1. Ulysses Advisory Group
Işıl Güney, Ph.D.
Ulysses Advisory Group
Life Sciences Innovation Ecosystem In Turkey

2. Contents I: Components Of An Innovation Ecosystem
II: Life Sciences Innovation Ecosystem In Turkey
III: Roadmap For Growing The Life Sciences Innovation Ecosystem in Turkey

3. Components Of An Innovation Ecosystem
Part I

4. Internal build up and/or import from outside
Innovation – The Basic Elements
Innovation
Government Policy
Basic and translational research; Development of human talent, entrepreneurship and competition; Immigration policy; Patent policy; Start-up support; Fund and follow-up projects with clear deliverables; Incentivize R&D investment; Stable and consistent policies overall
Financial Capital
Public funds; Philanthropic funds; Angel funds; Venture capital financing
Human Capital
Quality of education and access to training resources; Intellectual fulfillment and financial incentives; Opportunity for career development
Technology & Knowhow
Internal build up and/or import from outside

5. Life Sciences Innovation Ecosystem In Turkey
Part II

6. Turkey – population 75 million
18th largest economy in the world
Production driven, low-medium tech
Objective: Transform into a knowledge-based economy for smart growth
2023 Targets
Become one of ten largest economies of the world
Become a leading country in R&D; raise R&D expenditure from 0.8% to 3% of GDP
Health declared priority area
Medicines export: 595m TL; import: 5b TL (2012)
Develop first Turkish drug by 2023
Government Incentives
From R&D infrastructure all the way to product marketing, attractive incentives from government agencies, including MoDev, MoSIT, MoEcon, TUBITAK, KOSGEB, TUSEB (2017).

7. Life Science Innovation Ecosystem in Turkey
GOVERNMENT POLICY
Positives
Increased R&D Funding (TUBITAK cumulative 1.8b TL; ,2b TL)
Support for Establishment of Funds
Support of Establishment of TTOs
Support Programs (Entrepreneurship; Start-up, incentivizing R&D investment)
Immigration policy
Room for Improvement
Long-term investment for developing human talent and for keeping talent
Selection criteria for funding, follow-up and follow-on funding
Drawing foreign research organizations into Turkey
Patent policy
Stability and consistency in policy (innovation and market entry have very long timelines)

8. Life Science Innovation Ecosystem in Turkey
FINANCIAL CAPITAL
Fund of Funds
Turkey Investment Fund (TIF) 250m TL
Turkish Growth and Innovation Fund (TGIF) 200m Eur
Seed Funds (relatively easy to find)
EIF-supported DCP and ACT -> commercializing applied research from universities
Not enough VC funds- limiting step in startup and scale-up
There is no life science-dedicated fund in Turkey- we think this is necessary
This is a niche area that requires immense knowhow and expertise

9. Life Science Innovation Ecosystem in Turkey
HUMAN CAPITAL
Brain Drain
Many successful Turkish PhDs opting to work abroad
Thousands of Turkish students leave Turkey to receive education; many do not return
TUBITAK provides grants to researchers who come back

10. Life Science Innovation Ecosystem in Turkey
TECHNOLOGY & KNOWHOW
Internal Build-Up
Organic growth and Buildup (slow)
Clusters and consortia as platforms of collaboration: INOVITA, ITAM, ISEK
Import
Returning Scientists (not nearly enough)
TUBITAK-NIH support for R&D collaborations
Horizon supporting international collaborations

11. Life Science Innovation Ecosystem in Turkey
TECHNOLOGY & KNOWHOW
GAPS
Good ideas in academia but no major success stories for innovation in life sciences
Technology Transfer- efforts in place but lack of knowhow
Commercialization- From bench to the market: Business development; IP management; go-to-market strategy; company formation and team-building; strategic partnerships; financing and exit strategy

12. Roadmap For Growing The Life Sciences Innovation Ecosystem in Turkey
Part III

13. Why we believe in Turkey
Sector Potential
Strong engineering base, strong scientific diaspora, entrepreneurial drive, government support, much room for growth within an emerging economy
Market Potential
Geography: Links to Europe, Middle East and Turkic countries
Science
We come across interesting technologies- good work should not go to waste
Our experience tells as it can be done
We have contributed to success stories in similar contexts

14. Vision for Turkey: Product Development Partnership (PDP)
PDP: a hosted international R&D initiative with a public good mission that also supports the commercial needs of its private sector partners
Leverages public and philanthropic financial resources with those contributed by academia and industry partners
Focus on translational and clinical research and commercialization, with some basic research
Allows for cost minimization by virtualization, by tapping partner R&D resources

15. Vision: Product Development Partnership
Host government or industry establishes the legal entity and contributes seed funding
Once established, PDP operates as an independent entity with independent expert scientific advisory board; builds research partnerships, develops R&D portfolio and product pipeline, raises money from various funding segments

16. Vision for Turkey: Product Development Partnership
Semi-virtual: Operate out of its base in Turkey, with a network of partner institutions from within and outside of Turkey
Ideal for Turkey and partners
-> facilitates talent import, which Turkey needs
-> facilitates access to technical knowhow, which Turkey needs
-> partners benefit from Turkish government funds and incentives
Win-win model for all partners:
Rights to products developed are shared, with industry reserving commercial rights and governments distributing for public good.
Excellent for marketing and government relations.

17. The Gaps UAG Can Fill in Turkey
Innovation
Government Policy
Policy advice and development focusing on best practices around the globe;
Creation of public-private partnerships (discovery research to product)
Financial Capital
Fundraising (seed through IPO);
Fund management;
Mergers and Acquisitions
Human Capital
Talent management;
Interim hands-on management during start-up or critical organizational transitions
Technology & Knowhow
Commercialization: from bench to market;
Technology Transfer and Licensing;
R&D portfolio management