1. Knowledge Economy Projects in Turkey and Romania Knowledge Economy Forum III Budapest, March 23 – 26, 2004 Severin Kodderitzsch, World Bank

2. Overview From KE Concepts to Public Investments Turkey: From KE Assessment to KEIP KEIP - Project Objectives and Design KEIP - Project Components KEIP - Next Steps Different Approaches (Romania, Croatia, Russia)

3. A. Information infrastructure E. ICT Industry Promotion C. e-Government D. Capacity Building/ Human Resources B. e-Leadership, Policy & Inst. Development F. Socio-Economic e-Dev Applications KNOWLEDGE ECONOMY III. INFORMATION SOCIETY I. INNOVATION SYSTEMSII. LIFELONG LEARNING IV. ECONOMIC & INSTITUTIONAL REGIME A. Competition Policy B. Financial Sector C. Labor Markets D. Social Protection A. Institutional Capacity Building B. R&D Capacity Upgrading D. Technology Commercialization & Upgrading C. Technology Transfer & Dissemination E. Enhance S&T and Research in Formal Education D. Improve Mobility & Access C. Diversify and Reallocate Financing B. Reform Governance & Management A. Develop Key Competencies for KE KE: From Concept to Public Investment

4. I. Innovation Systems I. INNOVATION SYSTEMS B. R&D Capacity Upgrading D. Technology Commercialization & Upgrading 1. Restructuring Public R&D Institutes 3. Research and Training Partnerships 2. Competitive Grant and Fellowship Programs 4. Collaborative Research & Joint Projects with Industry 1. Technology Centers and Technology Parks 2. Start-up & Venture Capital Financing 3. Innovation Support Services to SMEs 5. Improve Firms R&D Departments for Production 4. Matching Fund Schemes for Technology Upgrading 6. Support Business Incubators C. Technology Transfer & Dissemination 1. Expand Linkages between Foreign & Local Firms 3. Promote High-Technology Imports 2. Facilitate Knowledge Intensive FDI 4. Knowledge Transfer to Rural Communities 1. Innovation Policy Formulation 2. Upgrading Physical Facilities/Infrastructure 4. Intellectual Property Rights 3. National Quality Standards A. Institutional Capacity Building

5. II. Lifelong Learning II. LIFELONG LEARNING A. Develop Key Competencies for the KE E. Enhance Science & Technology and Research in Formal Education C. Diversify and Reallocate Financing to meet the needs of lifelong learning D. Improve Mobility & Access to KE skill development services B. Reform Governance & Management 2. Create inter-institutional articulation and credit transfer agreements 1. Expand Distance Learning, including use of ICT 3. Define public policy on career development and implement programs. 1. Analyze the impact of demographics on HD development 2. Implement studies and policies to improve efficiency 4. Create incentives to stimulate investments in non-formal training 3. Diversify tertiary financing, balance public & private investment. 1. Analyze the Labor Market, determine needs of the knowledge economy 2. Benchmark competencies to needs of the knowledge economy 4. Implement qualification assurance systems for programs & institutions 3 Develop curriculum to teach KE competencies 1. Decentralize to meet regional & local needs as appropriate 2. Expand tripartite governance to involve a range of stakeholders 4. Institute accountability, transparency, quality assurance measures 3. Reform tertiary governance & administration 1. Improve incentives for science & engineering in higher education 2. Strengthen linkages between HEIs & business 4 Design and provide resources for technology transfer schemes 3. Develop Campus Incubator Units

6. III. Information Society F. Socio-Economic e-Dev Applications III. INFORMATION SOCIETY A. Information Infrastructure D. Capacity Building/Human Resources C. e-Gov. 1. Fund/support innovative ICT applications in societal sectors B. e- Leadership, Policy & Institutional Development E. ICT Industry Promotion 1. ICT clusters and parks 2. Gov’t Supported Programs/Funds 2. Institutional Capacity 1. Strategy & Vision 3. Legal & Regulatory Framework 1. Telecommunications 2. Internet and Broadband 3. Postal Sector Reform 4. Telecenters (urban/rural) 1. ICT Training for Civil Servants 2. ICT training for SMEs 3. ICT in vocational training, secondary & tertiary educ. 4. Business education/support for ICT Entrepreneurs 3. Citizen Services 5. Procurement 4. e-Health and e-Education 6. Business Support Services 1. Justice 2. Taxes and Customs 7. Integrative Portal Services

