INCENTIVES AND SUPPORT THE STATE INCENTIVES FOR EXPORT The state incentives for export support the exportation activities for export companies and Small and Middle Enterprises (SMEs) in production and marketing processes and help them to solve their problems in the market. The main aim is to encourage export, to develop the export markets and to increase the competitive power of our firms in international markets. There are 11 support programs in terms of “the state incentives for export”. The last ruling concerning the application of incentives was made by the Undersecreteriat of Foreign Trade (DTM). The 11 programs are: R&D incentives Supporting domestic fairs which have international features Supporting national or individual participation in international fairs and exhibitions The export returns in agricultural products Supporting the environmental costs Supporting market research Incentive for education Incentive for employment Supporting the opening of branch offices abroad and their management and the advertisement activities of the firm’s trademark Supporting the expenditures for patents, useful model certificates and industrial design Trademarking of Turkish products abroad Supporting trademarking, advertisement and setting the image of “Türk Malı” Within the framework of state incentives, the tenants of METU- Technopolis can get the most benefit from the incentives, for their projects, given below: THE R&D INCENTIVES Definition of R&D Projects: R&D projects are the activities which aim at producing a new product, improving the quality or standards of the product, applying new methods for increasing the standards and decreasing the costs, developing new production technologies, adopting a new technology to domestic conditions and also the transformation of the results of these activities to useful tools, materials, products, management, system and production techniques and improving the quality of existing technology. In addition, the aim, scope, period of time, budget, special conditions, the quantity of incentives given by the institutions or real/legal persons and the rules of the sharing of the rights of the invention that can be provided, are determined in advance. Aim: * meeting a definite proportion of R&D projects of industrial companies that can be evaluated * providing financial support for the research of new systems, production techniques to create a new product or to improve the competitive power of existing products. Users: All industrial companies and the firms that produce software, can get that support. In order to support the R&D activities, the expenditures should be measured and invoiced. The Support in R&D Projects: personnel expenditures expenditures on tools and software used in the R&D activity expenditures on consultancy for R&D activity and other services which have equal value The R&D services taken from domestic R&D institutions The expenditures on official registrations of patents, useful models and industrial design certificates The expenditures on materials for R&D activities The Amount of the Support: The basic proportion: 50% The max. proportion: 60% The Period of Support: The support is provided for R&D activities at the project level for 3 years. There are 2 ways to receive capital support for projects: - two years with the capital support for the projects concerning developing products (max. $1 million) - two years with the capital support for the projects on strategic subjects (max. $100.000) Implementing Institutions: - The support of R&D activities at the project level: The Turkish Scientific and Technical Research Council (TÜBİTAK) and Technology Monitoring and Evaluation Board (TİDEB) - For capital support: The Turkish Technology Development Foundation (TTGV) The ways that these institutions can be used are given below: a) TÜBİTAK- TİDEB: The support from TÜBİTAK for R&D activities such as developing a notion, experimental production or services...etc, also include expenditures on personnel, tools and materials, software, consultancy, application for patents...etc. In that respect, the activities that are considered R&D are: - developing a notion - the study of economic and technological feasibility - the lab. activities during the period from the development of the notion to the design - the work on design - the production of the prototype - the establishment of pilot centers - the experimental production - the work on patent and licence - the services used to solve the problems after the sale The firms that want to get the support should fill in the “Proje Öneri Formu” and give it to TİDEB. A booklet for more information can also be obtained by fax or information can be found on the web site. The expenditures for projects which have earned the right for R&D support will be taken into consideration at the beginning of the application period. The periods are: 1 JAN-30 JUNE and 1 JULY-31 DECEMBER. For more information about the process, requirements and faqs: Address: Atatürk Bulvarı No:221 Kavaklıdere/Ankara Tel: (312) 467 18 01 Fax: (312) 427 43 05 e-mail: email@example.com www.tideb.tubitak.gov.tr b) THE TURKISH TECHNOLOGY DEVELOPMENT FOUNDATION: TTGV is an another institution providing support for R&D activities. Its support includes the