A model on university-enterprise cooperation: Turkish Experience

A model on university-enterprise cooperation: Turkish Experience Prof. Dr. S. Engin Kılıç and Dr. Gökhan Demirci ODAGEM OSTIM Collaborative R&D Center Co. OSTIM-METU Technopark, Cevat Dündar Cad. No:156/A Ankara, TURKEY A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

CONTENT • University vs Industry: Definitions, Functions and Goals • Cooperation: Necessity for the benefit to society • Background on early attempts: Personal experience in Turkey • Current instruments and models available in Turkey • On-going struggle toward an intimate collaboration model • Advanced Manufacturing Systems and Technologies Collaborative R&D Network and Platform • Conclusion A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

University vs Industry: Definitions, Functions and Goals In dictionary: • University isan institution of higher learning providing facilities for teaching and research and authorized to grant academic degrees; specifically : one made up of an undergraduate division which confers bachelor's degrees and a graduate division which comprises a graduate school and professional schools each of which may confer master's degrees and doctorates. • Industry is the systematic labor especially for some useful purpose or the creation of something of value (i.e. product or service) to satisfy human needs. Industry also means the organization or enterprise (i.e. company or group of companies) of a craft, art, business, or manufacture; that employs a large personnel and capital especially in manufacturing and aims to make profit. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

University vs Industry: Definitions, Functions and Goals Taken from the presentation “Models of University- Industry Cooperation” by James A. Severson, Ph.D., Vice Provost for Intellectual Property and Technology Transfer, University of Washington on December 13, 2004. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Cooperation: Necessity for the benefit to society Curricula based on those in a model country Particular needs of natioanal/local industry If not matching with Graduates with specialized knowledge and skills never demanded by industry Graduates with deficiency in their knowledge and skills or A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Cooperation: Necessity for the benefit to society • University may develop technology, but unless it is transferred to industry and end up with innovation, it won’t be having any value to both of the parties and to the society. • Close cooperation between university and industry is needed to shape university curricula to the needs of industry to raise graduates to meet the requirements of the industry and also to carry out research to direct scientific knowledge toward technology development and technology to innovation for the benefit of society and industry. • In order to establish a sound cooperation and synergy between university and technology, the basic requirement is that both parties should deeply and sincerely feel the urgent need for such cooperation and then start working together, using available financial instruments and support programs at national and international levels. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Background on early attempts: Personal experience in Turkey • Until 1980s: bilateral applied research project contract between the company and the university on behalf of the faculty to work for the project through the revolving fund of the university. • The company would pay for the full project amount to the fund and the fund would pay about 35% of that amount to the project researchers, • Projects mostly from government agencies and government owned industry. • 1979 MATIMAREN (Machine Design and Production Research Institute) established at the Department of Mechanical engineering, Middle East Technical University (METU), Turkey. • Groups involved in applied research projects • Technology and know-how generation and transfer through large scale industrial projects to various sectors A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Background on early attempts: Personal experience in Turkey • UMTIK(Conference on machine design and production) initiated in 1984 first as a national biannual event which became international in 1994 to dissaminate know-how generated through its activities; UMTIK 2004 will be held in 3-5 September in Istanbul • Until 1990 TUBITAK (Scientific and Technological Research Council of Turkey) would support only academic research projects with extremely limited amounts • After 1990, involvement of industry in the projects proposed by the engineering faculty was first encouraged by TUBITAK through recognizing industrial contributions to their budget as a positive factor in their evaluation • TUBITAK also started to support EUREKA projects established by the joint efforts of university and its industrial partner in limited amounts. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Current instruments and models available in Turkey • New TUBITAK programs to support research projects from industry and to encourage university-industry cooperation (After the second half of 1990s): • Industrial R&D Grant Program: Project expenditures are reimbursed semi-annually up to 60%. Evaluators of these projects are appointed from universities. Consultation and/or direct involvement in research by faculty are highly advised and urged. • USAMP, University-Industry Collaborative Research Centers Program: TUBITAK would provide a matching fund if certain fund is raised by the partnering industrialists to conduct joint research with a university based on a budget described in the university-industry jointly prepared project proposal. TUBITAK’s grant was subject to peer review on the proposed project. Six of such centers were established and all were quite successful in conducting collaborative research until the program was ceased in 2006 and the centers were urged to become companies independent of TUBITAK. • R&D Brokerage Event Grant Programme: aims to facilitate R&D collaboration between university and industry. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Current instruments and models available in Turkey • Technoparks have been established where universities and research institutes - in collaboration with commercial companies - have started to create a competitive technology-based industry, as well as procure the technological infrastructure which will ease the access of foreign capital for high-technology. • The first Technopark established at the Middle East Technical University in 1992. • Currently there are 23 registered technoparks in various parts of Turkey. • Technoparks have certain tax advantages and ease of employing academicians in research projects. • Act as incubation platforms to constitute university-industry cooperation and to create innovative high technology spin-off companies from university graduates and academicians. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Current instruments and models available in Turkey • After 2000, overall research expenditure of Turkey aimed to be icreased to 2% of the NGP by 2010s to catch up with the European countries. • Budget to support scientific, technological and industrial projects increased • New programs and support instruments established • SME Funding Program: same as Industrial R&D Grant Program, but witheasier application, evaluation and funding • Technopreneurship Funding Program (for recent university graduates with innovative ideas to start new businesses) • The Support Program for the Initiative to Establish Scientific and Technological Cooperation Networks and Platforms:supports the establishment of cooperation networks and platforms between national and international corporations, units and groups in areas such as basic sciences, engineering, health and social sciences A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