7. IV. Economic and Institutional Regime IV. ECONOMIC & INSTITUTIONAL REGIME 1. Developing a Competitive Regulatory Environment 3. Increasing Domestic Competition and Entry 2. Reducing Tariff and Non-tariff Barriers 4. Providing Tax Incentives to Promote KE-based firms & SMEs 5. Attracting Foreign Direct Investment 6. Clearly Defining Property Rights A. Competition Policy D. Social Protection C. Labor Markets B. Financial Sector 1. Building a Reliable Legal & Judicial Environment 3. Fostering Diversity & Developing Capital Markets 2. Strengthening the Banking System 4. Improving Access to Financial Services 1. Overhauling Pension Systems 3. Improving Municipal Services 2. Targeting Social Assistance 4. Increasing Community Participation 1. Reforming Labor Codes & Wage Bargaining Mechanisms 3. Strengthening Job Search & Unemployment Programs 2. Removing Administrative Restrictions on Labor Mobility

8. Turkey: From Assessment to Project Knowledge Economy Assessment Country Assistance Strategy Knowledge Economy and Innovation Project

9. Project Objectives Improving the competitiveness of Turkey ’ s economy Creating knowledge-intensive, value-adding jobs By: (a) connecting enterprises with sources of information, knowledge and technology within Turkey and abroad (b) facilitating an information society (c) enhancing human capital to meet the requirements of a knowledge economy (d) supporting an environment in which knowledge-based initiatives can develop

10. Project Components 1. Enterprise Innovation 2. Information Society Development 3. KE Skills Development 4. KE Policy Capacity Proposed WB Loan $100m

11. Project Design Enterprise-centered (SME), growth agenda Link to education sector via labor market Building on accomplishments and programs in Turkey Primary and Secondary Education Turkish Technology Development Foundation (TTGV) Turkey e-Transformation Program Public – private partnerships Regional / Local-level Implementation Long Term Commitment Foster Turkey ’ s membership into the EU

12. Enterprise Innovation Support National Level: 1. Scale-up ongoing TTGV technology programs 2. Establish new technology programs – Support for Commercialization, IPR Support, EU 6th Framework Support 3. National Technology “ Competition ” 4. Operational Review of TTGV Regional Level: 1. Establishment of Innovation Coordination Centers in 2 or more pilot regions 2. Awareness raising, information provision, coordinating support for enterprises, including innovation training 3. Administering new Small Technology Loan Scheme 4. Coordination with National Programs

13. Information Society Development In support of Turkey – e-Transformation Program National Level: 1. Establish single Government Portal/Gateway 2. Introduce e-procurement platform 3. ICT capacity building within selected public institutions Regional Level: Establish public internet access points

14. Skills for the Knowledge Economy Regional level: (a) identify and promote demand for knowledge economy skills (b) deliver knowledge economy skills to workers in enterprises, entrepreneurs, and recent graduates of secondary and higher education institutions (c) carry out quality assurance monitoring, evaluation, and scale-up design  skills delivered are demand driven  supply --service providers – to be reimbursed based on agreed performance criteria

15. KE Policy Capacity Building National Level:Regional Level: 1. Benchmarking and publication of Annual KE Report 2. M & E procedures for KE Policy initiatives 3. M & E framework for KEIP project 4. Raise awareness of KE issues (across KEIP components) Regional Level: 1. M&E of project activities at regional level

16. Next Steps Partner Institutions / Implementation Arrangements (across components) Selection of Regions Moving from Preparation to Implementation

17. Different Approaches Romania: Knowledge Economy Project integrating PSD and Education via ICT Croatia: Science and Technology Project Institutional development Russia: Distance Learning Project

18. Thank You.