Philip G. Wickham President & CEO Kauffman Fellows Program

Size: px
Start display at page:

Download "Philip G. Wickham President & CEO Kauffman Fellows Program"


1 InnoScope: 2011

2 InnoScope: 2011

3 2 3 You can always tell the hottest economies globally when you touch down and there are no gates for your plane at the airport. We work in nearly 50 innovation geographies around the world and Turkey has a combination of attributes that positions the country as an important leader in the global ecosystem for the long term. Its millennia of history as a crossroads between Europe and Asia has bred a diversity of and receptivity to different cultures and perspectives that is a core driver of innovation. It is a natural gateway between the burgeoning Middle Eastern economies and the West. Most importantly, it has a core of young leaders that are passionate about the start-up ecosystem and have invested heavily in connecting to key centers of activity in Europe, the Americas and Asia. In Silicon Valley parlance, they have earned the ultimate compliment: they get it. Philip G. Wickham President & CEO Kauffman Fellows Program We have been sharing the stories of innovative companies, which we ve had the opportunity to work with due to the projects we support since 2007 in Turkish. By doing so, we wanted to increase innovative susceptibility and encourage other companies as well by focusing on the common basics of these individually unique success stories. Honored to be presenting the 53 success stories that we have compiled until now, we thank all companies that have given us the privilege to share their stories in this publication. We felt the stories we have in hand also gives a perfect scope into the competitive innovation capacity of a fast emerging economy in Turkey, hence we decided to produce the InnoScope: 2011 in English in this print. I found TTGV s Success Stories inspiring in terms of the breadth of fields of endeavor it has supported in such a short time. These success stories are a great testament to the creative drive and energy of Turkish entrepreneurs, and should encourage others to follow in the footsteps of these remarkable innovators. Laird D. Treiber US Embassy Counsellor for Economic Affairs Technology Development Foundation of Turkey The Private Sector in Turkey is embracing these uncertain times with a remarkable combination of knowledgeable boldness and resiliency. As far as innovation is concerned Turkish companies are decisively and creatively incorporating state of the art solutions whenever they feel it suits their interest best while at the same time constantly seeking for new ways of carrying out business in their own way. The adaptability and growth potential that is derived from this try bold-fail small and feed-success approach is certainly behind Turkey s recent economic successes and leads me to believe that Turkish companies shall in the coming decades remain in the forefront of those making the most out the changes that we shall all be going through. Isaac Martin BARBERO Head Economic and Commercial Counsellor, Spanish Embassy

4 4 Who is TTGV? Technology Development Foundation of Turkey (TTGV) was founded in 1991 as a unique model of public private partnership through on supporting technology development and innovation in the private sector firms. TTGV is a non-profit non-governmental organization. Its legal form is a foundation and by Turkish Law it has the status of Foundation Established by Law which gives it the mandate to act as an intermediary for public funded programs. TTGV was established as a transparent, accountable, agile and fast adapting program agency that will carry out its public mandate with a private sector culture. TTGV model brought together government agencies, umbrella organizations, NGOs, private industrial companies and private citizens as founders. TTGV s board includes representatives from both public agencies and private companies with a private sector majority in decisionmaking therefore making TTGV an effective tool for public-private joint policy implementation in Research, Technology Development and Innovation (RTDI). TTGV has a full time staff of 43, but has access to a diverse pool of national experts in their fields of professional expertise for short-term contract work; including for independent referee evaluation of project proposals of the companies. TTGV s funding comes from the public budget, its rotating fund, fees and other income. Through TTGV s unique legal stature as a bridge between public and private legal systems, public funding received by TTGV are provided through provisions of the private law to private companies as project soft loans for their RTDI projects. Since 1991 TTGV supported well over 900 projects providing over 300 million USD in cash as support to the companies. TTGV administered the Phasing Out of Ozone Depleting Substances Program in Turkey which was successfully completed in The model developed for the program is cited as an international best practice and was later adopted in other countries. TTGV is running limited programs on environment related projects in the private industry. Since 2000, TTGV has been active in the field of Venture Capital in Turkey. TTGV invested public funds into two private PE funds, namely TURKVEN TPEF-1 and İş Girişim which are the first examples of such funds in Turkey. Teknoloji Yatırım A.Ş., TTGV s early stage technology investment vehicle is active with six portfolio investments In 2007, TTGV sponsored along with other investors the İstanbul Venture Capital Initiative (IVCI), first and only fund of funds dedicated to Turkey. TTGV remains, arguably, the most sophisticated institutional investor of public funds into Venture Capital. TTGV collaborated with various national and international organizations including the European Investment Fund to develop venture capital markets in Turkey and the related eco-systems of innovation and entrepreneurship. TTGV is a member of TAFTIE, network of European innovation agencies since TTGV carries out various benchmarking and survey studies in cooperation with foreign agencies, such as the innovation system benchmarking study that was carried out by KDI of South Korea in In today s business world, where competition has become a way of life and R&D and innovation are at the heart of taking lead in this competition, TTGV has become an essential institution for the Turkish business world. Centering in on this reality, TTGV endeavors to make Turkish companies sought after companies in international markets. Providing support particularly to small and medium size enterprises in the areas of research and development and enabling them to grow and outpace their competitors and become international companies is a source of pride for Turkey s foreign trade. Taking into account the progress of companies which by working with TTGV have strengthened their research and development competences and have created their own success stories - I believe with all of my heart that TTGV will be a building block of innovation in the Turkish business world. I support and enthusiastically follow TTGV s inspiring efforts to increase our country s competitiveness. Erman ILICAK TÜSİAD Board Member & Chairman of the TÜSİAD s Technology, Innovation and Information Society Committee

5 6 TTGV s Founders (According to Bylaws of TTGV) Public Institutions Seeing what everyone else sees but thinking of ideas no one else does Ideas are the staple of success your ability to think determines how far you will go. As former British Prime Minister Benjamin Disraeli said Nurture your mind with great thoughts for you will never go any higher thank you think. Continuously trying new thing as if it is an addiction keeping the soul of a child filled with enthusiasm and curiosity alive inside of you leaving your safe haven and opening sail to unexplored lands.acting like a butterfly instead of a clam taking risks the closer you get to the tips of a branch the higher your chances are of falling down yet all fruits grow on the edges of branches Taking a step toward a valuable goal being part of something greater than yourself using the power of your goals to reach the hearts and mind of your employees as Napoleon Hill said Cherish your visions and dreams as they are the children of your soul, the blueprints of your ultimate achievements. Leading time creating and planning a strong focus for the future building a bright future while creating a successful present... Turning your workplace into a place where geniuses are born creating a culture that inspires employees to embrace new ideas and information allowing them to realize their highest potentials and ensuring they adopt bigger visions and live with a better feeling of hope and success. You must give in order to receive. As they say in the East The fragrance always stays in the hand that gives a rose. As I read the success stories of these companies, I wanted to share with you the inspiring and creating ideas that exist between the lines from my perspective. As people we tend to respond to visual cues. We remember pictures better than words. If we turn our goals into vivid, memorable images, it is easier for us to achieve them. When standing at the stairs of the Lincoln Memorial Martin Luther King did not say I have a dream that relations between people of different races in America will improve year by year. Instead he created a vivid mental image that continues to be meaningful to this day: I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. Yes, painting that portrait of success that emerges as an unexpected outcome of a powerful goal and of effective efforts expended to reach that goal being a source of inspiration in this way ingraining in to minds the message you can do it too. This is what the Success Stories achieve. My wishes are for an increase in these success stories that TTGV, which is an important building block of change and transformation in Turkey s business sector and which I am honored to be a member of, has conveyed to us on occasion of its 20th anniversary. Private Sector Companies Umbrella Organizations and NGOs Individuals T. Fikret YÜCEL Kemal GÜRÜZ A. Nejat İNCE Süha SEVÜK Halim DOĞRUSÖZ Aydın DÜNDAR Aydın KARAÖZ Bülent ÖZGÜN Bülent ŞAHİNALP Ersen EKREN Murat Ata KUDAT Mehmet ŞUHUBİ Uğur YÜCE Saadettin KARAERKEK Sahir ÇÖRTOĞLU Ziya ALTUNYALDIZ Undersecretary of Customs Member of the TTGV Board ( )

