder collaboration
collaboration
2011 2019 2011 2019
Score/ Rank/ Score/ Rank/ Score/ 7 Rank/ Score/ 7 Rank/
100 125 100 129 142 141
Israel 68.0 13 79.4 2 5.4 7 5.4 1
Netherlands 69.8 11 75.5 4 5.3 8 5.4 3
Germany 70.6 9 72.8 6 5.2 13 5.2 7
France 50.6 41 54.6 30 4.2 36 4.5 29
Italy 41.4 63 49.5 41 3.5 79 3.7 64
Spain 49.6 43 42.2 59 4.1 42 3.6 81
Turkey 39.5 75 37.0 88 3.5 74 3.6 86
Poland 43.8 57 35.1 92 3.6 65 3.2 116
Greece 33.8 102 25.6 122 2.9 120 3.1 123

Looking at both indicators demonstrated in Table 4.10, Turkey has a poor performance
on STI collaboration, lagging behind the Netherlands as an innovation leader as well
as strong innovators such as Israel, Germany, and France in 2019. Among moderate
innovator countries, Turkey is left behind Italy and Spain relatively while in front of
Poland and Greece in 2019 for both indicators.

100. Global Innovation Index 2011, Accessed June 25, 2020 https://www.wipo.int/edocs/
pubdocs/en/economics/gii/gii_2011.pdf
101. Global Innovation Index 2019, Accessed June 25, 2020 https://www.
globalinnovationindex.org/userfiles/file/reportpdf/gii-full-report-2019.pdf
102. The Global Competitiveness Report 2011-2012, Accessed June 25, 2020 http://www3.
weforum.org/docs/WEF_GCR_Report_2011-12.pdf
103. The Global Competitiveness Report 2019, Accessed June 25, 2020 http://www3.
weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf

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4. Who Performs R&D and Innovation Activities?

4.4.1. National cooperation

In order to enhance STI activities in Turkey, the first steps towards developing
collaborations and cooperation at the national level began with the 6th Five-
Year Development Plan 1990-1994, aiming to create an active collaboration
ecosystem. Especially since 1995, significant efforts have been made to
improve cooperation and interaction between the university, industry and
the government, and as a result, many applications and programs have
been implemented.104 In this section, the practices that emerge as a result of
collaborations among the university, industry and the government with the
aim of supporting and developing science, technology and innovation, will be
summarized.

4.4.1.1. University-university
In this section, implementations aiming to increase knowledge
exchange, knowledge production, and research activities by inter-
university cooperation agreements or student and academician
exchange programs, are briefly described.

4.4.1.1.1. Inter-University Collaboration Program

(ÜNİP)

ÜNİP was established on 21 July 2006 with the initiative of

Atatürk University, Cumhuriyet University, Erciyes University,
Fırat University, Gaziosmanpaşa University, İnönü University,
Kafkas University, Karadeniz Technical University, and Yüzüncü
Yıl University. This project aims to promote scientific and
technological research and development projects to be carried
out by the member universities of the ÜNİP at the undergraduate
and postgraduate levels and the protocol is renewed every 5
years. The objectives of the ÜNİP joint project commission are as
follows; ÜNİP members provide privileges (low price, priority, etc.)
to each other for R&D projects, integrate R&D projects into the
R&D Data System and Communication Network created by Erciyes
University via web services, give priority to BAP Projects to be
104. Kiper, M. (2010). Dünyada ve Türkiye’de Üniversite-Sanayi İşbirliği. TTGV. Retrieved from
https://ttgv.org.tr/content/docs/ueniversite-sanayi-isbirligi-2010-11.pdf

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 4. Who Performs R&D and Innovation Activities?

made jointly among member universities, encourage members to

actively use the “Scientific Research Projects Information Sharing
Platform”, universities, whose experience and infrastructure are
suitable, organize training programs on R&D Project Preparation
and Project Management once a year for the researchers of the
member universities.

4.4.1.1.2. Farabi Exchange Program

Farabi Exchange Program is a national exchange program

for students and faculty members of universities and higher
technology institutes among HEIs that provide education at
undergraduate, graduate and doctorate levels. Farabi Exchange
Program aims for students or faculty members to continue their
education and training activities in a HEI outside their own
institutions for one or two semesters. Non-refundable grants for
students and additional course payments for faculty members
who participate in the Farabi Exchange Program are provided. The
main purpose of the Farabi Exchange Program is to contribute to
the education and training, academic studies, social development
processes and career plans of students and staff by placing them
in a different academic environment.

Table 4.11. Numbers of incoming and outgoing exchange students of Farabi Exchange
Program

Academic year Incoming Students Outgoing Students

Male Female Total Male Female Total
2015 - 2016 1,226 2,035 3,261 1,237 2,047 3,284
2016 - 2017 967 1,659 2,626 967 1,659 2,626
2017 - 2018 980 1,616 2,596 980 1,616 2,596
2018 - 2019 787 1,249 2,036 1,297 1,882 3,179

Source: istatistik.yok.gov.tr

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4. Who Performs R&D and Innovation Activities?

4.4.1.1.3. MEVKA Inter-University Cooperation

Program

This program aims to activate the mediating role of Mevlana

Development Agency in regional development and to strengthen
the cooperation of universities in Konya and Karaman to create
economic value from the scientific research and projects. The
cooperation protocol was signed between Mevlana Development
Agency and Selçuk University, Karamanoğlu Mehmetbey
University, KTO Karatay University, Mevlana University, Konya
Necmettin Erbakan University. The purpose of this protocol is
to develop university-industry and university-city collaborations
in Konya and Karaman provinces, contributing to regional
development. University-city cooperation undertakes the
mission of accelerating human and economic development in
a comprehensive manner, including public, private sector, non-
governmental organizations, and the public.

4.4.1.2. University-industry
In national STI system, the cooperation of universities and industry
stakeholders is essential for the commercialization of scientific
knowledge. Accordingly, agreements, implementations, and public
support programs that promote the cooperation between universities,
which are the source of scientific knowledge production, and the
private sector, which is the source of innovation and high technology
production, are introduced in this section.

4.4.1.2.1. University-Industry Cooperation Centers

Platform (ÜSİMP)

Established on the structure of the discontinued University-

Industry Joint Research Center Program (ÜSAMP), the mission
of the University-Industry Cooperation Centers Platform (ÜSİMP)
is to contribute to the establishment of interface institutions that
serve university-industry cooperation by developing a national
cooperation culture, improving the quality and performance
of actors, and determining the policies and strategies for the

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 4. Who Performs R&D and Innovation Activities?

efficient execution of technology transfer applications. The

objectives of ÜSİMP are as follows: development of university-
industry cooperation activities in universities, research institutions
and organizations, industrial organizations and non-governmental
organizations; promoting the sharing of knowledge and experience
between national and international institutions, public and private
institutions and organizations; institutionalization of university-
industry cooperation organizations, diversification of services,
establishing a service standardization and recognition process for
the interface institutions, improving the quality and performance
of organizations; contributing to the processes of preparation
of action plans, help designing policies and strategies on
university-industry cooperation together with official institutions.
Continuing its activities as a platform, ÜSİMP is managed by
an executive board selected from the representatives of the
member organizations. 50 workshops and seminars, 7 national
TTO networks and 6 national business mentoring initiatives,
22 trainings organized with different stakeholders, 8 projects
supported by national and international funds, active participation
to 90 events, representation in 30 international events, 6
cooperation protocols, and 94 member organizations have been
reached since 2007.105 In the past five years, ÜSİMP coordinated
a national patent exhibition and convention annually, organized
about 30 workshops and symposiums, but more importantly
organized regular education programs to become Registered
Technology Transfer Professional (RTTP).

4.4.1.2.2. TÜBİTAK 1503 - R&D Project Brokerage

Events Grant Program

This program is to support national or international “Project Market”

events organized to bring representatives from universities,
research and private sector organizations together, to introduce
their projects to each other and to establish collaborations. The
collaboration between at least one university and any one or
more of the exporters’ association, chamber of industry, and/or

105. http://www.usimp.org.tr/uploads/raporlar/kurulusumuzdan_gunumuze_usimp_2.pdf. For

more information see the website of ÜSİMP http://www.usimp.org.tr

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4. Who Performs R&D and Innovation Activities?

chamber of commerce is required and one of the participating

organizations can apply for support to TÜBİTAK.106 From 2001-
2019 10.9 million TL (in 2019 prices) were provided to 310 project
brokerage events.107

4.4.1.2.3. TÜBİTAK 1505 - University – Industry

Collaboration Support Program

The purpose of this program is to contribute to the

commercialization of the knowledge and technology produced at
university / public research centers and institutes by transforming
them into products or processes in line with the needs of SMEs
or large-scale organizations. Universities, training and research
hospitals, or public research centers and institutes performing
R&D (as the executing agency) can apply jointly with SMEs or
large enterprises (as client organizations) that guarantee to
implement the project results in Turkey. Projects up to 1 million
TL are supported and TÜBİTAK funds 60%-75% of the project
budget depending on the size of the client. Client co-finance is
40% for large firms and 25% for SMEs. The budget may consist
of personnel costs, travel costs, equipment, software and
materials cost and service procurement.108 From 2011 to 2019, 715
applications were made for this program and 267 of them were
supported with a success rate of %37. The total amount funded by
TÜBİTAK was 75.5 million TL (in 2019 prices).109

4.4.1.2.4. TÜBİTAK 1513- Technology Transfer Office

Support Program

This program is to support TTOs, which operate to commercialize

the knowledge and technology produced in universities, to

106. For more information about the program see https://www.TUBITAK.gov.tr/en/funds/

industry/national-support-programmes/content-1503-rd-project-brokerage-events-grant-
programme. See also a presentation on the program at https://www.TUBITAK.gov.tr/sites/
default/files/1503-sunumu.pdf
107. https://www.TUBITAK.gov.tr/sites/default/files/21566/teydeb_guncel_sunum_0.pdf
108. For more information about the program see https://www.TUBITAK.gov.tr/en/funds/
industry/national-support-programmes/content-1505-university-industry-collaboration-
support-program
109. https://www.TUBITAK.gov.tr/sites/default/files/21566/teydeb_guncel_sunum_0.pdf

138
 4. Who Performs R&D and Innovation Activities?

establish cooperation between universities and the private sector

organizations, and to help the industry produce the information
and technology needed by the industry. Universities, companies
partnered with universities, technopark management companies,
and companies partnered with technopark management
companies are among the institutions that can apply for the
program. This program consists of two phases, the “institutional
capacity building” and the “target oriented growth”, each
supported for a maximum of five years. The former has an annual
budget of 1.25 million TL, while the latter has an annual budget
of 1.75 million TL. Project budget may consist of personnel costs,
travel costs, equipment, software and service procurement.110
Between 2013-2019, 53 TTO’s benefited from TÜBİTAK funding
reaching a total of 188.6 million TL (in 2019 prices).111

4.4.1.2.5. TÜBİTAK 1601 - Capacity Building for

Innovation and Entrepreneurship Grant Program

This is a support program aiming to enhance capacity in

innovation and entrepreneurship. This program aims to transform
the research outputs carried out at universities into economic
value, to provide university-industry cooperation, to benefit from
the national and international support mechanisms of universities,
to develop academic entrepreneurship based on the knowledge
produced in universities, and to support TTOs that operate in
universities for the commercialization of IPRs. Through new
calls of 1601 every year, entrepreneurial initiatives targeting
high-tech production in primary thematic areas (e.g., focusing
on intelligent transportation, intelligent production systems,
energy and clean technologies, communication and digital
transformation, health and good life, sustainable agriculture
and nutrition) and entrepreneurship trainings of universities
are supported. Universities, TTOs, foundations established by
law, and established capital companies that have successfully

110. For more information about the program see https://www.TUBITAK.gov.tr/en/funds/

industry/national-support-programmes/content-1513-technology-transfer-office-support-
program
111. https://www.TUBITAK.gov.tr/sites/default/files/21566/teydeb_guncel_sunum_0.pdf

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4. Who Performs R&D and Innovation Activities?

carried out business idea evaluation processes by organizing at

least one business idea contest in the field of entrepreneurship
or experienced in the fields of acceleration, incubation etc. can
apply to these calls.112 7 calls were opened from 2015 onwards.
149 applications were made from which 65 were supported, with
a success rate of %43.113

4.4.1.2.6. TÜBİTAK 2244 - Industrial Thesis Program

(SANTEZ)

This program mainly targets to meet the industry-based R&D

needs on scientific knowledge production with university-
industry cooperation and to reach the indigenous technology
production mission. The objectives of this program are as follows;
institutionalizing university-industry-government cooperation,
supporting the development of high value-added technology-
based products and production methods, enabling SMEs to
acquire technology production and R&D cultures, ensuring that
R&D, technology and innovation activities that SMEs cannot
perform by their own assets are carried out with the support of
both the university and the government, ensuring that the thesis
subjects of the graduate students are determined according to
the products, production methods and R&D based needs of SMEs
based on new technologies for manufacturing industry, to help
increase the number of qualified human resource by supporting
graduate students in these projects, to pave the way for the
thesis students working in these projects to be employed as
R&D personnel in these companies in the future. Regardless of
the sector and size, projects to be prepared in cooperation with
established enterprises and universities that create added value
at the firm level can benefit from this program. From its initiation
as SANTEZ, 497 protocols were signed between universities
and firms. In these projects, 517 PhD students have received
funding.114 At the moment 34 universities have at least one project

112. For more information see https://www.TUBITAK.gov.tr/en/funds/industry/national-support-

programmes/content-1601-capacity-building-for-ie-grant-program
113. https://www.TUBITAK.gov.tr/sites/default/files/21566/teydeb_guncel_sunum_0.pdf
114. https://www.TUBITAK.gov.tr/sites/default/files/18842/TUBITAK_2019_yili_faaliyet_raporu.
pdf

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 4. Who Performs R&D and Innovation Activities?

supported by the Industrial Thesis Program. According to the

program, students receive 4500 TL (2020 value) for up to four
years and may be employed by the contracted firm for three years
after completing the PhD.

4.4.1.2.7. ASELSAN Academy

Established in 1975, ASELSAN is a company of Turkish Armed

Forces Foundation. ASELSAN is the leading defense electronics
company of Turkey and listed as one of top 100 defense
companies in the world.115 Within the scope of the project (signed
by ASELSAN and YÖK in August 2017), ASELSAN personnel is
trained and can conduct academic research at postgraduate level
in the fields related to defense industry at Gazi University, METU,
Gebze Technical and İstanbul Technical University in accordance
with ASELSAN’s mission and vision.116 The Industrial Graduate
Education Program aims to develop ASELSAN’s technology
and knowledge resources and ensure its continuity. ASELSAN
Academy Program aims to increase the competitiveness of
ASELSAN and Turkey, by ensuring its development in critical
technologies. ASELSAN personnel participating in the program
receive a postgraduate degree (MSc or PhD) by realizing the
projects they work within the form of an industrial thesis. In 2019,
the program involved about 380 engineers in the MSc, 65 in the
PhD programs. About 80 courses are provided every year by
about 60 academic personnel from the universities above.117

4.4.1.2.8. Vestel Technology Academy

Vestel is the leading electronic goods producer of Turkey and

amongst the top 100 firms considering the number of patent
applications to EPO. Vestel Technology Academy Program,
initiated in 2010 with the cooperation of Özyeğin University in order

115. https://people.defensenews.com/top-100/
116. http://be.gazi.edu.tr/posts/view/title/gazi-universitesi-ve-aselsan-arasinda-%22aselsan-
akademi-lisansustu-egitim-programi%22-protokolu-imzalandi.-203179
117. https://www.defenceturk.net/aselsan-akademi-3-yasinda-muhendisler-hem-okuyup-hem-
calisiyorlar

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4. Who Performs R&D and Innovation Activities?

to improve the technical infrastructure of Vestel engineers, aims

to transfer the techniques developed in the electronic products
and consumer durables sector to the engineers by scientific staff
and expert professionals. The aim of the academy, which includes
technical trainings, applications and projects specially designed
for Vestel, is to increase the knowledge and skills of employees
engaged in technical tasks such as R&D, quality and production.
Employees attending the academy are also given the opportunity
to obtain MSc and PhD degrees approved by YÖK in the fields
of electronics, machinery, computer and industrial engineering
within the framework of the program. The academy, which is
the first in Turkey, has more than 170 graduates and about 250
students since 2015.118

4.4.1.3. Industry-Industry
In order to support the R&D, innovation and high technology production
activities of the private sector, intra-industry cooperation support
programs implemented by public institutions and non-governmental
organizations are briefly introduced in this section.

4.4.1.3.1. KOSGEB (Collaboration Support Program/

İş Birliği Güç Birliği Destek Programı)

The aim of the program is to contribute to the development of a

culture of collaboration in within SMEs or with large enterprises
and to establish collaborations that provide mutual benefits and
competitive advantage. Cooperation projects of enterprises
with each other and/or with large enterprises providing mutual
benefits, reducing costs and securing competitive advantage
are supported. The objectives of the cooperation projects are
as follows; joint manufacturing in order to increase capacity,
efficiency, product variety and quality, joint design, product and
service development in order to meet customer demands and
market demand, joint laboratory to improve product and service
quality, joint marketing in order to increase their market shares
and to create a brand image, collaborations to improve their skills
and abilities and to join value chains.
118. https://www.vestel.com.tr/tegepodulleri

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 4. Who Performs R&D and Innovation Activities?

4.4.1.3.2. TÜSİAD SD2

This program is designed (by the Turkish Industry and Business

Association, TÜSİAD) with the mission of creating an ecosystem
where the technology user and the technology supplier meet,
revitalizing the technology supplier network and its competence,
and creating good practice examples on digital transformation
in Turkey. It is aimed that the technology supplier checks the
suitability of the product or service, whether it has already
customer verification or provides a solution to the problem, need,
opportunity defined by the technology user. The applicant must
be operating in one of the prioritized technology areas such
as augmented reality, cloud, big data and analysis, robot and
automation, cyber security, artificial intelligence and intelligent
systems. The other main conditions are to be a micro firm or an
SME and to have a product or service that has a working prototype
that can provide a solution to the problem, need or opportunity
defined by the technology user.119

4.4.1.4. University-Industry-Government
The active cooperation of the university, industry and government,
which are the three key actors in national innovation systems, is one
of the key elements of economic development. This section describes
publicly funded support programs, practices, and agreements to
improve both the active interaction and collaboration of key actors and
the collaboration of various stakeholders arising from interactions of
the universities, industry, and government aiming development of STI
activities and knowledge and technology transfer.

4.4.1.4.1. Public-University-Industry Cooperation

Portal (KÜSİP)

With the Public-University-Industry Cooperation Portal (KÜSİP)120;

it is aimed to provide an easy and fast access to R&D funds,
researchers, investors, and knowledge resources through a
119. For more information about the firms, partners, open calls see https://tusiadsd2.org/
hakkinda
120. For more information: www.kusip.gov.tr

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single virtual platform where cooperation and interaction between

public, university and industrial enterprises, entrepreneurs
and investors could be built. The main objectives of KÜSİP
are bringing together the main actors of the NSI with the new
stakeholders that emerged as a result of their interaction, creating
a dynamic and connected network to promote sustainable high-
value and innovative high-tech production, enabling easy access
to activities such as news, events and announcements in the R&D
and innovation ecosystem.

