HOW TTGV SUPPORTS R&D IN TURKEY
TTGV MISSION SLIDE SHOW
TTGV - Turkish Government R&D Support-Slide Show - Slide Show under progress.
TECHNOLOGY DEVELOPMENT
FOUNDATION of TURKEY
TECHNOLOGY DEVELOPMENT FOUNDATION of TURKEY
Atatürk Bulvari No.221 Kavaklidere, ANKARA
Tel. +90 312 467 2178 and 79 Fax. +90 312 467 4079
E-Mail: info@ttgv.org.tr
ozon@ttgv.org.tr
http://www.ttgv.org.tr
TECHNOLOGY DEVELOPMENT FOUNDATION of TURKEY
Technology Development Foundation (TDF/TTGV) was founded by the joint efforts
of private and public sectors on June 1, 1991. Besides the 1.100 million TL
(equivalent of approximately 226.000 USD as of June 1991), the major source of the assets is
the 43.3 million USD made available to its disposal through a Loan Agreement signed between
the Republic of Turkey and the International Bank of Reconstruction and Development
(World Bank/WB) on April 5, 1991. As stated in the said agreement, TDF is a confirmed
non-profit organization with ensured tax exemption status.
The organizational structure of the TDF is shown in Chart 1. Currently there are 47 founders;
industrial companies % 57, individuals %20, associations and similar organizations % 13,
public sector % 10. Three out of the 9 members of the Board of the TDF hold office by
appointment; representatives of Undersecretariat of Treasury, Small and Medium Industries
Development Organization, (KOSGEB) and Scientific and Technical Research Council of Turkey
(TUBITAK). The remaining six members are representatives of private sector.
The TDF was founded to realize the function attributed and tasks arranged to the so called
"Foundation for the World Class Technology" of the said agreement.
In line with this purpose, TDF was given the task of stimulating private investments in industrial
technology development as cited in the agreement. To be more specific, two major tasks assigned
to TDF, are "i) implementation of studies of aspects related to the competitiveness of
Turkish industry in a changing international marketplace and ii) provision through diverse
financial instruments, of seed capital for projects which have the potential of developing
Turkey's technology infrastructure."
The Mission statement of the World Class Technology Document elaborates further on these tasks:
"To improve the technology infrastructure by providing funds and expertise in support of industrial technology projects, the specific objectives are:
- To stimulate a real increase in industry's own investment in R and D.
- To encourage the development of technologies which have broad application and cross the boundaries of industrial sectors and scientific disciplines.
- To make scientists more aware of industry's needs by strengthening the links between industry, higher education, TÜBITAK, and other public sector research institutes.
- To identify priority areas of (industrial) research which have the greatest potential impact on the nation's economic position in terms of closing the technology gap with the competitor nations and improving nation's position in certain global trade sectors.
- To help industry to exploit developments in science.
PROJECT ACTIVITIES OF TDF
To accomplish its purposes the Foundation (TDF) administers two main groups of projects. These are; Technology Development Project (TDP) and Phase Out of Ozone Depleting Substances Project (PODS).
Technology Development Project (TDP) is financed by/through two different sources. One source is by the World Bank through Under Secretariat of Treasury, the other source is by the Government of Turkey through Under Secretariat of Foreign Trade.
Phase Out of Ozone Depleting Substances Project (PODS) is financed by the World Bank through funds made available by Montreal Protocol Multilateral Fund.
Technology Development Project (TDP)
Total allocated financial resources of 43.3 MUSD by World Bank and variable amount financed by the Government of Turkey to the Technology Development Project is dedicated for the realization of the goals described above by promoting following activities.
a) Technology Development Projects (TDPs) include technological innovation and/or
technological development by means of the research and development activities leading to
products that have industrial applicability and economical benefit.
b) Strategical Focal Point Projects (SFPPs) are studies done to identify the industrial
subsectors, specific technologies and/or products that have highest potential of economic
gain and the dynamics of international comparative advantages.
c) International Cooperative Projects (ICPs) are the initiatives which contribute to the
development of Turkish economy in international dimensions.
TDF carries out these activities according to the Foundation's By Law and Project Support Regulations which define appraisal, selection, auditing mechanisms as schematized in Chart 2.
There are two project solicitation terms in each year and these terms are made public through
daily journals and other means.
First solicitation term of the World Bank projects was started on January 1992. As of
December 31, 1996 there are 267 proposals received by the Foundation. 100 projects out of
267 proposals were accepted for support, 41 of them are completed, 55 are in progress and 4
more projects about R&D centers will be started soon.
Sixteen out of hundred projects are
strategic focal point project.