6 8 9 Technology Development Foundation of Turkey s (TTGV) 20-year Past TTGV will mark its 20th anniversary in June I believe it is time to share the story behind these 20 years. The search for and development of science and technology policies began in Turkey during the planned period. The establishment of TÜBİTAK in 1963, which was included in Turkey s first Five-Year Development Plan ( ) is considered to be a milestone in this area. In the beginning, policies were more focused on developing competencies in the area of natural sciences. Developing competencies in technology in addition to science was targeted later on. It was envisioned that scientific and technological experience and knowledge would have economic and social benefits. An important step in this regard was taken in 1990, when the Undersecretariat of the Turkish Treasury signed a $100 million debt agreement with the World Bank to finance the Technology Development Project. This project has three parts: 1. Ensuring the establishment and development of a metrology, standard, test and quality system, 2. Supporting research and development activities carried out by the Turkish Industry, 3. Setting up a venture capital company. The last part was removed from the project because the legislation on venture capital was not considered to be appropriate at that time. It was decided that a new foundation would be set up to handle the second part of the project. TTGV was established with this purpose. The Technology Development Project played an important role in the establishment and operation of Turkey s science, technology and innovation system. The opportunities that were introduced with the first part of the Technology Development Project and the support given to the Industrial Technology Project (ETP), which was implemented with a loan from the World Bank, made it possible to establish the TÜBİTAK National Metrology Institute (TÜBİTAK- UME), restructure the Turkish Patent Institute and take the first steps in setting up TURKAK. TTGV s establishment was completed in June Since that date, TTGV has been striving to fulfill its part in the establishment and operation of the science, technology and innovation system to the extent that resources permit. TTGV took part in the World Bank-supported Technology Development Project and Industrial Technology Project and used the allocated funds to support technology development and innovative efforts in the Turkish Industry. TTGV also managed R&D support that was provided as part of the Decree on Government Incentives Towards Export that was put into effect in This fund, which is managed by the Undersecretariat of Foreign Trade and TTGV, is funded by a share of TTGV s own resources and the Support and Price Stabilization Fund, pursuant to Money-Credit and Coordination Council decisions. TTGV was initially mainly focused on promoting itself and its supports and on assessing and providing support to projects. But then it started to take a role in all areas of the innovation system which formed and evolved over time. In fact, TTGV spearheaded many of the efforts. As part of the Technology Development Project, four research centers were established as incorporated companies. Two of these centers, Esim Testing Services and Novagenix Medicine R&D are still in service. However Yüzey Teknolojileri and Yazılım Destek have closed out. It was with these four companies that the processes and services in their respective fields were implemented for the first time in our country. With support from ETP, TTGV became the founder and partner of two venture capital companies, one in Turkey (İş Girişim) and one abroad (Turkven). Most recently, it founded İstanbul Venture Capital Initiatitive (ivci), which is the first fund of funds, in partnership with the Development and Support of Small and Medium-sized Enterprises Administration (KOSGEB), European Investment Fund (EIF) and Turkey Investment Bank. Within the scope of ETP, TTGV also supported Bilkent Cyberpark and İTÜ Arı Teknokent projects as well. As a whole, these organizations have the identity of a Technology Development Region. Organizations in this region benefit from the rights provided by the relevant laws. Over time, TTGV adopted the principle of providing project supports throughout the entire process from the initial formation of an idea and concept to their commercialization. In this respect, TTGV started providing start-up capital support and commercialization support. TTGV s start-up activities are managed by TTGV s affiliate named Teknoloji Yatırım, which is the first and only technological investment company that invests during the start-up phase. By using funds that were provided by two agreements, which were formed as part of the Montreal Protocol and signed between the World Bank and the Undersecretariat of the Turkish Treasury, a project on eliminating elements that thin out the layer of the ozone was implemented in Turkey. Approximately $26 million was assigned to various institutions as a repayable grant during the project, which was completed in The fund, which relies on repayments, is used to give supports on the same subjects. TTGV has been using its own resources since 2006 to implement its Environmental Supports program, which provides support for environmental technologies, energy efficiency and renewable energy efforts. In addition to increasing the potential for export and the competitiveness of businesses that export, the program aims to minimize the consumption of raw materials, energy and water, to minimize waste production and to ensure clean production so as to minimize harmful effects on the environment as much as possible. In this respect, efforts to set up the National Eco-Efficiency (Clean Production Center under the auspices of TTGV which is foreseen in the TTGV-led UNIDO Eco Efficiency (Clean Production) Program are still underway. Preparations for the 9th Technology Awards and Technology Congress, which we have been organizing together with TÜBİTAK and TÜSİAD since 1998, are currently underway. It is very satisfying to see Turkish Manufacturers each time showing more interest in this event. In addition to this, an event known as the The most successful thesis and institution within the Dr. Akın Çakmakcı University-Industry Cooperation Awards has been organized with the purpose of encouraging industrial applications of R&D activities carried out in Turkish universities since This event will be held for a fourth time in ESİNKAP or Building Capacity for Innovation Strategies in Eskişehir which was started in 2008 served as an example for regional clusters. With this project, which was completed in 2009, the idea of increasing competitive power by interacting with regional actors and focusing on R&D, innovation and eco-efficiency was inculcated in companies and was met with much interest. It was decided that the Project Marketplace, which constitutes the last stage of the project, would be replicated periodically by the Eskişehir Chamber of Industry. In line with this, OKÜMKAP or Building Capacity for Automotive Clusters Project was launched as a sectoral cluster model. The purpose of this project is to help companies especially in the automotive sub-industry in Bursa and its surrounding regions to form an innovative and technology-based cluster. In 2010, TTGV, using its own resource, implemented the Advanced Technology Project Support Program. The technologies that are envisioned to be supported by this program are as follows: High value added bio products and technologies produced from agricultural waste, Advanced material technologies and sensitive production techniques, Technologies for the production, storage and distribution of renewable energy. According to preliminary studies, the chosen fields are considered priority fields in many countries and there is significant potential in our country in these areas. We also believe that this initiative will respond to an appeal to supplement supply-related support policies with demand-related support policies. An assessment of TTGV s activities over the last 20 years was the subject of an impact analysis. The collective findings of individuals and institutions closely involved in the matter can be summarized as follows: 1. TTGV s activities have a significant contribution in the development and expansion of the R&D, technology and innovation culture in Turkey and many companies have integrated R&D and innovation into their activities as a result of their relations with TTGV, which has supported this process by organizing workshops, seminars, meetings and publications. 2. TTGV s activities have a positive impact on the cooperation between universities and the industry, either directly or indirectly. The Most Successful Thesis and Institution within the Dr. Akın Çakmakcı University-Industry Cooperation Awards, the first of which was held in 2001, has been organized three times so far. This event attracts more attention and participation every year it is organized. On the other hand, university faculty members extend wide support in the evaluation of projects recommended for support. This phenomenon not only ensures interaction between the universities and industry but also allows both sides to learn the positions, expectations, talents and competences of each other. 3. Project owners benefit from the recommendations offered during the execution and revision of the supported project. Many organizations have expressed that not only financial support but also the criticisms and recommendations made from the very beginning of the project till the very end play an important role in the project s success. 4. Throughout this period, TTGV has made major investments in the area of technology development and innovation with its various project supports. The total budget of projects that have been eligible for support is around $630 million, of which $415 million has actually been spent. 5. TTGV has made significant contributions to our countries Innovation System. It continuously enriches its activities within this system and introduces new instruments to meet needs and to create demand. After the idea of addressing the Innovation System, which entails all stages between the birth of an idea to commercializing and patenting the developed product, process and service in line with a pipeline approach, became more settled, it was implemented in Preliminary incubation, start up and commercialization supports are all links of this chain. The environmental supports started the same year and the Advanced Technology Supports that were added to the 2010 year working program should also be mentioned within this frame. I wish for many more successful 20 years. Fikret YÜCEL TTGV Board of Directors Chairman

