Various Sources for R&D Incentives

Over the past years we observed proliferation of sources of incentives and financial support for Research and Development projects in defence as well as in civilian industry. It is very difficult to prepare a comprehensive list. Here only a short outline of kaleidoscopic options is presented especially from the point of view of defence industry. Defence industry carries out a number of specific defence R&D projects and profit from general incentives designed for the benefit of science and technological base in Turkey.

Specific Defence R&D Projects

It is noticeable that two undersecretaries of Ministry of Defence have different principles and mechanisms for defence R&D projects.

R&D projects of Undersecreteriat of Defence Industry - SSM concentrate in priority areas, compatible with the needs and objectives of main system projects. Based on “Ten-Year Procurement Plan of Turkish Armed Forces 2007-2016 (OYTEP)”, SSM prepared a road map and “Technology Management Strategy 2011-2016”  for defence R&D projects. In this approach, major procurement projects of SSM have been analysed to reveal subsystem, component end technology requirements. These analyses lead to common technology areas as well as critical technologies. Hence SSM R&D projects concentrate in these areas.

On the other hand SSM endeavoured to evaluate industry, research institutes and universities for their competence and potential in 12 technology areas and designed Excellence Networks: Sensors, Electronic Warfare, Energetic and Propulsion, Advanced Materials, CBRN Technologies, Command Control and Information Technologies, Micro and Nano Technologies, Modelling and Simulation, Communication, Autonomous Command & Control, Destructive Systems, Space.

Today total of 6 Research Institutes, 7 Research Centres, 20 Universities and 43 industrial companies are placed in these networks. “R&D and Technology Management Department” of SSM organises and manages R&D projects in three groups: Sensors (infrared, piezoelectric, SAR …),Information technologies (Electromagnetic compatibility, sonoboy …),Advanced materials and energetic (Underwater vehicle, nano coating …)  

The other branch of Ministry of National Defence, namely MND Undersecreteriat has an “R&D and Technology Department” as well. They organise their projects based on technologies classified as “necessary” and “critical” defined in Defence Research Development and Technology Plan – SAGTEB defined jointly with Turkish General Staff.

An important task of R&D and Technology Department is the organisation and management of Technology Panels. In addition to representatives from various branches of armed forces, experts from universities, research institutions and industry form Technology Panels in the following 9 fields: Informatics, Sensors and Electronic Systems, Aerospace Systems, Land Vehicle Systems, Naval Systems, Material and Process Technologies, CBRN Technologies, Weapon Systems, Energetic Materials.

These function as platforms for coordination, information exchange and also have a mission as advisory boards to MND R&D and Technology Department.

General R&D Incentives

Most of the incentive organisations of today are based on the decision of Supreme Council for Science and Technology (BTYK) in 1993. The council accepted “Turkish Science and Technology Policy 1993-2003” and the concept of this document was also emphasised in the “Development Plan 1996-2000”. Turkish Patent Institute, National Metrology Institute (UME), The Turkish Academy of Sciences (TÜBA), Technology Development Fund of Turkey (TTGV) and Turkish Accreditation Agency (TÜRTAK) were established in this period. Also in this period Scientific and Technological Research Council of Turkey (TÜBİTAK) and TTGV started so support industrial R&D projects and Marmara Research Centre gave priority to industrial research.

We should mention another important document “Vision 2023” organised by TÜBİTAK during the period 2001-2004 with a broad participation. TÜBİTAK has two different Departments organised to run various research and development programmes.

 

TEYDEB

TEYDEB (Technology and Innovation Funding Programmes Directorate) of TÜBİTAK concentrates on private sector programmes such as: Industrial R&D Funding, Support for Project Markets, University – Industry Cooperation, SME R&D Start-Up Funding, International Industry R&D Support, Priority Area Programmes, Phased Support for Enterprising, Support for Technology Transfer Offices.