4.4.1.4.2. TÜBİTAK 1512 - Entrepreneurship Multi-

phase Program

This new program is based on the former Techno-Entrepreneurship

Program of MoIT. The purpose of the program, organized by
TÜBİTAK, is to support the activities of individual entrepreneurs
from the idea stage to the commercialization and marketing
stages, to transform technology-based business ideas to
products and services that can generate high value added and
create qualified employment opportunities. Students who will
be graduating from any undergraduate program of universities
providing formal education within one-year-period, graduates,
MSc and PhD students, or entrepreneurs who obtained one of
their undergraduate or graduate degrees at most 5 years before
the application date can apply. When the business idea is found
appropriate by TÜBİTAK, the start-up business plan is prepared
in the first stage of the accepted projects. In this first stage
TÜBİTAK outsources most of its activities to about 40 different
universities and firms. For those who are successful in start-up
business plan application (the idea creation phase), techno-
initiative capital support of 200,000 TL is provided in the second
stage to the newly established firms as seed capital aiming
technology validation of the idea. In this stage the entrepreneurs
receive mentorship support for 18 months. In the third stage
(R&D performing), the initiative’s first R&D project is supported
within the scope of 1507 SME R&D Initial Support Program for
up to a budget of 600,000 TL. In the final step, the enterprise is
expected to commercialize its products in no more than twelve
months. TÜBİTAK provides project brokerage, easy access to

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partner finding events, and increased networking opportunities

with private equity firms. Between 2013-2019, 194.2 million TL
was transferred to participants of this program. Out of 27,000
applications in phase 1, about 3,700 were selected and about
1,400 firms were established in phase 2. About 123 million TL
were transferred to phase 3 firms through 1507 program, only in
2019.121

4.4.1.4.3. TÜBİTAK 1004 - Centre of Excellence

Support Program

The aim of the 1004-Center of Excellence Support Program

is the specialization of the research infrastructures of HEIs by
collaborating with R&D centers, design centers and public R&D
units, and to support research programs that have traceable
targets, have scientific qualifications and high commercialization
potential in the priority areas determined within the scope of
national targets. 1004 program consists of two phases. Only
10 Research Universities declared by YÖK and Research
Infrastructures supported under Law 6550 can apply to the
first phase which is more related to establishing the working
model of the Centre, its cooperation and collaboration potential
and the basic strategy of creating knowledge and technology.
Second phase consists of supporting R&D expenditures at TRL
3 to 6 levels. Between 2014-2018, there were 19 applications 18
of which were supported and about 1.4 million TL were devoted
so far which only accounts phase one activities.122 ODTÜ-MEMS,
Sabancı University-SUNUM and Bilkent University-UNAM are few
examples of the research centers funded under this program.

4.4.1.4.4. TÜBİTAK 1007 - Public Institutions

Research Funding Program

With the 1007-Public Institutions Research Funding Program, it is

aimed to provide procurement methods based on R&D, supply
of technologically qualified products / systems from national
resources, and transfer of foreign technology. R&D projects that
121. https://www.TUBITAK.gov.tr/sites/default/files/21566/teydeb_guncel_sunum_0.pdf
122. https://www.TUBITAK.gov.tr/sites/default/files/21566/teydeb_guncel_sunum_0.pdf

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focus on solutions to problems of public and/or needs identified

by public institutions are supported. In addition to the primary
goal of meeting the R&D needs of public institutions, public,
private institution and university collaboration is encouraged and
knowledge and high technology industry production is targeted
through the utilization of basic and applied research at universities.
Three type of projects are funded according to determined
output: i) prototype/system/pilot projects that basically target
a working prototype, ii) model/process that target a working
model, process to provide a service or produce technology, iii)
technology accumulation in products where national capacity is
limited. The project duration is maximum 48 months and there are
no budgetary limitations.123

4.4.2. International cooperation

Since the 1950s, Turkey has experienced fundamental changes in terms
of international cooperation.124 Recently, Turkey has become a player in
international cooperation thanks to new economic dynamics and an increasing
sense of responsibility for promoting international relations to contribute to
global development while pursuing its own interest. Turkey has developed
several programs for presentation of Turkish researchers, institutes, universities,
and industries on international platforms.125 International Cooperation
Department (UİDB) at TÜBİTAK whose main purpose is to develop international
collaborations for STI activities has become responsible for conducting bilateral
and multilateral programs. Thanks to these efforts, international cooperation
in Turkey increased and it is ultimately expected that this will contribute to
the development of the NSI, localize many sectors by supporting indigenous
production capabilities, provide high value-added products in the long term.

123. For more information see program website https://www.TUBITAK.gov.tr/en/funds/

academy/national-support-programmes/content-1007-public-institutions-research-funding-
program
124. Ministry of Foreign Affairs (2020). Turkey’s Development Cooperation: General
Characteristics and the Least Developed Countries (LDC) Aspect. Retrieved 20 May, 2020.
http://www.mfa.gov.tr/turkey_s-development-cooperation.en.mfa
125. Tanrıkulu, E. (2010). A Case Study of Impact Analysis: TÜBITAK Research Support
Programmes. Retrieved 20 May, 2020. http://etd.lib.metu.edu.tr/upload/12611597/index.pdf

146
 4. Who Performs R&D and Innovation Activities?

4.4.2.1. Bilateral cooperation

One of these international cooperation programs is the “Bilateral
Cooperation Program” launched by TÜBİTAK. This program aims to
increase the capacity of utilizing international research funds and
international R&D cooperation programs. This international R&D
funding program is designed for both academic and industrial R&D
cooperation.126

Within the scope of bilateral cooperation agreements signed with

a variety of countries at the inter-governmental or inter-institutional
levels, joint project calls are opened and common research projects
are funded. Moreover, different types of activities are also supported
financially within this program such as common scientific meetings,
exchange of scientists, scientific visits, etc.127 TÜBİTAK has launched
bilateral cooperation projects with many countries. Figure 4.10 depicts
countries with whom bilateral cooperation was established (some of
which are still continuing under open calls).128

Turkish scientists who want to propose a joint project should have an

agreement with the researcher(s) in the country with whom they will
carry out the project. Project partners in Turkey should submit the project
proposal form that can be downloaded from TÜBİTAK’s website, foreign
project partners should submit the application form to their funding
institution. Unilateral applications are not accepted. TÜBİTAK and the
foreign counterpart institutions examine and evaluate project proposals
according to their own criteria and only the projects approved by both
parties are supported.

Within the program, cooperation activities, short-term scientist

exchange, and joint scientific activities can be supported. For the
scientist exchange within the scope of the project, unless a contrary

126. https://www.TUBITAK.gov.tr/TUBITAK_content_files//ICIM/ikili_coklu_iliskiler_
brosur_1__3_ok.pdf
127. TUBITAK (2012). Uluslararası İşbirliği Daire Başkanlığı (UİDB). https://www.TUBITAK.gov.tr/
sites/default/files/content_files/iletisim/uidb-baski.pdf
128. A full list of bileteral cooperation calls can be found at https://www.TUBITAK.gov.tr/tr/
uluslararasi/ikili-proje-destekleri/icerik-diger-programlar

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4. Who Performs R&D and Innovation Activities?

situation is stated in the relevant agreement, the receiving party covers

the accommodation and food/beverage expenses, while the sending
party covers international travel expenses. In addition to overseas travel
support to bilateral cooperation projects, for the Turkish party, research
support can also be provided by TÜBİTAK upon request. TÜBİTAK has
27 bilateral cooperation programs with institutions from 22 different
countries (see Table 4.12).129 The project applications to bilateral
programs witnessed a sharp increase in 2013 and thereafter an average
of 400 project applications have been made every year (before 2013 the
average was about 150). The success rate is about 15%. The budget of
bilateral programs increased continuously reaching about 25-30 million
TL by 2018 annually.

Table 4.12. The list of countries to cooperate with under the Bilateral Cooperation
Programs

USA (NSF, NIH) Mongolia (MAS) Pakistan (MoST)

Bulgaria (BAS) Italy (CNR, Ministry of Foreign Affairs) Russia (RFBR)
Belarus (NASB) France (CNRS, Bosphorus Program with China (MOST)
Ministry of Foreign Affairs)
India (CSIR) Slovenia (ARRS), Ukraine (NASU, DKNII) Czech Republic (AS CR)
Germany (DFG, BMBF) Hungary (NKTH) Belgium (FWO)
Slovakia (SAS) Korea (NRF)
Greece (GSRT) Romania (ANCS),

Source: https://www.TUBITAK.gov.tr/TUBITAK_content_files//ICIM/ikili_coklu_iliskiler_brosur_1__3_ok.pdf

129. The list of open calls (in Turkish) can be seen from this link: https://www.TUBITAK.gov.tr/tr/
uluslararasi/ikili-proje-destekleri/icerik-diger-programlar

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 4. Who Performs R&D and Innovation Activities?

Figure 4.10. International Bilateral Cooperations - Interactive World Map

Source: https://h2020.org.tr/en/interactive-world-map

4.4.2.2. Multilateral cooperation

Multilateral Cooperation Program includes the active participation of
Turkey in the activities of international organizations and the monitoring
of the ongoing programs within such organizations. There are several
aims of the program such as assisting Turkish researchers to utilize
TÜBİTAK supports like international projects, scholarships, awards, etc.;
monitoring the activities of the international organizations and informing
the relevant people/institutions, following international STI policies,
contributing to the arrangement important international organizations
in Turkey, increasing Turkey’s visibility in the international STI arena.130

Turkey is actively participating in the activities of various European

research programs such European Cooperation in the field of
Scientific and Technical Research (COST), European Space Agency
(ESA), European Molecular Biology Conference (EMBC), regional
130. TUBITAK (2012). Uluslararası İşbirliği Daire Başkanlığı (UİDB). https://www.TUBITAK.gov.tr/
sites/default/files/content_files/iletisim/uidb-baski.pdf

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4. Who Performs R&D and Innovation Activities?

organizations such as Black Sea Economic Cooperation and Economic

Cooperation Organization and international organizations like NATO,
OECD, and UNESCO. The participation of Turkish scientists to such
events organized and conducted by these organizations are supported
or monitored by TÜBİTAK. Brief information about some of the programs
under Multilateral Cooperation is given below.

4.4.2.2.1. PRIMA - Partnership for Research and

Innovation in the Mediterranean Area

PRIMA Program (Partnership for Research and Innovation in the

Mediterranean Area) aims to support international and multi-
partner research and innovation projects to be carried out in the
fields of water resources and food systems, provide participation
of researchers from many countries in the north and south of the
Mediterranean to the projects, and to deliver the outputs and
innovative solutions within the scope of the projects to the end-
users.

4.4.2.2.2. CORNET

Cornet Program aims to support projects that increase the pre-

competitive capacities of SMEs. Project outputs are expected to
be disseminated and to be useful for the SMEs. Stakeholders from
at least 2 of the call member countries should come together.
Member countries are Germany, Belgium, Brazil, Czech Republic,
Netherlands, Switzerland, Japan, Canada, Peru, and Poland.
Project topics need to be determined according to the needs of
the SMEs.

4.4.2.2.3. COST - European Cooperation in Science

and Technology

COST Association is an organization that aims to bring scientists

who are experts in their fields together in an international scientific
network called COST Action and to support scientists to bring
their research to the international arena. Turkey is among the
members of the program.

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 4. Who Performs R&D and Innovation Activities?

COST, whose main purpose is to provide researchers with only

network support, is the most important structure in its field.
COST offers important opportunities such as the meeting of
Turkish researchers with international experts, reaching potential
research consortiums which is important in EU Framework
Program applications. Therefore, COST is an ideal start point for
Turkish researchers who are conducting research mostly within
the national borders but want to communicate their research in
the international arena.

4.4.2.2.4. EMBO - European Molecular Biology

Organization

EMBC, with an annual budget of approximately €15 million, is

considered an important program among the European science
support programs in terms of scientific activity level, efficiency, and
interest from the non-European countries. Turkish researchers in
natural sciences and medicine using molecular biology methods
can utilize this support program. It is expected that through
knowledge transfer and funding, this program will strengthen the
scientific infrastructure of Turkey in the field of life sciences.

4.4.2.2.5. ICGEB - International Centre for Genetic

Engineering and Biotechnology

ICGEB aims to support the establishment of the biotechnology

infrastructure in developing countries and to increase the
interaction and cooperation between these countries in the field
of biotechnology. TÜBİTAK Marmara Research Centre Gene
Engineering and Biotechnology Centre (MAM-GMBE) has been
representing Turkey in this organization since 1989.

ICGEB’s open several programs for researchers from Turkey:

• Doctorate Scholarships,
• Post-Doctoral Scholarships,
• Joint Research Projects,
• Course, Meeting and Workshop Organization Support

The deadline for all applications is on the 31st March of every year.

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4.4.2.2.6. IRASME

IRASME is a self-sustaining international network that supports

international research projects to increase the innovation
capacities and capabilities of SMEs. Members of the IRASME
network include countries such as Germany, Austria, Belgium,
Czech Republic, Canada, Luxembourg, and Russia. The purpose
of the network is to help SMEs acquire technological know-how
through international projects, to have the necessary cooperation
networks, and to improve their global competitiveness.

4.4.2.2.7. Framework Program

Framework Programs (FP) are conducted to strengthen the

research and technology development capacity of Europe, to
encourage university-industry cooperation, and to develop
cooperation in various fields within the scope of EU policies with
the EU Member States, associated countries and other countries
with which the EU cooperates. National Coordination of Horizon
2020 Program is carried out by TÜBİTAK. Industrial organizations,
SMEs, SME unions, individual researchers, universities, research
centers, public institutions, non-Governmental organizations,
international organizations can be supported by the FPs. Detailed
information on FPs and especially H2020 (FPs 2013-2020) can be
found in section 5.4.2.

4.4.2.2.8. ERA-NET

ERA-NET, designed within the framework of EU FPs, aims to

support public-public collaborations in the member countries
of the program, to ensure the coordination between national
and regional research programs, and to increase international
cooperation by developing and strengthening research and
innovation programs. Within the program, the preparation phase,
networking, design and implementation and coordination of joint
activities of the public-public partnerships are supported.131

131. https://ec.europa.eu/programmes/horizon2020/en/h2020-section/era-net

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 4. Who Performs R&D and Innovation Activities?

4.4.2.2.9. EUREKA

EUREKA is an international cooperation platform established to

promote the research and development of advanced technologies,
products, and services, which will increase the competitiveness of
industrial and research institutions in European countries. It aims
to create and conduct joint projects between countries.

With the increasing influence and functionality of the EUREKA

network, the number of member countries of the EUREKA
program has increased to 44 with the participation of countries
such as Canada, South Korea, South Africa, and Chile.132

Within the scope of EUREKA, there are 3 different support

mechanisms: EUREKA Network Projects, Eurostars and EUREKA
Clusters. If the project applications made through any of these
support mechanisms are approved, the projects are supported by
national funds.

The participation of SMEs and industrial organizations in Turkey to

the projects carried out under the EUREKA Program is conducted
by TÜBİTAK under Industry-Industry R&D and Innovation
International Collaborations. While international collaborations
are established in the program, projects are supported by
national resources. TÜBİTAK supports the projects submitted to
the EUREKA program with the 1509 program.

4.4.2.2.10. 1509 - TÜBİTAK International Industrial

R&D Projects Grant Program

This program was designed to support international partner

research and development projects offered to EUREKA and
similar international programs. All organizations participating in
such international programs can be supported by this program,
provided that they operate in Turkey. This program aims to
increase technical competence and knowledge in Turkey with
such supports provided to the organizations located in Turkey by

132. http://www.eureka.org.tr/

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4. Who Performs R&D and Innovation Activities?

internalizing the acquired technical knowledge and experience

within the organization. Within the scope of this program, it is
planned to support a maximum of 60% of the project expenditures
of R&D projects of large-scale companies and 75% of the project
expenditures of SMEs. In 2019, about 44 million TL was provided
to fund the projects under the 1509 program, which is about 6% of
the total Industrial R&D support schemes of TÜBİTAK.

4.5. Talent Drain

Globalization and the development of information technologies over the past two
decades have created a knowledge-based economy. Classical definitions of input
in economic models have now changed; knowledge, technology and human capital
have become the most important factors of production. One of the four pillars133 the
World Bank has set within the Knowledge Economy Framework is educated and
skilled workers who can continuously upgrade and adapt their skills, to efficiently
create and use knowledge.134

Innovation and its constituent elements have major impact on the migration flows of
highly skilled workers. In particular, a greater degree of innovation in a country and
greater economic growth could boost the arrival of highly skilled immigrants (HSI).
HSI should be considered by countries and companies as a source of resources and
strengths which, together with other factors of innovation, make sustainable present
and future growth possible. It is especially important in times of recession and global
competition like we are currently experiencing.135 Research demonstrates that a

133. Chen, D.H. and Dahlman, C.J. (2005) The Knowledge Economy. The KAM Methodology
and World Bank Operations. World Bank Institute Working Paper No. 37256, Washington DC.
134. The other three pillars are: An economic incentive and institutional regime that provides
good economic policies and institutions that permit efficient mobilization and allocation of
resources and stimulate creativity and incentives for the efficient creation, dissemination
and use of existing knowledge; an effective innovation system of firms, research centres,
universities, consultants and other organizations that can keep up with the knowledge
revolution, tap into the growing stock of global knowledge and assimilate and adapt it to
local needs; a modern and adequate information infrastructure that can facilitate the effective
communication, dissemination and processing of information and knowledge.
135.Bosetti, Valentina & Cattaneo, Cristina & Verdolini, Elena, 2015. “Migration of skilled
workers and innovation: A European Perspective,” Journal of International Economics,
Elsevier, vol. 96(2), pages 311-322.
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 4. Who Performs R&D and Innovation Activities?

higher number of skilled immigrants increase the number of patents in United States
and Europe. Migration is related to patents and innovative potential of the country by
increasing the absorptive capacity of the sending country.

Disruptive innovations and higher productivity require time and talent. In this sense,
those countries that can attract international talent will become first movers in a global
and competitive market with important consequences for their level of development.

Turkey has been going through some difficult times in the last decade regarding its
talent potential. There is a steady downfall considering several indicators and this
trend seems to be routinized. IMD World Talent Ranking 2019136 shows the overall
performance of Turkey among 63 countries. Turkey experienced an acute decline,
down 7 positions to 58th in 2019’s rankings (see Figure 4.11). The ranking is structured
according to three factors:

1. Investment and Development - The investment in and development of home-

grown talent.
2. Appeal - The extent to which a country taps into the overseas talent pool.
3. Readiness - The availability of skills and competencies in the talent pool.

Figure 4.11. Turkey’s performance according to IMD World Talent Ranking 2019

The direction of the triangle indicates the

performance change from the last year: 2015 2016 2017 2018 2019
improved or stable 35
declined
58
40
Investment &
Development
43 43
58 53 46
Overall 48 48
Appeal 50
Investment & 51 51
Development 52 52
53 53
56 Appeal 56 56
Overall top strengths 58 58
Readiness Readiness
Overall top weaknesses

136. https://www.imd.org/wcc/world-competitiveness-center-rankings/world-talent-ranking-2019/

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4. Who Performs R&D and Innovation Activities?

Turkey’s performance is negatively affected by decreases within the readiness factor.

The availability of finance skills drops to 48th and that of competent senior managers
and managers with international experience both to 38th. In addition, the effectiveness
of management education experiences a downturn (55th) as well as that of university
education (57th), albeit to a lesser extent. In the availability of language skills, Turkey
remains in the 50th position. Elsewhere, under appeal, executive opinions see
a negative shift; placing brain drain down to the 55th rank and the prioritization of
attracting and retaining talents to the 47th position. Employee training (59th) and the
implementation of apprenticeship programs (52nd) also decline.