7 TTGV Timeline

8 12 13 TTGV R&D Support Statistics (Cumulative ) TTGV R&D Support Statistics (Cumulative ) Sector / Company Age Distribution Company Age > Number of Projects Company Number Year / Sector Distribution Years Sector / Region Distribution Company Age 1-10 Sector / Employee Number Distribution 500 Projects 371 M USD 8 Projects 5 M USD Projects 59 M USD 256 Projects 171 M USD > Number of Projects 12 Projects 6 M USD 9 Projects 9 M USD Biotech Information Tech. Machinery Biotech Information Tech. Machinery Electrical / Electromechanical Chemicals Materials Electrical / Electromechanical Chemicals Materials

9 14 15 Our Spirit is as Strong as 1991 Celebrating its 20 th anniversary in 2011, TTGV was established as a pubic-private sector joint venture in 1991 with a revolutionary mission at the time to deliver public funds to support private sector R&D activities. Reflecting the spirit of 1980s to open up a state dominated economy then, TTGV was designed to fulfill a public sector mission despite its non-public sector identity as the first and so far only example. As one of the respected institutions in Turkey s innovation system today, TTGV has become Turkey s representative of a contemporary model that attracts attention and interest at the international level. Corporate DNA of TTGV was spawn from the ideals that drove the relentless efforts to open up the economy in 1980s to become a strong global competitor with a dynamic private initiative led economy. While it is not possible for us to objectively determine what politicians, bureaucrats, and private sector and civil society administrators who supported TTGV s establishment and rapid development envisioned TTGV would turn to be in 20 years, I believe we can safely claim that everyone who contributed to TTGV s establishment is pleased to see that the consistent, sustainable, dynamic and transparent structure proposed in the documents of official meetings between the Republic of Turkey and the World Bank during TTGV s establishment has been realized today. It is essential that the spirit of 1980s that led to the establishment of TTGV is kept alive among our public stakeholders. Today s Turkey as the 15 th largest economy in 2010 and has more than $100 billion in exports obviously needs an ever-evolving innovation and competitiveness agenda. Effective work of the Supreme Council for Science and Technology (BTYK) under the coordination of TÜBİTAK, the dynamism that Law number 4691 on Technology Development Regions and Law Number 5746 on Supporting Research and Development Activities created among the private sector and the increase and diversity of supports particularly those from the Ministry of Industry and Trade, the State Planning Organization and TÜBİTAK have been important and positive developments toward meeting this end. Having evolved into a dynamic global upstart, in order to keep a competitive edge Turkey has become obligated to monitor new trends and ideas in innovation systems and be a pioneer of innovative thought in policy and program implementation. The process is likely to result in a redefinition of the public sector s role in the system and of the models in which it will be included. Obviously, implementation of a new generation of public-private partnership models which require public sector to partner with other sectors on equal footing will necessitate a comprehensive review of the underlying legislation inline with a fresh reformist agenda. The way a story is told is as important as the story itself. In 2011, which marks our 20 th anniversary, we seek to document TTGV s journey with works that narrate TTGV s past, present and future together with the evolution of the country s innovation capacity. There is no doubt that TTGV has become an ingrained part of the collective intellectual capital that has formed over the years as a result of the experience gained between 1990, the year when the foundation for a private-sector oriented innovation system was first laid, and now. We believe TTGV s genuine asset to Turkey s innovation system is much beyond the statement: TTGV has provided a total of $300 million for 950 projects carried out by 800 companies since it was founded in Foremost, the support program, which TTGV provides in an exemplary form of harmony and cooperation using resources allocated by the Undersecretariat of Foreign Trade (UFT) and that has engendered many success stories, sets a successful global example for work sharing and cooperation between a specialized program implementing institution and the institution that owns the program. Over the past 20 years, TTGV has been part of unprecedented achievements. Many ideas and designs TTGV had spearheaded were later picked up or adopted in larger scale by other agencies, which makes us very proud. TTGV has mediated the financing of the first technoparks and has designed and implemented the first examples of SME small-grants support which have now become widespread as various national programs under KOSGEB, the national SME agency. TTGV s involvement with technoparks and SMEs continues through soft advisory activities with regional networks and agglemorations. TTGV s support for the elimination of materials that damage the ozone layer won a global award and was adopted by other countries as well. Thanks to the mechanism TTGV designed and implemented, Turkey was able to benefit from an international grant that not many countries are able to receive and was able to fulfill its liabilities before the mendatory deadline. Today as TTGV we aim to continue to build our experience with new and different activities in the areas of clean production, energy efficiency and renewable energy which we believe will become important innovation agenda items of the near future. Many successful enterprises continue to benefit from the soft loans TTGV has been providing since High commercialization rates and market success for supported projects affirm our delivery processes and make us very proud. We have activities underway to design and develop different support models to facilitate the commercialization of information through entrepreneurship. TTGV took part in several first ever initiatives in the area of venture capital since 2000 by investing in Is Private Equity and TURKVEN TPEF-1 which are the first private venture capital funds in Turkey, by setting up Teknoloji Yatırım A.Ş., which is the first general purpose early stage technology investment fund in Turkey and by becoming a founding partner of İstanbul Venture Capital Initiative (ivci) which is still the first and only fund of funds in Turkey. It is fair to claim that aggregate statistics are not doing full justice to the real potential of Turkey s private enterprise. While innovation statistics for Turkey presents a country lagging in many fronts, many Turkish companies of all sizes already proved themselves as global competitors in a variety of diverse sectors. Having been part of the EU Customs Union since 1995, Turkey today is one of the most open economies in the world. All Turkish firms face strong international competition in the internal market but nevertheless succeeded in identifying new niche areas to expand. Of approximately 250,000 manufacturing enterprises in Turkey, there is no doubt that a good many Turkish hidden champions exist. Turkey has an extensive body of very well educated diaspora outside, which facilitates a healthy circulation of new ideas and skills into Turkish market. As one of Turkey s best kept secrets so far, the stories of successful Turkish enterprise are not widely known and individual business valor remains untold. Turkey so far failed to create a strong brand around its business innovation capacity, which unfortunately creates many hurdles for Turkish businesses to access to quality finance, skills and advanced segment markets. As our innovation system prepares to leap forward to the next performance level, we felt we could narrate TTGV so far on its 20 th anniversary better if we shared in a book individual success stories that build the TTGV story. A.Mete ÇAKMAKCI TTGV Secretary General