Industrial R&D Funding Programme is a general bottom-up programme which is aimed to fund national R&D projects offered by Turkish companies. The grant ratio provided by this programme can be 40 - 60 % of budget of the project and support duration of the projects is maximum 3 years. Projects proposed by Small and Medium Enterprises are supported with a higher ratio by this programme (%90 of personnel cost of micro SME projects; 75% of personnel cost for middle SME projects). Only SMEs which are not granted previously by TUBITAK can apply for the grant. In case of the employment of PhD graduates in the projects, 100% of personnel cost is supported.Techno-Entrepreneurship Funding Programme aims to support young entrepreneurs lacking of enough financial resources to realise their innovative and R&D based project ideas. Senior students or new graduates with undergraduate and graduate degrees are welcomed to apply for this programme.

ARDEB

ARDEB (Academic Research Funding Programme Directorate) of TÜBİTAK focuses on programmes of public establishments. Within this scope, requirements for Ministry of Defence are interesting for Turkish defence industry. Hence in ARDEB Defence and Security Technologies Research Support Group – SAVTAG programmes are interesting for our sector. We can mention some recent SAVTAG programmes as example: Passive Compound Detection System, National Electronic Encryption Key Distribution System, Detection of Harmful Components in Hardware Systems, Remotely Controlled Ignition Device

SAN-TEZ Programmes

Providing effective and productive university-industry cooperation has been in our agenda for many years. SAN-TEZ is an attempt in this direction. Projects are supported by Ministry of Science, Industry and Technology with the purpose to institutionalise university-industry cooperation and to commercialise scientific studies conducted in universities. As the method, a master or a PhD thesis in a university is conducted together with an industrial partner. Ministry of Science, Industry and Technology provides 75% and industrial partner provides 25% of the total cost of the project.

KOSGEB Programmes

Small and Medium Enterprises Development Organisation-KOSGEB has a support programme called “R&D, Innovation and Industrial Operations Support Programme” especially for small and medium enterprises. Although the support is generally small in amount, it can be provided as grant or as mo-interest credit. For small R&D programmes KOSGEB support may reach to %75. For initial capital support of the enterprise the ratio can be up to 100%.

Technopolises and R&D Centres

Following the establishment of legal base in 2001, technopolises have started to flourish in various universities. Today there are more than 30 technopolises in various universities. They became very advantageous places for entrepreneurs and academicians to carry out R&D based activities. Since such operations in technopolises there are considerable tax reductions, exceptions and exemptions. From the defence industry point of view we should mention ODTÜ Teknopark - METUTECH which encompasses about 50 defence companies and a special region – SAGTEB for defence. Another important development is İstanbul Teknokent led by SSM.

Companies with more than 50 full time equivalent research personnel can establish R&D Centres and with the approval of Ministry of Science, Industry and Technology receive incentives similar to technopolises mentioned above. Especially for large and middle sized companies of defence industry, this option is also quiet applicable.

Venture Capital

Venture capital usage is not very prevalent in Turkey. But I should mention efforts of Technology Development Fund of Turkey –TTGV in this scope. TTGV enterprises Teknoloji Yatırım A.Ş. and Istanbul Venture Capital Initiative provide start-up capital for R&D based work.

Multiplicity–Duplication?

As outlined above there are different origins for defence programmes and various support schemes for R&D work in defence. There have been complaints on this multiplicity and there are number of examples of duplicated effort.

On the other hand there is sound reason for this multiplicity as well. As I tried to point out above different organisations have different missions and starting points. For example SSM R&D Projects are based on requirement of long term system integration programmes of SSM; MND – R&D programmes start from prospective technological developments and related requirement. KOSGEB has a mission to develop small and medium size enterprises, TEYDEB of TÜBİTAK supports R&D in private companies and ARDEB of TÜBİTAK focuses on the public sector etc. Yes, for an SME in one of the Technopolises trying to receive support for a defence project, options are complicated and for most of the time, require many applications, reports and presentations. But considering different points of view and missions of supporting organisations this is, I’m afraid, inevitable.