dr. mustafa atilla cyberpark, (bilkent university) ceo and board member, cyberpark, (bilkent...

Dr. Mustafa AtillaDr. Mustafa Atilla

CEO and Board Member, Cyberpark, Cyberpark, (Bilkent University)(Bilkent University)

CEO and Board Member, Mobilsoft (Meteksan Group)

Turkey

Meeting Industry Demand for R&D and Technology

SCIENCE & TECHNOLOGY PARKS

IN TURKEY

MUSTAFA ATİLLA

CEO, Ankara Cyberpark, Turkey

Innovation and Competitiveness Practitioners Workshop

April 19 –21, 2004

The Marmara Hotel

Istanbul, Turkey

“

TURKEY R&D CAPACITY

(SSI, 2004)

Number of people in R&D by Sector

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Private Sector Public Sector Universities

1998

1999

2000

(SSI, 2004)

TURKEY R&D CAPACITY

Source: OECD MSTI database, Nov. 2003

TURKEY R&D CAPACITY

Some Facts:The amount of investment in R&D in comparison with developed countries is dramatically lowAn important portion of R&D investment is made by governmental institutions or universities Weak innovation culture and poor R&D infrastructureLegislation (particularly inefficient and insufficient incentive mechanisms) was the biggest barrier in front of R&D activities for many years.IT related products and software form an important import category. There is a big negative imbalance in IT exports/imports.The imbalance between the number of scientific publications and patents is an important indicator showing Turkey’s inability to convert the scientific research studies into applicable knowledge and technological products.

SCIENCE PARK?

“A Science Park is an organization managed by specialized professionals, whose main aim is to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge-based institutions. To enable these goals to be met, a Science Park stimulates and manages the flow of knowledge and technology among universities, R&D institutions, companies and markets; it facilitates the creation and growth of innovation-based companies through incubation and spin-off processes; and provides other value-added services together with high quality space and facilities.” (IASP web page, 2003).

MAIN OBJECTIVES OF SCIENCE PARKS

Stimulate the formation of start-up new-technology-based firms (NTBFs) Encourage the growth of existing NTBFs Foster the technologies of the futureCreate synergy between firmsCreate new jobs for the regionImprove the performance of the local economyImprove the image of the location, particularly for areas of industrial declineShift local / regional industrial base from declining to new industriesCounter the regional imbalance of R&D capability, investment, innovationImprove national competitiveness levelStimulate science-based technological innovationEncourage spin-off firms started by academics

Encourage and facilitate links between higher education institutions (HEI) and industry

Facilitate technology transfer from academic institutions to park firms

Commercialize academic research Increase the “ relevance” to industry of

HEI research Create employment and consultancy

opportunities for academic staff and students Engender an entrepreneurial culture Attract inward investment, mobile R&D Provide an adequate and safe return on

capital Generate income for the academic

institutions Create convenient environments for the

high-tech firms to conduct their R&D studies

TECHNOLOGY DEVELOPMENT ZONES LAW (LAW NO:4691), TURKEY

Technopark concept taken in the agenda of Turkey only in the mid 90’s.To promote establishment of science and technology parks under the guidance and lead of universities some legislations were made by Ministry of Industry and Trade:

Technology Development Zones (TDZ) Law (Law No:4691), which came into force on 06.07.2001, and

Application Regulation of this Law, which came into force on 19.06.2002.

With this law, companies are encouraged to invest more in R&D and software development, through tax incentives.Any kind of software development activity is considered as an R&D activity according to the law.In establishing a STP, involvement of an higher education or a research institution as a founder is a mandatory requirement in the law

The aim of the law is: to increase synergy between universities, research institutes and industry, to increase international competitiveness and export potential of industry by

adapting/developing high/advanced technologies, to facilitate more innovations, to increase the quality of technological products, to increase productivity, to decrease the costs of production, to commercialize technological knowledge, to support technology based entrepreneurship, to enable SMEs to adapt to new and advanced technologies, to create investment opportunities in technology intensive areas, to create employment opportunities for researchers and qualified persons, to help technology transfer, to provide technological infrastructure attracting foreign capital and international

firms providing high/advanced technologies.


Tax Exemptions and Incentives provided with the law (till the end of 2013) :Income and corporate tax exemptions for the operating companyIncome and corporate tax exemptions for the incomes generated from software development and R&D activities of the companies operating in these zonesIncome tax exemptions for the salaries of the researchers, software development staff and R&D personnel working in these zones VAT exemptions for the sofware development activitiesSponsored aid and donations for the individuals and institutions having R&D activities in the zone Right of recruitment of individuals from government research organizations or universities in the zone with the approval of their organizations. (The income obtained in the zone by academicians or research personnel are exempted from the university revolving fund deductions) Legal permission for academicians to establish firms or become a partner of existing firms in the zones to commercialize their academic works (with the approval of their university)


After the Law, 12 new science and technology parks (STPs) were approved by the Ministry of Industry and Trade :

1. Ankara Cyberpark (Bilkent University, Ankara)2. METU Technopolis (METU, Ankara)3. Hacettepe University Technopark (Hacettepe University, Ankara)4. GOSB Technopark (Sabancı University + Kocaeli University, Kocaeli)5. TÜBİTAK MRC Technopark (TÜBİTAK Marmara Research Center,

Kocaeli)6. İstanbul Technical University ARI Technopark (İTU, İstanbul)7. İzmir Technopark (İzmir Institute of High Technology+9 Eylül Univ.+ Ege

Univ., İzmir) 8. Yıldız Technical University Technopark (Yıldız Tech. University, İstanbul)9. Kocaeli University Technopark (Kocaeli University, Kocaeli)10. Eskişehir Technopark (Anadolu Univ.+Yunus Emre Univ., Eskişehir)11. İstanbul University Technopark (İstanbul University, İstanbul)12. Selçuk University Technopark (Selçuk University, Konya)

SCIENCE & TECHNOLOGY PARKS IN TURKEY

Active STPs:1.Cyberpark2.METU3.Hacettepe4.GOSB5.MRC6.İTU ARI

Initial Dev. Phase:7. İzmir8. Yıldız9. Kocaeli10.Eskişehir11.İstanbul12.Selçuk

TDZ applications of Batı Akdeniz University (Antalya), Blacksea Technical University (Trabzon), Erciyes University (Kayseri) have also been recently approved!