expenditures for a project in terms of personnel, equipment, travel and services. The maximum support is 50% of the budget of the project. The repayment (in USD) has to be made at regular intervals within 4 years but without interest. The amount is about $1-2 million. (depending on its source). The industrial companies which have the ability to get INDUSTRIAL REGISTRATION CERTIFICATE and all software companies can make applications for “the support for the project of Technology Development”. For more information about the period of evaluation, requirements and methods of application: Address: Atatürk Bulvarı No: 221 Kavaklıdere/Ankara Tel: (312) 467 21 79 Fax: (312) 467 40 79 e-mail: firstname.lastname@example.org www.ttgv.org.tr SUPPORT FOR PARTICIPATION TO FAIRS This support can be classified into two types: A) SUPPORT FOR NATIONAL OR INDIVIDUAL PARTICIPATION IN INTERNATIONAL FAIRS AND EXHIBITIONS This support includes part of the expenditures of the firms that participate in the international fairs/exhibitions on behalf of their own company. In addition to that, the firms may participate as part of an organization which has been arranged to represent Turkey. Aim: To increase the participation to fairs/exhibitions abroad. Users: SMEs, Sectorial Foreign Trade Firms, Large scale companies (non-SME) The Fairs/exhibitions to be supported: - the organizing and participating firms for the organizations at the national level. - the firms that want to participate at organizations on behalf of their own company This support can be obtained for a max. of 3 years for the same fair. Provided Support: The organizations participating in the fairs that can get the support at two different levels as stated above are: - the national level - the individual level National Participation: The participation is planned by the organizers which have been given the right by the Undersecreteriat of Foriegn Trade at the national level. - 50% of the participation fee (max. $7.500), which is calculated according to m² and will be paid to the organizer of large scale firms. - 60% of the participation fee (max. $8.500) which is paid to the organizers for every firm by the Sectorial Foreign Trade Firms (SDŞ) that participate at fairs/exhibitions in the name of SMEs and the firms within their structure. - 70% of participation fee (max. $10.000) which is paid to organizers for every firm by SDŞ that participate at fairs/exhibitions in the name of SMEs and the firms within their structure established in the regions given priority for development. Individual Participation: For the firms that participate at fairs at the individual level; - 50% of the expenditures for the rent of the place, the establishment of the stand and decoration which are paid to the organizer of the fair - 50% of the transportation expenditures (max. 75 kg. or 1/3 m³ for each m²) of the fair materials The amount of the support is max. 50.000 USD for every firm; for the above mentioned items. If the materials to be exhibited at the fairs are: - informatic - high-material technologies - genetic engineering/biotechnology - space and aeroneutical technologies, 70% of the expenditures (max. 60.000 USD) will be paid Implementing Institutions: Export Unions Export Unions are established to increase export, to organize all activities and professional relations between exporters, to find solutions to the problems and to give advice. Every union has an executive committee formed by the private sector. Their internet understructure is powerful and they established specialized groups to solve sectoral problems. By means of market research and reports, they are able to record the export register numbers for Turkey in general. Beside 13 Export Unions in 11 cities, there are also other organizers which have temporary qualification certificates. The application methods explained in the notification which is published at the related address. The rules of application differ according to the level; national or individual. In that context, the ways and duration of repayment has also changed. The information about fairs and their organizors and the rules of participation are on web the site of the Undersecreteriat of Foreign Trade (www.dtm.gov.trfairs). The links for other organizers are also available. B) SUPPPORT FOR THE DOMESTIC SPECIALIZATION FAIRS WHICH HAVE INTERNATIONAL FEATURES The Aim: To advertise these fairs abroad and to increase the international participation Users: The organizing firms of the fair The fair subjects to be supported: - textile- ready-made clothing- carpet - leather - vehicles and sub-industries - food and food technology - electronics/electrical industry - metal making industry - soil industry - building materials - furniture industry The amount of supports: - 50% (max. 25.000 USD) for the advertisement activities done abroad before the fair - 50% (max 15.000 USD) for the transportation expenditures of invited foreign buyers - 50% (max. 5.000 USD) for the expenditures of the activities organized during the fair such as seminars, conferences or competitions. Implementing institutions: Export Unions The support of market research: There are two different programs to support and develop the systematic market research that is done by SME/ Sectorial