10 16 17 Population: 74 million (2010) Labor Force (Population): 25.9 million (October 2010) Median Age: 29.2 (2010) Area: 783, km 2 Time Zone: GMT+2 Turkey in Brief Neighboring Countries: Bulgaria, Greece, Syria, Iraq, Iran, Azerbeijan, Armenia, Georgia Major Cities (Population): İstanbul (13.3 million), Ankara (4.8 million), İzmir (3.9 million), Bursa (2.6 million), Adana (2.1 million) GDP: USD 618 billion (2009-current prices) GDP Per Capita: USD 8,590 (2009) Exports Value: USD 114 billion (2010) Imports Value: USD 185 billion (2010) Foreign Direct Investment: USD 8.9 billion (2010) Number of Companies with Foreign Capital: 25,500 (2010) Inflation Rate: 6.4% (CPI-2010) Major Exports Markets: Germany (10.1%); UK (6.3%); Italy (5.7%); Iraq (5.3%); France (5.3%) (2010) Major Imports Sources: Russia (11.6%); Germany (9.5%); China (9.3%); USA (6.6%); Italy (5.5%) (2010) Trade Agreements: Customs Union Agreement with the EU Free Trade Agreements with Albania, Bosnia Herzegovina, Croatia, EFTA member countries (Switzerland, Norway, Iceland and Liechtenstein), Egypt, Georgia, Israel, Macedonia, Montenegro, Morocco, Palestine, Serbia, Syria, Tunisia Europe s Biggest Economies (GDP Based on Purchasing Power Parity, Trillion Dolar, 2009) Switzerland Austria Greece Sweden Belgium Netherlands Poland Turkey Spain Italy France United Kingdom Germany 0 0,5 1 1,5 2 2,5 3 Source: IMF, World Economic Outlook, October Age Favourable Demographics Demographic Profile (2050 Projections) Poland Bulgaria Romania Slovak Rep. Czech Rep. Ukraine Hungary Europe Russia Turkey 12% 12% 13% 13% 13% 13% 14% 15% 15% 18% 48% 47% 48% 50% 49% 51% 51% 51% 53% 58% 40% 41% 39% 37% 38% 36% 35% 34% 32% 24% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Age Comparison of Europe and Turkey Real GDP Growth (2001=100) Source: UN 60+ Age 90 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Turkey Portugal Hungary Italy Poland Euro Area Spain Source: OECD, 2009

11 18 19 Research, Technological Development and Innovation Incentives and Programs Turkish R&D Promotion Law The R&D Law provides special incentives for R&D investment projects in Turkey if a minimum of 50 personnel are employed in an R&D center. The incentives within the new law are valid until the year 2024 and include; 100% deduction of R&D expenditures from the tax base if the number of researchers is over 500, then in addition to the 100% deduction, half of the R&D expenditure increase incurred in the operational year compared to the previous year will also be deducted. Income withholding tax exemption for the employees (this item will be effective until December 31st, 2013.) 50% of social security premium exemption for employees for a period of 5 years Stamp duty exemption for applicable documents Techno-initiative capital for new scientists up to TRY 100,000 (USD 62,200) Deduction from the tax base of certain funds granted by public bodies and international organizations Technology Development Zones The advantages in Technology Development Zones are: Offices ready to rent, and infrastructure facilities are provided. Profits derived from software development and R&D activities are exempt from income and corporate taxes until Deliveries of application software produced exclusively in TDZs are exempt from VAT until Wages of researchers along with software and R&D personnel employed in the zone are exempt from personal income tax until % of the employer s share of the social security premium will be paid by the government for 5 years until Foreign private legal entities can join the manager company under the framework of legislative acts within Act No Foreign Direct Investment Law. Incentive Programs TÜBİTAK (Scientific and Technological Research Council of Turkey) and TTGV (Technology Development Foundation of Turkey) both compensate or grant R&D related expenses and capital loans for R&D projects. The Small and Medium Sized Industry Development Organization (KOSGEB) makes significant contributions to strengthening SMEs by various support instruments in financing, R&D, common facilities, market research, investment site, marketing, export and training. Ministry of Industry and Trade s Industrial Thesis (SANTEZ) Program gives direct financial support for new technology adaptation, process development, quality improvement and environmental modification projects to be realized with university partnerships. Ministry of Industry and Trade s Techno- Entrepreneurship Support Program aims to increase the number of young entrepreneurs through supporting technological and innovative business ideas. Bachelor degree, master degree, PhD students graduated within one year are eligible for Techno- Entrepreneurship Support. Source: R&D Expenditures ,85 0,75 0,65 0, R&D Human Resources (Number of People x1000) Full-Time R&D Personnel Full-Time Researcher 286 billion TL Public R&D Investment More Investment in R&D 1416 billion TL Public R&D Investment 0, R&D Expenditures (GDP %) GDP (Billion TL) 29 Increase in TÜBİTAK - TEYDEB Grants X 3, GDP Source: Turkish Statistical Institute, TÜBİTAK 29% 7% Higher Education Government Private Sector Companies 12% 40% 64% 48% 2009

12 Turkey at-a-glance 20 Availability of Qualified Labor Force Scores 21 Skilled Labor Turkey, the heaven for great opportunities, with its young population and growing economy, plays a vital role in the world s future. The fast growing domestic market, entrepreneurial spirit, competitive workforce, and unique location of Turkey, coupled with liberalisation, deregulation and privatisation policies create a significant demand for private capital. Combining these vital resources, there are so many factors that attract investors to Turkey. The economy, being in good health, is among the most important. The increasing number of software engineers, tax reductions provided by the government for R&D and the increasing amount of internet usage can be listed as other factors. With its entrepreneurial spirit, the increasing number of young entrepreneurs and its growing VC/PE industry, Turkey is on it s way to become one of the World s 10 biggest economies, therefore it is inevitable forturkey to be a center of attraction for investors. We must inspire and encourage entrepreneurship, as well as increase the number of companies in VC and Private Equity industry, by building government supported fund of funds as IVCI,which has been the pioneer of the industry in Turkey since Ali SABANCI TOBB Young Entrepreneurs Council Chairman İstanbul Venture Capital Initiative Strategic Network Chairman Engineering, Manufacturing and Construction Turkey Czech Republic Poland Romania Average Score IT Skills Finance Skills Language Skills Qualified Engineers Competent Senior Managers Source: IMF World Competitiveness Yearbook, 2010 Scores (0: Not Available, 10: Available) Availability of Educated Labor Force in Turkey Number of Students in Tertiary Education by Field Engineering and Engineering Trades Manufacturing and Processing Total Students in Tertiary Education Enrolled Graduates Enrolled Graduates Enrolled Graduates Enrolled Graduates I strongly believe that with its young and dynamic population, entrepreneurship in high-growth, high-potential ventures will be one of the key economic growth drivers of Turkey for the coming decade. According to recent Global Entrepreneurship Monitor (GEM) Global Report 2010, Turkey has seen a jump in early-stage entrepreneurship in recent years. More interestingly, compared to its peer group, higher percentage of these nascent entrepreneurs are opportunity-driven as opposed to seeking self-employment in the absence of satisfactory job options. Furthermore, these entrepreneurs have very high aspirations for their businesses overall as measured by job creation ambitions, self-assessment of their product and service innovation and current internationalization levels. We need to remember that all there aspiring activities are taking place in an environment where gross expenditure on research and development (GERD) as a percentage of GDP is still one of the lowest among OECD countries and venture capital activity is even lower. However, given the recent awareness and effort by both private and public sector players to develop the ecosystem for entrepreneurship, one has to believe that significant value creation potential exists for these aspiring new entrepreneurs and their investors. E. Göktekin DİNÇERLER TOBB Venture Capital Sector Assembly Chairman Turkey Brazil Poland Ukraine Entrepreneurial Culturial and Opportunities Human and Social Environment Venture Capital/Private Equity Attractiveness Comparison Economic Activity Source: Statistical Office of the European Commission (Eurostat) Depth of Capital Market Taxation Investor Protection and Corporate Governance Source:

