Technology%20Development%20Zones:%20Tools%20for%20Enhancing%20University%20Industry%20Relations

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Technology Development Zones Tools for Enhancing
University Industry Relations Prof. Dr. Canan
CilingirVice RectorMETU Turkey
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Turkish science and technology policy Establish
ment of the National Innovation System that would
enable systematic operation of the whole
institutions and mechanisms required to carry out
scientific and technological research and
development activities and to transform the
results of those activities into economic and
social benefit.
Technology Development Zones Tools for Enhancing
University Industry Relations
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• TECHNOLOGY DEVELOPMENT ZONES
• (TDZ)
• TDZ Law (July 2001) promotes the establishment of
  science and technology parks under the guidance
  and lead of universities.
• The Law aims
• to create technological information in order to
  give the industry a structure fit for
  international competition and exportation,
• to introduce innovations in products and
  production methods,
• to raise the quality or standard of products, to
  increase productivity,

Technology Development Zones Tools for Enhancing
University Industry Relations
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• to decrease the costs of production,
• to commercialize technological knowledge,
• to support production and entrepreneurship,
• to enable small and medium-sized enterprises to
  adapt to new and advanced technologies,
• to create opportunities of investment in
  technology intensive areas by taking into
  account the decisions of Science and Technology
  Higher Council,
• to create job opportunities for researchers and
  qualified persons,

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• to help the transfer of technology and
• to provide the technological infrastructure
  which will quicken the entry of the foreign
  capital which, in turn, will provide
  high/advanced technology.

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• After the enactment of the Law, twelve new
  science and technology parks were approved by the
  Ministry of Trade and Industry.
• The Law enforces involvement of universities for
  establishment of TDZ
• All science and technology parks are situated
  within the lands of universities, in order to
  create close relationship with university
  community.
• The increasing demand of companies and
  entrepreneurs encourage universities to invest in
  establishment of TDZ.

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University Industry Relations
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ARI
MAM
GOBS
Hacettepe
METU
Cyberpark
Technology Development Zones Tools for Enhancing
University Industry Relations
Six TDZ are operational while the remaining is
still at initial construction phase.
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TDZ IN TURKEY
Name of TDZ Years of Operation Size of Land Number of Companies Fields of Operation Info
ARI Teknokent 1 180 he 7 ICT, www.teknokent.itu.edu.tr
Cyberpark 1 30 he 42 ICT, software, electronics, www.cyberpark.com.tr
GOBS 1
Hacettepe Teknokent 1 120 he 12 ICT, medical www.hacettepeteknokent.com.tr
MAM 3(7)
METUTECH 3(7) 80 he 120 ICT, software development, electronics www.metutech.metu.edu.tr
Technology Development Zones Tools for Enhancing
University Industry Relations
a brief summary of the statistics for operational
TDZ.
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The Law provides two types of tax incentives to
the companies. 1- the income tax exemption of
the research personnel including academicians.
With this incentive companies are able to pay
higher salaries to their staff. 2- the corporate
tax exemption provided for the portion of profit
generated through research and software
development activities. (With these
incentives, companies are convinced to spend and
to invest more in research projects.)
Technology Development Zones Tools for Enhancing
University Industry Relations
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METU-Technopolis is the first and the biggest
science and technology park of Turkey.
History 1987-89 The research on the
METU-Technopolis Project started. 1990 The
METU-SMIDO Technology Development Center was
founded. Until today, 68 companies are graduated
from the incubation center and over 95 are
surviving 1995    The preparation for the Ankara
Business and Science Park Feasibility Study was
done by an international consulting firm. A
contract with the first tenant firm was signed.
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1997    The METU-Technopolis Design Project and
Business Plan was completed. 1998    The
application for the METU-Technopolis was approved
by the Ministry of Industry. The first tenant
firm began to work in the temporary buildings of
Technopolis 2001   Two buildings were put into
complete service with no vacancies. The law of
Technology Development Regions was
accepted. 2002 -2003  The construction of the two
new buildings started.
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University Industry Relations
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• METU-TECH Some Figures
• 800.000 square meter land
• 40.000 square meter closed area
• 10 milyon USD investment
• 432 RD projects
• 151 Faculty members participate in projects
• 35 companies are involved in joint projects with
  the university
• hosts around 120 companies
• employing over 1000 researchers,
• majority of the companies are technology based
  SMEs
• dealing with ICT and software products and
  services.