Foreign Trade Firms or the Producers Unions in order to create new export markets and increase our share in traditional markets. The aim of these programs is to provide knowledge about potential markets, help firms to participate in those markets and support SMEs to participate in international activities and fairs. a)Support of Market Research Projects This support includes * the projects of firms that will be prepared within their own structure. * the projects of the firms of market research which are prepared in the name of other firms * the projects of Producers Unions which are done for their members In short, the support includes the research projects of SMEs (realized within their own structure) or the projects which are given to be done to consultancy firms. The amount of support: - max.7500 USD for every project for SMEs ( 15.000 USD in one year and 75000 USD in total) - max. 10.000 USD for every project of Sectorial Foreign Trade Firms and Producers Unions (50.000 USD in one year) The supported expenditures: TRANSPORTATION: - A round-trip ticket from Turkey (only once) - The transportation to target markets – for every project, the maximum amount being 3.750 USD for SMEs, 5.000 USD for SDŞ and Producers Unions. ACCOMMODATION: The accommodation (room+breakfast) in target markets; - max. 100 USD per day- for every project. The max. is $3.750 for SME, $5000 for SDŞ or Producers Unions. Implementing Institutions: EXPORT PROMOTION CENTER (İGEME) İGEME, as an institution for the development of the foreign trade, aims at providing direct relations between domestic exporters and foreign traders and developing activities for advertisement and employment. In this way, it has some activities concerning participation at international fairs, advertisement and also educational activities. The information about the programs and activities are available on its web site. The links of other organizers (export unions) besides İGEME are also available. For further information: Address: Mithatpaşa Caddesi No: 60 Ankara Tel: (312) 417 22 23 Fax: (312) 417 22 33 e-mail: email@example.com www.igeme.org.tr B) Supporting for International Cooperative Activities Between SMEs This support aims at providing the means to participate in the activities in order to establish cooperation between SMEs. Supported Activities: - The activities that are organized by the EU at the international level to develop cooperation between SMEs (such as Europartenariat- Medparteneriat to increase relations and advertisement) - The participation of SMEs and SDŞ in the international activities that are approved by DTM in order to increase international cooperation. Amount of Support: Max. 1 person for SMIDOs and 2 persons for SDŞ - 70% of the transportation and daily expenses (max. 500 USD) - 70% of the accommodation expenditures (max.100 USD) A maximum of 1 project is supported once. In addition to this, three copies of the market research project should be prepared; one for the firm, the others for İGEME and DTM. The activities that are not supported: - general research on nonspecified projects - trips for selling - fairs, seminars and conferences for trade - group travel, going on trips with trade delegations or advertisement programs organized by official institutions abroad - projects for the products that are not ready to export - researches which is bought, has just started or has no project aim - projects which are simultaneously İGEME projects as well as consultant projects for any firm Implementing Institutions: Economic Development Foundation (İKV) Undersecreteriat Of Foreign Trade (DTM) İKV has been established in order to contribute to the social and economic development of Turkey in general, develop relationships with the EU, organize seminars, and conferences to inform the public and provide cooperation with foreign companies. In this way, it has some activities for SMIDOs. It is a consultant in the programs which aim at developing the international relationships of SMEs and cooperation in trade, technical understructure, finance and R&D. It produces advertisements for SMEs at fairs and supports market research. As with the other types o f support, the last decision is made by DTM. More information about activities and supports can be obtained from the İKV web site. Further information concerning the regulations, application forms and rules of application can be found at: www.kobinet.org.tr/hizmetler/bilgibankası/mevzuat/003-5.html Economic Development Foundation Address: Rumeli Caddesi 85/7 Osmanbey/İstanbul Tel: (212) 230 76 37 Fax: (212) 247 75 87 e-mail: ikvkv.org.tr www.ikv.org.tr Application and Evaluation: In order to benefit from the promotional activities, a form is sent to the firms whose their applications for participation to the program, have been approved by İKV. The applications of the firms which have been filled out for each program, are evaluated by İKV and given to DTM for pre-approval. The promotion applications which have been approved by DTM are taken under the scope of “support of market research”. When the representatives of the firms fill in the requirements defined in the procedure, for a specified time, DTM will arrange for the Central Bank to pay the necessary support after evaluating