BEST PRACTICES FROM TURKEY. Prof. Dr. Arzu MARMARALI Ege University Engineering Faculty Department of Textile Engineering

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1 BEST PRACTICES FROM TURKEY Prof. Dr. Arzu MARMARALI Ege University Engineering Faculty Department of Textile Engineering

2 Turkish Textile and Clothing Industry 2

3 Turkish Textile and Clothing Industry Leading sector with approximately 43,000 companies 25% of the companies are active exporters. Total investments have surpassed $150 billion. employing an estimated 2.5 million people providing indirect jobs for 6.5 million others. 3

4 R&D Activities in Turkish Textile Industry 4

5 R&D in Turkish Textile Industry R&D expenses in Turkey have increased 10% between (Innovation Union Competitiveness Report- 2011, by EU Commission). In this field, Turkey is the 4th growing country in Europe. Source: 5

6 R&D in Turkish Textile Industry The level of R&D expenditures as a percentage of Gross Domestic Product (GDP) from 0.37% in 1998 to 0.85% in This value was around 2% in EU [1]. R&D expenses (GERD) as a Percentage of GDP GERD Gross Expenditure on Research and Development GDP Gross Domestic Product Source: TurkStat [2] 6

7 R&D in Turkish Textile Industry Turkey's R&D researches are being carried out both universities (46%) and industry (42.5%). GERD by Performance Sectors Source: TurkStat 7

8 R&D in Turkish Textile Industry According to the 2013 targets, the proportion of industry (BERD) and Universities (HERD) are expected to be 60% and 26%, respectively. EU Commission expects the share of R&D is increased by 1.7 percent in 2020, twice as high as today in Turkey [3]. Source: 8

9 R&D in Turkish Textile Industry In this context, support of R&D activities and researchers has gained importance for the State. The law related with the support of R&D activities was implemented on August 1, 2008 in Turkey. 9

10 10

11 There are various support and funding programmes for companies and institutions. The major supporters are; The Scientific & Technological Research Council of Turkey (TUBITAK) Republic of Turkey, Ministry of Science, Industry and Technology Republic of Turkey, Small and Medium Enterprises Development Organisation (KOSGEB) Technology Development Foundation of Turkey (TTGV) 11

12 The Scientific & Technological Research Council of Turkey (TUBITAK) provides various supports to universities and companies. TUBITAK is the contact point for the Framework Programs of the European Union since 2003 and bilateral agreements with 18 countries at project level. 12

13 TUBITAK supports for Universities & Research Institutes 1011 The Programme for Participation in International Scientific Research Projects 1001 The Support Programme for Scientific and Technological Research Projects 1007 Support Programme for Research Projects of Public Institutions 1002 Short-Term R&D Funding Programme 1301 The Support Programme for the Initiative to Build Scientific and Technological Cooperation Networks and Platforms 3501 National Young Researchers Career Development Programme 1008 Patent Application Promotion and Support Programme 13

14 Number of project Million TL (With 2010 constant prices) Supporting of R&D Activities Number and the budgets of academic projects supported by TUBITAK ( ) Number of ongoing project Annual expense Years 14

15 TUBITAK supports for Industry SME Funding Programme TEYDEB Technology And Inovation Funding Programs Directorate EUREKA Programme Techno-entrepreneurship Funding Programme 15

16 However, the share of the R&D projects proposed by the textile companies is still within the scope of 1%. This value was 1.5 % in Distribution of the project proposal according to technological fields ( cumulative) 16

17 Ministry of Science, Industry and Technology has several R & D support programmes for private sector. These are; Industry Thesis Programme (SAN-TEZ), R&D Center Certificate Programme, Precompetitive Collaboration Projects Support Programme, Techno-venture Capital Suport Programme. 17

18 Industry Thesis Programme has been a very important step in providing university-industry cooperation TOTAL Number of project proposal Number of supported projects Percentage of supported ,5 37,2 37,5 38, ,9 41,1 40 projects were supported from textile industry. 18

19 R&D Center Certificate Programme The companies employing at least 50 full-time equivalent R&D personnel and ensuring the other conditions required by the law are granted with R&D Center Certificate through the Ministry of Science, Industry and Technology. Besides the supports to R&D projects, some tax cuts are also provided to the companies that have this Certificate by the Turkish Government. 19

20 The number of companies with R&D Center Certificate Information of the R&D Center Proposal and Evaluation Total Number of company licenced with the R & D Center Certificate Textile companies have granted by this certificate. 20

21 SMEs in Turkey are; 78% of total employment, 55% of total value added, 66% of total sales, 50% of total investments, 59% of total exports [4]. KOSGEB is a national organization responsible for developing and supporting of SMEs. 21

22 KOSGEB has various supporting programs like; Thematic Project Support Programme R&D, Innovation and Industrial Application Support Programme Cooperating-Leaguing Support Programme Enterpreneur Support Programme General Support Programme SME Project Support Programme Emerging Enterprises Market SME Support Programme Loan Interest Support Programme 22

23 844 SMEs were supported by R&D, Innovation and Industrial Application Support Programme (47,4 million TL) in TL of this support was used by 9 SMEs from Textile Industry. 23

24 The Technology Development Foundation of Turkey (TTGV) is a successful example to support R&D projects in the private sector since The Technology Development Foundation of Turkey combines 24 private sectors, 5 public institutions, 10 umbrella organizations and 15 individuals into one institution. 24

25 Technology Development Project Support aims to provide support for R&D activities of the companies that can develop products under the Technological Product. The budget of these projects can be up to 1 million USD. 25

26 Number of supported projects 16 projects were supported from Textile Industry between Total budget was around 7 M USD. The amount of contract of supported projects 26

27 Conclusion As the result of my presentation; Types and budgets of R&D support programs have significantly increased in Turkey. Even if the high importance of Textile and Clothing Industry for Turkish economy, the share of textile industry in total R&D expencess is just 1.5%. However, many companies in Turkish Textile Industry believe in the importance of innovation and they are willing to do research and development activities in the last years. 27

28 References [1] [2] TurkStat [3] [4] KOSGEB 2010 Faaliyet Raporu [5] 28

29 İZMİR THANK YOU VERY MUCH FOR YOUR ATTENTION 29

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