TİM Chairman Mustafa Gültepe: "Türkiye Must Target Innovation-Centric Export"
TİM Cahirman Mustafa Gültepe, penned an article in the "Innovation and Export Report", prepared for the 10th anniversary of the Türkiye Innovation Week, focusing on commercializing Türkiye's R&D activities.
Within the article authored for the special "Innovation and Export Report" commemorating the 10th year of Türkiye Innovation Week, TİM Chairman Mustafa Gültepe, provided insights into the stages of commercializing R&D activities and highlighted the necessary path to be pursued.
Expressing the belief that an innovation-focused export strategy will significantly contribute to Türkiye's growth and leadership narrative, Gültepe emphasized the importance of setting more comprehensive objectives aimed at commercializing the R&D and innovation processes. He stated, "In this context, while enhancing our brand visibility in high-tech products, it is imperative for us to set more comprehensive goals concerning the commercialization phase of R&D and innovation processes and take decisive steps towards achieving these objectives."
Chairman Gültepe, in his article, highlighted the following points:
To strengthen our role in the global economy and become an effective player on the international stage, it is essential to increase our exports of innovative and high-tech products alongside R&D and design activities. Over the last 20 years, we have made significant strides in R&D and innovation activities. According to Global Innovation Index data, Türkiye climbed from 68th place in the world in R&D and innovation rankings in 2013 to 39th place by 2023. Hence, we can assert that in the last two decades, our country has established a significant ecosystem in terms of R&D investments and innovation.
However, how is our performance in commercial terms concerning these investments and innovation infrastructure? What challenges are companies facing? How can we enhance our country's performance in commercializing R&D activities?
In response to all these questions, the 'Innovation and Export Report,' specially prepared for the 10th anniversary of Türkiye Innovation Week, serves as an important guide. The report offers a general framework regarding R&D and innovation activities both globally and in Türkiye. Simultaneously, it analyzes the performance of our exporters in commercializing R&D, innovation, and design activities. In preparing the report, we conducted a survey with companies having R&D and design centers, aiming to identify the challenges they encounter in the process of commercializing the outputs of R&D, innovation, and design activities."
“We can assert that a significant R&D ecosystem has been established in our country.”
R&D activities in Türkiye are primarily conducted through R&D and design centers. As of 2023, there are a total of 1294 R&D and 325 design centers in our country. Based on this data, it can be said that a substantial R&D ecosystem has been built in our country. The Global Innovation Index, which provides an overview of our country's appearance in R&D activities, shows an overall upward trend. According to the 2023 data, we rank 39th out of 132 countries in the Global Innovation Index. Türkiye is positioned in the North Africa and Western Asia regional group within the index. Among these countries and in the group of middle-high income level countries, we stand at the fourth position.
The commercialization of products and services resulting from R&D and innovation activities constitutes the most critical goal. In this context, Türkiye demonstrates an upward trend in the world rankings of 5 out of 6 parameters related to the commercialization of R&D activities in the Global Innovation Index. Among 132 countries, our country ranks 60th in intellectual property income, 60th in high-tech exports, 89th in information technology service exports, 71st in cultural and creative service exports, and 51st in global brand value. One of the primary reasons for Türkiye's ranking 39th globally in the Global Innovation Index stems from our lower rankings in these commercial output parameters. By achieving higher rankings in these sub-parameters, we can surpass the 39th position in the Global Innovation Index. Hence, we need to pay attention to the process of the commercial contribution of products and services resulting from R&D activities".
“We believe that it would be beneficial to implement a national commercialization policy aimed at companies engaged in R&D, design and innovation activities”
Within the scope of the report, utilizing data collected for the "Top 1000 Exporters Survey" conducted by TİM for the year 2022, we scrutinized the relationship between exports, R&D activities, and innovation. Through this examination, we observed that R&D expenditures tend to reasonably transform into patents, particularly in small and medium-sized enterprises, with moderate efficiency. Conversely, in relatively larger-scale firms, the efficiency of R&D spending in obtaining patents is lower. When smaller and medium-sized firms increase their patents, the commercialization of technological output, when adjusted for scale, can only augment their branded exports by one-third compared to major companies. Moreover, these firms exhibit a lower level of export-to-total income ratio compared to both large-scale branded exporters and firms that do not export under their brand, indicating a tendency toward the domestic market. This pattern indicates that our small and medium-sized enterprises face challenges in commercializing their technological outputs, especially in the international market. Consequently, we assess that implementing a national commercialization policy directed at companies engaged in R&D, design, and innovation activities would be advantageous.
As part of the report, we conducted a field study involving companies with R&D and/or design centers, investigating the reasons behind the issues they encounter in the commercial phase. Within this framework, we conducted a survey with 62 firms having R&D centers. The research revealed that 73% of the companies face challenges related to incentives and support, 56% experience cost pressures, 50% encounter issues with promotion and marketing activities, 35% with human resources, and 29% with strategy and planning. Drawing from these findings, we can state that achieving the desired levels of commercialization in R&D activities necessitates a comprehensive, needs-focused, customized, and innovative perspective at the national level.
“The perception of 'Made in Türkiye' should be strengthened in high-tech and innovative production.”
In this context, the incentives and supports provided to companies need to be detailed and diversified according to the specific needs of these firms. Identification of company groups with higher needs in the areas deemed essential is necessary, and prioritizing these firms should be considered. Special projects aiming to reduce costs for companies engaged in R&D, innovation, and design activities should be executed. Companies should be enabled to introduce their inputs to domestic suppliers and make agreements with local producers for the production of these inputs domestically. Strengthening the perception of 'Made in Türkiye' in high-tech and innovative production is essential. Therefore, boutique promotional activities focusing on companies engaged in R&D, innovation, and design should be conducted.
It is observed that small and medium-sized enterprises particularly face challenges in commercializing their technological outputs, especially in international markets. Thus, a specific international market entry strategy should be devised for small and medium-sized enterprises. The competencies of personnel employed in R&D activities in fundamental sciences and the attractiveness of basic science education should be enhanced. Regarding the commercialization of R&D, innovation, and design activities, an initial stage of macro-strategic planning should be implemented, followed by planning and implementation based on sector, scale, and technology groupings.