1

32

5

8

4

7

11 9

10

6

12


When were Science Parks created? (IASP, 2002)

TURKEY (active STPs) STPs in the World

Name of STP Year of Estab. Ankara Cyberpark

2002

METU Technopolis

2000 (2001*)

Hacettepe

2003

TÜBİTAK MRC

1998 (2001*)

GOSB

2002

İTU ARI

2002

(* Announced as TDZ)


Name of STP Size of Land (m2) Ankara Cyberpark

372.000

METU Technopolis

805.000

Hacettepe

1.550.000

TÜBİTAK MRC

560.000

GOSB

120.000

İTU ARI

1.950.000

Science / Technology Parks area (IASP, 2002)



STPs: Number of tenants (IASP, 2002)


Name of STP

Number of Companies

Ankara Cyberpark

50

METU Technopolis

105

Hacettepe

20

TÜBİTAK MRC

10

GOSB

3

İTU ARI

26



Employees in Science Parks (IASP, 2002)

Name of STP

Number of Employees

Ankara Cyberpark

1000

METU Technopolis

1100

Hacettepe

60

TÜBİTAK MRC

70

GOSB

250

İTU ARI

600


Name of STP

Main Fields of Operation

Ankara Cyberpark

ICT, Electronics

METU Technopolis

ICT, Electronics, Defence tech.

Hacettepe

ICT, Electronic

TÜBİTAK MRC

ICT and Material tech.

GOSB

Software Development, Electronics

İTU ARI

ICT

TURKEY (active STPs)STPs in the World

Technology Sectors in Science Parks (IASP, 2001)

Main Technologies in STPs in Turkey

90%

10%

ICT

Other Technologies



The TDZ Law enforces involvement of universities for establishment of STPs

All of the STPs in Turkey are situated within or near the lands (within < 5 km radius) of universities, in order to create close relationship with university community.


STP and University: Location (IASP, 2002)

STP and University: Distance (IASP, 2002)

Governmental aids through Ministry of Industry and Trade, for land acquisition, infrastructure and management building construction costs

World Bank credit to STPs by Industrial Technology Project through TTGV (Cyberpark, ARI technopark)

Other international credits and funds like World Bank InfoDev Incubator Initiative (Cyberpark Technology Incubator)

KOSGEBs support for TEKMERs

SUPPORT MECHANISMS FOR TECHNOPARKS AND INCUBATORS

INCUBATORS IN TURKEY

Parallel to the poor entrepreneurial culture, incubation culture is too poor as well. Currently available incubators (12) in Turkey, called TEKMERs (Technology Development Centers), are managed by KOSGEB (SME Development Organization), a governmental agency. Except one incubator (Ericsson’s Creaworld) there is no private or PPP incubator

Cyberpark technology incubator will be unique with its governance model by being first incubator with public private partnership and having a private management. Cyberpark incubator has been shortlisted for app. 300.000 USD WB grant through InfoDev Incubator Initiative Program.

Only two TEKMERs are located in STPs and have tax incentive advantages.Grants available for incubatees for many purposes, however access is relatively bureaucratic and limited. Services provided by KOSGEB in TEKMERS are rapidly improving

MAIN CHALLENGES AND RECOMMENDATIONS

Poor Institutionalization:Still many universities are planning to establish new STPs. However, the focus should be on quality rather than quantity. Most of the STPs suffer from insufficient know-how and best practices. Most of the STPs are established as land development projects, so the required institutional development has not been achieved (technology and business support mechanisms, incubators, consultancy on IPR, access to financial resources, etc. are absent)

An NGO is required to provide a platform for cooperation and sharing best practices. (Turkish Science and Technology Parks Association)Too much focus on ICT. Attracting other technologies is crucial to have crosssectoral R&D. The main attraction argument in most STPs is tax advantages (other attraction elements providing the permanent success of the zones are mostly absent!)Special purpose STPs are required. Regional capacities and priorities should be considered. (Agroparks, mediparks, etc.)Lacking Synergies: Most of the universities impose barriers for their academics to work in other universities’ science parks

Assurance of financial support for initial setup:Existing governmental support is not sufficient to meet the required investment even for a single STP. Total governmental budget is around 2 million USD, which should be more than 50 million USD.World Bank credit through the Industrial Technology Project was very limited and only covered a part of construction costs of two STPs (Cyberpark, İTÜ technopark), so new WB financed projects may have larger components.

There is no support for commercialization of R&D. TTGV may devise new support mechanisms and tools for commercialization of R&D results.Similarly, there is no support mechanism for private incubators. Knowledge Economy Project may reserve some funds for supporting private incubators.Tax incentives in STPs may be given not only for software companies and companies having R&D activities but for support organizations such as venture capital funds as well.International recognition and attraction of FDI.

MAIN CHALLENGES AND RECOMMENDATIONS

Dr. Mustafa AtillaDr. Mustafa Atilla

CEO and Board Member, Cyberpark, Cyberpark, (Bilkent University)(Bilkent University)

CEO and Board Member, Mobilsoft (Meteksan Group)

Turkey

THANK YOU !

dr. mustafa atilla cyberpark, (bilkent university) ceo and board member, cyberpark, (bilkent...

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