13 22 23 The Story of Success Stories Turkey is poised to become the silent BRIC of the 21st century. Whilst having a moderate population size relatively to such peers, its macroeconomic fundamentals together with its young, entrepreneurial and dynamic population makes it a powerhouse for growth. Turkey has two further distinct advantages: First, Turkey s EU convergence process together with its crossroads location enables it to have ever stronger stability and governance pillars. Second, Turkey is a magnet for reverse brain drain flowing back into very modern university and work environments. All this combined with the venture capital ecosystem which is being fostered ensures a strong cauldron for innovation. Within this landscape and as proven by the Success Stories mentioned in these pages, an independent, public-private institution such as TTGV plays a key role in being a catalyst in the process of capital formation of innovation resulting in high social impact. TTGV s boldness in supporting a first time private equity team back in 2002, spearheading the set-up of the Istanbul Venture Capital Initiative in 2007 and exploring the early stage space through its Teknoloji Yatirim arm are all examples of innovative approaches contributing to Turkey s success in the field of innovation by means of being a strong service provider to the private sector. Going forward, watch out for the internationalisation of Turkish R&D and expect TTGV s vision to continue playing a leading role. Pay and Productivity, 2008 ICT Expenditures as % of GDP, 2007 Extent of Business Internet Use, 2006 Reliance on Professional Management, 2008 A Global Benchmark Trade as % of GDP, Jose Romano Head of Turkey and ivci, European Investment Fund Export of Goods and Services as % of GDP, 2007 Domestic Credit to Private Sector as % of GDP, 2007 Regulatory Quality, 2007 Government Effectiveness, 2007 Why are success stories written? In other words, what is the story behind a success story? Here, I will invite you to think about the meaning of a success story in the broadest sense instead of write about a story. In other words, I will explain the story of why success stories are written in the areas of producing innovative ideas and technology development. But first, let s clarify why narration or story telling is described in the opening of this book. Among the main attributes that differentiate human beings from other living creatures is an attribute that is often forgotten and not mentioned. That attribute is the capacity of individuals to tell stories. While we know that animals and plants have developed a language to communicate amongst each other we don t know if animals and plants have been telling stories to each other all along. On the other hand, we know that people continuously tell each other stories. It is a need they have as social beings. Indeed, we start constructing stories everyday at the breakfast table. We build the frame of the story we intend to experience during that day in our minds. We create work-related stories for the work place and spend our day telling these stories to our colleagues, business partners, and employees. After all isn t the subject of discussions, debates, evaluations and decisions at work meetings essentially the story of the job or project we are doing? From this perspective, we can say that we are constantly trying to write the story of success particularly in our professional lives. Entrepreneurs can develop new business ideas and technological innovations by listening to and reading as many different success stories as they can. Isn t expanding limited experience the basic concern behind telling and listening to stories anyway? Indeed, aside from knowing that someone somewhere became successful in doing something we want to know the story behind how they became successful. Every piece of information we obtain from these stories make us stronger at our work. More importantly, these stories explicitly show how a very profitable technological innovation starts off with a simple idea. They guide us on how we can develop innovative ideas and improve our belief and self confidence about being able to make technological innovations in the business world. Bilge Karasu, one of the most important writers in Turkey, always gave her friends and students the following advice: no matter what you do, you must always have a story. Indeed, regardless of which sector we work in, the path to success is creating innovative ideas and developing technology. But that is not enough! We also must tell the story behind the technological development and innovation and spread it as much as we can. The book you hold in your hand brings to you the success stories of innovative companies in Turkey that have developed technology. Each company included in this compilation of success stories has unique projects that aim to develop technology. Each project has something new to teach us. Every story not only broadens our horizons but serves as a guiding light. Learning from the experiences communicated in each story is much more cost-efficient then doing it yourself and failing. I hope that those who read this book will be able to share their success stories in future compilations. Ersan Ocak Turkey Brazil India Quality of Management Schools, 2008 Value Chain Presence, 2008 Firm-Level Technology Absorption, 2008 Science and Engineering Enrolment Ratio (%), 2007 Manuf. Trade as % of GDP, 2007 Availability of Venture Capital, 2008 Source:

14 A different story of entrepreneurship... Professor Nesrin Hasırcı is a lecturer in the Chemistry Department at the Science and Literature Faculty at METU. She is also an active member of post graduate interdisciplinary programs like Biomedical Engineering, Biotechnology, Polymer Science and Technology, and Micro and Nanotechnology. In addition, the founding department chair of the Biomedical Engineering program, which was set up in Her area of expertise includes polymers, micro and nano modifications of polymers, biotechnological applications and biomedical applications. After an extensive research across these fields, Professor Hasırcı started developing a new polyurethane film that did not have any additives like a catalyst for medical practices in 1987 with a student. This endeavor was the beginning of a long journey. She later received a patent with examination for another work that she carried out in The journey that began with a research and ended with a patented product took a very long time due to the conditions in Turkey. However the extensive length of time and the challenges she encountered during that time did discourage professor Hasırcı from pursuing her interests. She managed to develop a product that is very important for the tissue engineering sector. A patent has been received for this product, which is very effective in treating advanced and stubborn wounds and burns. License talks for the product have also been completed and the product is prepared for to be commercialized. Year 1987 first student and first paper The story begins in 1987 when Professor Hasırcı and her first post graduate student A. Burke submitted their paper titled A Novel Polyurethane Film for Biomedical Use to the scientifically prestigious Journal of Bioactive and Compatible Polymers. In the paper they defended that they developed a polyurethane film that had very good mechanic qualities without using any additives like a catalyst for the first time in the world and that they had synthesized it at biomedical purity. They received a phone call from someone in the US about six or seven months after the paper was published in the journal. The person on the phone explained how the content of the paper was very important and said that it probably entails an important discovery and asked where they obtained a patent for it? Noting that she was surprised by the question Professor Hasırcı says we had no idea what a patent was, if we needed to get one and how we could get one. Back then forget patents, we couldn t even find the chemicals we needed to implement projects or it took extremely long to obtain them which is why we used to shape our projects according to the material we had. Year 1994 learning about patents in America Professor Nesrin Hasırcı won the Fulbright scholarship in 1994 and went to the United States of America to study at the Massachusetts Institute of Technology (MIT). At MIT she started to work with Professor Robert Langer, a world renowned scholar on biology. She observed how most works at MIT were patented and how the process related to intellectual property rights was carried out professionally by expert interfaces in a way that does not create much burden for the researchers. Summarizing her impressions at MIT, Professor Hasırcı says Professor Langer is a world renowned figure in the field of tissue engineering. He has several patents. During those years he was a partner of eight companies. His works generally originate from a problem that occurs at a hospital. The relevant departments at the university come together to solve the problem and to develop a solution in the laboratory. The technology transfer offices at universities protect the invention as intellectual property. Then either license agreements are made with the industry or a spin-off company is set up to commercialize the product. In this way, the invention not only leads new improvements in the respective field, for example in medicine, but the researchers, the university and the industrialists that turned the finding into a commercial product all make a substantial profit out of it. Efforts like these have great benefits for the country s economy as well. This process entails m u l t i - d e f i n e d procedures. There is complete trust between all sides and all ethical values are upheld. A system like this encourages most researches to end with a patent. As a result of this system, most researchers end up with several patents and a portion of them either have companies or a share in companies, just like Professor Langer. Year 1996 project submission to TÜBİTAK After returning to Turkey, Professor Hasırcı presented a project titled Polymeric composite material for biomedical purposes: synthesis, modification, characterization, and interaction with tissue to TÜBİTAK in Even though the project was given to TÜBİTAK s Basic Sciences Research Group it was transferred to the Health Sciences Research Group for assessment due to the project s relevancy to the subject area. While Professor Hasırcı was concerned that it was highly unlikely the project would be approved by the group, which usually supports the researches of medical doctors more, Professor Haluk Gokcora who was leading the group at the time invited Hasırcı to discuss the project. The two discussed the project in length. Ultimately the group assessed the project positively and agreed to support it. The study became the subject of a dissertation of a doctorate candidate named Kezban Ulubayram and was completed in Year applying for a patent Professor Hasırcı decided to apply for a patent, which like in America constitutes a critical phase in putting