The sectoral distribution of the proposed and supported projects by technology area is given in
Table 1. As it is seen by the table; information technology comes first by 26% percent and
materials technology (24%), machinery (13%), electric-electromecanic and bio/agrotechnology
(11%), chemistry (9 %) and others (6 %) come respectively in terms of project proposal. In
case of supported projects, this distribution goes almost the same as it is shown in the same
table.
TDF has committed 43.3 million USD for the World Bank Projects. Because of the condition
that at least 50% of the budget of each project must be met by the partners, TDF has been able
to create industries own investment in R&D to the amount of 50.89 million USD.
Within the Government support programme TDF has been given the role of a dispersing agent
of theTurkish Government to finance industrial R and D. This programme entered indo force
on June 1, 1995. As of today 596,646.-USD has been committed to six projects contracted
during the first period. Two out of six projects are strategic focal point project. Second
solicitation term ended on November 29, 1996. During this term 72 project proposals have
been received. The total proposed amount of support for overall project proposals is
64.875.080 USD, the share of TDF within this support is 29.436.723 USD. The evaluation of
the projects is still continuing. The sectoral distribution of the proposed projects by technology
area is given in Annex (graph.13). As it is seen by the graph material technology comes first by
(20 %), electric-electronic (18 %), machinery (18 %), bio/agrotechnology (13 %), chemistry
(11 %), information technolog (10 %) and others (10 %) come respectively.
PROPOSED PROJECTS SUPPORTED PROJECTS
INFORMATION TECHNOLOGY 70 % 26 23 % 23
ELECTRIC/ELECTROMECHANIC 29 % 11 14 % 14
MATERIALS TECHNOLOGY 65 % 24 24 % 24
BIO and AGROTECHNOLOGY 29 % 11 13 % 13
CHEMISTRY 23 % 9 5 % 5
MACHINERY 36 % 13 16 % 16
OTHERS 15 % 6 5 % 5
TOTAL 267 % 100 100 %100
Table 1. Projects By Technology Area
Comparison of TDF support with firm lifetime firm size are given in Annex (Figure 4,5,6 and
8) respectively. Other relevant information about technology projects is given in graphs in
Annex (Fig. from 8 to 12).
PROJECT EVALUATION SUPPORT PROSEDURE OF TDF FOR TDP
Calls for project proposals
There are usually two project solicitation terms in each year and these terms are made public
by TDF through daily journals and other means.
Project proposals reaching the foundation until defined deadline are examined by the General
Secretariat for compliance with form and the general provisions of project support regulation of
Foundation. Those which do not satisfy with the required provisions is returned immediately to
their sponsors for due correction.
Projects that satisfy the requirements are transmitted to the relevant area committees.
Area Committees
Area committees are established to assist decisions to be taken by the Board of Directors of the
Foundation in connection with the extent of support to be provided to the projects.
The number of members of each committee shall be determined according to requirements.
Committee members shall be selected on the recommendation of the General Secretariat of the
Foundation, among distinguished experts connected to universities, public research and
executive agencies and/or private organizations. Sectoral Distribution of Area Committee
Members is given in Annex (Fig. 7). Each member of the relevant area committee gives grade
the proposals on the basis of defined criteria. In line with these assessment, the General
Secretariat submits his comments and recommendations on the projects to the Board of
Directors. The Board decides whether or not the project be supported.
An agreement is signed between the foundation and the executive partners and the project
manger of the projects selected for support.
Assessment of project performance
The performance of each project is assessed in technical, administrative, financial and legal
aspects by General Secretariat. The Secretariat also appoints an expert person for
technological and financial assessment.
Conclusion of Projects
The assessors examine the progress and final report including technological and financial
aspects of the concluded projects and submit them to the Secretary General along with their
comments. All reports are submitted to the Board of Directors for approval.
Project assessment, selection and administrative procedure of TDF is given in Chart 2.
Disbursement of the Foundation Contribution
A sum of the contribution provided by the Foundation to the project is disbursed to the
Foundation by executive partners, due account being taken of the fixed prices existing at the
time of the payments made in connection with this contribution and inflation indices
retrospectively consolidated by the State Institute of Statistics with respect to the project
agreement.
PHASE OUT OF OZONE DEPLETING SUBSTANCES PROJECT (PODS)
Republic of TURKEY’s Strategy for ODS Phase out
In 1992, the Government of Turkey (GOT) with the assistance of the World Bank, developed a
strategy for the Phaseout of Ozone Depleting Substances (ODSs) as part of the Country
Program. Although Turkey is an article 5 country, the GOT has decided to phase out ODS
usage under an accelerated scenario. Consistent with this scenario, the objective of the ODS
phaseout strategy is to eliminate the use of ODSs, expect for those required for recharging, by
1998.
The strategy calls for policy actions and investments to achieve the
effective phaseout of ODSs.
