Turkish gov't grants 5,105 incentive certificates this year

Published 27.12.2018 00:00
Updated 27.12.2018 08:00

The government is working nonstop in an attempt to boost technological production and investments. Teams from the Industry and Technology Ministry are visiting cities on a regular basis to take the pulse of industrialists, entrepreneurs, scientists and young entrepreneurs at organized industrial zones, technoparks, industrial organizations and research institutes with the intent of creating policies with a common mind.

Working with the vision of "National Technology, Strong Industry," the ministry will accelerate structural reforms in production to make Turkish industry even more competitive. The ministry aims to further increase technology intensity in domestic production in tandem with international markets, by reducing the import of intermediate goods and plans to design incentives in an end-to-end and result-oriented manner.

The ministry has been supporting research and development (R&D) and innovation activities and promoting high value-added production. It has increased the number of R&D and design centers to 1,384, while R&D spending soared to TL 30 billion ($5.6 billion), marking a year-on-year rise of 21 percent, and the number of full-time R&D employees surged to 154,000 with a rise of 12 percent. A total of 57 percent of this spending was made through the private sector. There are 5,200 companies operating in 81 technology development zones that bring together universities and industrialists, as well as theoretical knowledge and practice. So far, sales and exports by these companies have soared to TL 63 billion and $3.6 billion, respectively. A total of four research infrastructures have been granted legal personality in the field of microelectromechanical systems, nanotechnology, advanced materials, medicine and vaccine development. The research infrastructure in eight new fields is in the evaluation process.

According to ministry data, a total of 5,105 investment incentive certificates were issued in the first 10 months of 2018. In this context, TL 131 billion of fixed investment is expected, creating jobs for 223,000 people. In line with needs and demands, the ministry plans to include equity support in the incentive system in the next period.

Based on the fact that the rate of industrial areas to Turkey's surface area is low in comparison to rival countries, the ministry has provided low-interest and long-term loans to organized industrial zones and industrial estates and prepared parcels with ready infrastructure for industrialists. Also, under President Recep Tayyip Erdoğan's decision on Nov. 2, the scope of full or partial free land allocation in organized industrial zones was expanded. The number of organized industrial zones in Turkey has soared to 311 from 197 in 2002. Also, the number of educational institutions supported during the education and construction phase in organized industrial zones has reached 86. So far, 474 industrial estates have been provided TL 6.4 billion in loans and 500,000 people have been employed. Industrial zones are being established for large-scale projects.

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