According to Turkish Statistical Institute (TÜİK) data137, 1,085,807 people have left
Turkey from 2016 to 2019, about 400,000 of whom are Turkish citizens. In 2019 foreign
national emigrants constitute three fourth of the total number. Two out of every five
people who leave Turkey are in the 20-34 age range. Among those who left, the
proportion of women went slightly from 44% to 46%. In addition, the data shows that
most of those who left are educated and urbanites138. According to data released in
the 2020 Presidential Program139, the number of citizens migrating abroad in 2018
increased by another 20% compared to the previous year, to 137 thousand people.
However, when net numbers (immigration minus emigration) are taken into account,
Turkey is still a net beneficiary. Table 4.13 shows the share of 20-44 age category in
total immigrants and emigrants. There is a gap about 10 percentage points almost
every year indicating that three fifth of the immigrants are leaving Turkey for mostly
work and education reasons, which is a rough indication of talent drain vis-a-vis
immigration.

137. TÜİK International Immigration Statistics http://www.tuik.gov.tr/PreTablo.do?alt_id=1067

138. CHP Brain Drain Report, November 2018, p.1. https://chp.azureedge.
net/4e364a6dfa264acba3efa8626b513a19.pdf
139. http://www.sbb.gov.tr/wp-content/uploads/2019/11/2020_Yili_Cumhurbaskanligi_Yillik_
Programi.pdf ,p.326

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 4. Who Performs R&D and Innovation Activities?

Table 4.13. Share of 20-44 age category within total immigration and emigration

Share of 20-44 age within total Share of 20-44 age within total
immigration emigration
2016 0.51 0.62
2017 0.51 0.59
2018 0.49 0.61
2019 0.54 0.59

Source: TÜİK migration statistics. http://www.tuik.gov.tr/PreTablo.do?alt_id=1067

Among the emigrants abroad, educated urbanites constitutes a large portion. In

the last 3 years, 13 thousand entrepreneurs and businesspeople have left Turkey.140
According to a calculation done by the Turkish Economic Policy Research Foundation
(TEPAV) in 2015, Turkey’s migrant stockpile in 20 OECD countries amounts to a direct
investment of $230 billion going abroad.141

ArfAsia Bank Global Wealth Migration Review Report 2019 report examines the highly
skilled migration in three sub-categories: 1- Millionaires 2- Highly Educated Workforce,
Businesspeople, Entrepreneurs 3. Academics, Graduate, Undergraduate and High
School Students.

4.5.1 Millionaires
According to Table 4.14, Turkey is the worst performing country losing about
4000 net-worth millionaires, but more importantly, which constitutes 10% of
the total net-worth millionaires residing in Turkey. These are quite alarming
numbers as 2018 is the third straight year that over 4,000 High net worth
individuals (HNWIs) have left the country. These outflows are concerning, as
Turkey is not producing many new HNWIs to replace the ones that are leaving.
As a result, the total number of HNWIs living in the country is declining over
time.

140.CHP Brain Drain Report, November 2018, p.2. https://chp.azureedge.

net/4e364a6dfa264acba3efa8626b513a19.pdf
141. https://www.tepav.org.tr/tr/blog/s/5287/Turkiye___nin+Insan+Sermayesi+Gocuyor

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Table 4.14. Countries with large net outflows of High-net worth individuals (HNWI),
2018

Country Net outflow of HNWIs % of HNWIs lost

China 15,000 %2
Russian Federation 7,000 %6
India 5,000 %2
Turkey 4,000 %10
France 3,000 %1
United Kingdom 3,000 < %1
Brazil 2,000 %1
Saudi Arabia 1,000 %2
Indonesia 1,000 %2

Source: New World Wealth

Note: ‘% of HNWIs’ (High-net worth individuals- in this ranking specifically, those individuals with wealth
of US$1 million or more.) refers to the outflow divided by the total number of HNWIs living in that country.
For instance, one could say that 10% of Turkey’s HNWIs left the country in 2018.142

4.5.2. Highly educated workforce,

businesspeople, entrepreneurs
Nearly 100 engineers from TÜBİTAK and Turkey’s leading companies,
ASELSAN, SAGEM and TAI who migrated to the Netherlands took attention of
the media, but the big picture may be even worse than thought. A total of 1,020
academics and highly educated people from Turkey applied to the Netherlands
in the 11-month portion of 2018, according to data from the Dutch Migration
and Citizenship Authority (IND). According to figures released by the IND, 235
people from Turkey applied for asylum in the Netherlands in 2016, while this
number reached 481 in 2017.143

142. New World Wealth, AfrAsia Bank Global Wealth Migration Review 2019, Full Report, April
2019. https://e.issuu.com/embed.html?u=newworldwealth&d=gwmr_2019
143. https://www.independentturkish.com/node/24501/haber/bir-beka-sorunu-olarak-beyin-
g%C3%B6%C3%A7%C3%BC%E2%80%A6-t%C3%BCrkiye-%E2%80%9Cakl%C4%B1n%C4%B1%
E2%80%9D-neden-kaybediyor-gidenler-ve

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Thousands of Turks have applied for business visas in Britain or for golden visa
programs in Greece, Portugal and Spain, which grant immigrants residency if
they buy property at a certain level. Applications for asylum in Europe by Turks
have also multiplied in the past years.144 It is estimated that 10,000 Turks have
made use of a business visa plan to move to Britain in the last few years, with a
sharp jump in applications since the beginning of 2016.

BBC Turkish reported145 that according to British immigration statistics, 7,607

Turkish nationals in 2017 applied for an Ankara Agreement visa, a specific type
of visa for Turks who want to establish businesses or become self-employed in
Britain. The Ankara Agreement signed in 1963 is an association created between
Turkey and the European Economic Community. The agreement, also known
as the ECAA agreement, permits Turkish nationals to work or set up business
and attain residency rights in the United Kingdom. The ECAA applications to
UK (completed only in the UK excluding the ones completed from Turkey) has
doubled in four years rising from 3,135 in 2015 to 7,607 in 2018.

4.5.3 Academics, graduate, undergraduate and

high school students
In 2019, 94% of those graduating from Alman Lisesi (German High-School)
went abroad for university. İstanbul (Erkek) Lisesi (İstanbul High-School) is
experiencing a first in its 135-year history: The proportion of those who went
to university education abroad surpassed those who stayed in Turkey. Of the
historic high school, where only 1.6% of graduates went abroad 10 years ago;
52.6% of 2019 graduates went to Europe. Their overseas preferences have
increased exponentially over the past 4 years.146

According to a research done by International Education Fairs of Turkey (IEFT)

at the beginning of 2019, almost 3 out of 4 young people studying abroad do
not want to come back to Turkey.147 In the survey, 72% of the students asked
if they would like to return to the country after the end of their education said

144. https://www.nytimes.com/2019/01/02/world/europe/turkey-emigration-erdogan.html
145. https://www.bbc.com/turkce/haberler-dunya-47411662
146. https://tr.sputniknews.com/turkiye/201912201040880571-turkiyede-beyin-gocu-ilk-kez-
lise-seviyesine-indi/
147. https://www.sozcu.com.tr/2019/egitim/yurtdisina-egitime-giden-gencler-turkiyeye-
donmek-istemiyor-3634180/ , https://www.yenisafak.com/yazarlar/ozlemalbayrak/genclerin-
gocu-2052415

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4. Who Performs R&D and Innovation Activities?

“I would like to stay abroad”. According to Kadir Has University Turkey Trends
2019148 percentage of people who’d like to live abroad providing that they have
the means has risen from 17% to 20% in the past three years.

Stephen Wordsworth, director of the UK-based Council for at Risk Academics,

says applications to the institution in 2018 are up 300 percent compared to last
year, with most of those applications coming from Turkey149. Scholar Rescue
Fund also points at a similar situation in which 65% of all applications are from
Turkey.150

An in-house statistic by the Federal Office for migrants and refugees (BAMF)
revealed that one in two people applying for asylum from Turkey is a university
graduate, Die Welt newspaper reported. In the first half of 2018, 48% of
applicants from Turkey were university graduates, while in applications from
other countries, the average of those with a university degree was 17%.151

The results of the British Council’s study152 on 4,816 university students aged
22-25 in 81 provinces of Turkey provide clue to the extent of the threat faced in
terms of trained human capital loss. Research shows that 95 out of every 100
young people in Turkey want to do their undergraduate and graduate studies
at universities abroad.

The number of foreign academicians coming to Turkey to teach short- or

long-term courses in Turkish universities is also experiencing a decline. For
instance, the number of foreign scholars and experts coming to Turkey with
the ERASMUS+ mobility grant for academic staff was reduced by half in 2017
compared to 2016. This trend continues in almost all programs in ERASMUS+.

148. Kadir Has University Turkey Trends 2019, Published on Jan. 15, 2020. p.125. https://www.
khas.edu.tr/sites/khas.edu.tr/files/inline-files/TE2019_TUR_WEB_15.01.20.pdf?fbclid=IwAR1M3
qdhJeaWUBY97Jhm7QB2b9-GKv5GbfXEvBKXXb-9qM-Q_zIA-PA0UfU
149. https://www.independentturkish.com/node/24501/haber/bir-beka-sorunu-olarak-beyin-
g%C3%B6%C3%A7%C3%BC%E2%80%A6-t%C3%BCrkiye-%E2%80%9Cakl%C4%B1n%C4%B1%
E2%80%9D-neden-kaybediyor-gidenler-ve
150. https://ahvalnews.com/tr/beyin-gocu/tersine-beyin-gocu-tutmadi-gidenler-katlandi-
yerlerini-ortadogu-ve-afrikalilar-aldi
151. https://www.dw.com/tr/t%C3%BCrkiyeden-almanyaya-iltica-ba%C5%9Fvurular%C4%B1nda-
e%C4%9Fitim-d%C3%BCzeyi-y%C3%BCkseliyor/a-49985398
152. https://www.britishcouncil.org.tr/programmes/education/next-generation/turkey/report

160
 4. Who Performs R&D and Innovation Activities?

When the numbers in 2016 and 2018 Annual Reports are compared, Turkey’
position as a sender country remains stable (even increased in some programs)
but as a receiver country, in KA101 (school education staff mobility) Turkey
received about 55% less, in KA102 (VET learners and staff mobility) received
about 65% less, in KA103 (higher education student and staff mobility) received
about 50% less and in KA105 (youth mobility) received 30% less people from
program countries.153

On the other hand, Iraq, Afghanistan, Syria, Azerbaijan and Turkmenistan were
the countries where Turkey received the most migration from. Migrants who
came to Turkey work mostly in construction, manufacture labor and domestic
services.154

4.5.4. Policies directed at the talent drain

problem
In December 15, 2018, the International Fellowship for Outstanding Researchers,
announced by TÜBİTAK was launched with the official campaign. The aim of
the program is to convince educated Turkish citizens abroad to return to the
country reversing the brain drain, to highlight scientific studies in Turkey in
medical, pharmaceutical, digital, software, IT and defense industries.

This program provides scientists up to 1 million TL research allowance, 750,000

TL research support will be given to the university or institutions, experienced
scientists earn about 24,000 TL for 24 or 36 months (which is more than double
the salary of a full professor in public universities), for young researchers with
a doctorate, 20,000 TL of monthly payment was announced. The scientists
who come to Turkey with their families would also receive a monthly family
allowance of 2,250 TL. It was announced that facilities such as their families’
round trip plane tickets, accommodation, health insurance, etc. would be
provided.155

153. See Erasmus+ Annual Report 2016 https://op.europa.eu/en/publication-detail/-/

publication/49350560-0d56-11e8-966a-01aa75ed71a1/language-en/format-PDF/source-
search and 2018 https://op.europa.eu/en/publication-detail/-/publication/7985705e-41b7-11ea-
9099-01aa75ed71a1/language-en/format-PDF/source-search
154. http://www.ufuk2020.com/haberler/turkiyenin-beyin-gocu-sorununa-kisa-bir-bakis.html
155. https://www.dunya.com/ekonomi/tersine-beyin-gocu-icin-proje-haberi-432275

  161
4. Who Performs R&D and Innovation Activities?

From December 15, 2018, applications have started to be received, and the
period ended on March 29, 2019. As a result of the evaluations, 127 leading
scientists and researchers from 21 different countries, 98 of whom are Turkish
and 29 foreign nationals, were eligible for the support.156 It is too early to assess
the implications (and impact) of this TÜBİTAK program.

156. https://t24.com.tr/haber/bakan-varank-acikladi-127-bilim-insani-tersine-beyin-gocu-
yapti,831993

162
4. Who Performs R&D and Innovation Activities?

  163
5

164
 5. Who Funds R&I Activities?

5. Who Funds R&I Activities?

Public accountability and systematic policy actions are based on assessment of
both performers and funders of R&I activities. Analyzing trends and current state of
R&I funders provide insight into the direction of policies and strategies dedicated
to boosting R&I activities. This section uses a funder-based reporting approach and
differentiates sources of funds as government, business enterprise, higher education
and private non-profit sector.157

5.1. Changes and Trends in R&I in Turkey,

Compared with EU
As indicated in Table 4.1., business enterprises have the highest rank as source of
R&D funds both in Turkey and EU member countries. Table 5.1 further details annual
changes in R&D funds based on three sources: Government, Business and Higher
Education.

157. Reinhilde Veugelers. 2015. Is Europe saving away its future? European public funding
for research in the era of fiscal consolidation. Policy Brief by the Research, Innovation, and
Science Policy Experts. Available at: https://ec.europa.eu/research/openvision/pdf/rise/
veugelers-saving_away.pdf; Bernanke, Ben S. “Promoting Research and Development The
Government’s Role.” Issues in Science and Technology 27, no. 4 (Summer 2011); Gerben
Bakker. Money for nothing: How firms have financed R&D-projects since the Industrial
Revolution. Res Policy. 2013 Dec; 42(10): 1793–1814. doi: 10.1016/j.respol.2013.07.017.
Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4045395/; OECD. 2010.
Measuring Innovation: A New Perspective. Available at: https://www.oecd.org/site/
innovationstrategy/45188224.pdf

  165
5. Who Funds R&I Activities?

Table 5.1. Percentage of Gross Domestic Expenditure on R&D by Source of Fund

Years Turkey EU Average

Government Business HE Government Business HE
2011 29.2 45.8 20.8 33.3 55 0.9
2012 28.2 46.8 21.1 32.8 55.1 0.8
2013 26.6 48.9 20.4 32.5 55.2 0.8
2014 26.3 50.9 18.4 31.9 55.5 0.9
2015 27.6 50.1 18.1 31.1 55.3 N/A
2016 35.1 46.7 14.4 30.2 57 1.2
2017 33.6 49.4 13.3 29.3 58.2 1.1
2018 32.3 53.6 12.1 29.8 58.9 N/A
2019 29.4 56.8 12.8 N/A N/A N/A

Source: Eurostat, Intramural R&D expenditure (GERD) by source of funds as percentage of total R&D
expenditures. Available at: https://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do

While business sector has the highest R&D expenditures compared to government
and HEIs, it’s also the main source of R&D funds. Comparing this indicator with EU
member country average, it can be seen that business sector is the main provider of
R&D funds since 2011. Therefore, business (as a funder) in R&D activities has become
more important compared to government and higher education.

It should be noted that HEIs usually are not acting as R&D funders, instead they co-
fund R&D expenditures. There are also other co-funding options such as public R&D
expenditures co-funded by private business enterprises. Turkey’s private co-funding
rate on public R&D expenditures is constant at 0.1% of its GDP since 2011. In EU this
rate is also constant around 0.5%, between 2011 and 2016. However, such co-funding
activities do not provide a significant difference in the big picture. The business sector
is the biggest funder and its share is increasing over the years. R&D fund provided by
both government and higher education is now less than half of what business sector
provides.

166
 5. Who Funds R&I Activities?

In addition to basic indicators showing sources of R&D funds, innovation activities could
also be measured by non-R&D expenses. These expenditures involve investments in
equipment, machinery, patent and license acquisition costs, diffusion of new products
or ideas. While, in terms of R&D expenditure per person, Turkey is below the average
of EU, according to Innovation Union Scoreboard data, Turkey’s non-R&D expenditure
as per population aged 25-34 is higher than the EU member countries’ average.158

5.2. Current Fiscal Policies

“Medium Term Fiscal Plan for 2019-2021159”, is prepared by the Ministry of Treasury
and Finance and the Presidency’s Strategy and Budget Office. The main purposes of
this fiscal plan are:

• maintaining financial stability in the short term,

• having a balanced economy and sustaining budgetary disciplines,
• sustainable growth in medium term while decreasing inequality

R&D and innovation relevant issues are addressed under public procurement
practices indicating that the state will continue to contribute to R&D and innovation
activities, to encourage localization and to promote technology transfer. Current
public procurement practices are further detailed in section 5.3.2.

In accordance with the fiscal plan, “Medium Term Fiscal Plan for 2020-2022160”
has also been prepared. The purpose of the new fiscal plan is quite in parallel
with the previous one, but also focuses on industrial production, saving rates and
efficient use of resources. By 2022, it is aimed to boost industrialization process,
increase efficiency, augment national savings and productive investments, more
importantly transform the production processes into an export-focused, innovative
and less imported-input-dependent structure, all under the collaboration of public
and private institutions. Regarding the of use of technology for fiscal policies, it is

158. https://knoema.com/EIUSCORE2020/innovation-union-scoreboard
159. https://www.resmigazete.gov.tr/eskiler/2018/10/20181011-12.pdf
160. http://www.sbb.gov.tr/wp-content/uploads/2019/04/OVMP_2019-2021.pdf; http://www.
sbb.gov.tr/wp-content/uploads/2019/11/2020-2022-Donemi-Orta_Vadeli-Mali-Plan.pdf

  167
5. Who Funds R&I Activities?

aimed to improve and diffuse information and communication technologies to cope

with unrecorded economy and to improve tax services.

Republic of Turkey Ministry of Treasury and Finance has also announced its “New
Economy Program: Balance-Discipline-Transformation for 2019-2021161”, reflecting its
medium-term objectives. Focusing on science, technology, research and innovation,
the program targets to achieve the following objectives:

• Technology and R&D investments to be executed with private-public partnership

models emphasizing domestic production and global best practices, to reduce
import dependency

• Energy technologies to be localized and to be supported through Renewable

Energy Resource Aras (YEKA) model

• Tax collection process to be improved with new technologies, in specific,

through Big Data Tax Analysis Centre

• Industry and technology zones using effective management models to be

established to produce high-tech products

• Production of 20 biotechnical drugs to be encouraged

• Education to be enhanced through providing basic software skills, algorithms

and industrial design programs

• Legal and technical infrastructure to be established where necessary to ensure

financial stability and timely data flow in public services

161. https://ms.hmb.gov.tr/uploads/sites/2/2019/01/Turkey-NEP-2019-21.pdf

168
 5. Who Funds R&I Activities?

5.3. Sources of Funds, Statistics, Trends

5.3.1. Business enterprises
R&D expenditures of the business sector have surpassed the government and
the higher education sector. In this manner, Turkey is slowly converging to the
EU average regarding the share of business in GERD. In general, the business
and innovation environment are getting better in Turkey. According Global
Innovation Index162, Turkey’s business sophistication rank went up from 108 in
2013 to 57 in 2020.

Business sophistication and innovation environment are strongly linked to

available infrastructure. Considering R&D expenditures of business enterprises
in Turkey, Table 4.3 in Section 4.1.1 further details business enterprise R&D
expenditures. Total GERD funded by business enterprises are mostly performed
by businesses, covering more than 98% of total GERD financed by business
enterprises, followed by higher education and government. Compared with
the EU average, R&D expenditures of business enterprises as a percentage
of GDP is increasing at similar rates. In summary, the Turkish business sector
is increasingly funding its own R&D. While this is a sign of increased strength
of the business sector, it may also show weakness, especially in government
funding on early- stage R&D activities.

