The Investment Support Program regulation, which foresees grant support of up to 3.5 million liras to companies that have been working on and which the Ministry of Science, Industry and Technology has been working on for a long time, and has brought their R&D studies to the stage of investing, has been made ready for publication.
According to the news of Dünya newspaper, in the Investment Support Program, which is an application out of the general incentive system, businesses will be provided with an interest support of up to 3.5 million TL, in addition to an incentive of 6.5 million TL. Thus, up to 10 million liras will be provided to a business. In this context, investments up to a maximum of 50 million TL will be supported.
While the preparations for the revision of the new incentive system, which came into force on 19 June last year, including ending the incentives to be given to some sectors, are continuing, the Ministry of Science, Industry and Technology has completed its preparations for a new incentive mechanism. The study, called the Investment Support Program, will be implemented after the relevant regulation is approved by the Ministry of Finance. The Investment Support Program, which was prepared especially due to the problem of not converting the R&D studies into investment, will be managed by the Ministry of Science, Industry and Technology, apart from the general incentive mechanism. The Investment Support Program, the details of which will be determined by regulation, will accept projects of companies whose R&D studies have been approved by any public institution. Projects worth up to 50 million TL can apply to the program.
No tax and premium incentives
Unlike the current incentive system, the Investment Support Program provides grants and loan interest support instead of tax and premium support. Entrepreneurs can be given grant support of up to 3.5 million TL, depending on the size of the project. If the 3.5 million lira grant support is not sufficient to convert the project into investment, this time interest support will come into play. In this way, interest support will be provided to businesses for financing up to 6.5 million liras. Thus, a company that has completed its R&D work will be able to obtain financing of up to 3.5 million TL, of which 10 million TL is a grant, if its project is approved.
With the Investment Support Program, it is aimed to increase the number of technology-based SMEs and large companies, as well as companies that will carry out R&D activities. Acting on the fact that many projects for which R&D studies have been carried out so far have remained on the shelves without being converted into investments, the Ministry envisages that this deficiency will be eliminated with the project.
The Ministry of Science, Industry and Technology continues its preparations for another incentive program that will encourage R&D investments announced in July. Accordingly, the Income Tax Exemption currently applied for R&D investments will be extended until 2023. In addition, the number of full-time personnel required to be employed in order to benefit from R&D incentives will be reduced from 50 to 30. With another study carried out in parallel with this, some changes will be made in regulations and laws in order to increase the effectiveness and efficiency of Technology Development Zones.
The money was refunded when the application did not come.
On the other hand, Minister of Science, Industry and Technology Nihat Ergün said in a statement a while ago that they had to return a part of TÜBİTAK's budget within the scope of support due to the low number of applications received in 2012. Emphasizing that Turkey is a country that provides an enviable level of R&D support, Ergün said:
“I would like to make a call to all our industrialists and academics: Follow our public support programs for university-industry cooperation very well. Do not leave any blank and apply more. Look, we returned a part of the TÜBİTAK budget last year due to the lack of applications. Either they are unknown or there is a lack of qualified project preparation or they are not applied. Turkey is a country with resources, we have money to spare for them. We used to have trouble, we used to say, 'Where are we going to get money for this job?' Now we have money to spare for these, we are looking for people to use it, we are looking for a university to use it, we are looking for industrialists to use it, we are looking for a cooperation project.” Although Turkey has set a target of increasing the share of R&D expenditures in GDP to 2 percent in half of the target, since the 2000s, this ratio has not reached even 1 percent yet. On the other hand, the share of R&D in GDP, which is 2.79 percent in the USA, is 3.84 percent in Finland, 3.36 percent in South Korea and 2 percent in EU countries.
In 2011, R&D expenditure in Turkey increased by 20.4 percent compared to the previous year and reached 11.1 billion liras.
30 million liras from the Ministry of Science, Industry and Technology to encourage clustering. The Cluster Support Program, which was prepared to create a culture for companies to come together and provide synergy, was completed. Stating that the program was prepared in order to put the Turkish industry ahead of the competition, Minister of Science, Industry and Technology Nihat Ergün announced that applications to the program would be accepted until 27 December. Expressing that they have allocated a budget of 30 million liras in this context, Ergün said, “Companies will work hand in hand and come forward with joint purchasing and joint production. Companies that succeed in clustering will increase their bargaining power by making bulk purchases and will be able to procure raw materials or intermediate goods at more affordable prices.”
Nihat Ergün stated that in the new system, organizations doing the same job will not gather together, but companies that produce value chains that are connected with each other will be clustered, and that the applications that started on October 24 will be completed on December 27. Nihat Ergün said that they have allocated 30 million liras for the first period of the program and that this can be increased in the future if necessary, and stated that they foresee 10 universities and a thousand thousand enterprises to come together in at least 30 clusters.
Emphasizing that a "National Cluster Academy" will be established within the framework of the program, Minister Ergün said that the clustering process will be supported as a whole within the framework of the business plans of the clusters.
Minister Ergün noted that when the clustering project is completed, companies operating in the food sector in İzmir can cooperate with companies that have output products in our provinces such as Erzurum and Kars in terms of their inputs.
5 clusters operate in OSTİM
While Minister Ergün announced the new clustering support, companies operating in Ankara OSTİM have come together in clusters in 5 sectors so far. Clustering preparations in one sector are about to be completed. Until today; Rail Transport, Business and Construction Machinery, Defense Industry, Energy and Medical Clusters started their activities. While the rubber cluster is completing its work, it will be operational in a short time.
What will be supported in the system?
• Developing the basic (slight or semi-skilled) labor market (plain worker, foreman…)
• Developing the skilled labor market (technician, basic engineering) • Developing the advanced skilled labor market (R&D engineer, designer, etc.)
• Studies to strengthen the quality of raw materials and/or intermediate goods
• Studies to reduce the cost of raw materials and/or intermediate goods
• Investments to strengthen the common physical infrastructure (incubation, treatment, energy, transportation, etc.)
• Access to strategic information sources (raw material prices, other market developments, etc.)
Source : nationality