15 26 27 research results into practice and applied to a very successful patent office. But since at the time filing for patents was not a common practice it was hard finding a patent expert with a strong command over the process, which requires dealing with extremely technical and complicated issues like innovative factors, other patents and patenting-related requests. Yet despite all the challenges, the Patent Office was very supportive, patient and helpful and Professor Hasırcı persistently and determinedly went to the Patent Office at every stage and actively took part in writing up the patent and revising it. It took around months to just finish writing the patent. After a length preparation period, Professor Hasırcı submitted a patent application titled A gelatin sponge structure used in medical practice and the process for obtaining this structure to the Turkish Patent Institute (TPE). A year later, Professor Hasırcı received a phone call from the Patent Office asking if she wanted an examination for the patent. It was at that point that she learned that an examination meant sending the patent application to an accredited center abroad for review and for confirmation of a discovery. Professor Hasırcı met a portion of the examination expenses herself and a portion of it from projects. Year 2006 approval for examined patent The TPE granted an examined patent approval in 2006 for an application that was submitted in The length under which the patent registered in the name of Nesrin Hasırcı and Kezban Ulubayram was extended from seven years to 20 years. TPE brought this patent to the IENA International Exhibition- Ideas- Inventions- New Products fair held in Nurnberg, Germany in The patent received the Macedonian Government s Special Award. It received the Special Plaque from TPE during the 135 Year History of Industrial Property meeting held on November 2006 to mark the anniversary of TPE s establishment. Moreover, officials at the Patent Office noted that they used this patent as an example for works carried out in Turkish universities. Professor Hasırcı requested a list of patents given to works carried out in Turkish universities from the Patent Office and realized that there were a very limited number of registered patents for university-based works. Professor Hasırcı explains what happened next in these words: I knew that there were many researchers from METU and other universities with patents from other countries, especially the US. However there were barely any patent applications submitted from universities to the TPE. People were not familiar with the procedure and were hesitant about it. With the conviction that changes could be made to the process at METU, I spoke with the rector at the time who was Professor Ural Akbulut and the deputy rector who was responsible for researchers Professor Canan Çilingir. I said why not have 50 patents on METU s 50th anniversary and explained how administrative support to this idea would be very meaningful. Our rector requested a written report. I wrote a long letter in which I attempted to explain that patents obtained after researches needed to be supported financially during their preparation and that the owners of the patent needed to be awarded. I also tried to explain the benefits of establishing these kinds of systems. I think partly due to my efforts, in 2007 METU decided to encourage patents just like publications. From that date on, one Turkish patent was considered as one publication and one international patent was considered as three publications. Immediately afterwards, the university decided to set up a technology transfer office to support faculty members during patent applications and procedures and this kind of a center was set up in METU Teknopark. Over the course of three years, 24 applications have been filed to this center. The figure increased to 32 in the last six months. In other word it looks like everything has worked out. As someone who contributed to all these developments, I feel happy every time an application is filed for a patent as if it is my own patent. Year 2010 Product is in the commercialization stage The product that was developed after all these phases is effective in the treatment of acute and chronic wounds and severe burns and is described as a bioactive wound and burn cover. The product attracted the attention of press and media organizations and when news and reports of the product were covered in newspapers and television shows hundred of patients and patient relatives contacted Professor Hasırcı. In fact many came to her office and requested for the product in person. However, Professor Hasırcı did not receive the expected level of attention from industrialists, who are the main actors in commercializing the product. Describing the current situation, Professor Hasırcı says Industrialists see medical material as a problematic product. They have biases because of how challenging it is to deal with the Ministry of Health. In the end, we were able to sign a licensing deal with one company. The product s brand registration was completed. Product compatibility and approval procedures, which are the final steps before putting the product on the market, are currently underway. Once that is complete we expect that the product will become available to those who need it. A long and complicated but very fun journey The journey that began in 1987 did not exactly end in During this period, Professor Hasırcı wrote more than 130 academic papers, taught 30 graduate and 15 doctorate students and took part in several national and international projects. She has also spent her time and energy building awareness on patenting the findings of researchers and has worked to create a system in Turkey that enables scientific studies that start with an idea and end with a product so as to contribute to the economy and to global developments. Noting that faculty members need to be a very good educator until their students obtain a bachelors diploma and be a good example of a very good researcher until they acquire a graduate and doctorate degree Professor Hasırcı summarizes up her story of more than 20 years in these words: the journey from an idea to research, from a research to a project, from a project to an experiment, from an experiment to data, from data to results, from results to patent and from a patent to product was a long, complicated, exhausting and from time to time a trying journey, but despite everything a very enjoyable journey.


17 2010

18 32 33 Çanakcılar Seramik A.Ş Production is started with brick kiln 1948 Briquette production from sand and gravel 1954 Water tank and stove base production from mosaic 1960 Production of mosaic squatting pan and washbasin is started 1970 Production of polyester coated squatting pan and washbasin 1979 Production shifts from Painted Stones to Vitrified Ceramic Products 1987 Production starts in new plant 1998 The area of indoor operations is increased to 60,000 m A new furniture production facility is opened in town of Devrek Çaydeğirmeni 2009 Creavit is chosen the most trusted brand in its field and given the Consumers Quality Award 2010 Becomes first company in the sector to receive ISO Customer Satisfaction Management System certificate Çanakcılar Ceramic began its operations in 1941 with the production of brick. It started manufacturing mosaic squatting pan and pipes in 1956, squatting pans known as Painted Stones in 1975 and vitrified ceramic products in In an atelier in Zonguldak s Gökçebey district, the company began factory-based manufacturing a year later. By the first half of the early 2000s, the company was exporting almost half of its production. Today, it exports to more than 50 countries. The company has several certifications including a Quality Management Certificate, Environmental Management Certificate, Workplace Health and Safety Management Certificate, Customer Satisfaction Management Certificate, Turkish Standards Institute (TSE) product compliance certificates as well as compliance certificates from several countries of export. Brothers Mehmet Çanakcı and Mithat Çanakcı, who are also the founders of the company, received the Outstanding Service Award from the Turkish Parliament in The same year the brothers opened a school named the Gökçebey Mithat-Mehmet Çanakcı Vocational School as part of a social responsibility project. In 2007, the company also began production of office furniture under the brand Doxa. Today, the Çanakcılar Corporate Group has a 60,000 square meter central factory that spans an open area of 150,000 square meters. It continues to provide services as an important Turkish manufacturer of ceramic sanitary ware. Same sight different vision Çanakcılar Ceramic Executive Board Member Sezai Çanakcı says that creating a sustainable brand depends on institutionalization, quality and trust and notes that they have worked very hard to provide these features in their own brand named Creavit. He explains the process in these words: The institutionalization provided by the Çanakcı brothers and the high quality in production have a substantial role in the Creavit brand s popularity. The quality certificates we have obtained and the products we offer to consumers with a 12 year guarantee verify that we provide these features. We market our vitrified ceramic sanitary ware and bathroom-related products to more than 50 countries. We believe that our momentum for growth and integration into world markets will continue.