To observe business enterprise funds and investments on R&D and innovation,

one can use the examples of big firms in Turkey such as TOFAŞ, TURK TELEKOM,
ARÇELİK, FORD, VESTEL, ASELSAN. Even though there are some fluctuations
in business enterprises’ R&D expenditure, an overall increase after 2013 is
a common observation (Figure 5.1). In general, automotive, support services
and electronic equipment firms have higher R&D intensity rates compared
to telecommunication, household goods, general industrials and technology
hardware equipment. Since business enterprises are mainly funding inhouse
R&D activities in Turkey, observations regarding R&D performance also gives
an insight on R&D funds of business enterprises. We specifically used 2017 as
a cut off because from mid-2018 the TL depreciated immensely which directly
and indirectly affects R&D expenditures of firms.

162. https://knoema.com/GII2018Aug/global-innovation-index-2020

  169
5. Who Funds R&I Activities?

In general, R&D expenditures and R&D intensity defined by R&D expenditure

divided by net sales have an increasing trend in all sectors and yearly R&D
growth rates fluctuate in accordance with the level of R&D expenditure. Yet,
some of the cases are worth observing in more detail such as ASELSAN
where expenditures in R&D is increasing at a steady rate. In general, the R&D
expenditures of big firms in Figure 5.1 are continuously increasing over the years
till 2017. In 2014 the total R&D expenditure of TOFAŞ, FORD, KOÇ, ASELSAN
and ARÇELİK was €422 million and the average R&D intensity was 1.18%. Both
R&D expenditures and R&D intensity increased till 2017. Since then, there has
been a decline. Of course, the depreciation of Turkish Lira explains the fall to
a great extent (in 2017 the annual average exchange rate for Euro was 4.12
Turkish Liras, in 2019 it was 6.35, in 2020 it was 8.02). In 2019 the total R&D
expenditure of the big-five was only €328.12 and the R&D intensity was 0.79%.
It seems that the positive picture in the first half of the 2010s has changed. The
fall in R&D intensity from 1.49% in 2017 to 0.79% in 2019 is a good indicator
that reflects this change. If one excludes the big holding company (KOÇ) and
calculate the average R&D intensity, the result does not change: average R&D
intensity falls to 1.7% in 2019 from about 3% just within several years.

To compare Turkish and foreign top world ranked automobile firms, a

considerable R&D growth seems to be the case for only BMW in Germany and
FORD in Turkey for the 2018-2019 period. However, considering the overall
R&D intensity rates, FORD and TOFAŞ in Turkey are relatively low compared
to global top 5 automobile companies. The R&D intensities of FORD and
TOFAŞ are about 1-1.5% in 2018 and 2019 whereas it is in the range of 5-7%
in global automotive companies. To give an idea about the levels, the total
R&D expenditure of FORD and TOFAŞ in Turkey is 1% of Volkswagen in 2019.
Considering electronic equipment firms, again, R&D growth rate for 2018-2019
period is high for ASELSAN compared to SAMSUNG, SIEMENS, HIATCHI and
MITSHUBISHI. But in terms of levels, 2019 R&D expenditure of ASELSAN is
less than 1% of SAMSUNG. All in all, we can say that the current economic
situation and the exchange rate (weak TL) in the past few years have damaged
the positive trend in R&D expenditure of top firms in Turkey.

170
 5. Who Funds R&I Activities?

Figure 5.1. R&D Growth and R&D Intensity of Selected Business Enterprises

TOFAŞ 300 8

R&D Growth %

R&D Intensity %
200 6
4
100 2
0 0
2012 2013 2014 2015 2016

ASELSAN 7.5
R&D Growth %

40

R&D Intensity %
7
20
6.5
0 6
2014 2015 2016 2017

VESTEL 30 2
R&D Growth %

R&D Intensity %
20
1
10
0 0
2012 2013 2014

TURK 100 1
R&D Growth %

R&D Intensity %
TELEKOM
50
0.5
0
2014 2015 2016
-50 0

ARÇELİK 7.5
R&D Growth %

40
R&D Intensity %
7
20
6.5
0 6
2014 2015 2016 2017

FORD 40 1
R&D Growth %

R&D Intensity %

20
0,5
0
2011 2012 2013 2014 2015 2016
-20 0

Source: The EU Industrial R&D Investment Scoreboard

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5. Who Funds R&I Activities?

Moving forward to firm collaborations, merger and acquisition (M&A) numbers

in Turkey seem to have a decreasing trend since 2011. As Table 5.2 shows, main
target sector in M&A in Turkey is information technologies. In weak innovation
systems, M&A and foreign presence could be sources of new knowledge and
technological upgrading if managed properly.

Looking into the deal values of M&A, financial services ranked first ($3,212
million) in 2018, followed by transportation ($1,192 million).163 Number and
values of M&As in 2018 show that even though information technologies cover
most of the M&A activities, financial services are invested in the most. Given
the weak TL and increased demand for funds (from the domestic firms) M&A
activities topped in 2020 with about 300 transactions totaling $9 billion.164

163. https://www.statista.com/statistics/898230/value-of-merger-and-acquisitions-deals-in-
turkey-by-sector/; https://www.statista.com/statistics/898187/value-of-merger-and-acquisitions-
deals-in-turkey/
164. https://www2.deloitte.com/tr/tr/pages/mergers-and-acquisitions/articles/annual-turkish-
ma-review-2020.html

172
 5. Who Funds R&I Activities?

Table 5.2. Number of M&A transactions in 2018165

Sectors Number of M&A Percentage

Services 17 9%
Healthcare 5 3%
Financial Services 10 5%
Energy 21 11%
Manufacturing 21 11%
IT 58 31%
Food and Beverage 22 12%
Automotive 2 1%
Transportation 6 3%
Retail 4 2%
Real Estate 5 3%
Media 4 2%
Chemicals 2 1%
Textile 2 1%
Tourism 7 4%
Construction 3 2%
Mining 1 1%
Telecommunication 1 1%
TOTAL 190 100

165. https://www.ey.com/Publication/vwLUAssets/Mergers_and_Acquisitions_Report_
Turkey_2018/$File/EY%20Mergers%20and%20Acquisitions%20Report%20Turkey%20
2018%20(Web).pdf; https://www.statista.com/statistics/898179/number-of-merger-and-
acquisitions-deals-in-turkey/, EY, Mergers and Acquisitions Report Turkey 2018.

  173
5. Who Funds R&I Activities?

5.3.1.1. Increased private funding options for start-ups

Regarding private finance for start-ups, there are 47 licensed angel
investors as of 2019, mainly located in İstanbul. Investments made
by licensed angel investors totaled as 11,889,206 TL, allocated to
35 applications, as of March 2019. Software development is the
highest investment area, followed by e-commerce.166 Venture capital
investments, on the other side, are regulated by the Capital Markets
Board of Turkey.167 According to the most recent data, venture capital
availability in Turkey increased at an average annual rate of 4.46% since
2017. There are currently 52 capital investment funds in Turkey, divided
into several types, most important of which are listed in Table 5.3.

In 2017, total size of the early-stage investment made in Turkey recorded

as $177 million, $103 million among which made by angel investors and
venture capital companies. According to the Entrepreneurship Report of
the 11th Development Plan, such an investment rate is not sufficient to
fulfil the needs of the entrepreneurship ecosystem. In fact, Turkey ranks
last among countries with $100 million early-stage investment in terms
of entrepreneurship and ranks at 16th in overall entrepreneurship rate in
Europe.168

Angel investor and venture capital investments in Turkey and number

of funds are presented in Figure 5.2. The figure shows the trend
starting from 2011 to 2020. Both the number of investments and the
value of investments has steadily increased till 2017. Turkish start-ups
have received more than $750 million from the venture capital and
angel investors. In the past four years average investment per firm has
been $700,000. In 2020, 165 firms have received about $139 million
investment where health sector led both the deals and investment.
Corporate venture capital investment is also on the rise. It has reached
about $15 million (average 2018-2020) from nearly zero in 2012.169 The
purchase of Peak Games by Zynga for $1.8 billion produced the first
Turkish unicorn.
166. https://ms.hmb.gov.tr/uploads/2019/02/BKS-İLERLEME-RAPORU-4.-Çeyrek.pdf; https://
www.researchgate.net/publication/328065775_Turkiye’de_ve_Dunyada_Melek_Yatirimcilik
167. https://www.spk.gov.tr/Sayfa/AltSayfa/206; https://tracxn.com/d/investor-lists/Venture-
Capital-Funds-in-Turkey
168. https://sbb.gov.tr/wp-content/uploads/2020/04/InternetGirisimciligiCalismaGrubuRaporu.pdf
169. Startups.watch. Turkish startup ecosystem 2. Quarter results.
174
 5. Who Funds R&I Activities?

Table 5.3. Capital Investment Funds by Type170

Investment Establishment
Type Name
Phase Year171
Corporate VC/Company Builder Inventram 2003
Technology Technology Commercialization Inovent 2006
Accelerator Accelerator
Fund ACT Venture Partners 2015
Venture Capital
DCP - Diffusion Capital Partners 2007
Accelerator Fund Webrazzi Ventures 2006
Doğa Girişim 2010
Corporate VC F+ Ventures 2015
Sankonline 2014
Early Stage Investor YT Venture Partners 2016
Seed Gamebootcamp,
Startupbootcamp İstanbul Fund StartersHub Fund 2015
Investment Firm Aslanoba Capital 2006
Micro VC 500 İstanbul 2010
Seed Stage Investor String Ventures 2013
Venture Capital LETVEN Girişim 2007
Seed and Early Corporate VC Vestel Ventures 2015
Stage Seed Stage Investor inventures 2009
212 2011
Buran Venture Capital 2012
Earlybird 1997
Venture Capital Hummingbird 2010
Idacapital 2013
Early Stage Revo Capital 2013
TRPE Venture Partners 2012
AddVenture 2008
STC Ventures 2019
Wamda Capital 2014
Early &
Growth Stage Venture Capital iLab Ventures 2000
Alesta Girişim 2012
Corporate VC
Verusaturk GSYO 2012
Growth Equity 3TS 1998
Growth Stage
Arya Women Investment Platform 2013
DGSK 2013
iVCi 2007
Note: İstanbul Venture Capital Initiative (iVCi) makes venture capital investments in with first time funds,
established funds, experienced funds, small and medium enterprises and, high-growth companies.172

170. http://www.ttaturkey.org/34/venture-capital
171. https://www.crunchbase.com/
172. «İstanbul Venture Capital Initiative (Ivci)». Https://Www.Crunchbase.Com/, https://www.
crunchbase.com/organization/istanbul-venture-capital-initiative-ivci#section-overview.
Accessed 16 June 2020.
  175
5. Who Funds R&I Activities?

Figure 5.2. Venture Capital and Angel Investors Deals as of 2020

$139M

181
$113M 165
152 $106M

119
$79 M 114
$74M
$69M
96
$57M
77
65
$38M $37M
$28M
$20M 30
25
13
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Deal Size Deal Count

Source: Turkish Startup Ecosystem. 2020 Year in Review. Startups.watch

5.3.2. Government
Government budget appropriations and outlays on R&D in Turkey could be
divided into two categories, including central government budget and indirect
R&D support. Figure 5.3 shows the annual budget appropriations and supports
on R&D from 2011 onwards.

176
 5. Who Funds R&I Activities?

Figure 5.3. Government Support for R&D, in national currencies

18000
16000 15,597
14000
13,024
Millions of TL

12000
10,710
10000 9,116
8,037
8000
6,853 6,733
6000 5,305
4,961 4,599
4000
2,871
2,126
2000 1,282 1,653
614 752 835
0
2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Government Budget Allocations for R&D Indirect R&D Support

Source: TÜİK

Based on Figure 5.3, it can be seen that central government budget

appropriations and outlays on R&D are almost four times higher today compared
to 2011. Direct and indirect R&D support is about 21 billion TL. In comparison to
EU averages, annual fluctuations seem to have similar patterns. Between 2011
and 2018, GBOARD as percentage of GDP in EU member countries is recorded
as 0.65 on average (range 0.69 to 0.63). The same indicator for Turkey is 0.34
on average (range 0.38 to 0.33). Even though the average GBOARD in Turkey
is lower than EU average, it seems that Turkey is catching up especially in
terms of indirect R&D supports. Compared to 2011, indirect R&D supports have
increased 8 times. In terms of Euro values direct government budget allocations
to R&D have increased by 15% since 2011 and indirect supports have increased
by 175%. Majority of the direct government allocations for R&D is transferred to
institutions rather than R&D projects.

Figure 5.4 illustrates allocation of government funds among government,

business enterprises and higher education since 2011.

  177
5. Who Funds R&I Activities?

Figure 5.4. GERD financed by Government

7000000

6000000

5000000
Billions of TL

4000000

3000000

2000000

1000000

0
2011 2012 2013 2014 2015 2016 2017

performed by Government performed by Business Enterprise performed by Higher Education

Source: UNESCO, Science, Technology and Innovation Statistics Data

Based on Figure 5.4, higher education sector in Turkey benefits to most from
government funded expenditures on R&D. Different from business enterprises
funds, government and higher education collaboration seems stronger than
other collaborative funds which may explain why higher education sector
consumes government R&D funds. Of course, the main reason for this is
the fact that 65% of the universities in Turkey are state universities, in terms
of scale (number of student and university personnel) their share within the
Turkish university system is much higher. In fact, HEIs themselves are not major
funders of R&D and innovation activities. Rather, HEIs benefit from government
funds allocated to support education and research activities. However, if the
shares are compared, the share of business and government actors in GERD
financed by the government has increased over the years.

Government expenditures in R&D is not only divided by the performer institution,

but also by sectors including general public service, public order and safety,
economic affairs, environmental protection, housing & community amenities,
health, recreation, culture, & religion, education and social protection. Figure
5.5 shows the allocation of government funds (either from central government
or local government) allocated to those sectors in billions of TL (nominal, 2018).

178
 5. Who Funds R&I Activities?

Figure 5.5. Government Expenditures by sectors 2018 (billions of TL, nominal)

Expenditure on social protection

Expenditure on education
Expenditure on recreation, culture, & religion
Expenditure on health
Expenditure on housing & community amenities
Expenditure on environment protection
Expenditure on economic affairs
Expenditure on public order & safety
Expenditure on defense
Expenditure on general public services
0 50 100 150 200 250 300 350 400

Source: Government Finance Statistics (GFS), Expenditure by Function of Government (COFOG)

Largest government expenditures go to social protection followed by general

public services and health. These 3 government sectors constitute 60%
of total government expenditures in 2018 and about 20% of the GDP. R&D
expenditures within the government expenses is only 0.43%, which is short
of GERD over GDP (1.06% in 2019). The distribution of R&D expenditures to
sectors varies. Figure 5.6 shows % share of government expenditures directed
to R&D activities in each sector. Three sector stands out; education, housing
and community amenities and environmental protection. In these sectors about
1.5-2.0 % of total expenditure is devoted to R&D activities. While government
R&D expenditures in environmental protection and education show a rising
trend from 2014 onwards, government R&D expenditures devoted to housing
and community amenities have decreased by a great extent in the past 5 years.

  179
5. Who Funds R&I Activities?

Figure 5.6. Government expenditures directed to R&D in each sector 2018 (% share
in total expenditure)

Expenditure on social protection R&D

Expenditure on education R&D
Expenditure on recreation, culture, & religion R&D
Expenditure on health
Expenditure on housing & community amenities
Expenditure on environment protection
Expenditure on economic affairs
Expenditure on public order & safety
Expenditure on defense
Expenditure on general public services
0 0,5 1 1,5 2 2,5

Source: Government Finance Statistics (GFS), Expenditure by Function of Government (COFOG)

For the case of government R&D expenditures on education, distribution

of sources in R&D expenditures are given in Table 5.4. Central government
expenditures on education R&D activities have increased over the years, the
increase from 2017 to 2018 is worth mentioning. This is compatible with goals
of increasing R&D personnel and number of doctorate graduates.

Table 5.4. Expenditure on education R&D (as percent of GDP)

Sector 2015 2016 2017 2018

General Government 0.04214 0.05176 0.04887 0.07677
Central government 0.04123 0.05078 0.04817 0.07609
Local governments 0.00093 0.00098 0.00070 0.00073

Source: Government Finance Statistics (GFS), Expenditure by Function of Government (COFOG)

180
 5. Who Funds R&I Activities?

In addition to government expenditures, public procurement for research and

innovation is also gaining importance around the world.173 General public
procurement as percentage of GDP is given in the Figure 5.7. The sharp
increasing trend of procurement is worth mentioning because the share of
procurement activities towards innovation is important for supporting R&I
activities.

Figure 5.7. General Government Procurement as a percentage of GDP

11,97

11,48
11,25
10,88
10,72 10,62
10,49

2011 2012 2013 2014 2015 2016 2017

Source: Government at a Glance - 2019 Edition

Table 5.5. presents public procurement statistics for innovation for selected
countries in 2014. According to the TÜİK Innovation Survey, 14.4% of the firms
in Turkey have foreign or domestic contract which is below the average of
25 countries for which the data is available. Turkey ranks 20th among 25
countries. Within these firms, almost all have contract from the domestic
public sector, Turkey is not an exception in this sense. Among the firms that
has procurement contract from the domestic public sector only 1.6% undertake
innovation activities which are not required as part of the contract. Turkey ranks
13th overall. But the most important indicator is the percentage of firms that
undertake innovation activities required as a part of the contract which Turkey

173. https://www.oecd-ilibrary.org/governance/public-procurement-for-
innovation_9789264265820-en;jsessionid=rEUjat8fwlYg5Trys-mlDHms.ip-10-240-5-85

  181
5. Who Funds R&I Activities?

performs quite well. Turkey ranks 4th after Norway, Iceland and Finland. This can
be taken as an indicator that Turkey has started applying public procurement
for innovation policies following the recent trend especially in Europe.

Table 5.5. Public procurement for innovation in selected countries, Community

Innovation Survey, 2014

Percentage of Percentage of Percentage of Percentage of

enterprises with enterprises with enterprises with enterprises with
procurement procurement procurement procurement
contract for contract for contract for contract for
domestic and/ domestic public domestic public domestic
or foreign public sector sector that undertake public sector
sector innovation activities that undertake
not required as part innovation
of the contract activities required as
part of the contract
Bulgaria 8.9 8.6 0.6 0.4
Czech
18.2 17.9 1.1 0.8
Republic
Greece 25.0 24.7 1.5 0.8
Croatia 28.5 28.2 2.9 1.1
Italy 14.2 14.1 0.6 1.1
Hungary 16.5 16.3 0.7 0.7
Netherlands 14.6 14.0 2.2 1.6
Austria 33.6 32.7 2.4 2.1
Poland 6.3 6.2 0.9 0.3
Portugal 16.6 16.1 2.0 0.8
Romania 5.5 5.4 0 0.1
Finland 33.2 32.5 7.1 2.2
Sweden 28.9 28.1 3.2 ---
Norway 30.3 29.9 3.9 2.9
Turkey 14.4 14.2 1.6 2.1
Average 25
20.5 20.1 3.47 1.25
countries
Minimum 25
5.5 5.4 0.00 0.10
countries
Maximum 25
33.6 32.7 27.8 2.9
countries

Source: Community Innovation Survey 2012-2014.

182
 5. Who Funds R&I Activities?

