Turkish gov’t eyes to triple share of R&D activities in economy through a reform package

ANKARA - Reuters

Turkish PM Ahmet Davutoğlu (3 L) sits at the R&D Reform Package Meeting in Ankara on Jan. 14, 2016. AA Photo

Turkish Prime Minister Ahmet Davutoğlu has announced it will soon launch a reform package to increase the share of research and development (R&D) activities in the Turkish economy from 1 percent to 3 percent.

He said the package will include several incentives to boost R&D activities, such as financial support and tax exemptions for design and research activities. 

“We have included design activities into the state incentive system…We’ll consider giving tax reductions for the spending of design centers…Social security premium supports will also be met by the Finance Ministry until 2023. Our aim is to increase the share of the R&D activities in our economy from 1 percent to 3 percent,” he said at the R&D Reform Package Meeting in Ankara on Jan. 14. 

He said the package will soon be brought into the parliament soon.

“I believe the package will be supported by the opposition parties. We’ll welcome any revisions they make to improve this package,” he said. 

According to officials, the minimum number of workers, which companies need to have in order to apply for any R&D incentive, will be decreased from 30 to 15. This figure was earlier decreased from 50 to 30 before. 

Some wages of the R&D center workers will be paid by the state for a 2-year period of time. This amount will be equal to the minimum wage. 

Such companies will also benefit from exemptions in income tax, stoppage tax and stamp tax. 

Officials also said up to 50 percent of the machinery and equipment costs will be met through state grants.
 
The support limit for technological enterprises will be increased from 100,000 Turkish Liras to 500,000 liras.