19 34 35 Noting that they think in advance Sezai Çanakcı underlines that they make sure products are durable, long lasting, functional, appealing and environmentally friendly and have a production and marketing system that focuses on customer satisfaction. Explaining that with their brand they aim to give consumers the feeling that they can build their own world, Sezai Çanakcı says Creavit - which aims to add new values and a different perspective to bathroom solution which include vitrified ceramic sanity ware, bathroom furniture, accessories and fixtures offers designs that can make consumers feel like they are in their own world. To make the world that consumer s dream of come true, Creavit makes each design unique by approaching them with a different perspective. Creavit also incorporates little details that make life easier, providing both functional and esthetical products to consumers. That s why we expect everyone who says same sight, different vision to the world of Creavit. Social responsibility projects Sezai Çanakcı explains that they attach significant importance to social responsibility projects and explains an important R&D initiative they undertook in these words: Creavit also developed new products to reduce the negative effects of the obvious increase in water consumption in the world in recent years. One of the first things it produced was a 4 liter water efficient cistern and wc-pan. This product not only allows for complete washing but also uses less water, is future oriented and sensitive. Noting that in addition to adopting environmentally friendly production processes they also implement valuable projects in different regions Sezai Çanakcı says Creavit uses 20,000 square meters of its 150,000 square meter open operating area in Gökçebey as a Zoo and Botanical Area, which houses close to 1,000 animals from 70 different animal groups. This special area, which aims to increase appreciation for nature and pass on love for nature and animals to future generations, is open to all visitors. In addition to the environmental and quality management policies, Creavit continues to make investments in education. The Vocational School of Higher Education, which was opened with financial support from Creavit in 2007, continues to raise new values for Turkey s future. Another social responsibility project carried out by Creavit was the 1,000 square meter indoor Archaeology and Ethnography Museum, located on the premises of its central facility. The purpose of the project was to build awareness about history and culture to unite the past with the present. We are recovering the energy of the fluegas which we had emitted to the atmosphere for years Sezai Çanakcı notes that in addition to designing and developing new products they also develop projects that take process efficiency and environmental effects into consideration. Explaining the benefits of a project named Energy Efficiency which they carried out with support from TTGV s Environmental Supports Program, Sezai Çanakcı says For the first time in Turkey we recovered the waste heat of the tunnel furnace fluegas. With this 4-year term support loan, of which the first year is the grace period, the energy of the waste gas was recovered with the help of heat exchanger mechanisms and full automatic control systems. The savings we make by recycling energy will pay off project expenses in as short of a period as two years. This has not only provided financial support to the company but it has also contributed to the resource saving in Turkey. Specially designed heat exchanger mechanisms were used to transfer the energy of the waste gas measuring over 150 C from tunnel furnace to the fresh air. In this way, fresh and warm air measuring C of around the same capacity was obtained. The company started to use this hot air in the shaping stage which is the one of the most important expenses of the production process of ceramics. Using this air instead of the hot air that the company used to obtain by burning natural gas has enabled us to save energy. The system is monitored automatically and we have observed that this has had a positive impact on production efficiency as well. Sezai Çanakcı underlines that Turkey needs to utilize existing resources efficiently and note that the economic crisis in 2009 gave the company a different and broad perspective about this matter and that the company was able to benefit from the period of the crisis, in this aspect Sezai Çanakcı underlines that only companies that produce efficiently and achieve resource savings will be able to survive in the future. He believes that the Energy Efficiency Project by which they achieved to save energy - one of the main expense items in ceramic manufacturing-, is also important as a good practice example for the whole sector. During the project, the CEO and other board directors extended great support to the process which facilitated the emergence of new project ideas. Noting that Creavit employs 500 people in the production of ceramic sanitary ware and bathroom products and 200 people in the production of Doxa Office furniture, continues to strive for enhancing their production and marketing potential despite all drawbacks and is very optimistic about the future Sezai Çanakcı underlines that development depends on enhancing production processes and explains the steps to be taken for global competitiveness with these words: The main problem in Turkey is not quantity, it is quality. The only way a company can be compatible with the world and be globally competitive is adopting and implementing the universal standards. In this regard, obtaining relevant certificates for your products, especially with respect to the market to which you export, and manufacturing products according to international standards is of great importance. International fairs not only have the potential to open new doors but also have the potential to broaden horizons and improve visions. Good coordination of R&D, product development and marketing activities in companies will facilitate the efforts of countries to develop. I believe everyone needs to produce more, think more and work more for the sake of our country.

20 36 37 Estaş Eksantrik San. ve Tic. A.Ş Estas is founded 1980 First camshaft is produced for original manufacturers 1991 Casting plant opens 1997 First quality certificate is obtained 2000 Estas Marketing Inc. is founded 2001 Relocate to new plant in Sivas Organized Industrial Zone 2004 First supported R&D project is launched 2006 First fuel pump shafts are produced for original manufacturers Estaş Inc. was founded in 1977 to produce camshafts for automotive engines. Its facility which spans an area of 70,000 square meters in the Sivas Organized Industrial Zone with 30,000 square meters of it indoors, has an annual production capacity of 600,000 pieces in one shift. On the premises, there is a foundry, machining facility, thermal processing facility and product testing and control unit. The various camshafts are made primarily with gray, chilled or spherical graphite cast-iron materials and wrought steel materials. The company currently manufactures original pieces for 16 automotive manufacturers and produces performance camshafts for several clients. It also provides camshafts to Original equipment manufacturers (OEM) and spare parts manufacturers in Turkey and in 36 other countries. Turning the crisis into an opportunity During the embargo imposed on Turkey, which was in the midst of a currency bottleneck, in 1974 as a response to its invasion of Cyprus, imports of the camshafts used in the British Thames and US Ford D-750 trucks, which many transporters used at the time, were also cut off. Halis Vermezoğlu, who chose to attend the Sivas Railway Repairing Apprenticeship School instead of continuing the family business, managed to fix the trucks, which were originally made with spherodial cast iron. He forged the broken camshafts with steel by using the mechanical copying systems which he developed for a used engine lathe that he bought from the Turkish State Railways (DDY) after completing his draft service. He also built special machines and apparatuses for the same purpose. Once business started to grow, he started looking for a partner. He founded Estaş in 1977 with Esat Özkan and Abdullah Döner who were working in Germany at the time. Some of the partners, including main founder Halis Vermezoğlu decided to work in the production and leave managerial issues to professionals. This tradition continued even after Halis Vermezoğlu died. Estaş has produced at least 1,500 different kinds of camshafts until now. Company that boosts morale in Sivas Explaining how important Estaş is to Sivas General Manager İsmail Timur says This plant evolved into an example business that increased morale in Sivas and encouraged new investments. City managers bring foreign investors to Estaş first and show them the capacity and potential the plant has so as to convince them to make an investment in the city. This has worked with some investors. Estaş is important to Sivas and Sivas is important to us. We have supported many social projects that concern the city. We provide special support to the Apprenticeship Training Center. We carry out joint projects with universities. Not only universities but primary schools and high schools in the districts also frequently organize field trips to the plant. We also value providing opportunities for our personnel to improve their cultural awareness and technical skills. We provide them and their families free tickets to theater plays and other events. We encourage them to take English and computer classes and we provide financial support to personnel who want to buy a computer. The number of employees who benefit from these services is increasing. We have a reading area in the cafeteria with a very rich library.



More information

Green. Green. Entrepreneurship. Entrepreneurship. Turkey. Turkey

Green. Green. Entrepreneurship. Entrepreneurship. Turkey. Turkey Green Green Entrepreneurship Entrepreneurship in Turkey Turkey Green Green Entrepreneurship Entrepreneurship in Turkey Turkey The CP/RAC, based in Barcelona-Spain, was established in 1996. Its mission

More information

Contents. Company Report 6 Chairman & CEO 9 Our people 16 Our business 32 Our market opportunities 40 Our social responsibility 50 Our shareholders

Contents. Company Report 6 Chairman & CEO 9 Our people 16 Our business 32 Our market opportunities 40 Our social responsibility 50 Our shareholders Annual Report 2007 Contents Company Report 6 Chairman & CEO 9 Our people 16 Our business 32 Our market opportunities 40 Our social responsibility 50 Our shareholders Financial Review Adecco Group 60 Operating

More information

Child Helplines and Telecoms. A toolkit to assist your child helpline to advocate for a free of costs telephone number

Child Helplines and Telecoms. A toolkit to assist your child helpline to advocate for a free of costs telephone number Child Helplines and Telecoms A toolkit to assist your child helpline to advocate for a free of costs telephone number In ten years, child helplines around the world received over 126 million contacts from

More information

Making the right connections across Australia s innovation ecosystem to support our future growth and international competitiveness

Making the right connections across Australia s innovation ecosystem to support our future growth and international competitiveness Making the right connections across Australia s innovation ecosystem to support our future growth and international competitiveness Welcome 4 Introduction 5 Research findings and recommendations 9 Next

More information

Invest More, Innovate More, Trade More, Learn More: The Way Ahead for. Nova Scotia

Invest More, Innovate More, Trade More, Learn More: The Way Ahead for. Nova Scotia Invest More, Innovate More, Trade More, Learn More: The Way Ahead for Nova Scotia Donald J. Savoie July 2010 Contents Invest More, Innovate More, Trade More, Learn More: The Way Ahead for Nova Scotia...