In accordance with the 10th National Development Plan174, “Programme

for Technology Development and Domestic Production through Public
Procurement” has been initiated in 2013 for 25 primary transformation
programs. Main objective was to use public procurement to promote innovation,
technology transfer, entrepreneurship and domestic production. Main targets
of the program could be summarized as following:

• To increase share of domestic firms in medium-high and high technology

sectors
• To increase internationally branded products in high-tech sectors
• To increase R&D expenditures
• To reorganize public procurement system to boost R&D and innovation
• To increase innovation capacity of private sector

In the 11th National Development Plan175, following objectives related to public

procurement have been identified to support indigenous R&D and innovation
activities and domestic production:

• To identify critical technologies and products that can be produced in

Turkey
• To collaborate with companies to develop product quality and prepare
technology roadmaps
• To enable international direct investment and technology transfer to
Turkey through public procurement
• To accelerate the amount and diversity of the commercialization of new
technological products through public procurement mechanisms
• To develop new investment models in renewable energy sector including
domestic product/equipment use, R&D, technology transfer and public
procurement
Various government institutions fund R&D and innovation activities and within
different institutions there are also various forms of funds. Municipalities of
big cities such as Ankara, İstanbul and İzmir also fund R&I activities but they

174. http://www.sbb.gov.tr/wp-content/uploads/2018/11/The_Tenth_Development_Plan_2014-
2018.pdf
175. http://www.sbb.gov.tr/wp-content/uploads/2019/07/OnbirinciKalkinmaPlani.pdf

  183
5. Who Funds R&I Activities?

are in much smaller scale and not periodic. Table 5.6 summarizes overall R&I
funds available from different public institutions. As a major funding institution
TÜBİTAK is not included in Table 5.6. Specific information about TÜBİTAK
programs can be found in sections 3.2.1.1 and 5.5.2.1. Small and Medium Sized
Enterprises Development Organization (KOSGEB) supports can also be found
in section 3.2.1.2 in more detail. Recently the government initiated an online
platform (https://www.yatirimadestek.gov.tr) for all government subsidies, funds
and supports including the ones for R&D and innovation.

Table 5.6. Comprehensive R&I funds available from different public institutions

Funder Institution Relevant Fund Name Amount of available/allocated

Public fund
Institution
General Directorate Ministry Technological Product No calls since 2015. 204
of R&D and of Industry Investment Support supported applications. As of
Incentives and Techno- Program 2019 72.795.881,30 TL of the
logy176 131.060.670,83 TL overall budget
is allocated.
General Directorate Competitiveness and Total budget of 2014-2018 period
of EU and Foreign Innovation Operation was €260.1M. In 2019 €13,4M
Affairs Program payment has been made.
Development Financial Support Total budget of 10,000,000 TL for
Agencies Program for Improving applications
Vocational Education in
the Field of Advanced
Technology Product
Commercialization and
Advanced Technology
Financial Support Total budget of 7,000,000 TL for
Program for Social applications
Entrepreneurship and
Social Innovation
General Directorate Support Program for 5-year budget is 82,121,722 TL. As
of Industrial Zones Clustering of January 2020, clustering initiative
budget was 4,235,260 TL half
of which is allocated as grants to
enterprises.
Small and Medium Support Program for Budget up to 600,000 TL including
Enterprises R&D, Innovation and support for rent, equipment,
Development Industrial Design machinery, human resource and
Organization177 project development

184 176. https://www.sanayi.gov.tr/destek-ve-tesvikler/sanayi-yatirimlari/md1203011615

177. https://www.kosgeb.gov.tr/site/tr/genel/destekdetay/1229/arge-ve-inovasyon-destek-programi
 5. Who Funds R&I Activities?

Ministry of Transport and R&D Support Total budget of 468,830,776 TL has

Infrastructure178 Projects in Electronic been transferred to TÜBİTAK
Communication, Space,
Aviation Sectors
Ministry of Energy and Natural R&D Support Program N/A
Resources179 for Energy Sector
Ministry of Food, Agriculture and R&D Support Program Supports R&D in organic
Forestry180 agriculture, fight with erosion,
nature protection and national
parks, polluted water, field
crop, horticulture, plant health,
agricultural economy, land and
water resources, land management
and plant nutrition. Total budget is
11,824,000 TL
Directory of Strategy and Program for Researcher N/A
Budget181 Resource and Project
Support for Research
Infrastructure
Ministry of Finance182 Techno-Initiative Capital Budget up to 100.000 TL for
Support Program applications
Scientific Research Projects Budget transferred to
TÜBİTAK
Social Security Institution Support for R&D and N/A
Design Activities
Ankara Development Agency Social Entrepreneurship Support between 100,000 TL and
and Social Innovation 400,000 TL within the total budget
Financial Support of 7,000,000 TL
Program183

Source: Sanayi Yatirimlarina Verilen Destekler ve Teşvik Programlari, 2019; KOP Bölge Kalkınma İdaresi
Başkanlığı, Ar-Ge, Yenilik, Girişimcilik, Ticarileştirme ve Yatirim Destekleri El Kitabi; official websites and
annual reports of relevant ministries

178. https://www.uab.gov.tr/uploads/announcements/ulastirma-ve-altyapi-bakanligi-2019-yili-
faaliyet/uab-2019-faaliyet-raporu.pdf
179. https://www.enerji.gov.tr/File/?path=ROOT%2f1%2fDocuments%2fFaaliyet%20
Raporu%2fETKB%202019%20Y%c4%b1l%c4%b1%20%c4%b0dare%20Faaliyet%20
Raporu-28.02.2020.pdf
180. https://www.tarimorman.gov.tr/SGB/Duyuru/91/Tarim-Ve-Orman-Bakanligi-2019-Yili-
Faaliyet-Raporu-Yayimlanmistir
181. https://ms.hmb.gov.tr/uploads/2019/05/Hazine-ve-Maliye-
Bakanl%C4%B1%C4%9F%C4%B1-2018-Y%C4%B1l%C4%B1-Faaliyet-Raporu.pdf
182. https://www.resmigazete.gov.tr/eskiler/2016/09/20160930-13.htm; https://ms.hmb.gov.tr/
uploads/sites/2/2019/04/New-Economy-Program-2019-2021.pdf
183. https://www.ankaraka.org.tr/tr/2019-yili-mali-destek-programlari_4564.html   185
5. Who Funds R&I Activities?

5.3.2.1. TÜBİTAK
TÜBİTAK remains the major funder for science, technology and
innovation in Turkey. TÜBİTAK funds are divided into several
categories applicable for different performers. Funding categories
could be detailed according to the level of R&I activity: basic research,
applied research, experimental research, pre-commercialization,
commercialization and investment. Even though TÜBİTAK supports
are not covering investment stage, public institutions and especially
ministries have specific programs for the investment stage. Yet
TÜBİTAK takes part in the evaluation process whether the investment
includes technology development and/or R&D activities.

Universities generally benefit from basic, applied and experimental

research funds, including supports numbered 1000, 1001, 1002,
1003, 1004 and 3501. There are also government funds transferred
to TÜBİTAK, applicable for universities. These funds are Scientific
Research Projects funded by Ministry of Finance and R&D Support
Program for Energy Sector, funded by Ministry of Energy and Natural
Resources. Funds for universities are generally for basic research but
may cover up to pre-commercialization stage.

For university and industry collaboration, TÜBİTAK supports cover

applied research, experimental research, pre-commercialization,
commercialization and investments. Supports numbered 1005, 1007,
1503, 1505 and 1513 and 1601 are applicable for projects targeting
university and industry collaboration. Ministry of Food, Agriculture
and Forestry, Ministry of Transport and Infrastructure, Ministry of
Industry and Technology and KOSGEB’s R&D support programs are
also supporting university and industry collaboration.

SMEs are supported by TÜBİTAK, 1507 and from 2019 onwards 1501
support programs. 1707 Commissioned R&D program can also be
considered as an SME support program. In addition to TÜBİTAK,
MoIT, KOSGEB, Ministry of Finance and Development Agencies
have different supports and funds for promoting applied research,
experimental research, pre-commercialization, commercialization
and investment stages.

186
 5. Who Funds R&I Activities?

Industry supports in TÜBİTAK (programs 1501, 1509, 1511, 1515, SAYEM

and HAMLE), on the other hand cover R&I costs from basic research
to investment. In addition, Ministry of Finance and MoIT have several
support programs targeting industry development. There are only
a number of industry support programs in TÜBİTAK but in terms of
the allocated budget it is almost the same as academic research
supports.

1004 program for academic research and SAYEM for industrial

research, both launched in 2018, target big consortiums (including all
actors denoted in section 2.5) working collaboratively and specialize
in high technology areas, to produce products that can not be
produced in Turkey.

HAMLE program, which targets investment in predefined needs of

the country is used as a prior stage investment tool where R&D is
complemented with industrial investment at the end.

Apart from funding R&D activities, TÜBİTAK also funds other actors
in the STI system like TTOs, venture capital, patent licensors and
entrepreneurs.1513 program supports TTOs that contribute to the
commercialization of research outputs in universities and technology
produced in TDZs. Patent Based Technology Licensing Program
launched in 2019 provides a maximum of 2 million TL per project
enabling the commercialization of patents hold by universities and
researchers. 1514 Tech-InvesTR Venture Capital Support Program
was established to enable venture capital funds to invest in R&D
intensive early-stage companies. Entrepreneurs are supported under
1512 BIGG program (200,000 TL per entrepreneur) to transform their
technology and innovation-oriented business ideas into startups that
have potential to create high value-added and jobs.

Last, but not the least, branding, marketing and investment

related projects are supported at experimental research, pre-
commercialization, commercialization and pre-investment stages.
Ministry of Finance, KOSGEB, Turkish Patent and Trademark Office,
Development Agencies and MoIT have 13 different support programs
under this category.

  187
5. Who Funds R&I Activities?

Table 5.7. Maximum budget allocations of TÜBİTAK programs184

1000 Maximum support of 30,000 TL185

1001 Maximum support of 720,000 TL186
1002 Maximum support of 45,000 TL187
1003 Maximum support ranging between 750,000 TL to 3,750,000 TL depending on the project
scope188
1004 No maximum budget is identified189
1005 Maximum support of 300,000 TL190
1007 No maximum budget is identified191
3501 Maximum support of 360,000 TL192
1503 Maximum support ranging between 30,000 TL to 40,000 TL193
1513 Maximum support ranging between 1,250,000 TL to 1,750,000 TL194
1601 No maximum budget is identified195
1507 Maximum support of 600,000 TL196
1501 No maximum budget is identified197
1509 No maximum budget is identified198
1511 No maximum budget is identified199
1515 Maximum support of 10,000,000 TL200
Note: The maximum supports are announced budgets in the last calls and may change in each call.

184.https://www.TUBITAK.gov.tr/sites/default/files/19970/ardeb_tanitim_sunumu_2020_0.pdf
185. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/1000/icerik-1000-
2015-1-universitelerde-ar-ge-strateji-belgesi-hazirlatilmasi-ve-uygulatilmasi
186. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/icerik-1001-
bilimsel-ve-teknolojik-arastirma-projelerini-destekleme-pr
187. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/icerik-1002-hizli-
destek-programi
188. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/icerik-1003-
oncelikli-alanlar-ar-ge-projeleri-destekleme-programi
189. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/icerik-1004-
mukemmeliyet-merkezi-destek-programi
190. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/icerik-1005-ulusal-
yeni-fikirler-ve-urunler-arastirma-destek-programi
191. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/1007/icerik-
destek-kapsami
192. https://www.TUBITAK.gov.tr/tr/destekler/akademik/ulusal-destek-programlari/icerik-3501-
kariyer-gelistirme-programi
193. https://www.TUBITAK.gov.tr/tr/destekler/sanayi/ulusal-destek-programlari/1503/icerik-destek-kapsami
194. https://www.TUBITAK.gov.tr/tr/destekler/sanayi/ulusal-destek-programlari/1513/icerik-destek-
kapsami-0
195. https://www.TUBITAK.gov.tr/tr/icerik-destek-kapsami
196. https://www.TUBITAK.gov.tr/tr/destekler/sanayi/ulusal-destek-programlari/1507/icerik-destek-kapsami
197. https://www.TUBITAK.gov.tr/tr/destekler/sanayi/ulusal-destek-programlari/1501/icerik-onemli-hususlar
198. https://www.TUBITAK.gov.tr/tr/destekler/sanayi/uluslararasi-ortakli-destek-programlari/1509/
icerik-destek-kapsami
199. https://www.TUBITAK.gov.tr/tr/destekler/sanayi/ulusal-destek-programlari/icerik-1511-TUBITAK-
oncelikli-alanlar-arastirma-teknoloji-gelistirme-ve-yenilik-p-d-pteknoloji-odakli
188 200. https://www.TUBITAK.gov.tr/tr/destekler/sanayi/ulusal-destek-programlari/1515/icerik-destek-kapsami
 5. Who Funds R&I Activities?

TÜBİTAK Directorate of Academic Research Funding Programs (ARDEB)

support statistics for 2011-2018 show that number of applications
increased by 81% compared to 2011. The increasing trend in applications
is not met by the budget. The average support budget of accepted
projects topped 220,000 TL in 2014 and gradually declined to 85,000 TL
in 2018. Given that these are nominal numbers, budget per applications
has declined in real terms over the years. Figure 5.8 provides number of
applications and number of allocated budgets for approved applications
in more detail.

Figure 5.8. Number of applications to Academic Research Funding Program (ARDEB)

2500 14000

2019 12000
Approximate Budget of Approved Applications

2000

Number of Suspended Applications

10000

1500
8000
(in millions of TL)

1130

877 6000
1000 794 749
555 4000
500 431 432
2000

0 0
2011 2012 2013 2014 2015 2016 2017 2018
Support Budget of Accepted Applications (millions of TL) Number of Applications

On the other hand, as of 2019, applications to Directorate of Technology

and Innovation Support Programs (TEYDEB) are more than doubled since
2011 with an increasing trend over the years. Even though total amount
of budget fluctuates each year depending on the applications, overall
budget is rather stable over the years and in fact has declined gradually
since 2015. Figure 5.9 provides further detail on the applications and

  189
5. Who Funds R&I Activities?

budget of accepted projects to TEYDEB. In TEYDEB projects the

average support is about 1.5 million TL which in real terms have fallen
gradually over the years.

Figure 5.9. Applications to Directorate of Technology and Innovation Support

Programs (TEYDEB)

1000 6000
909 903
900
806 775 5000
Approximate Budget of Approved Applications

800
702 689
700 653 669

Number of Applications
619 4000
600
(in millions of TL)

500 3000
400
2000
300
200
1000
100
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019
Support Budget of Total Applications (millions of TL) Number of Applications

5.3.2.1.1 ARDEB

ARDEB, is a directorate in TÜBİTAK that provides various

forms of support for in house and interinstitutional research
and development activities. ARDEB functions as a bridge
between research groups and universities, state institutions and
organizations, natural and legal persons. The main aim is to assist
the production of quality R&D activities mainly in universities.
ARDEB provides funding for national support programs which
are 1000, 1001, 1002, 1003, 1004, 1005, 1007, 3001 and 3501.
ARDEB coordinates its activities under scientific area groups

190
 5. Who Funds R&I Activities?

that support, conduct and assist R&D projects. These groups are
given below:201

• Research Support Group for Chemistry and Biology (KBAG)

• Research Support Group for Mathematics and Physics (MFAG)
• Research Support Group for Health Sciences (SBAG)
• Research Support Group for Electric, Electronic and
Informatics (EEEAG)
• Research Support Group for Engineering (MAG)
• Research Support Group for Environment, Atmosphere,
Ground and Marine Sciences (ÇAYDAG)
• Research Support Group for Agriculture, Forestry and
Veterinary (TOVAG)
• Research Support Group for Social Sciences and
Humanities (SOBAG)
• Research Support Group for Defense and Security
Technologies (SAVTAG)
• Research Support Group for Community (KAMAG)

By 2019, the total number of supported projects through ARDEB

has reached nearly 21,300.202 Figure 5.10 shows total funding
data for current running projects and average budget allocated
for each project per year.203

201. “TUBITAK ARDEB Destekleri | Proje Destek Ofisi”. Pdo.Metu.Edu.Tr, https://pdo.metu.edu.

tr/TUBITAK-ardeb-destekleri. Accessed 18 May 2020.
202. TUBITAK.Gov.Tr, 2018, https://www.TUBITAK.gov.tr/sites/default/files/281/ardeb_
stat_2018_1.pdf. Accessed 20 Oct 2020.
203. “ARDEB GENEL DESTEK VERİLERİ (2009-2018)”. TUBITAK.Gov.Tr, https://TUBITAK.gov.tr/
sites/default/files/18842/1_ardeb_genel_destek_verileri_2009-2018.pdf. Accessed 20 June
2020.

  191
5. Who Funds R&I Activities?

Figure 5.10. ARDEB funding over the years (million TL)

1 6000
0.93
0.9
0,9
0.84

Total Budget of Currently Running Projects

5000
Average Budget of Currently Running Projects

0,8 0.77
0,7 0.66 0.66 0.67
0.63 4000
0,6
0,5 3000
0,4
0,3 2000
0,2
1000
0,1
0
0
2011 2012 2013 2014 2015 2016 2017 2018
Average Budget for Currently Running Projects Total Budget for Currently Running Projects

5.3.2.1.2 TEYDEB

TEYDEB, Technology and Innovation Funding Programs Directorate

runs supporting programs within TÜBİTAK and provides funding
for R&D project-based activities to improve R&I capabilities of the
private sector, enhance innovation culture and indirectly competitive
capacity of Turkey.204 Supporting programs funded by TEYDEB are
1501, 1503, 1505, 1507, 1509, 1511, 1512, 1513, 1514, 1515, 1601 and
1602.205 1602 is Patent Support Program that provides funding for
search and examination reports of the patent application process.
Moreover, if patent is granted in Turkey, there is an award of 3,000
TL. If the obtained patent is either from US, Japanese or European
Patent Offices then the award is 10,000 TL.206

204. “TEYDEB Teknoloji Ve Yenilik Destek Programları Başkanlığı - Özel Sektör Ar-Ge Ve
Yenilik Destekleri”. TUBITAK.Gov.Tr, https://www.TUBITAK.gov.tr/sites/default/files/teydeb_
kitapcik.pdf. Accessed 19 May 2020.
205. «TÜBİTAK TEYDEB Proje Değerlendirme Ve İzleme Sistemi - PRODİS». Eteydeb.
TUBITAK.Gov.Tr, https://eteydeb.TUBITAK.gov.tr/teydebmevzuat.htm. Accessed 9 May 2020.
206. “TÜBİTAK TEYDEB Özel Sektör Arge, Yenilik Ve Girişimcilik Destekleri”. TUBITAK.Gov.Tr,
192 https://www.TUBITAK.gov.tr/sites/default/files/teydeb-genel-100314.pdf. Accessed 14 May 2020.
 5. Who Funds R&I Activities?

There are six different Technology Groups and four Support

Groups in TÜBİTAK TEYDEB:

• Information Technologies Group

• Biotechnology, Agriculture, Environment and Food
Technologies Group
• Electric and Electronic Technologies Group
• Material, Metallurgy and Chemistry Technologies Group
• Transportation, Defense, Energy and Textile Technologies
Group
• Machine Manufacturing Technologies Group
• Technology Transfer Mechanism Supporting Group

• Entrepreneurship Supporting Group

• Venture Capital Supporting Group

• Priority Areas Supporting Group

Between 1995 and 2018, total number of supported projects was

20,237 with 9 billion TL funding and 16.3 billion TL R&D volume.207

5.3.2.1.3 BİDEB

Directorate of Science Fellowships and Grant Programs (BİDEB)

provides funds and supports for research events and fellowships
for university students at any level of study. Table 5.8 summarizes
support programs of BİDEB.208

207. Telifhaklari.Gov.Tr, 2019, http://www.telifhaklari.gov.tr/resources/uploads/2019/10/31/

TUBITAK-TEYDEB-DESTEKLER.pdf. Accessed 17 May 2020.
208. “BİDEB”. E-Bideb.TUBITAK.Gov.Tr, https://e-bideb.TUBITAK.gov.tr/giris.htm. Accessed 20
June 2020.