TUBITAK Research Grants** * As of 31 December 2006 ** 2005 constant prices

800 711 700 600 595 481 503 500 434 418 400 374 360 333 316 300 274 271 269 266 260 251 233 200 182 178 176 173 145 121 100 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Number of Companies Number of Project Applications Project Applications to Technology and Innovation Grant Programmes

Technology and Innovation Grants (Million EURO)

3500 3163 3000 2500 2430 2000 1795 1529 1500 1255 1028 1000 739 572 511 390 500 372 167 121 61 289 0 2002 2003 2004 2005 2006 Evaluators’ Reports Evaluators New evaluators Technology and Innovation Grant ProgrammesProject Evaluators

On-going struggle toward an intimate collaboration model Motivation: • OSTIM, a large industrial site with more than 2000 SMEs (production units, mostly with less than 10 employees and without an engineer) about 10km away from METU • Under common management seeking cooperation withMETU since 1980s • Badly in need of collaboration with university in terms of products, use of resources and human resources:especially engineers • Deficiency in technical knowledge to communnicate directly with university • Lack of financial resources to get technical support, training and R/D from university through revolving funds • METU, one of the best universities, not only in Turkey • A group of faculty ready for such cooperation • Possibilty of having coop students at undergraduate and graduate levels • New research areas • Source for technology transfer to practice new ideas A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

On-going struggle toward an intimate collaboration model Incentive: • University-Industry Cooperative Research Centers program (USAMP) constituted by TUBİTAK in 1997 • A matching fund by TUBITAK for 5 years, equal to the amont raised by partnering companies to establish a center aiming for collaborative research with a particular university • Subject to the university and the partnering companies prepare a project proposal with a detailed working plan and a budget and approved by TUBITAK after a peer revewing process • Director ofthe center: from the university; executive committee: 5 company representatives, one representative from the university and one representative from TUBITAK • Annual activty reports subject to rigorous financial, technical and scientific reviewing process A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

On-going struggle toward an intimate collaboration model Problems to tackle: • Finding the companies in need of common research and willing to contribute to the budget • A field survey comprising about 200 promising companies was conducted using questionnaires. • Face to face interviews with about 20 bosses of the most eligible companies and a number of meetings open to all interested OSTIM companies were arranged. • Finally 14 leading companies in OSTIM besides OSTIM management wereconvinced to contribute to the center in 2004 • Common research topicsnot easy to find to be shared by companies and matched by TUBITAK due to diversity in companies • Basic membership to share costs for managerial and common activities • Active membership for individual tasks done for such members, 60% of the matching fund added to the their budgets A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