the applications. The Incentives of Education: It is the support of the foreign trade education programs that make it easier to produce competitive products, reach international markets and improve the quality of their staff of SMEs and their partners. The Subjects of Education: The subjects are defined separately for each implementing institution; KOSGEB and İGEME. a)The subjects of education which are covered by SMIDO: - Advanced production techniques, new technologies - Total quality management, procurement, production packaging, product and environmental standards - Orienting the potential investors, the feasibility studies for business plans, the setting up of a company, job security and sources of knowledge - The possibilities and techniques of inner-finance - Leadership, management of organization, development, structuring, rules of behavior, responsibility of a labour force, structuring at the firm and organizational level, management of a labor force b)The subjects of education which are covered by İGEME: - Laws of foreign trade, custom and foreign exchange - Finding clients and markets for export, money analysis, market research, writing techniques and giving a price - The techniques for providing national and international finance for export - The conditions and laws of competition and the laws of the EU and WTO and international marketing techniques - The designing of a trademark and related areas The Implementation Program: The subjects written above are taken into consideration under the “application programs of education subjects” and the implementation areas of the two institutions have been determined as seen below: - Domestic educational institutions - International educational institutions - Professional consultancy These programs are applied and carried out by SMIDO and İGEME. - in cooperation with the university - in cooperation between companies These are applied and carried out by SMIDO. The Support: - 50% of expenditures on international education programs for SMEs (max. 7.500 USD and 3 months per program) - 50% of expenditıres on domestic education programs for SMEs (max. 5.000 USD and 3 months per program) There are 6 education programs that will be supported: 3 for domestic ones and 3 for international ones. The implementing institution: İGEME-SMIDO Evaluation and implementation: Firstly, the application form for the education program should be filled in. The evaluation starts when the forms are delivered to SMIDO and İGEME’s evaluation committee. The application form can be obtained from: www.kobinet.org.tr/hizmetler/bilgibankası/mevzuat/003-6ek.html SUPPORTING FOR THE EXPENDITURES OF PATENTS, USEFUL MODEL CERTIFICATES AND INDUSTRIAL DESIGNS This includes the expenditures for industrial design registration for industrial designs or patents and useful model certificates for an invention which is created in the projects realized by the people living in Türkiye in order to support the development of new techniques, products and intense technological innovations which have a potential for trade. The potential users of this support are legal persons living in Türkiye who have applied to the Turkish Patent Institute directly or by means of their representatives registered with the institute. The Supported Activities: These include the expenditures for industrial design registration, for industrial designs or patents and useful model certificates for an invention which is created in the projects realized by the people living in Türkiye. Definitions related to support: Invention: The products and methods that provide solutions for technical problems in any branch of industry including agriculture. Patent: It is the name of the certificate which gives the right of a) Production, selling, usage or importing of a product which is the subject of invention b) Using the method which is the subject of invention and selling, using or importing the products that are produced by this method and is only given to the owners of the invention for its use for a definite period. ( 7 or 20 years) Useful Model Certificate: It is the name of the certificate which gives the right of production, sale, usage or importing, for 10 years, to the owners of the inventions which are new in the world and applicable in industry. Industrial Design: Industrial Design is the total composition of a part of a product or an ornament on it or several of its characteristics and properties such as line, shape, form, color, texture, material or elasticity which can be perceived by human senses. Registration of Industrial Design: The registration that gives the right to new designs which have distinguishable features for 5 years. The rights of the support are clearly determined for the amounts. More information can be obtained from the Turkish Patent Institute. www.kobinet.org.tr/hizmetler/bilgibankasi The Implementing Institution: The Turkish Patent Institute TPI was established to keep the necessary documentation of Intellectual Property Rights found in Turkey or abroad and to establish and protect of these rights and also to give information about patents and trademarks regulated by laws in order to develop technology in Turkey and to provide free competitive market conditions and improve R&D activities.