  193
5. Who Funds R&I Activities?

Table 5.8. Support and Fellowship Programs for Students and Research Events

For Undergraduate Students Support

2205 Bachelor’s Degree Scholarship Program A monthly stipend of 1,000 TL and
tuition fee up to 2,000 TL
For Graduate Students
2211/A General Domestic Doctorate Scholarship Scholarship ranging between 650 TL to
Program 3,000 TL
2211/B Transition to Domestic Social Sciences PhD
Scholarship Program
2211/C Domestic Priority Doctoral Scholarship Program
2211/E Direct Domestic PhD Scholarship Program
2210/A General Domestic Graduate Scholarship Scholarship ranging between 550 TL to
Program 2,500 TL
2210/B Transition to Domestic Social Sciences Graduate
Scholarship Program
2210/C Domestic Priority Graduate Scholarship Program
2210/D Graduate Scholarship Program for Domestic
Industry
2210/E Direct Domestic Graduate Scholarship Program
2213-A International Ph.D. Scholarship Program Scholarship up to $60,000
2213-B International Joint Ph.D. Scholarship Program Monthly scholarship for Europe up
to €1,700 and for US $1,900, travel
expenses209
2214 International Research Fellowship Program (for Monthly scholarship for Europe up to
PhD Students) €1,500 and for other countries $1,800
ICGEB (International Center for Genetic Engineering Monthly stipends are: €1,300 for Italy,
and Biotechnology) Scholarship Program $1,020 for India, ZAR 12,500 for South
Africa
TWAS (The World Academy of Sciences) Scholarship Fellowship budgets, grants, prizes and
Program awards vary
EMBO (European Molecular Biology Organization) Fellowship budgets, grants, prizes and
Programs awards vary
APSCO Scholarship Program Scholarships vary
NAM S&T Centre Scholarship Program Scholarships vary
For Postdoctoral Students
2219 International Postdoctoral Research Fellowship Monthly scholarship for Europe up to
Program €2,100 and for other countries $2,500

209. KARACA, A. Mete. The Scientific And Technological Research Council Of Turkey. Head
Of Bilateral & Multilateral Relations International Cooperation Department, 2019, https://
eurieeducationsummit.com/uploads/presentations/2019/Mete-Karaca.pdf. Accessed 18 May
2020.
194
 5. Who Funds R&I Activities?

2247-A National Leading Researchers Program Support for R&D is 1,000,000 TL

Scholars (PhD): monthly 4,500 – 800 TL
Scholars (Post-Doc): monthly 6,000 TL
Project Director: monthly 5,000 TL
2247-B European Research Council (ERC) Support Support for R&D is 500,000 TL
Program
Scholars (PhD): monthly 3,500 – 650 TL
Scholars (Post-Doc): monthly 4,500 TL
2236 Co-Funded Brain Circulation Scheme2 Support for R&D: monthly €600
(CoCirculation2)
Scholars: monthly $4,167 – $4,792
2232 Postdoctoral Reintegration Fellowship Program Initial Support: 500,000 – 1,000,000 TL
Support for R&D: 720,000 TL
Scholars: 20,000 – 24,000 TL
2221 Fellowship Program for Visiting Scientists and Support varies between daily 165 TL
Scientists on Sabbatical Leave with monthly $3,500
EMBO (European Molecular Biology Organization) Fellowship budgets, grants, prizes and
Programs awards vary
ICGEB (International Centre for Genetic Engineering Monthly stipends are: €2,000 for Italy,
and Biotechnology) Scholarship Program $1,590 for India, ZAR 18,750 for South
Africa
NAM S&T Centre Scholarship Program Scholarships vary
ESA (European Space Agency) Scholarship Program Scholarships vary
For Foreign Researchers/Students
2216 Research Fellowship Program for International Scholarship monthly 2,250 TL
Researchers
2221 Fellowships for Visiting Scientists and Scientists on Support varies between daily 165 TL
Sabbatical Leave with monthly $3,500
EMBO (European Molecular Biology Organization) Fellowship budgets, grants, prizes and
Programs awards vary
European Union Marie Curie Actions and European Fellowship budgets and program funds
Research Council Program vary
For Scientific Events
2223-C Multi-Participation International Event Support up to 200,000 TL210
Organization Support
2237-B Project Training Activities Support Program Support up to 6,000 TL
2224-C Program to Support Participation in Scientific Scholarship varies
Activities Abroad within the Framework of International
Agreements

210. “TUBITAK 2223-C – Çok Katılımlı Uluslararası Etkinlik Düzenleme Desteği | BİLİM
ŞENLİĞİ”. Bilimsenligi.Com, https://www.bilimsenligi.com/TUBITAK-2223-c-cok-katilimli-uluslararasi-
etkinlik-duzenleme-destegi.html/. Accessed 18 May 2020.

  195
5. Who Funds R&I Activities?

2224-A Program to Support Participation in Scientific Scholarship varies

Activities Abroad
ICGEB (International Centre for Genetic Engineering Monthly stipends are: €2,000 for Italy,
and Biotechnology) Supports $1,590 for India, ZAR 18,750 for South
Africa
Travel Support for Consortium Building Support varies
2223-D Support for Organizing Events in the Support up to 50,000 TL
Framework of Bilateral Cooperation Agreements
2242 University Students Research Project Competitions Awards varying between 1,000 TL and
15,000 TL

By 2019, total number of supported students was 125,917 with

about 2.1 billion TL total funding. Detailed annual funding data can
be seen in Figure 5.11.211

Figure 5.11. BİDEB Funding over the years (million TL)

30000 350
295 307
300
25000

Approximate Amount of Support

244 238
Number of Supported Applications

250
20000 209 212
197 203
200
15000
150
10000
100

5000 50

0 0
2011 2012 2013 2014 2015 2016 2017 2018
Number of Supported Applications Approximate Amount of Support

211. “BİDEB 2010-2019 YILLARINA AİT İSTATİSTİK RAPORU”. https://www.tubitak.gov.tr, 2020. https://www.
TUBITAK.gov.tr/sites/default/files/3835/bideb_istatistikler_07.05.2020.pdf. Accessed 21 June 2020.

196
 5. Who Funds R&I Activities?

With the comparison of Figure 5.8 to 5.11 it can be said that over
the years share of TEYDEB has been increased compared to
other TÜBİTAK support programs.

5.3.2.2. TTGV
One of the biggest funders of science, technology and innovation in
Turkey is Technology Development Foundation of Turkey (TTGV) that
provides support under various programs such as Technology Transfer
Accelerator, Explore Investment Program, Hit Program, Ideanest
Program, Green Technology Projects (YETEP) Support Program and
TTGV1 Program. Detailed information on aims, budget limitation and
duration of these funding programs are given below.

5.3.2.2.1. Explore Investment Program

This program aims to improve the diffusion of technology-based

companies to the global marketplace increase market share
and sustainability of sales performance. Entry strategies, and
roadmaps of the companies are developed with experienced
actors in the pre-exploration phase. After this assessment step,
an equity investment up to $250,000 is available for selected
companies to improve their market entering processes. As a
third party, Teknoloji Yatırım’s co-investment funding is available
for up to $2 million.212 Figure 5.12 depicts the Explore Investment
Program.

212. https://www.teknolojiyatirim.com.tr/en/explore-en

  197
5. Who Funds R&I Activities?

Figure 5.12. Explore Investment Program

Local Co-Investment Option

Partner/ Up to USD 2.000.000
Network

Pre-Explore USA
Pre- Explore Due
Assessment Company Pre-Explore EU Diligence
Phase Radar Equity Investment:
Process Up to USD 250.000
Pre-Explore X

Road Map Explore Investment

for Market Strategy
Penetration/ Implementation
Strategy
Validation

Source: TTGV

198
 5. Who Funds R&I Activities?

5.3.2.2.2. Hit Program

For selected vertical technology markets the program aims

to develop ventures and provide a first customer or a secured
market for the ventures. Start-ups are selected according to their
business plan and selected ones are part of the “Initial Market
Entry Program”. To develop the business activities, the program
finances up to $50,000 (per start-up) for initial market entry
process, for one-year period. Selected start-ups may be financed
by independent investors within five years. Figure 5.13 depicts the
Hit Program.

Figure 5.13. Hit Program

For each Venture Participated in the Program

Venture Development Methodology

Co-investment TTGV Support

Business Development Actions 50K$ Budget Direct Payment by TTGV to

(Determined with the venture partners Allocated within the Third Parties
with the contribution of senior sector one-year program (Close interaction with sector
mentors and consultants) duration professionals and consultants)

When an independent investor decides to Co-investment

invest in the venture within five (5) years option up to 1M Co-investment can take place
after acceptance, TTGV has the right to USD at 10% in one or more rounds
join the investment round as a co-investor discount rate
based on the valuation of the investor.

Option Duration: 5 years

Source: TTGV

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5. Who Funds R&I Activities?

5.3.2.2.3. Ideanest Program

This program is designed as a crowdsourcing platform and the

goal is to pair the beneficiaries with the funders in accordance with
TTGV’s strategies. The main motto of this program is “Technology
Producing Turkey”. To achieve this, the program provide supports
for academic research projects and early-stage technology-based
new product ideas while highlighting donation for technology.
The target budget of crowdsourcing differs for each project.

5.3.2.2.4. Green Technology Projects (YETEP) Support

Program

The aim is to provide repayable financial support to organizations

for the implementation of their projects. There are three different
scopes of YETEP program which are “Climate-Friendly Technology
Support”, “Clean Production Technologies Support” and “Energy
Efficiency, Renewable Energy and Other Energy Technologies
Support”. Selected projects can be supported for a maximum
fifteen months with a budget ranging from $100,000 to $400,000.

5.3.2.2.5. TTGV1 Co-Investment and Follow-On

Investment Fund

The aim is to make investments to companies at the growth stage

and take the attention of professional investors so that selected
companies receive investment. The program is explained in
Figure 5.14 in details. Funding life is 10 years and the period of
investment is five years with possible funding up to €20 million.

200
 5. Who Funds R&I Activities?

Figure 5.14. TTGV1

TTGV1 Professional Fund Management Teams

TTGV’s experience and knowledge in the Experience of portfolio diversification and

field of venture capital creating operational improvement

Co-investment options from companies, Discipline of providing control over exit

which are in the portfolio of TTGV’s timing and method
Hit and Explore Programs
Comprehensive management of
Flexible investor relationship with technical ability and company
fund managers focused on radar
technology companies Target Technology
Company

Potential of global Revenue metrics Sector and market focus

scalability and indicating with a predictable exit
technology export product-market potential
fit

Source: TTGV

5.3.2.2.6. The Technology Transfer Accelerator - TTA

Turkey

“The Technology Transfer Accelerator - TTA Turkey is an initiative

designed by the European Investment Fund (EIF) in cooperation
with the MoIT, the Delegation of the European Union (EU) to Turkey
and the DG Regional Policy of the European Commission”.213
TTA Turkey Project is co-financed by the EU and the Republic of
Turkey under the Instrument for Pre-Accession Assistance (IPA)
funds and managed by EIF on behalf of the Ministry. One of the
sub-components of TTA Turkey is the Advisory Services and
Networking component which is implemented by the consortium
of TTGV, Bpifrance Financement (FR) and VentureWell (US).
TTA Turkey has an AdviSeNet project that aims to enhance the
capacity of TTOs in Turkey, improve commercialization of the R&D
capacity of TÜBİTAK and identify investment ready opportunities.

213. “TTGV”. Ttaturkey.Org, http://ttaturkey.org/. Accessed 16 May 2020.

  201
5. Who Funds R&I Activities?

Selected TTOs are provided with capacity development services

and business development services.214 Furthermore, this project
enables TTOs to exchange staff with paired relevant TTOs in
France or the US for two weeks.

5.4. International Funds

5.4.1. The 7th EU Framework Programme
(2007-2013)
The 7th EU Framework Programme (FP7) was the main financial instrument of
the EU to build the ERA, aiming at enabling free circulation of researchers,
scientific knowledge and technology. It was a tool to lift up the competitive
strength of beneficiary countries.215 Having accounted third largest share of
the EU budget, FP7 provided a significant impetus to support investments in
knowledge, innovation and human capital across the EU, the candidate, and
associated countries.

FP7 was built on previous programs and went beyond by structuring the program
strategically for better alignment of research priorities to meet the policy needs
of the EU. The structure of the Program was based on four sub-programs,
where FP7-Cooperation streamlined international cooperation in transnational
research projects through themes, FP7-People aimed at developing human
potential through training, and increasing mobility of researchers between
sectors and countries. With the FP7-Capacities sub-program, funds were
directed to strengthen research infrastructures, particularly enhancing the
research capacities of the SMEs. One of the novel additions to this program
was FP7-IDEAS, which provided project funding for exploratory and cutting-
edge research in new and emerging fields of science and technology.216

214. “Services | TTGV”. Ttaturkey.Org, http://www.ttaturkey.org/2/services. Accessed 16 May 2020.

215. European Commission (2015a), “Commitment and Coherence: Ex-Post-Evaluation of the
7th EU Framework Programme (2007-2013)” EU publications.
216. European Commission (2015b), “Seventh FP7 Monitoring Report: Monitoring Report 2013”.

202
 5. Who Funds R&I Activities?

To realize the objectives of FP7, €55 billion budget was allocated over seven
years, which represented a rise of 66% compared to the previous FP6 program.
Within the FP7, approximately 25,000 projects involving 29,000 organizations
were supported to realize research objectives. The bulk of the budget over
the program period was allocated to cooperation, which represents 64% of
total allowances. The rest was distributed to ideas, people and capacities.
With respect to the type of organizations, higher education, private sector
and research organizations were observed the main beneficiaries from the EU
financial grants as the number of applicants and the figures for the requested
EU contribution indicates.217 FP7 monitoring results on the applications and
success rates are presented in Table 5.9.

Table 5.9. FP7 Monitoring Results

2007-2013 (on average) Success rates in applications Success rates in EU financial

contributions
Turkey 16.1 % 7.2 %
Cand. & Assoc. 21.9 % 18.7 %
EU countries 21.6 % 19.2 %
Third countries 20.3 % 17.1 %
All countries 21.8 % 19.1 %

Source: Adopted from European Commission (2015a), Commitment and Coherence: Ex-Post-Evaluation of
the 7th EU Framework Programme (2007-2013).

The geographical distribution of FP7 participation and grants displayed in

Figure 5.15 and Figure 5.16 suggest that Turkey’s participation in this program
was realized mainly by research institutions and private sector located in major
cities, especially Ankara and İstanbul. During the program period, Turkey
realized a success rate218 comparable with the average of various country
groups. However, Turkey fell short in acquiring financial contributions from EU
budget even compared to its own group of candidate countries, indicating that
most successful applications of Turkey was with small budget, compared to
the other consortium members (Table 5.9). Notwithstanding, Turkey ranked 4th

217. European Commission (2015a).

218. Defined as the ratio of retained proposals to eligible proposals that could be supported.

  203
5. Who Funds R&I Activities?

in candidate and associated countries in terms of total European Commission

(EC) contributions of about €189 million (0.4% of total EC contributions).219

Among research institutions all over the EU, TÜBİTAK, ranked 24th (97th overall)
as the sole research institution from Turkey that took place among the top 50
research organizations (in terms of participation numbers over the program
period).220

Figure 5.15. FP7 Participation (number)

Source: European Commission, 2015b; adjusted by the authors

219. European Commission (2015a) and European Commission (2015b).

220. European Commission (2015b).

204
 5. Who Funds R&I Activities?

Figure 5.16. FP7 EU Financial Contribution (million Euro)

Source: European Commission, 2015b; adjusted by the authors

5.4.2. Horizon 2020 (H2020)

After finalizing FP7, a new EU FP for R&I was launched in 2014, H2020, that
steers the implementation within the frame of Innovation Union objectives.
Having €80 billion budget over 7 years, the program is the biggest financial
instrument aimed at ensuring the competitive strength of the EU and regarded
as a key investment for the future to secure the EU’s roadmap for achieving
smart, sustainable and inclusive growth.221

H2020 had certain novelties in that it brings three separate programs

221. European Commission (2017), Interim Evaluation of Horizon 2020, Commission Staff
Working Document, Directorate General for Research and Innovation. Horizon 2020 Official
Standard Presentation https://ec.europa.eu/programmes/horizon2020/sites/horizon2020/
files/281113_Horizon%202020%20standard%20presentation.pdf retrieved on 17.05.2020.

  205
5. Who Funds R&I Activities?

together222, supporting all types of innovations from research to retail, it puts

societal challenges to the forefront (e.g., health, clean energy and transport)
and finally, it provides a simplified access for everyone so as to ensure projects
flourish quickly.

According to the final breakdown of H2020 budget among its three priorities,
the bulk of the funds are allocated to the societal challenges (38.5%) including
health, demographic change and well-being; securing clean and efficient
energy, food security, sustainable agriculture and forestry, smart, green and
integrated transport, climate action, Europe in a changing world and securing
societies. Next, 31.7% of the funds is allocated to ensure excellent science,
which is distributed among the European Research Council (ERC), Marie-
Skłodowska-Curie actions (MSCA), future and emerging technologies and
European research infrastructures. 22.1% of the budget is used to support
leadership in industrial technologies, access to risk finance and innovation
in SMEs. The rest of the budget is allocated among other initiatives that are
brought together in H2020.223

Table 5.10 presents descriptive data of Turkey within the H2020. While the
geographic distribution of Turkey’s participation shows similar pattern compared
to FP7, big cities, in particular, become more scattered spanning Eastern
Anatolia, as well (Figure 5.17). Similar to FP7, TÜBİTAK is the top beneficiary in
terms of both participation and EU contribution from H2020, which is followed
by major universities and large private enterprises in the industrial sector (Figure
5.18). Based on net EU contribution, majority of the funds have been granted to
the private sector (39.3%) followed by higher or secondary education (33.4%),
research organizations (14.9%), and public bodies (10.6%).224

222. These 3 programs and initiatives include FP7, CIP (Competitiveness and Innovation
Framework Program) and EIT (European Institute of Innovation and Technology)
223. European Commission (2013), Factsheet: Horizon 2020 Budget
https://ec.europa.eu/programmes/horizon2020/sites/horizon2020/files/Factsheet_budget_
H2020_0.pdf retrieved on 17.05.2020.
224. The data is retrieved from the European Commission Horizon 2020 Dashboard as of
March 2020. European Commission Horizon 2020 Dashboard, H2020 Country Profile https://
webgate.ec.europa.eu/dashboard/hub/stream/aaec8d41-5201-43ab-809f-3063750dfafd

206
 5. Who Funds R&I Activities?

Table 5.10. Horizon 2020 Monitoring Results for Turkey

Share of the associated countries,

Figures for Turkey
total
Participation 871 8.6 %
Net EU contribution 183.4 million € 4.3 %
Applications 7,556 12.0 %
Success rate 10.1 % 13.9 %
Signed Grants 609 10.2 %
ERC Principal Investigators 16 1.9 %
European Innovation Council (EIC) 24 4.0 %
Participation
Experts, female 575 / 46.1 % ---
MSCA participation 145 12.6 %

Source: European Commission, H2020 country profile (as of March 2020)

Figure 5.17. H2020 Participation by cities

Source: European Commission, H2020 country profile (as of March 2020)

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5. Who Funds R&I Activities?

