SME Technological Product Investment Support Program

Tarih: Issue 86 - November 2018

In the recent years when global competition has gained momentum, our enterprises are struggling to survive under intense pressure at national and international markets. In order for them to survive, it is necessary to maintain the competitive advantage which is the fundamental rule of the economy. However, with technological development and progress every passing day, this superiority has to be achieved not through the production volume increase but through R&D and innovation. In today’s challenging competitive environment, the enterprises that ensure the continuity of R&D activities and realize their innovations can achieve and maintain sustainable competitive advantage. Countries that have acquired sustainable competitive advantage can become wealthy, acquire a high level of economic and social welfare. For this purpose, particular importance has been placed on incentives for research in the world. Turkey has also been following the universal trend on this issue. Significant R&D expenditures are being made to support R&D and innovation projects as well as innovative ideas both by the government and through various other sources.

Our countries expectation as the output of these expenditures is that these spending will be transformed into High Technology products that will add value to our country and contribute to the increase of our competitive power in international markets.

In this respect, the Ministry of Science, Industry and Technology has announced the “Techno-Investment” program for Large Enterprises. With the success of the program, KOSGEB has made a new call of “Techno-Investment” program for SMEs with the motto: “We will provide the necessary support to all our SMEs that produce innovative, technological and high added value products and that want to transfer these products to international markets and to focus on exports”.

With this program, it is aimed to commercialize new products that emerged as a result of R&D and innovation activities in the priority technology areas in order to bring the country’s economy to a competitive structure at an international level, to create value add to the country’s economy, to lead the export of technological products by taking place in international markets, and to support the investment of enterprises in our country.

Investment items to be supported:

a) Technological products emerged from research and innovation projects supported by KOSGEB and other public institutions and organizations, foundations established by law or international funds

b) Technological products emerged as a result of R&D and innovation projects in foreign technology zones / research centers / institutes / science parks / incubation centers / accelerators

c) Technological products emerged as a result of R&D and innovation projects that the companies in the domestic technology development regions have concluded in the region

d) Technological products emerged as a result of R&D activities in public research institutes / centers

e) Technological products protected by a patent specification,

f) Technological products emerged from doctorate studies

g) Technological products that are certified with Technological Product Certificate of Experience 

h) Owners of the technological products, the prototype studies of which have been completed or enterprises that have taken over the right of use from the right holder through a contract  

The enterprise should have a certificate that the technological product has emerged successfully. Within 5 (five) years from the date of finalization, the applicant is provided with support for the technological product. Owners of the technological products, the prototype studies of which have been completed or enterprises that have taken over the right of use from the right holder through a contract are able to benefit from this program. For the technological products protected by the patent specification, it is required that the patent has been transferred by the Turkish Patent Institute and Trademark Office.

Micro, Small and Medium Scaled SMEs can benefit from this support. The maximum limit of the support that will be granted under the SMEs Technological Product Investment Support Program is 5.000.000 Turkish Liras, as refundable and/or nonrefundable. 

Support rates to micro-scaled enterprises will be 70% nonrefundable and 30% refundable for machinery-equipment, molding and software costs; 60% nonrefundable and 40% refundable to small and medium scaled enterprises. For costs other than machinery-equipment, molding and software, 70% nonrefundable support is granted to micro scaled enterprises and 60% to small and medium scaled enterprises.    

Early payment can be made at a rate of 25% of the total amount of support as set forth in the initial board decision. If the technological product subject to investment is at high technology level, 5% added to nonrefundable support rates. If the machinery, equipment and software to be purchased for the related investment project are classified / differentiated with a domestic goods certificate, 15% is added to the nonrefundable support rates. Within the scope of refundable support, nonrefundable support is granted for securities / guarantees requested by KOSGEB, regardless of the upper limit of 100% support as Security / Guarantee Expenses.

Support Items (Granted during the Investment Project)

a. Machinery-equipment and software costs support 

b. Personnel costs support 

c. Training and consultancy support 

d. Rental / Leasing support

Support Items (Granted following the Investment Project) 

Enterprises that have completed their investment projects can benefit for a duration of 1 year. 

Operating Costs Support 

a. Personnel costs 

b. Utility costs 

c. Maintenance-repair costs

Applications will be received on a regular basis throughout the year. In the SME Technological Product Investment Support Program, the duration of the investment project is maximum 36 (thirty) months. An additional period of six (6) months can be given by the Board decision.