At a recent meeting, Minister of Industry and Technology Mustafa Varankannounced Turkey’s 2023 Industrial and Technology Strategy. Note that there are highlights in the strategy shared in PDF presentation format.
R&D targets are similar to those of the manufacturing industry. The R&D Ratio in Gross Domestic Product is expected to be 1% in 2017 and 1.8% in 2023. Likewise, the number of researchers is expected to increase from 112,000 in 2017 to 200,000 in 2023. Under global R&D leadership, the top 2,500 companies are four companies in 2018, with this number expected to rise to 23 in 2023.
When we look at technology transformation targets, we see interesting results. The number of developers is announced, from 140,000 in 2018 to more than 500,000 in 2023. The size of technology-based investments is expected to increase from million in 2018 to billion in 2023, a significant increase. Globally, brands are expected to have 23 smart products by 2023.
The Ministry of Industry and Technology, which localizes the definition of “unicorn company” globally and translates it into a “turcorn”, says that in 2023 the number of domestic enterprises with a valuation exceeding billion will be 10. The components of the 2023 industrial and technology strategy are high technology and innovation, digital transformation and industrial move, entrepreneurship, human capital and infrastructure. More than 300 product groups are also targeted to be produced in Turkey. These product groups are machinery, naval vehicles, motor vehicles, semiconductors, electrical electronics, aerospace and space, chemistry and pharmaceuticals as rail systems.
The technology-oriented industrial move consists of R&D supports, R&D supports, investment supports, marketing supports and export supports. Accordingly, the ratio of imported intermediate goods will be reduced in our industry and our hand will be strengthened in global competition and R&D investment products will be managed through a single window. Investment Incentives will be defined end-to-end with TUBITAK, KOSGEB and R&D supports. The product will be supported from the idea stage to the market.
The share of medium-high and high-tech products in exports will be increased from 39% to 50%. Investments supported under the programme will receive strategic investment incentives. Investments over TL 50 million will benefit from project-based incentives. Development Agencies will play an active role in promoting investments and in producer-receiver pairings. The ministry will schedule all projects decided to support, and closely monitor all R&D and investment processes. The procurement guarantee mechanism will also work on projects where the public is a buyer.
According to the strategy, the technological roadmap highlights topics such as artificial intelligence, 5G, cyber security, big data and data analytics, IoT, blockchain, robotics and autonomy, and nanotechnology. The development of autonomous and electronic vehicles will increase and this will be spread throughout the global market.
The digital transformation of the industry will co-operate with the public, private sector and NGOs. The added value and the new incentive system will proceed as follows; directed through a single window, targeting output, project-based evaluating, sector priority, lean and innovative, tailor-made support and r&d in the foreground initiatives will benefit from Value Added. The new incentive system will be based on predictability, simplicity and effectiveness.
In the development of non-bank capital and financing instruments, crowdfunding, venture and venture capital, issue of stock-convertible bonds, directing pension funds to investments and encouraging public offerings are decisive there will be elements. In the banking system special window for industry and technology, banks will be at the forefront of reducing credit costs, reviewing KGF and developing participation banking instruments.
In the effectiveization of the entrepreneurship ecosystem, turkey’s enterprise ecosystem platform and website, institutionalization, branding, international market access support, dissemination of open innovation approach, corporate company the managers’ interest in angel investment, commercialization of technology with the cooperation of academician-manager, easy enterprise establishment, easy closure when it fails, “Welcome Package” and “Entrepreneur Visa” will be supported. Policies and practices that strengthen technology suppliers and entrepreneurs include a “bilateral support” program that combines supplier and buyer, industry cooperation program, public procurement guarantee, Industrialization Executive Board, supplier inventory and public and it comes across as eliminating the need for industry.
Development of human capital for sustainable progress, data analytics and data literacy trainings, digital badge application, technological education curriculum and infrastructure needs, with models of encouraging students in vocational schools will be carried out with incentives and tax deductions to the employees in the branch.
Developments in infrastructure are main topics, data communication and open data reform, cloud computing and data center cyber security standards, national blockchain infrastructure and logistics and energy. Accordingly, reliable data communication infrastructure support, incentives for domestic technology suppliers developing products, international standard development of data communication, open data reform, artificial intelligence institute and digital transformation office public data pool will be found available. In addition, certification support will be provided to domestic technology suppliers in OSBs and TGbs, legislation and additional financing support for sectors susceptible to cyber attacks.
In public applications, blockchain and open source platform viability will be increased, while the test environment and group of participants will be determined in the blockchain infrastructure.
The strategy, called “National Technology Move” by the ministry, is expected to drive a breakthrough in global competitiveness, economic and technology independence, value-added production and critical technologies. They are thought to lead to increased social welfare and pave the way for sustainable economic development. When we look at the manufacturing industry targets, the ratio of Gross Domestic Product is expected to increase from 16.5% between 2008 and 2018 to around 21% in 2023. It is also expected that exports will increase from 8.8 billion in 2018 to 0 billion in 2023. The Average High and High Technology Product Share in Exports is between 36.4% and 3.2% in 2018, while the 2023 target is between 44.2% and 5.8%.
You can check out the PDF here.