1. R&D Supports by Ministry of Science, Industry and Technology

2. Overview of Presentation Law on “Supporting R&D Activities” (No:5746) Main Objectives of “Supporting R&D Activities” Law: Scope of The “Supporting R&D Activities Law” Support and Incentives Supports R&D Centers Technology Development Zones SAN-TEZ Program Techno-Initiative Capital Support

3. Overview of Presentation Law on “Supporting R&D Activities” (No:5746) Main Objectives of “Supporting R&D Activities” Law: Scope of The “Supporting R&D Activities Law” Support and Incentives Supports R&D Centers Technology Development Zones SAN-TEZ Program Techno-Initiative Capital Support

4. Law on “Supporting R&D Activities” (No:5746) In February 2008, the Government approved a new Law on “Supporting Research and Development Activities” (Law No. 5746), implemented by the Ministry of Science, Industry and Technology, that provides a range of fiscal incentives for R&D and innovative activities by the private sector (as well as for the projects supported by public agencies and international institutions). Main Objectives of “Supporting R&D Activities” Law: Attracting FDI to establish R&D centers in TURKEY Commercialize technologic knowledge Creating jobs for high-skilled R&D Personnel and man power employment Decrease production cost Increase product quality and standard Increase productivity and make product and process innovation

5. Law on “Supporting R&D Activities” (No:5746) Scope of The “Supporting R&D Activities Law” are; Technology Centres (established according to the Law No: 3624 by KOSGEB) R&D Centres Pre-Competition Cooperation Projects Techno-Initiative Capital Support

6. Law on “Supporting R&D Activities” (No:5746) Support and Incentives R&D Allowance Incentive for Income Tax Withholding Incentive for Employer’s Social Security Contribution Stamp Duty Exclusion Incentive for Techno-Initiative Capital Support

7. Overview of Presentation Law on “Supporting R&D Activities” (No:5746) Main Objectives of “Supporting R&D Activities” Law: Scope of The “Supporting R&D Activities Law” Support and Incentives Supports R&D Centers Technology Development Zones SAN-TEZ Program Techno-Initiative Capital Support

8. Supports of Ministry of Science, Industry and Technology R&D Centers R&D Centres are the units, having the accumulation and capacity of R&D, of legal equity companies, narrow tax-payer institutions or those the business centers of which are located in Turkey; units which are organized separately within the organizational structure, which are exclusively engaged in R&D activities in the country and those that employ minimum 50 full-time equivalent personnel. After the publication of the Regulation in July 2008, so far; 149 enterprises have applied to Ministry of Science, Industry and Technology to establish R&D Center, 126 enterprises from 16 different sectors were found eligible to establish R&D Center, around 15.000 R&D personnels allocated.

9. Overview of Presentation Law on “Supporting R&D Activities” (No:5746) Main Objectives of “Supporting R&D Activities” Law: Scope of The “Supporting R&D Activities Law” Support and Incentives Supports R&D Centers Technology Development Zones SAN-TEZ Program Techno-Initiative Capital Support

10. Supports of Ministry of Science, Industry and Technology Technology Development Zones (TDZs) Aim is; to establish cooperation between universities/research institutions and private sector at the Technology Development Zones. Supports and Tax incentives provided by the 4691 numbered Law on Technology Development Zones have been extended till the end of 2023.

11. Supports of Ministry of Science, Industry and Technology Technology Development Zones (TDZs) As of January 2012; 45 Technology Development Zones (TDZs) were established and 32 of them are in operation in Turkey, 1859 firms in TDZs, foreign firms 71, 4893 R&D projects are being carried out in TDZs. 301 patents in TDZs, Software&IT, electronic, defense, telecommunication, medical and bio-medical, advanced materials, industrial design and environmental sectors.

12. Overview of Presentation Law on “Supporting R&D Activities” (No:5746) Main Objectives of “Supporting R&D Activities” Law: Scope of The “Supporting R&D Activities Law” Support and Incentives Supports R&D Centers Technology Development Zones SAN-TEZ Program Techno-Initiative Capital Support

13. Supports of Ministry of Science, Industry and Technology SAN-TEZ Program Industrial Thesis Supporting Program (SAN-TEZ) has been launched in 2006. % 75 of the budget of a SAN-TEZ project is provided by Ministry of Science, Industry and Technology as a grant, the rest 25% of the budget is being covered by the company who will commercialize the output of the project. As 2006-2011 statistics show, 509 eligible projects have been funded among 1447 project proposals from universities.(277 are in pre-evaluation period)

14. SAN-TEZ Program Budget (2006-2012) 2006200720082009201020112012TOTAL Allocated Amount of Support (Million TL) 5101520223061163 Ministry support (Million TL) 06.29.9013.4618.733.9239.2691.5 Number of Project Application 421831201742414202771457 Number of supported projects 17684576111292 continuing 509

15. Overview of Presentation Law on “Supporting R&D Activities” (No:5746) Main Objectives of “Supporting R&D Activities” Law: Scope of The “Supporting R&D Activities Law” Support and Incentives Supports R&D Centers Technology Development Zones SAN-TEZ Program Techno-Initiative Capital Support

16. Supports of Ministry of Science, Industry and Technology Techno-Initiative Capital Support Aim is supporting R&D projects of those having certain qualifications in order to transfer innovative and R&D-oriented business ideas into initiatives having high-value-added and high-quality employment potential.  Started in April 2009  In 2009, 78 of 159 Business Idea Applications were supported  In 2010, 102 of 72 4 Business Idea Applications were supported  In 2011, 272 of 859 Business Idea Applications were supported  In 2012, 1598 Business Idea Applications are in evaluation period.  Total of 50 Million TL is assigned for 2012.

17. Techno-Initiative Capital Support  Resulted as 3 Patents  And 67 of them converted their idea to commercial product and gain total of 8.3 million TL

18. THANK YOU FOR YOUR ATTENTION Abdullah ÖĞÜTVERİCİ Assistant Expert of Industry and Technology Ministry of Science, Industry and Technology DG for Science and Technology ANKARA abdullah.ogutverici@sanayi.gov.tr www.sanayi.gov.tr