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University Industry Relations
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• 2003 exports of METUTECH companies 7,5 Million
  USD
• The export markets of the companies are countries
  like US, Singapore, Hong Kong, Dubai, Holland,
  Russia, Germany England, etc.
• In the last two years the collaboration of
  companies with the university community has
  increased
• The main ways of collaboration are consultancy
  services and joint projects.
• Companies have submitted research projects
  together with academic personnel and university
  departments to 6th Framework Program.

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• The management of the science park is approved
  for the IRC-Network of the EU. Being the
  coordinator of the new IRC (Innovation Relay
  Center) the management company will assist SMEs
  to enhance their technological development level.
• The management company has applied for the
  InfoDev program of the World Bank together with
  the incubation center.

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• LESSONS LEARNED
• The importance of awareness building
• The success of METUTECH and the TDZ in general
  has increased the awareness of public and
  industry, towards research and technology
  development, innovation and entrepreneurship.
• More and more companies are paying attention to
  collaboration with universities
• Technological level of products and services,
  the level of ICT involvement in production
  processes improved
• Most managers have now realized that research
  and innovation is the key to compete in global
  markets.
• .

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University Industry Relations
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Sensitization policy makers and key
constituencies The reservations and hesitations
from the policy makers with regard to tax
incentives faded away. Proper incentives given
for the development of the knowledge economy will
pay off immediately by increasing the
technological competitiveness of the country.
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University Industry Relations
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Encouraged by these results the policy makers are
planning to expand the level of incentives
provided for innovation and research
activities. The successful results are also
triggered the attention given to strategic
planning for the knowledge economy.
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University Industry Relations
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• Changes in university community
• level of university community involvement within
  industrial based research projects has
  drastically increased after METUTECH.
• attitude in favor of basic research has shifted
  toward the applied research and technology
  development leading to innovation.
• IPRs (Intellectual Property Rights) have become
  a major concern of the researchers in the
  university.
• More researchers are scrutinizing the possibility
  of establishing their own companies and the
  number of spin off companies is increasing.

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• Changes in educational system with regard to
  knowledge economy environment. Curriculums are
  being modified in accordance with the
  requirements of the companies.
• Role of incentives
• The cash savings stemming from tax incentives are
  canalized to new research and innovation
  projects.
• The desire of companies to move into TDZ
  significantly increased.

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Methods of financing During the preparation of
TDZ Law, grant allocations to the management
companies from the national budget was allowed.
So far no resources allocated by the Government.
That is a major obstacle for new TDZ to overcome
the financial difficulty of initial phase
development capital requirements.
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• METUTECH used fund raising models
• eligible companies have encouraged leasing the
  land and constructing their own buildings.
• advance payment schemes with promotional
  conditions proposed to companies.
• income sharing build-operate-transfer model was
  implemented.
• The results were successful. Over 10 million USD
  upstream investments are completed.

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• Importance of management
• At he beginning, METUTECH managed by the
  university.
• Later is transferred to professional managers.
  An executive comity, chaired by Rector is formed,
  being in charge of development of strategic
  planning and long term objectives day by day
  management assigned to professionals.

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University Industry Relations
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The university-industry collaboration The main
goal of the TDZ Law is to increase university
industry cooperation with regard to research and
technology development activities, The existing
35 project collaborations between academicians
and companies are important but not sufficient
compare to the number of projects running.
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University Industry Relations
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• university needs to change its attitude towards
  joint projects and must develop innovative
  alternatives.
• Example Integrated National and International
  Projects, where several universities, private
  companies and public bodies are encouraged to
  form project groups.

Technology Development Zones Tools for Enhancing
University Industry Relations