The development of policy actions under the ODS Phaseout Strategy is
the responsibility of the Ministry of Environment (MOE) whose jurisdiction
includes legislation, policy development, and enforcement of environmental
protection activities. Specific duties related to the Ozone Issue are to
supervise and coordinate international and national activities related to
the Montreal Protocol and to enforce the Government's Action Plan for
the Phase out of ODSs.
The Technology Development Foundation (TDF) has been given the responsibility
for identifying and preparing investment projects for ODS phaseout
in all of the ODS sector as explained below.
Phase out of Ozone Depleting Substances Project (PODS)
The PODS project is consisted of two parts, PODS I and PODS II, with
a total allocated financial resources of 19.865.000.-USD; by two
agreements signed on January 1994 with an amount of 5.865.000.-USD
and on October 1995 with an amount of 14 million USD. This resource
is made available to assist Ozone Depleting Substances (ODSs) using
industries to effectively and efficiently phase out ODSs usage through the
adoption of policy, technological and monitoring measures. In order
to achieve such objectives TDF is responsible on one hand, for the
selection of demonstration projects to develop alternatives to enhance a
smooth transition for SME's to non-ODSs using technologies, and on
the other, for to develop country projects for large scale ODSs users.
As of today, approximately 40 % of the 500.000.-USD made available for
SMEs demonstration projects has been dispersed and 45 % of 19.365.000.-USD
made available for country projects has been committed to four non-CFC
refrigeration projects. Four non-CFC projects from other sectors are
under preparation.
Under the First PODS Project, a survey had been carried out to identify
the ODS users. A seminar programme has been performed to inform the
industry on non-CFCs and its technologies. Developing of some demonstration
projects and prototypes is under preparation.
Under the First PODS Project (PODS-I), TDF's main responsibilities are
to:
- act as the financial intermediary for the disbursement of funds to the single
private sector investment project;
- administer the rollover of the loan component of the assistance
being provided to the sub project according to agreed criteria, and
more importantly to:
- inform such users, specially small and medium enterprises, of the
requirement to phase out ODS use and the technology options and assistance available
to them to switch to alternatives;
- prepare demonstration projects to further assist in providing
information on phase-out possibilities in each sector, and
- help enterprises prepare investment project proposals for
assistance from the OTF under the Montreal Protocol.
Under the proposed PODS-II, TDF's main responsibilities are:
- reviewing each sub-project's eligibility under the MP, its
conformity with the Country Action Plan and priority in terms both
of the quantity of ODS phase-out and its cost effectiveness;
- carrying out a detailed environmental analysis and technical
and financial appraisals of each sub-project for approval by the Bank
and, where the project cost exceeds US$ 500.000, the MPEC as well;
- to supervising and monitoring the sub-projects and administering
that portion of the assistance being extended to sub-projects as
loans and which would be subsequently rolled over.
Project Evaluation Support Procedure of TDF For PODS
- Project Proposal Forms are specific to each sector
(refrigeration, foam, solvent, fire extinguishers, aerosols). These
forms should be obtained from TDF at any time, for free. The
submitted project proposals are examined by the General Secretariat
for compliance with form and the general provisions of project
support regulations of Montreal Protocol and TDF. Those which do not
satisfy with the required provisions, are returned immediately to
their sponsors for correction.
- The proposal is then appraised by a consultant and submitted to
the World Bank for approval.
- An agreement is signed between TDF and the executive partners
of the project approved by the World Bank.
- The progress of each project is audited by the General Secretariat.
The Secretariat appoints an expert for this mission, who submits
periodical reports regarding the technical and financial aspects of the
project. On the other hand; the project manager is also responsible
for submitting periodical progress reports to the Secretariat.
Project Assessment, Selection and Administration of projects under
PODS II is given in Chart 3.
THE ROLE OF TDF FOR THE FUTURE TECHNOLOGY PROJECTS
The challenge of information society is said to equal
that of industrial revolution. It is characterized
by radical changes taking place at the technology base of production
systems and labor processes, following the emergence of new pervasive technologies lead by the information technologies. The social and cultural adaptation process is equally thorough going. The society is evolving into new complexities with ever shrinking time scales for change. The prospect of securing social and economic development therefore calls for new policies/strategies that go beyond the usual systems approach.
The particular challenge faced by Turkey is two fold;
· the unfinished project of industrial society restructuring,
· the evolving information society,
hence the industrial policies have to reflect the formidable task of inter-twining present and future structures in the same development strategy. Fortunately, there is an abundance of domestic and foreign experience to support such a strategy.
Turkey is strongly affected by the above change and the globalization of production-services-markets that is following it. She has to respond positively by adapting to this process and achieving competence in those technologies that have become the primary resources of economic growth. In order to have her rightful place in global and regional formations, she has to acquire the necessary capacity for science, technology and industry, and the ability to put it into service for problem solving. Her place will depend on the rate of this capacity building.
