TECHNOLOGY DEVELOPMENT ZON E S (TDZs )

1. MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY TECHNOLOGY DEVELOPMENT ZONES (TDZs)

2. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY • In order to achieve • export orientedindustry, • internationally competitive industrial structure, • Ministry of Science, Industry and Technologyprepared Technology Development Zones Law • and entered into force in 2001.

3. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY General Directorate of Science and Technology is responsable for the execution of this law.

4. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY • With this law, • companies are encouraged to invest more in R&D&Iand software development, through tax incentives. • Any kind of software development activity is considered as an R&D&I activity • In establishing a TDZ, involvement of at leastoneuniversity as a founder is a mandatory requirement • theestablishmentandmonitoring of TDZ’sareundertheresponsibility of Mınıstry of Scıence, IndustryandTechnology

5. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY • The aim of this Lawis to; • ProduceandCommercialisetechnologicalinformation; • Developinnovation in productsandproductionmethods; • Enabetheadoptation of Small andMedium-sized Enterprises (SMEs) tothenewandadvancedtechnologies; • Supporthighvalueaddedproductionandentrepreneurship;

6. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY • Createinvestmentpossibilities in technology-orientedindustrialfields; • Createjobopportunitiesforresearchersandqualifiedpeople; • Contributetechnology transfer; • Provide the necessary high technological infrastructure that will speed up foreign capital investments. through the strengthenedcooperation amonguniversities and the production sector.

7. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY Definition: Technology Development Zone (TDZ) is defined as a site or a technoparkwithinorcloseto a universitywhere the academic, economic andsocial structures areintegrated.

8. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY Management The managementof TDZs is undertheresponsibility of ManagingCompanywhichwill be founded as a joint-company . TheManagingCompany is alsoresponsibleforprovidingconsulting services in education,training, patenting, firm establishment, technology transfer, financing, venture capital, marketing and exporting.

9. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY • The shareholdersof the managing company: • There must be at least one universityamongtheshareholders, • Members of the Turkish Union of Chambers and Stock Exchanges, • Local Administrations, • Banks and FinancialAssociations, • Domestic private legal entities, • Foundations and associations related with R&D&I • and technology development, • Relevant public institutions, • Unions of Exporters, Foreign private legal entities mayalsoparticipate in the management company.

10. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY Tenants of TDZs: DomesticorforeignCompanies that are presently using orintenttousehigh technologies andwillingtodeveloporproduce newandinnovativetechnologies or software by using thetechnologicalinfrastructure of theuniversities (expertiseandknow-how, labs, network, testingandcalibrationequippment, etc.). Spin-offfirmsgraduatedfromTechnology Development Centers (incubators) of KOSGEB. Andthe Spin-offfirmsestablishedbyacademicians

11. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY The legislation promotes R&D&I companies to situate in a synergicatmosphere of TDZs and to develop their R&D andinnovativecapabilities, bygivingsometaxincentives.

12. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY Tax Exemptions and Incentives provided with the law (till the end of 2023) are; • Grantsupport for construction of infrastructureand management andincubationbuilding. • Income and corporate tax exemptions for the managing company, • Income and corporate tax exemptionsfor the incomes obtained from software development and R&D&Iactivities of the companies operating in these zones • Income tax exemptions for the salaries of the researchers, software engineers, and R&D&Ipersonnel working at the zone, • Value added tax (VAT) exemptions for the software development activities.

13. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY Insurance Premium Support: Half of the employer share of the Insurance Premium for the R&D&I and support personnel is covered by Ministry of Finance.

14. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY This law also allows the academicians to establish their own firms or become a shareholder of existing R&D companies located in the zones to commercialize their academic worksandthe research results(with the approval of their university)

15. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY The ministry funds also for expenditures consist of • incubation programmes, • technology transfer center activities • technological corporation programmes which are implemented by the managing company.

16. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY By January 2013, 49 Technology Development Zones established by the Ministry. 34of themare in operation.

17. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY InTechnology Development Zones; • Numberof R&D&I firmsare 2114, • Number of incubation firms are 277, • Number of foreign firms reaches to 70, • Numberof employed personel are 17828, • Number of projectsbeingworked on are 5397, • Amountof exportreachesto657 milion US Dollars, • Amountof foreigninvestmentreachesto650 milion US Dollars,

18. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY Sectoral Distribution of Firms in Technoparks • 56 % Software and IT sector • 9 % Electronics • 6 % Defence Industry • 4 % İndustrial Design • 3 %RenewableEnergy • 3%MedicalandBio-medical • 3 %Health • 16 % Others (Advanced Materials, Automative, Etc..)

19. GENERAL DIRECTORATE OF SCIENCE AND TECHNOLOGY THANK YOU FOR YOUR ATTENTION