RECOMMENDATIONS FOR SMEs ABOUT R&D, INNOVATION AND INVESTMENT STRATEGIES

In Turkey’s R&D ecosystem, SME level companies are presented with many support, grants and incentive mechanism for R&D, Innovation and these transforming to investment. Among these mechanisms, KOSGEB, TÜBİTAK and The Ministry of Industry and Technology is involved with various incentives and grants. Therefore, the process is designed from end to end, from R&D to Innovation and Investment. Projects that start at TRL 1 level are supported to reach TRL 9 stage. Within the scope of the below article, KOSGEB R&D and Innovation support program, TUBITAK TEYDEB supports, KOSGEB Teknoyatırım, COVID 19 focused Development Agency supports and HAMLE program are mentioned in detail.

1.KOSGEB R&D AND INNOVATION SUPPORT

It is clear that we have much more time to “ think and mind perspire” in these days when the whole world is under the influence, the importance of social isolation is increasing, we have to maintain our lives more individually, to run our business from home or remote access platforms. More time should be devoted to the phenomenon of “Innovative Thinking” which cannot be allocated enough space within the time periods allocated for continuous production and manufacturing.

With the recent changes in the criteria of being SME, more than 95% of the country’s industry has entered the definition of SMEs of different sizes.  SMEs, which are an important part of the production chain, are important in terms of software as well as the raw material and intermediate product needs of the manufacturing activities.  Especially the existence of TGBs and the law numbered 4691, which serves for this purpose, brought important advantages.

It is very important for the companies in the SME class to carry out their functions and to maintain their R&D activities in a planned manner to ensure continuous and sustainable development. For this planning, KOSGEB, TUBITAK TEYDEB and some other ministries, with the coordination of the Ministry of Industry and Technology, have various supports such as refund and without refund

Research and Development Activity and outcomes; Innovative and original business plan with a certain level of uncertainty and designed to find a solution to a technological problem, basic research experimental development-applications including some of the research stages, budget prepared in line with the relevant legislation, conducted by expert researchers in the field, with defined intermediate and final outcomes it can be defined as a fiction that is strong, has a new or improved product and process, has an international-national or internal innovation characteristic, has the potential to produce one of the FSMH elements, and has the potential to produce academic output.  “Innovation” is the process of transforming the information that emerges after these processes into added value.

Companies with R&D projects can provide funds to their ideas and projects by following 2 basic ways.  The first of these is the grant funds provided by KOSGEB under the “R&D and Innovation Support Program” and the other is “TUBITAK R&D supports.

With this support, KOSGEB aims to enable small and medium enterprises and entrepreneurs with new ideas and inventions based on science and technology to produce new products, new processes, information and / or services.  The support period is 24 months, the total amount of support is 750.000 TL (300.000 TL refund, 450.000 TL without refund) and the support rate is 75%.  This rate increases by 15% in domestic goods purchases.  The support is applied on the KOSGEB website and the project is subject to preliminary evaluation by the appointed expert.  If the project is suitable, it is officially notified to the company as ACCEPTANCE / REJECTION after passing the technical and basic evaluation in a board of relevant experts.  For the projects accepted in the committee, companies start the project by signing a contract and signing a commitment.  Financial reports and related documents prepared every 3 months during the project execution phase are sent to KOSGEB via the system.  Technical evaluations about the project prepared by lecturers working in relevant departments of universities and appointed as audiences are offered to KOSGEB.

As in all R&D projects, the main parameter of KOSGEB ,R&D and Innovation Project should be “Innovative Direction”, “Applicability” and “Marketable Output “and the market, the customer must be clearly identifiable.

2.TUBITAK TEYDEB SUPPORT  

(HEAD OF TECHNOLOGY AND INNOVATION SUPPORT PROGRAMS)

There are 3 basic application elements within the TUBITAK TEYDEB system that SMEs can apply for. These are;

• 1501/1507 Industry and SME Initial R&D Support Programs
• 1505 University-Industry Cooperation Support Program

Of these, 1501 and 1507 programs have been transferred to the invited system since January 2020. 1505 program is open to continuous application.

• In 1501 and 1507 supports; the executive is industrial organization, consultancy support can be obtained from the academy. While the project duration for 1501 and 1507 is 36 months and 18 months, the project budgets are unlimited in 1501, 600.000 TL in 1507, and the support rate is 75% in both programs. 15% additional support is given to this ratio in the purchase of domestic-made machinery and equipment.

• In 1505 supports, the executive unit is the university and a faculty member attached to it, while the industrial establishment is defined as a customer. The university and academician conduct a special R&D activity for the company and then transfer information / technology. The project duration is 24 months, the project budget upper limit is 1 Million TL including VAT.