An important response to this immediate task of capacity building is provided by the “Project for Step Forward in Science and Technology”, which is a proposal made within the 7th Five Year Development Plan context. The proposed areas for immediate action are;
· National Information Infrastructure; the related Telematic Services Network,
· Flexible Manufacturing/Flexible Automation Technologies; their industrial applications,
· High Speed Train Technologies; the upgrading of railway system,
· Space and Aviation Industries, Defense Industries; an investment and development strategy,
· R&D in Gene Engineering and Biotechnology; project based applications,
· Environmentally Sound Technologies, Energy Conserving Technologies, Non-polluting Energy Technologies; development of nationwide applications,
· Advanced Material Technologies;
· R&D and related industrial investments.
Recent efforts by Turkey to achieve international competitiveness and penetrate international markets is gaining momentum. The high technology share in imports and exports is provided below as relevant indicator.
i. The share of country’s high technology products in the total exports is 9.3 % which ranks 31st in international standing among 40 countries.
ii. The rate of increase in high technology products in 76.1 % corresponding to the 15th place among 40 countries.
iii. The share of high technology products in imports is 37.7 percent, 23rd among 40 countries.
iv. In the high technology products trade, the ratio of foreign payments balance to total foreign trade shows a deficit corresponds to 35th place among 40 nations.
The industrial data for the period of 1988-1992 indicates that the manufacturing industry has achieved some success in the exportation of high technology products. A comparison of Turkey’s performance is given in Annex (Fig 1,2,3).
However, it should be noted that the technology threshold before nation’s industrial production could become the decisive factor for future progress.
Meantime with the help of outward oriented economic policies adopted since 1980 in Turkey, the need for modern technology has rapidly increased as it is shown in Table 2. And it is estimated that this need will further increase parallel to the increase of the number of the firms using advanced technologies.
TABLE 2
1982-1996
FOREIGN TECHNOLOGY INFLOW IN TURKEY
Direct foreign capital investment 1982 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Given permission (m $) 167 364 537 825 1471 1868 1967 1820 2125 1485 2938 3837
Realized investments (m $) 55 125 106 354 738 1005 1041 1240 1016 830 1127 483(1)
Import of investment goods (m $) 1940 3470 3816 3989 3850 5787 6046 6772 9565 6895 10489 5011 (2)
Foreign license agreements 25 76 94 76 74 70 56 48 36 54 55 64
1) as of end of June
2) as of end of May
In order to help industry to meet the need for applying modern technologies, TDF has been planning to cary out a group of projects besides its ungoing project activities. Within this framework TDF envisages to promote private sector’s R&D activities by establishing R&D Centers for electronic and textile industry advanced materials and bio/agro technology. On the other hand, further emphasis will be given to areas like software engineering, wood and furniture sector and technopark projects.
Meantime extention of environmental projects for the integration of environmental considerations into industrial development as underlined AGENDA 21 are being planned to be supported by TDF in addition to ongoing Ozon Project.
TDF’s other objective for the 1997 is to establish a Venture Capital mechanism and participate in this process in order to encourage individual investors for their future projects.
TDF’s has also initiated the Science, Technology, Industry Platform to help creating a medium where industry can exploit the developments in science. In these platform, TDF functions in collaboration with TÜBÝTAK and TÜBA (Turkish Academy of Science). The works of six study groups formed under the platform were published and made publicly available,and presented to the attention of the President of the Republic of Turkey. Furthermore, based on the works of one of the study groups, Prime Minister's Office has assigned the task of preparation of a Master Plan for informatics highway to TUBITAK.
Conclusions,
The major goals of the Foundation are to encourage Turkish industry, to increase in real
terms its investments in research and development, to carry out all
activities in accordance with the requirements thereof, to provide
funds and expertise supportive on industrial technology projects to
enhance technology and technological infrastructure, to identify
technological research areas which have potentially the highest
effect on the economic structure of the country, and carry out
research and projects in such areas by itself or by contract to
bridge the technology gap between Turkey and other nations and
strengthening Turkey's position in some global trade sectors, and to
strengthen the ties between the Turkish industry and higher education
institutions, The Scientific and Technical Research Council of Turkey
and other public and private research organizations.
Figure 1. High Tech. Share in Imports
Figure 2. High Tech. Share in Exports
Figure 3. Rate of Change in High Tech. Exports (Log Scale)
Figure 4. Comparison of Support of TDF with Firm Lifetime
Figure 5. Comparison of TDF Support with Firm Size(Personnel)
Figure 6. Comparison of TDF Support with Firm Size(Capital)
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Last updated December 25, 1999
© 1997, Egetek Foundation