Knowledge Economy Projects in Turkey and Romania

1. Knowledge Economy Projects in Turkey and Romania Knowledge Economy Forum III Budapest, March 23 – 26, 2004 Severin Kodderitzsch, World Bank

2. Overview • From KE Concepts to Public Investments • Turkey: From KE Assessment to KEIP • KEIP - Project Objectives and Design • KEIP - Project Components • KEIP - Next Steps • Different Approaches (Romania, Croatia, Russia)

3. A. Institutional Capacity Building A. Develop Key Competencies for KE B. R&D Capacity Upgrading B. Reform Governance & Management C. Technology Transfer & Dissemination C. Diversify and Reallocate Financing D. Technology Commercialization & Upgrading D. Improve Mobility & Access E. Enhance S&T and Research in Formal Education A. Information infrastructure A. Competition Policy B. e-Leadership, Policy & Inst. Development B. Financial Sector C. e-Government C. Labor Markets D. Capacity Building/ Human Resources D. Social Protection E. ICT Industry Promotion F. Socio-Economic e-Dev Applications KE: From Concept to Public Investment I. INNOVATION SYSTEMS II. LIFELONG LEARNING KNOWLEDGE ECONOMY IV. ECONOMIC & INSTITUTIONAL REGIME III. INFORMATION SOCIETY

4. I. Innovation Systems 1. Innovation Policy Formulation 2. Upgrading Physical Facilities/Infrastructure A. Institutional Capacity Building 3. National Quality Standards 4. Intellectual Property Rights 1. Restructuring Public R&D Institutes 2. Competitive Grant and Fellowship Programs B. R&D Capacity Upgrading 3. Research and Training Partnerships 4. Collaborative Research & Joint Projects with Industry I. INNOVATION SYSTEMS 1. Expand Linkages between Foreign & Local Firms C. Technology Transfer & Dissemination 2. Facilitate Knowledge Intensive FDI 3. Promote High-Technology Imports 4. Knowledge Transfer to Rural Communities 1. Technology Centers and Technology Parks 2. Start-up & Venture Capital Financing D. Technology Commercialization & Upgrading 3. Innovation Support Services to SMEs 4. Matching Fund Schemes for Technology Upgrading 5. Improve Firms R&D Departments for Production 6. Support Business Incubators

5. II. Lifelong Learning A. Develop Key Competencies for the KE 1. Analyze the Labor Market, determine needs of the knowledge economy 2. Benchmark competencies to needs of the knowledge economy 3 Develop curriculum to teach KE competencies 4. Implement qualification assurance systems for programs & institutions 1. Decentralize to meet regional & local needs as appropriate B. Reform Governance & Management 2. Expand tripartite governance to involve a range of stakeholders 3. Reform tertiary governance & administration 4. Institute accountability, transparency, quality assurance measures II. LIFELONG LEARNING C. Diversify and Reallocate Financing to meet the needs of lifelong learning 1. Analyze the impact of demographics on HD development 2. Implement studies and policies to improve efficiency 3. Diversify tertiary financing, balance public & private investment. 4. Create incentives to stimulate investments in non-formal training 1. Expand Distance Learning, including use of ICT D. Improve Mobility & Access to KE skill development services 2. Create inter-institutional articulation and credit transfer agreements 3. Define public policy on career development and implement programs. 1. Improve incentives for science & engineering in higher education E. Enhance Science & Technology and Research in Formal Education 2. Strengthen linkages between HEIs & business 3. Develop Campus Incubator Units 4 Design and provide resources for technology transfer schemes

6. III. Information Society 1. Telecommunications A. Information Infrastructure 2. Internet and Broadband 3. Postal Sector Reform 4. Telecenters (urban/rural) 1. Strategy & Vision B. e- Leadership, Policy & Institutional Development 2. Institutional Capacity 3. Legal & Regulatory Framework 1. Justice 2. Taxes and Customs 3. Citizen Services III. INFORMATION SOCIETY 4. e-Health and e-Education C. e-Gov. 5. Procurement 6. Business Support Services 7. Integrative Portal Services 1. ICT Training for Civil Servants D. Capacity Building/Human Resources 2. ICT training for SMEs 3. ICT in vocational training, secondary & tertiary educ. 4. Business education/support for ICT Entrepreneurs E. ICT Industry Promotion 1. ICT clusters and parks 2. Gov’t Supported Programs/Funds F. Socio-Economic e-Dev Applications 1. Fund/support innovative ICT applications in societal sectors