Figure 5.18. H2020 Top Turkish Organizations

TÜBİTAK 24.28 M
Koç University 12.27 M

Middle East Technical University 11.89 M

Ford Automotive 6.28 M
TÜPRAŞ 6.05 M
Bilkent University 5.71 M
Arçelik 4.94 M
Sabancı University 4.66 M

Bosphorus University 4.29 M

İstanbul Technical University 3.89 M

Ministry of Agriculture and Forestry 3.8 M
Tepebaşı Municipality 3.79 M
SRDC Software R&D 3.74 M
Antalya Metropolitan Municipality 3.01 M
0 5M 10 M 15 M 20 M 25 M

Source: European Commission, H2020 country profile (as of March 2020)

Figures 5.19 and 5.20 compares FP7 and H2020 in participation and funding.
With regards to the member and associated countries in total, participation
figures in H2020 tend to fall, while Turkey’s share is declining in participation
compared to FP7 (from 0.91% to 0.68%). On the other hand, EU contribution
across programs has increased in H2020 in member and associated countries,
while the funds granted and their share both have fallen in Turkey compared to
FP7 (from 0.44% to 0.36%). While, Turkey secures its rank related to participation
and funding in H2020 with respect to associated countries, Turkey started to
lose competitive ground compared to member countries, suggesting a necessity
for stimulating investments on R&I and effective steering of implementation
depending on official policy documents for the upcoming period.

208
 5. Who Funds R&I Activities?

Figure 5.19. EU Participation to and funding from H2020

Participation Funding from H2020 (millions of euro)

160000 60
133,603 127,798 50.5
140000 50 44.8
120000
100000 40
80000 30
60000 20
40000
20000 10
0 0
FP7 H2020 FP7 H2020
EU & Associated Countries EU & Associated Countries

Figure 5.20. Turkish participation to and funding from H2020

Participation Funding from H2020 (millions of euro)

1400 250
1,210
1200 196.4
200 183.4
1000 871
800 150
600 100
400
50
200
0 0
FP7 H2020 FP7 H2020
Turkey Turkey

Source: European Commission, H2020 country profile (as of March 2020)

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5. Who Funds R&I Activities?

5.4.3. Horizon Europe: The Next EU Research

& Innovation Investment Program (2021-2027)
As of 2020, the previous program H2020 is making way for Horizon Europe
after the provisional agreement endorsed by the European Parliament and the
Council of the EU in April 2019. The Commission’s proposal of €100 billion for
R&I for the years between 2021-2027, is the most ambitious program ever and
is aimed at strengthening innovation capability, providing lasting prosperity
and preserving global competitiveness of Europe.225,226

Horizon Europe is based on the successes of and lessons learned from the
H2020. While Europe is relatively strong in science and research base and
accounts for 20% of global R&D investments, EU companies are lagging
behind their competitors (i.e., in South Korea, Japan and the United States)
on spending for innovation. Further, the overall amount of venture capital and
the average size of funds in Europe is insufficient to allow start-ups to flourish.
Public investment across the EU remains below 3% target and the R&D intensity
is uneven across regions. Last but not least, 40% of the workforce in Europe
needs digital upskilling (European Commission, 2019a). On the Turkish side,
the above observations hold qualitatively. Turkey spends and involves more
in R&D but less in innovation, the STI policy tools primarly funds R&D activities
and the earlier phases of innovation process, entrepreneurship activities are
mainly funded by the government, R&D spending as percentage of GDP is
stabilized around 1% and most of the workforce needs digital upskilling. Thus,
such characteristics of the Turkish STI ecosystem resembles the EU very much.

Considering these observations, a renewed agenda on R&I is put forward within

Horizon Europe and the policy framework is expected to shift from diffusion-
oriented to mission-oriented rationales.227 This shift may be problematic for
countries such as Turkey where policy rationale is mainly diffusion-oriented.
Figure 5.21 summarizes the three pillars of Horizon Europe.

225. The budget proposal covers both Horizon Europe and Euratom research and training
programme.
226. https://ec.europa.eu/info/horizon-europe-next-research-and-innovation-framework-
programme_en .
227. European Commission (2019b), Horizon Europe: The Next EU Research & Innovation
Investment Program (2021-2027)

210
 5. Who Funds R&I Activities?

The Open Science pillar (€25.8 billion) supports frontier research projects
driven by researchers themselves through the European Research Council
(€16.6 billion), funds fellowships and exchanges for researchers through Marie
Skłodowska-Curie Actions (€6.8 billion) and invests in world-class research
infrastructures.

The Global Challenges and Industrial Competitiveness pillar (€52.7 billion)

supports research to address societal challenges, reinforces technological and
industrial capacities, and determines EU-wide missions with ambitious goals to
tackle some of the pressing problems.

The Open Innovation pillar (€13.5 billion) aims to make Europe a frontrunner in
market-creating innovations via the European Innovation Council (€10 billion).
Through this pillar, it is aimed to develop the overall European innovation
landscape, including further strengthening the European Institute of Innovation
and Technology (EIT) to reinforce the integration of business, research, higher
education and entrepreneurship (€3 billion).228

Figure 5.21. The new program will be implemented through three pillars

Source: European Commission (2018), EU Budget for the Future: Horizon Europe.

228. European Commission (2019a), Press Release: EU budget for 2021-2027: Commission
welcomes provisional agreement on Horizon Europe, the future EU research and innovation
programme.

  211
5. Who Funds R&I Activities?

This program also brings about certain novelties. The first is the European
Innovation Council, which will bring the most promising ideas from the lab to
the real-world application and support the most innovative start-ups through
two funding instruments, one for early stages and the other for development
and market deployment. The second novelty is the EU-wide R&I missions that
represent ambitious, bold goals to deal with the issues that affect citizens’ daily
lives. Horizon Europe emphasizes sustainable development, where 35% of the
program budget is allocated to address the effects of climate change. In this
framework, 5 mission areas are determined: (i) adaptation to climate change, (ii)
fighting against cancer, (iii) soil health and food, (iv) developing climate-neutral
and smart cities, (v) ensuring healthy oceans, seas, coastal and inland waters.
The missions under these areas will be designed together with the citizens,
stakeholders, the European Parliament and the member states. The third
novelty is open science that goes beyond the open access policy of H2020
and requires open access to publications, data, and management plans.229

Horizon Europe was officially launched on 1 January 2021. The strategic

planning process will particularly focus on the Global Challenges and European
Industrial Competitiveness pillar of Horizon Europe.230 The challenge will be to
develop a financing window that is both inclusive (i.e. financing R&I of all types)
and in line with specific missions that are linked to the key societal problems.231
Hence, policymakers and the beneficiaries from the public, private and higher
education sector in Turkey needs to adjust to mission driven project-portfolio
approach by investing more in sustainable development, while pursuing
to participating in R&I projects, where they can develop their competitive
advantage through R&I Window, SME Window and the European Innovation
Council’s specific financial instruments.

229. European Commission (2018), EU Budget for the Future: Horizon Europe.
230. https://ec.europa.eu/info/horizon-europe-next-research-and-innovation-framework-
programme_en
231. European Commission (2019b)

212
5. Who Funds R&I Activities?

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6

214
 6. Concluding Remarks

6. Concluding Remarks
In the midst of a new technological paradigm new ideas, inventions and prototypes
emerge and the old paradigm fades away. Today, the world is experiencing such
a process where scientific base is renewing. Technological solutions to grand
challenges like climate change and the recent COVID-19 pandemic are bounded with
what science and the scientific base can provide. The match between technological
problems, solutions to that problems and the scientific base should also be assessed
in terms of economic feasibility and societal reflections. What is the role of government
in such a process? How do governments cope with the grand challenges? What kind
of policy frameworks emerge and most importantly how does Turkey respond to
them? This final chapter briefly discusses five trends in STI policy-making and reflect
how Turkey copes and responds to such trends. It also pinpoints the challenges of
the Turkish STI system.

There are five recent trends in STI policy-making.

1. The policy tools are moving towards selecting technologies, niche areas even
products. Thus, the policies are more selective moving away from horizontal
policies that aim a general stock of firms.

2. Since the problems are becoming complex the technological solutions to such
problems are also complex and may encompass a wide array of sectors and
disciplines of science. In such cases the policy-mixes (that are composed of
compatible policy tools) are increasingly used compared to policy tools.

3. Complex technological solutions and coping with grand challenges necessitate

an active role for government in creating technologies and markets as opposed
to a more regulative role.

4. Public procurement for innovation as a tool of demand-side policies is

increasingly being used by governments around the world.

5. Mission-oriented rather than diffusion-oriented policies are in rise especially

with the recent attempt of the EU in moving towards creating missions, the
most recent example is the new FP 2021-27, Horizon Europe, that is designed
and organized in a mission-oriented setting.

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6. Concluding Remarks

Moving towards selective policy tools is, in fact, a long process. The neo-classical
school as a theoretical base state that science and technology policy aim at supporting
knowledge creation at the upstream assuming a representative firm. Once knowledge
created by actors it is assumed that it will diffuse. But due to uncertainty in the R&D and
innovation processes, firms will spend less than they should spend (market failure).
Horizontal supports like R&D tax exemptions, R&D subsidies are generated with such
a theoretical base. The evolutionary school posit, on the other hand, that knowledge
is created by interactions of heterogenous agents. Technological knowledge is
created in an innovation system and when an actor lacks or the interactions between
actors lack, one can talk about a systemic failure. In such a framework, since firms
are heterogenous the policy tools cannot be general. Thus, pushing all firms to a
non-existing optimal level of R&D is not a good way to support STI activities. The
policy should aim a “functioning” innovation system. Evolutionary theory necessitates
a more selective approach in designing STI policy. In the last decades we see that
policy tools are becoming much more selective based on the characteristics of the
actors. It started by selecting sectors, certain areas within sectors, then technologies
and now even technological products.

This report shows that Turkey follows this trend. Horizontal policies and more selective
policies are used in tandem but especially most new policy designs are selective,
selecting a sector, a group of firms, a geographical area, a technology or even a
product (the case of TOGG, Turkey’s Automobile Initiative Group). Selecting sectors has
long been applied in policy-making in Turkey but even within that a “high-technology”
focus is observed. Thus, for instance ICT, machinery or knowledge-intensive sectors
are favored as opposed to textiles. But within those sectors there is also selection
towards high-technology firms assuming that high-technology creates value-added.
The trend in supporting technology-based entrepreneurship, but not necessity-based
entrepreneurship could also be an example to such trend. In the recent years, it is
observed that rather than broad technology groups niche technologies are selected.
CoSTIP’s recent attempt of prioritizing technology fields is also in line with the aim
of selecting technologies as devised in the 11th Development Plan (section 3.1.1). In
a similar manner, the new policy tool, Industry Innovation Network Mechanism Call
(SAYEM), is focused on high-technology areas and even certain NACE codes. This
behavior of selective design is present in many other new tools of TÜBİTAK such as
HAMLE, Commissioned R&D Call and the 1004-Excellence Centre Support Program.
These recent policy tools also reveal that the government wants to direct and
accelerate the innovation activities with collaboration and co-creation efforts, both
in business-to-business and university-industry side, with an emphasis on impact and
output orientated model.

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 6. Concluding Remarks

The second trend in STI policy-making is related with complexity. Our current
problems, especially the grand challenges such as climate change, are becoming so
complex for single-aimed policy tools to handle. Since it is difficult for one policy tool
to cope with such complexity, new policy designs have multiple tools for one policy
aim (for instance, support indigenous technology production).232 There are many
examples in this fashion, but the best ones are the policy-mixes that use both demand
and supply-side designs and multiple tools to support eco-innovation and renewable
energy technology production in the Nordic countries.233

Turkey follows this trend as well. If one looks at the policy designs some 20 years ago,
one policy tool was burdened with several policy aims. The initiation of technology
parks and the Technology Development Zones law is a good example. It is a policy
tool with multiple hard-to-achieve and hard-to-asses policy aims (support technology
production, increase patent applications, create synergy, substitute technology import
by indigenous production, assist regional development etc.). Current policy designs
are plainer, but many such policy tools are used to achieve one policy aim. The trend
on indigenous and national (technology) production could be an example. There is
one giant policy aim but there are many policy tools that one way or another support
the aim of indigenous technology production. Policy-mix to support renewable energy
technologies is also a good example in the case of Turkey. There is a policy-mix that
is composed of many supply and demand-side policy tools (e.g., R&D tax exemptions,
innovation support, public procurement, regulation, technology prioritization, creation
of research infrastructures etc.). The most important problem for Turkey to design
and implement policy-mixes is coordination among different public institutions and
between public institutions, firms and universities.

Another trend in STI policy-making relates to the role of government in supporting

research and innovation. Moving away from a passive state mode (government
regulate) to an active state mode (governments create markets) is increasingly being
observed. The seminal book of Mariana Mazzucato, The Entrepreneurial State, gives
many examples from different countries and different technologies regarding how
governments induce technological change by actively making markets rather than
regulating the existing ones.234 The argument is that radical technologies and scientific

232. Meissner, D., Kergroach, S. Innovation policy mix: mapping and measurement. J Technol
Transf 46, 197–222 (2021). https://doi.org/10.1007/s10961-019-09767-4
233. https://www.nordicenergy.org/wp-content/uploads/2014/05/Renewable-Energy-Policies-
in-the-Nordic-Region.pdf
234. Mazzucato, M. (2013) Entrepreneurial State, Anthem Press.

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6. Concluding Remarks

breakthroughs seldom emerge from firms. Governments create such technologies

and the market until a risk-taking environment is set. The US missions, the recent
attempt of EU moving towards mission-oriented policy235, the roles of Chinese and
South Korean government in technological development, the role of government in
Brazil’s renewable energy technology development and health sector236 are just few
examples around the world.

Turkey is somewhere between the passive and active state modes.237 In some
sectors, such as defense and energy, and specific technologies, such as unmanned
aerial vehicle and now electric automobile, the government is more active. But we
cannot say that there is a general trend of moving away from passive to active state
mode. Automotive sector is a good example in this manner.238 Especially after the
Customs Union agreement with the European Union (EU) in 1996 the automotive
sector almost completely was left to market forces and government mainly regulated
the market. Now with TOGG this is changing. Even the investment decision and the
current activities to produce a fully electric automobile led to sharp changes in other
firms’ attitude. Currently, several brands are advertising heavily about fully electric
and hybrid automobiles much earlier than planned. Ford is establishing Turkey’s
first battery assemble plant.239 Active state mode and creating markets needs huge
research and innovation finance, macroeconomic sustainability, policy sustainability
and coordination among government bodies and between the government and the
firms. In all these areas Turkey has structural problems that are difficult to swiftly
address.

235. https://op.europa.eu/en/publication-detail/-/publication/5b2811d1-16be-11e8-9253-
01aa75ed71a1/language-en. See also the full acount of reports on mission-oriented policy:
https://ec.europa.eu/info/horizon-europe/missions-horizon-europe/mission-oriented-policy-
studies-and-reports_en.
236. https://publications.iadb.org/publications/english/document/The-Age-of-Missions-
Addressing-Societal-Challenges-Through-Mission-Oriented-Innovation-Policies-in-Latin-
America-and-the-Caribbean.pdf
237. Akçomak, I.S. and Emiroğlu, U. (2020), Devlet Kaynaklı Teknolojik Gelişme: Girişimci
Devlet ve Doğurgan Devlet, in Tiryakioğlu, M. (eds) Devletle Kalkınma, İletişim Yayınevi:
Ankara, 73-102.
238. Akçomak, I.S. and Bürken, S. (2020), Middle-Technology Trap: The case of Automotive
Industry in Turkey, in Ferreira, J. J., Teixeira, S.J., Rammal, H.G. (eds). Technological Innovation
and International Competitiveness for Business Growth, Palgrave, pp. 263-306.
239. https://blog.ford.com.tr/kategori/editors-picks/setting-up-turkeys-first-battery-assembly-
plant

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 6. Concluding Remarks

Another development in STI policy-making is the rise of public procurement as a

policy tool as part of the great interest in demand-side policies.240 All supply-side
designs whether backed by neo-classical or evolutionary theories assume that firms’
R&D and innovation activities should be supported providing that the demand is
ready. Most of the time this is not the case. Public procurement is especially important
in indirectly supporting early phase research and innovation activities and signal firms
that the market is ready. When assessed together with the rise of active state mode,
it is also used for creating (a market for) radical technologies. “Public procurement
for innovation” as a phrase is stated as a specific innovation strategy of the EU (the
Lisbon Strategy).241 Since then, it is a rising trend especially in the EU.

In Turkey the wide scale use of public procurement of innovation is rather recent (less
than 10 years). According to TÜİK Innovation Survey 2014 Turkey is in the last quarter
(among 30 European countries) in % firms with public procurement contract. Turkey
is in the third quarter in % firms that involve in innovation (not forced) with public
procurement contract. But most importantly Turkey is in top-5 in % of firms that public
procurement contract requires innovation (forced). This is a good indication that public
procurement for innovation is used as an STI policy tool in Turkey. The recent Techno
Catalogue of The State Supply Office can also be assessed as a movement towards
demand-side policies and especially use of public procurement for innovation.

Finally, mission-oriented policy is increasingly being adopted by developing as well as

developed countries as opposed to diffusion-oriented policy. US have been applying it
for years. France and Germany already have moved towards mission-oriented policy.
Italy’s recent attempt is also worth mentioning. The statement that new FP of the EU,
Horizon Europe, will follow mission-oriented policy principles even further enhanced
the popularity of missions.242 Horizon Europe with a budget of more than €100 billion
will be the leading research and innovation fund of the EU for the next 7 years (2021-
2027). New missions focus on “sustainability” thus differ from the old missions (e.g.,
man on the moon of US). Research and innovation efforts are organized around a
bold clear aim (e.g., 100 carbon free cities in EU by 2030) defined by a mission.

240. Edquist, C., Vonortas, N. S., Zabala-Iturriagagoitia, J. M., & Edler, J. (Eds.). (2015,
January). Public Procurement for Innovation. Cheltenham: Edward Elgar Publishing, 304 pp.
241. Edler J. (2012) Research and Innovation and the Lisbon Strategy. In: Copeland P.,
Papadimitriou D. (eds) The EU’s Lisbon Strategy. Palgrave Studies in European Union Politics.
Palgrave Macmillan, London. https://doi.org/10.1057/9781137272164_10
242. https://ec.europa.eu/info/horizon-europe/missions-horizon-europe_en

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6. Concluding Remarks

There are no clear attempts of moving towards mission-oriented policy in Turkey.

How the TOGG electric automobile is publicized may sound like a mission (an
indigenous electric car on the roads by 2022) but it cannot be said that all research
and innovation efforts are organized around this mission. For this reason, it is difficult
to say that TOGG can be considered a mission-oriented attempt.

In light of the existing analytical works and the main indicators related to Turkish STI
system, several STI challenges have been identified depicted under three categories
in Figure 6.1. Challenges in research, business and policy systems in Turkey are briefly
discussed below.