More information

Sustainability Report Sonae SGPS, S.A.

Sustainability Report Sonae SGPS, S.A. 06 Sustainability Report Sonae SGPS, S.A. 05.Index 1. Chairman s Statement 07 10 10 10 13 15 16 16 16 17 18 18 19 22 24 25 27 29 33 33 38 46 50 56 62 69 74 2. Sonae Group business approach and portfolio

More information

Foreign Direct Investment in Ireland: Sustaining the success July 2014

Foreign Direct Investment in Ireland: Sustaining the success July 2014 Foreign Direct Investment in Ireland: Sustaining the success July 2014 Foreign Direct Investment in Ireland: Sustaining the success 1 Contents Page Overview and conclusion 3 Global FDI landscape 5 FDI

More information

Build a Ladder to the Stars

Build a Ladder to the Stars Build a Ladder to the Stars Report from the University of Oslo s Strategic Advisory Board 2012 14 Contents 04 Preamble: The International Strategic Advisory Board (SAB) 11 Part 3: Profile Dimension Analysis

More information

Making the UK the best place to invest

Making the UK the best place to invest Making the UK the best place to invest 2 Table of contents Our vision for the UK 3 Executive summary 4 Nine key facts why government must take action 5 The investment challenge 6 Introduction: investment

More information

2014-2024 Strategic Plan

2014-2024 Strategic Plan 2014-2024 Strategic Plan table of contents Letter to the Board of Visitors... 1 The Mason Vision... 2 A University for the World... 9 Strategically Planning for Our Future... 10 Goals for Students... 11

More information

Horizon 2020 dedicated Expert Advisory Group on Innovation in SMEs Consultation on the EU Strategic Work Programme 2016 17

Horizon 2020 dedicated Expert Advisory Group on Innovation in SMEs Consultation on the EU Strategic Work Programme 2016 17 Horizon 2020 dedicated Expert Advisory Group on Innovation in SMEs Consultation on the EU Strategic Work Programme 2016 17 Final Report to the European Commission July 2014 Contents Executive Summary...

More information



More information

Turkey: A Culture of Change

Turkey: A Culture of Change Turkey: A Culture of Change Turkey: A Culture of Change ACKNOWLEDGMENTS Acknowledgments Erkut Yücaoğlu President of TÜSİAD High Advisory Council Former President of TÜSİAD Country Communication Advisory

More information


CREATING MARKETS FOR THINGS THAT DON T EXIST CREATING MARKETS FOR THINGS THAT DON T EXIST The Truth About UK Government R&D and How the Success of SBRI Points the Way to a New Innovation Policy to Help Bridge the Valley of Death and Rebalance the

More information


BAHÇEŞEHIR COLLEGE TAKES HIGH-QUALITY EDUCATION TO EVERY CORNER OF TURKEY BAHÇEŞEHIR COLLEGE TAKES HIGH-QUALITY EDUCATION TO EVERY CORNER OF TURKEY Bahçeşehir College takes high-quality education to every corner of Turkey with great investments. Students are provided with skills

More information



More information

Overview of attitudes and financial instruments for social economy in NBFSE countries and case studies on selected practice of support

Overview of attitudes and financial instruments for social economy in NBFSE countries and case studies on selected practice of support The Network for Better Future of Social Economy (NBFSE) Strand Financial instruments and s of funds allocation to Social Economy Overview of attitudes and financial instruments for social economy in NBFSE

More information



More information

Your access to European markets

Your access to European markets Your access to European markets Five minutes of business testimonials check out the enclosed DVD Your location for innovation and tailor-made solutions in Europe Logistics Health

More information

forward-looking statement. This annual report contains certain forward-looking statements regarding the financial situation and results of USG People

forward-looking statement. This annual report contains certain forward-looking statements regarding the financial situation and results of USG People 2008 annual report Staying on track. The entrepreneurial spirit of employees and the responsibility taken by each and every operating company provide USG People with a strong basis in turbulent times.

More information

CONTENTS. 37 Assessment of 2010 Activities 57 Halkbank s Subsidiaries 60 Annual Report Compliance Statement

CONTENTS. 37 Assessment of 2010 Activities 57 Halkbank s Subsidiaries 60 Annual Report Compliance Statement 2010 ANNUAL REPORT CONTENTS Introduction 12 Corporate Profile 13 Capital Structure 14 Halkbank in Figures 18 Our Vision, Mission, Goals, Strategies and Corporate Values 20 Historical Development of Halkbank

More information


BEYOND MAINSTREAM FRONTRUNNERS POTENTIALISTS TRADITIONALISTS HESITATORS INDUSTRY 4.0. The new industrial revolution How Europe will succeed BEYOND MAINSTREAM POTENTIALISTS FRONTRUNNERS TRADITIONALISTS HESITATORS The new industrial revolution How Europe will succeed MARCH 2014 THE BIG 3 1 40% is the share of worldwide manufacturing (a total

More information


SUSTAINABILITY REPORT 2012 SUSTAINABILITY REPORT 2012 CONTENTS About the Report CEO s Message Yapı Kredi and the Banking Sector Yapı Kredi and Corporate Governance Yapı Kredi and Sustainability Our Employees Our Customers Yapı

More information

TEAM HANDBOOK Academic Year Ending 2015 Enactus Team Handbook Academic Year Ending 2015» 1

TEAM HANDBOOK Academic Year Ending 2015 Enactus Team Handbook Academic Year Ending 2015» 1 TEAM HANDBOOK Academic Year Ending 2015 Enactus Team Handbook Academic Year Ending 2015» 1 en act us A community of student, academic and business leaders committed to using the power of entrepreneurial

More information

i n pursuit of The Rt Hon the Lord Heseltine of Thenford CH

i n pursuit of The Rt Hon the Lord Heseltine of Thenford CH O STONE UNTURNED R O i n pursuit of W TH The Rt Hon the Lord Heseltine of Thenford CH Unless I can secure for the nation results similar to those which have followed the adoption of my policy in Birmingham

More information

Helping make tomorrow

Helping make tomorrow 2012 Helping make tomorrow This pdf is interactive. The content is clickable so you can navigate through this document. We have included a lot more information online. Whenever you see a yellow box like

More information


COMMISSION OF THE EUROPEAN COMMUNITIES COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 18 January 2000 COM (2000) 6 While the Commission Services do their utmost to avoid any errors or omissions, the Commission disclaims all liability for

More information

CENTER FOR RESEARCH & INNOVATION. Strategies for Globally Competitive Cities

CENTER FOR RESEARCH & INNOVATION. Strategies for Globally Competitive Cities CENTER FOR RESEARCH & INNOVATION Strategies for Globally Competitive Cities Copyright 2011 National League of Cities, Washington, D.C. 20004 CENTER FOR RESEARCH & INNOVATION Strategies for Globally Competitive

More information

OECD Reviews of Tertiary Education. Jon File, Thomas Weko, Arthur Hauptman, Bente Kristensen and Sabine Herlitschka

OECD Reviews of Tertiary Education. Jon File, Thomas Weko, Arthur Hauptman, Bente Kristensen and Sabine Herlitschka OECD Reviews of Tertiary Education Czech Republic Jon File, Thomas Weko, Arthur Hauptman, Bente Kristensen and Sabine Herlitschka OECD Reviews of Tertiary Education Czech Republic Jon File, Thomas Weko,

More information