Important Changes

Of the projects to be prepared within the scope of 1501, an “Economic Feasibility Report” has been made compulsory for projects with a budget of 5 Million TL and above. TUBITAK will award a grant of 20.000 TL for the preparation of this report. Also, within the scope of prepayment, up to 150.000 TL unsecured payment can be received against the promissory note.

1501-1507 Invited System and Some Tricks

The most important trick in the invited period of 1501 and 1507 supports can be highlighted as COMMERCIALITY / TRANSFORMATION TO ECONOMIC BENEFITS when looking at both the percentage distribution of the evaluation criteria and the criteria in the application of additional points… In addition, TRL Level should be explained very well in the prepared projects.

3. FROM END TO END R&D – IN INNOVATION CHAIN INCENTIVE / GRANT OPPORTUNITIES FOR VALUE ADDED INVESTMENT

R&D studies are important for companies to convert their outputs into serial production and to make the right investments. When the regulations of KOSGEB, TÜBİTAK and related Ministries are examined, two main support elements come to the fore.

The first one is TECHNOLOGICAL PRODUCTINVESTMENT CAPITAL SUPPORT given by KOSGEB, and the other is the “Technology Oriented Industry Movement” program, which was included in the ecosystem in 2019 and managed by the Ministry of Industry and Technology.

3.1. SME Technological Product Investment Support Programme

As part of this support program;

1. In the applications made in order to ensure the production and commercialization of the products resulting from R&D / innovation activities, supports will be provided in low and medium low technology areas. The upper limit of the supports is 700.000 TL with refund and 300.000 TL without refund, totalling 1 million TL. The upper limit of supports to be given in the fields of medium high and high technology is 5 million TL in total, 3.500.000 TL with refund and 1.500.000 TL without refund.

Application conditions under this article; Proving R&D projects completed 5 years ago at most; Projects that have R&D projects supported by public institutions and organizations, which are protected by a patent, emerged with a Doctorate study, and have completed a TUR Certificate and whose prototype work is completed are supported. Having one of these documents is sufficient for the application.

2. In applications made for the production and commercialization of products in the medium – high and high technology fields that will contribute to the current transactions account, the upper limit of the supports is 6 million TL in total, 4.200.000 TL with refund and 1.800.000 TL without refund.

Application conditions under this article; it should be medium high and high technology products, contribute to the current account, project budget should not exceed 10 million TL, the applicant should apply with the stakeholder.

3.2. For Products To Be Produced Within The Scope Of The Measures Taken To Prevent The Coronavirus (COVID-19) Outbreak

The budget of the investment project doesn’t exceed 10 million TL, the applicant enterprise applies with the stakeholder, the products in the list should be designed to be produced within the scope of the measures taken to protect against the Coronavirus (COVID-19) outbreak. (disinfectants, cologne, protective clothing, protective glasses, masks, gloves, ventilators)

3.3. “HAMLE” Programme

When the Communiqué on the Fundamentals of Technology Focused Industry Mobility Implementation Program, which was enacted on September 18, 2019, R&D Grants, TUBITAK and KOSGEB Incentives and finally Investment Incentive Practices were gathered in a single window system. The priority areas of the country are determined as 8 main headings as machinery, chemistry, pharmacy, transportation vehicles, computer, electronics, electrical equipment, optics. The system operates on the basis of products determined under calls to be made in these areas. In this context, two types of new incentive mechanisms are implemented. These; “Strategic Incentive” and “Project Based Incentive”. Investments to be made between 10 million TL and 50 million TL are considered strategic, and incentives above 50 million TL are evaluated on a project basis. Companies use grants through Strategic Product Support (5 million TL grant) and TÜBİTAK R&D Programs (60% to 75% grants) when using investment incentives. The project duration is 36 months.

The R&D and Investment System provides companies with very important opportunities such as allocation of space, public purchase guarantee, payroll incentives, capital incentives, bank credit supports, qualified staff grants and corporate tax incentives. The system will make significant contributions to the country, such as decreasing the current account deficit of the country, producing value-added products, increasing intra-sectoral and inter-sectoral collaborations, naturally establishing the supply-demand balance, developing the competencies of companies, and increasing the opportunities for companies to expand abroad. This system will provide great benefits especially in the fields of Defence Industry, Chemistry, Pharmacy and Software that require supply security for our country. It will have important outcomes in the development of the supplier industry, one of the biggest bottlenecks of the defence industry.

Onur Balcı / İskender Cem Leblebici / Satılmış Göksülük / Sümeyye Amaç

Sistem Global Teknoloji