Figure 6.1. Challenges in research, business and policy systems

Challenges in the Challenges in the Challenges in science, technology and

research system business system innovation policy

skilled and sustainable increasing survival rates for increasing demand for innovation
human capital growing high-growth innovative
mechanism start-ups strengthening regional innovation
capabilities and overcoming regional
effective and efficient increasing R&D and disparities
research commercialization innovation capabilities of
from universities the private sector improving coordination of innovation policies

fostering university- strengthening the ecosystem impact evaluation and enhancing the
industry collaborations for VC and business angel knowledge base for evidence-based policy
on priority and focused industry making
areas
supporting open innovation the harmony among different innovation
ecosystems systems

adaptability of private sector policies regarding the nature and society

to digital transformation,
especially Micro SMEs

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 6. Concluding Remarks

Challenges in skilled and sustainable human capital growing mechanisms

The share of employment in knowledge-intensive activities in Turkey is very low

as compared to the EU average. The need to improve the human capital base has
always been on the agenda of governments in Turkey and emphasized in the policy
documents. Although there have been some improvements such as increases
in the number of researchers and R&D personnel, and in the number of scientific
publications, further efforts and diversified measures are needed to improve human
resources in a way that the absorptive capacity of companies is enhanced, and the
quantity and quality of researchers are increased. The quality of the education at all
levels needs to be improved in parallel with the observed increase in enrolment rates.
The existing programs at various levels of the education system are not sufficient to
meet the changing demand for human resources associated to new technologies
(automation, AI, biotechnology, etc.) as experienced in the COVID-19 process. While
the number of R&D personnel has significantly increased in the last decade, there
are still issues related to employment of highly-skilled persons particularly of natural
science graduates. The role of international cooperation programs such as EU
Framework Programme may be important in improving quality in HEIs.

Challenges in effective and efficient research commercialization from

universities

There has been significant progress in improving knowledge transfer from HEIs
towards business enterprises in the last years. Almost all new instruments aimed at
improving the collaboration between universities and private sector such as TTOs,
TDZs, and research infrastructures (RI). However, the collaboration between these
actors is not at the desired level. Most of the intermediate actors do not have fully
skilled and experienced people who work on technology commercialization. It is
needed to put more emphasis on relationship building to construct more capacity.
The enrichment of policy mix with a variety of measures is needed to address this
challenge, in particular via interface structures that conduct brokerage activities
among actors and consulting and mentoring interfaces for technology-based
ventures. Spin-offs should be encouraged both from universities and corporations to
foster the commercialization of knowledge created in these organizations.

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6. Concluding Remarks

Challenges in fostering university-industry collaborations on priority and

focused areas

Creating interfaces (technology development centers, technology parks, TTOs)

have been used as a general initiative to support university-industry collaboration.
However, a main challenge is going a step further from creating relations to creating
collaborations. It was assumed that when firms and university are in proximity, they
will automatically collaborate. The experience of the last two decades shows that
this is not the case. Culture and unbinding formal institutions (the rule of law) are
the two important factors that explain low collaboration in Turkey, where working
in teams and collaboration is an exception rather than a rule. Therefore, university-
industry collaborations have to be specifically supported. One such tool is to support
university-industry collaboration in priority areas. Currently, supporting collaborations
and priority areas are two aspects that seem to be detached. Thus, an important
challenge is to design specific policies to support/force collaborations in priority areas
and then create scale that such practices diffuse. There are several developments in
this aspect. For instance, TÜBİTAK has announced a framework for several TEYDEB
programs that directly supports the link (i.e., the collaboration) rather than the nodes
(university, firms etc.). When funding is directed to a node, it enhances capabilities
of that specific node (e.g., research funding to a university). However, when funding
is directed to a link, it enhances exchange of knowledge between linked nodes
and co-creation of knowledge which both parties benefit from. The organization of
Direct Industry Supports (SADE) and Indirect Interface Supports (AYDE) has specific
initiatives to support collaboration. However, SADE is currently inactive and SAYEM
and Commissioned R&D Calls are the programs that drive collaboration. Firms, people
and related nodes in the ecosystem are so used to getting funding for R&D and
innovation activities that it created its own inertia. The government must transform the
mindset of “give me money to do innovation” to “provide me the environment to do
innovation”. Therefore, the government can push firms, universities and other related
parties to involve in collaboration by increasing funding for collaborative activities.
The slowly emerging co-creation movement can also be assessed in this manner.

Challenges in increasing survival rates for high-growth innovative start-ups

In addition to the weaknesses in the regulatory and business environment, the

underdeveloped venture capital and business angel markets negatively affect
technology-based entrepreneurship. Support programs implemented by MoIT,

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 6. Concluding Remarks

TÜBİTAK, and KOSGEB have contributed to the creation of innovative start-ups.

However, more efficient and effective policy measures and support mechanisms
are needed to encourage educated and qualified human resources to see
entrepreneurship as a career option. In addition, most of the Venture Capital (VC)
Funds and Business Angels in Turkey invest only in the seed and Series A rounds of
a start-up. There is a strong need for growth stage VC funds and Series B and later
stage investment rounds to increase the expansion rates of innovative start-ups.

Increasing R&D and innovation capabilities of the private sector

Turkey needs not only to increase the diversification of its exports, but also to increase
the number of sophisticated (or core) goods and services in its export basket which
are strongly correlated with its competitiveness. In this regard, increasing low levels
of absorptive capacity of private sector is an important challenge. This is also critical
for upgrading its position in global value chains (GVC) as the interdependence among
economies increases and the role of GVCs in determining the position of countries in
the international division of labor becomes more important. A firm’s ability to innovate
is critical to retaining its competitiveness and even survival: in the long run, it is the
capability to generate a stream of products and processes that matters. R&D and
innovation capabilities of the private sector, particularly of Micro SMEs needs to
be increased. Increasing knowledge transfers from universities and other research
institutions to private sector is crucial. Consequently, to secure their position into
the future, firms need to be able to develop, maintain and renew their “innovation
management capability” which is not institutionalized in most SMEs and many large
firms in Turkey. In addition to firms that operate in relatively high-technology fields,
there is a need to increase the innovation capabilities of the firms in low- and medium-
technologies. In this regard, non-technological innovations (organizational, marketing)
also need to be promoted.

Challenges in strengthening the ecosystem for VC and business angel

industry

As mentioned above, venture capital and business angel markets are underdeveloped
in Turkey. A number of policy measures have been implemented in recent years in
order to improve the framework conditions faced by the venture capital and business
angels. There is a need to evaluate existing strategies and create a policy-mix to
enhance the access to finance for innovative ideas of individuals and enterprises.
The private investments in VC markets are low, which justifies the need for public

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6. Concluding Remarks

intervention. Government co-investment programs in VC Funds do not suffice as

the funds still face the challenge of raising money from private investors. Role of
International Financial Institutions (IFI) in the establishment of new VC Funds has been
significant in the last decade (e.g., İstanbul Venture Capital Initiative (iVCi), Turkish
Global Investment Fund (TGIF), European Bank of Reconstruction and Development
(EBRD) and International Financial Corporation’s (IFC) co-investments in VC Funds).
However, most of these VC Funds have been fully invested and they are facing
challenges in raising new funds, as there is little interest from the private investors
and government co-investments will not be sufficient to establish new funds. There
is now a stronger need from IFIs to sustain funding to the VC Funds that will invest
technology focused, innovative start-ups.

Challenges in supporting open innovation ecosystems

Turkey has made significant investments in its universities and public research
organizations to enhance the generation of knowledge. The knowledge base of
industry has also been expanded as business sector has increased its R&D and
innovation activities. However, the level of interaction between the actors is not
at its desired level. Turkey’s relatively lower scores in terms of innovation linkages
(for instance in EU Innovation Scoreboard) show that there is room for government
intervention. Public supports in Turkey are mostly designed to increase in-house
R&D and innovation activities. On the other hand, collaboration efforts are mostly
directed to enhance the vertical cooperation (such as university-industry cooperation
or supplier-buyer interaction). There are specific programs to encourage clusters
and support pre-competition research projects of firms, but their impact is not clear.
One example for lack of horizontal cooperation could be the decline in the number
and amount of allocated budget of KOSGEB’s Cooperation Collaboration Support
Programs which aims to support SMEs cooperating to meet their needs. In addition to
the problems in the institutional framework including weak IPR protection, inefficiency
of legal framework in settling disputes, and unethical behavior of firms, negative
socio-cultural attitude towards cooperation and weak interpersonal trust in society
are amongst the barriers to collaboration in Turkey. In this regard, open innovation
approach that allows “firms to use external knowledge and external paths to market
in order to advance and commercialize their technology” could be used to redesign
the innovation system in a way to encourage cooperation besides competition. The
creation of research infrastructures open to all users, supports for cluster activities,
and shared labs in some TDZs are amongst the promising activities to encourage
open innovation in Turkey in recent years. This progress should be improved with

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other types of open innovation applications such as living labs and technology
platforms that gather all stakeholders including users and enhance interaction among
them. Besides the supports for cross-disciplinary R&D and innovation activities, the
system must be strengthened by human resources with necessary skills to conduct
these types of activities. Last but not least, adequate protection of IPR to improve the
markets of technology should be on the agenda.

Adaptability of private sector to digital transformation, especially Micro

SMEs

The unavoidable introduction of technological changes in the life of modern homo

sapiens not only alters the humanity itself yet transforms societies and socio-economic
structure dramatically. The recent discussions on the so-called industry 4.0 or digital
transformation seems to have such a capacity. In this context, the current situation
in Turkey seems to be promising for policy development and innovative sustainable
policy-making. However, the most significant problem is the intensive participation
of sub-tiers in the domain of these actors such as SMEs, university research centers,
etc. in policy making and probable transformation actions. The late adaptation of the
industry to possible changes may have detrimental impact on Turkish industry.

Challenges in increasing demand for innovation and improving the

conditions for the uptake of innovations

Empirical studies show that companies are most sensitive to the needs of their
closest customers. The more sophisticated and demanding the customers are, the
more pressure is provided for innovation, productivity, efficiency, and for upgrading
product and service quality. In these circumstances, firms will be eager to differentiate
themselves from their competitors both in the domestic and international markets.
The size of the market is also an important factor since it helps companies benefit
from economies of scale. Another impact is on the introduction of innovative products
in a more sizeable environment that enables firms to process market signals with a
large amount of data. Lastly, existence of a sizeable market and increasing demand
for innovation also have a potential to accelerate FDIs. In Turkey, although there is no
official data on the sophistication of domestic demand, it can be weakly and intuitively
claimed that the sophistication level of consumers is not far beyond the OECD average.
Especially final consumers are keen to adopt innovative products and services as
pointed by case studies related to e-commerce, mobile phones, health devices etc.

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6. Concluding Remarks

On the other hand, similar case studies show that the situation is almost the same
for intermediate goods. Both central and regional governments should apply well-
defined technology adoption and diffusion policies for the innovative products beside
the tools used for the public procurement of innovation. Although there has been
important progress towards the use of public procurement to promote innovation,
these efforts are needed to be supplemented by long-term plans of public agencies.
Research activities should be integrated in light long-term procurement plans. The
studies by TÜBİTAK and TÜSİAD on digital transformation show that large industrial
firms and technology suppliers also demand sophisticated innovative products and
services.

Challenges in strengthening regional innovation capabilities and

overcoming regional disparities

Turkey has made progress in preparing regional innovation strategies while they
are in a laggard position with respect to monitoring and evaluation, policy-mix, and
identification of priorities. There is a need to enhance regional capabilities through
focusing on regional strengths and weaknesses and paying attention to the role of
low- and medium-technologies and non-technological innovations. Regional policies
aim to mitigate regional disparities and contribute to the equality of living conditions
among citizens. It is needed to increase the innovation capacity of private and public
sector together with NGOs via interaction in regional and/or local innovation systems.
Improving the relations with the actors in the ecosystem may further contribute to
eliminating regional disparities. Significant differences between the regions may
have repercussions on their development capacity and create different responses
to outward challenges caused by globalization of production and services. In turn,
this further creates tensions in terms of their capacity and capability to respond
to productivity and competitiveness pressures. What is striking in Turkey is the
overwhelmingly centralized decision-making power of the government. Regional
agencies seem to be effective on paper in regional decision making, yet they have
strict limits in practice for designing novel regional innovation policies. Moreover,
the innovation capacity needs of regions vary. However, the challenges of regional
articulation to global value chains and development need simple solutions. As one
moves to the upper ladder of innovation systems (national/sectoral), solutions become
more complex to apply. Regional authorities usually are aware of the solutions, but
they do not have the political and bureaucratic power to implement them. In Turkey,
through national innovation system actions, the central authorities present the same

226
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menu of incentives and supports to the firms, universities and other related institutions.
This creates problems and puts barriers to mitigation of innovation challenges and
innovation-related regional disparities. General supports should be complemented
with specific supports that are more focused and tailored. The first step is to prepare
mapping of needs and regional innovation strategies in accordance with smart
specialization framework. This would enable regional authorities to design spatially
targeted interventions.

Challenges in improving coordination of innovation policies

The coordination of and consistency between policies implemented by different

public agencies is a challenge for Turkey. There is an abundance of STI policy
documents in Turkey and, hence, there is need for a national R&D and Innovation
Strategy Document. The number of policy documents increased especially after mid-
2000s when public agencies almost feel obliged to prepare strategy documents.
Although these policy documents are prepared with the help of experts, it is difficult to
say that they are prepared with an evidence-based approach and that ex-ante policy
appraisals are conducted to shed light on their content. While STI documents focus
on specific issues, some are closely interrelated and may contain very similar actions,
leading to coordination problems besides the bureaucratic burden for public agencies
in reporting the developments for each strategy paper to related organization. In
addition to policy-making, all support mechanisms should be integrated to prevent
the waste of resources due to the duplications of public support schemes. An inter-
organizational coordination council (BTYK) has been operating since 2011, now
organized under the Presidency (CoSTIP). However, there is still lack of coordination
between different governmental bodies when it comes to design and implementation
of support programs.

Scarcity of systematic and periodic studies for impact evaluation and

enhancing the knowledge base for evidence-based policy making

Lack of systematic and regular impact assessments is a major issue that should
be improved upon without any delay. These impact evaluation studies may be ex
ante, interim or ex post. If the results of the programs/policies are not in line with the
targets, findings should be used to revise or even to abandon the policy instruments
assessed. In addition, these exercises can be used to increase accountability of the
funding process. Therefore, impact assessment studies should be made available to
the public, showing data as well as methodologies used, and findings obtained.

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6. Concluding Remarks

The harmony among different innovation systems

Although one may observe various initiatives among different types of innovation
systems (national, regional, sectoral and technological innovation systems) the
existing coordination problems impedes the complementary relations of different
initiatives among the innovation systems. Sometimes, these initiatives may produce
counter acting impacts through conflicting initiatives rather than complementary. The
dynamic capabilities embedded in each system is not utilized at the desired levels.

Policies regarding the nature and society

STI policies’ sustainability and success depend on their degree of formulation to

consider the relations of human society with their natural and social systems. However,
the policy-making practices generally do not consider this challenge. Human-nature
relations in STI policy-making often treated as a residual and is not considered
endogenous to the systems of innovation. Although we observe some evidence
of this struggle especially in some local/regional innovation systems, the general
understanding is still far away from what is desired. Such an approach may have a
potential to create sustainability problems in the medium- and long-term. Moreover,
the policy-making processes should consider the various segments of stakeholders
in the context of multiple-helix approach. The state of belonging and being an actor
of policy-making co-generate the actors with the requirements of regulations and
policies. However, the rising nepotism and clientelism in policy-making, on the other
hand, makes the policy initiatives idle and/or inefficient.

Epilogue

Turkey’s current story in STI policy-making is creating an environment (actors,

financing, intermediate organizations, entrepreneurs, support personnel) that
enables R&I activities to flourish. In accordance with this story, the STI policy in Turkey
created many nodes (actors: entrepreneurs, firms, intermediate organizations, new
public institutions etc.) but little interaction. Following complex policy trends, such
as an active government mode, policy-mix and mission-oriented policy, necessitates
good interactions as well as dynamic capabilities on the government side. In this
manner, Turkey’s STI policy needs a new story that focus on creating interactions
among actors to sustain and develop the STI system.

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6. Concluding Remarks

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List of Commonly Used Abbreviations

List of Commonly Used Abbreviations

ARBİS Researcher Information System

ARDEB Directorate of Academic Research Funding Programs
BERD Business Expenditure on Research and Development
BİDEB Directorate of Science Fellowships and Grant Programs
BİLGEM Informatics and Information Security Research Centre
BTYK Supreme Council for Science and Technology
GBOARD Central Government Budget Appropriations and Outlays on Research
and Development
GDP Gross Domestic Product
GERD Gross Expenditure on Research and Development
CIS Community Innovation Survey
COST European Cooperation in Science and Technology
CoSTIP Council of Science, Technology and Innovation Policies
EC European Commission
EIF European Investment Fund
EIS European Innovation Scoreboard
EPO European Patent Office
ERA European Research Area
EU European Union
FDI Foreign Direct Investments
FP Framework Program
FTE Full-Time Equivalent
GUF General University Funds
H2020 Horizon 2020
HAMLE Technology Focused Industrial Movement Program
HEI Higher Education Institution
HERD Higher Education Sector Research and Development
ICT Information and Communication Technology
IPR Intellectual Property Rights

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 List of Commonly Used Abbreviations

İŞGEM Business Development Centre

KOSGEB Small and Medium Enterprises Development Organization
KÜSİ Public University Industry Cooperation
KVKK Law on Personal Data Protection
M&A Merger & Acquisition
MAM Marmara Research Centre
METU-MEMS Middle East Technical University Micro-Electro-Mechanical Systems
Research and Application Centre
MoAF Ministry of Agriculture and Forestry
MoENR Ministry of Energy and Natural Resources
MoIT Ministry of Industry and Technology
MoT Ministry of Trade
MoTF Ministry of Treasury and Finance
NACE Statistical Classification of Economic Activities in the European
Community
NGO Non-Governmental Organizations,
NSI National System of Innovation
OEC Organisation for Economic Co-operation and Development
PPP Purchasing Power Parity
R&D Research and Development
RIO Research and Innovation Observatory
RTTP Registered Technology Transfer Professional
RUTE Rail Transport Technologies Institute
S&T Science and Technology
SAGE Defense Industry Research and Development Institute
SANTEZ Industrial Thesis Program
SAYEM Industry and Innovation Network Mechanism Call
SBB Presidency of Strategy and Budget
SME Small and Medium-sized Enterprise
SPO State Planning Organization
STI Science, Technology and Innovation
SUNUM Sabancı University Nanotechnology Research and Application Centre

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List of Commonly Used Abbreviations

TARAL Turkish Research Area

TARABİS TÜBİTAK Research Infrastructure Information System
TDZ Technology Development Zones
TEKMER Technology Development Centres
TEYDEB Directorate of Technology and Innovation Support Programs
TOBB Union of Chambers and Commodity Exchanges
TOGG Turkey’s Automobile Initiative Group
TRL Technology Readiness Level
TSE Turkish Standards Institute
TTA Technology Transfer Accelerator
TTGV Technology Development Foundation of Turkey
TTO Technology Transfer Offices
TUG TÜBİTAK National Observatory
TÜBA Turkish Academy of Sciences
TÜBİTAK The Scientific and Technological Research Council of Turkey
TÜRKAK Turkish Accreditation Institute
TÜRKPATENT Turkish Patent and Trademark Office
TÜSEB Health Data Research and Artificial Intelligence Applications
TÜİK Turkish Statistical Institute
UBYTS National STI Strategies
ULAKBİM National Academic Network and Information Centre
UNAM Bilkent University National Nanotechnology Research Centre
USPTO United States Patent Office
UZAY Space Technology Research Institute
ÜSİMP University-Industry Cooperation Centres Platform
VC Venture Capital
YÖK Council of Higher Education

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Notes

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