On-going struggle toward an intimate collaboration model Problems to tackle (continued): • High cost of having academicians work in industrial projects • Academicians could get only about 35% even less(after taxes) the amount paid by the companies through revolving fund • If the center could be founded in Technopark, researhers and academicians working at the center would be exepted from income taxes and direct payment to academicians would be possible. Hence METU-Technopark area was extended to OSTIM. TUBITAK-ODAGEM as METU-OSTIM Collaborative Research Center was ready to operate in METU-OSTIM Technopark from the beginning of 2005. • University-industry collaborative research (USAMP) centers without legal status • Centers were entities defined by TUBITAK without a proper legal status, hence matching funds were stopped in the second part of 2005 without stopping their operation. • They were asked to become companies by the end of 2006, removing TUBITAK from their title. • Eligibility for TUBITAK support only through a network project prepared for the new TUBITAK program: Initiative to Establish Scientific and Technological Cooperation Networks and Platforms (ISBAP). A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

On-going struggle toward an intimate collaboration model Problems to tackle (continued): • TUBITAK-ODAGEM changed its name to ODAGEM, OSTIM Collaborative R/D Center Co., and became a company with 25 partners (19 companies, one university: TOBB University of Economy and Technology, OSTIM Management and 4 academicians). • A three-year net-work project proposal “Advanced Manufacturing Systems and Technologies Collaborative R&D Network and Platform” was prepared and submitted for TUBITAK approval. • The project was approved by TUBITAK; ODAGEM continued its operations as an interface and a net-work coordinator to promote industry-university cooperation since July 2007. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Advanced Manufacturing Systems and Technologies Collaborative R&D Network and Platform Aims: • To establish a model R/D cooperation network and platform in the area of production, technology development, design, product development, quality and management systems for the Turkish Industrial sites where many SMEs, considered to be the building blocks of Turkish Industry, operated together. • To include as many universities and large companies as possible in this network to accelerate the process of SMEs to understand and compensate their deficiencies in technological, structural, managerial systematic capabilities through direct technology transfer. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Advanced Manufacturing Systems and Technologies Collaborative R&D Network and Platform A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Advanced Manufacturing Systems and Technologies Collaborative R&D Network and Platform • Project work packages: • Project management: establishment and maintenance of the network • Web-site and data-base construction • National/international co operations and related agreements • Determination of national scientific and technological development goals and forming road maps • Development of national/international project proposals • Educational and training activities • Certification services • Consultancy and technical services • R/D for SMEs A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

Advanced Manufacturing Systems and Technologies Collaborative R&D Network and Platform • Current Achivements: • Yearly budget has already gone over 500 miilion NTL. • ODAGEM model is constantly being improved to embrace all the companies in OSTIM, raising their levels to take part in those work packages. • ODAGEM performed and at least started activities in all of the work packages in 2007. • The network will be enlarged to include • more and more universities (currently four universities) • more and more large companies (currently three companies) • more and more SMEs ( currently more than twenty) • possibly international companies and universities • Administrative board of the network will be established in 2008. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

CONCLUSION • Industry-university cooperation needs a lot of effort and patience. • Time and good practices are needed to ripen the proper conditions for such cooperation. • It took years to establish a concrete model for industry and university cooperation in Ankara, Turkey: ODAGEM. • ODAGEM will definitely show the companies in OSTIM and elsewhere the advantages of cooperation with universities and other companies raising their technological and managerial capabilities. • The universities will also benefit, finding new research topics resulting in innovation. • Young graduates will have better carrier opportunities and may even try to establish their own spin-off firms. • Although the model is highly promising, it still needs years to become self-sustaining and self growing. A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

THANK YOU FOR YOUR PATIENCE A model on university-enterprise cooperation: Turkish Experience EUE-Net Kick-off Meeting, February 7, 2008, Transilvania University of Brasov, Romania

A model on university-enterprise cooperation: Turkish Experience