7. IV. Economic and Institutional Regime 1. Developing a Competitive Regulatory Environment 2. Reducing Tariff and Non-tariff Barriers 3. Increasing Domestic Competition and Entry A. Competition Policy 4. Providing Tax Incentives to Promote KE-based firms & SMEs 5. Attracting Foreign Direct Investment 6. Clearly Defining Property Rights 1. Building a Reliable Legal & Judicial Environment 2. Strengthening the Banking System B. Financial Sector 3. Fostering Diversity & Developing Capital Markets IV. ECONOMIC & INSTITUTIONAL REGIME 4. Improving Access to Financial Services 1. Reforming Labor Codes & Wage Bargaining Mechanisms 2. Removing Administrative Restrictions on Labor Mobility C. Labor Markets 3. Strengthening Job Search & Unemployment Programs 1. Overhauling Pension Systems 2. Targeting Social Assistance D. Social Protection 3. Improving Municipal Services 4. Increasing Community Participation

8. Turkey: From Assessment to Project • Knowledge Economy Assessment • Country Assistance Strategy • Knowledge Economy and Innovation Project

9. Project Objectives • Improving the competitiveness of Turkey’s economy • Creating knowledge-intensive, value-adding jobs By: • connecting enterprises with sources of information, knowledge and technology within Turkey and abroad • facilitating an information society • enhancing human capital to meet the requirements of a knowledge economy • supporting an environment in which knowledge-based initiatives can develop

10. Project Components • Enterprise Innovation • Information Society Development • KE Skills Development • KE Policy Capacity Proposed WB Loan $100m

11. Project Design • Enterprise-centered (SME), growth agenda • Link to education sector via labor market • Building on accomplishments and programs in Turkey Primary and Secondary Education Turkish Technology Development Foundation (TTGV) Turkey e-Transformation Program • Public – private partnerships • Regional / Local-level Implementation • Long Term Commitment • Foster Turkey’s membership into the EU

12. Enterprise Innovation Support National Level: • Scale-up ongoing TTGV technology programs • Establish new technology programs – Support for Commercialization, IPR Support, EU 6th Framework Support • National Technology “Competition” • Operational Review of TTGV Regional Level: • Establishment of Innovation Coordination Centers in 2 or more pilot regions • Awareness raising, information provision, coordinating support for enterprises, including innovation training • Administering new Small Technology Loan Scheme • Coordination with National Programs

13. Information Society Development In support of Turkey – e-Transformation Program National Level: • Establish single Government Portal/Gateway • Introduce e-procurement platform • ICT capacity building within selected public institutions Regional Level: Establish public internet access points

14. Skills for the Knowledge Economy Regional level: • identify and promote demand for knowledge economy skills • deliver knowledge economy skills to workers in enterprises, entrepreneurs, and recent graduates of secondary and higher education institutions • carry out quality assurance monitoring, evaluation, and scale-up design  skills delivered are demand driven  supply --service providers– to be reimbursed based on agreed performance criteria

15. KE Policy Capacity Building National Level:Regional Level: • Benchmarking and publication of Annual KE Report • M & E procedures for KE Policy initiatives • M & E framework for KEIP project • Raise awareness of KE issues (across KEIP components) Regional Level: • M&E of project activities at regional level

16. Next Steps • Partner Institutions / Implementation Arrangements (across components) • Selection of Regions • Moving from Preparation to Implementation

17. Different Approaches • Romania: Knowledge Economy Project • integrating PSD and Education via ICT • Croatia: Science and Technology Project • Institutional development • Russia: Distance Learning Project

18. Thank You.