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Technoparks in Turkey: A Springboard to Innovation and Investment

 Technoparks in Turkey: A Springboard to Innovation and Investment

During this time of knowledge-based economies and technological breakthroughs, Turkey created an environment that encouraged research, innovation, and entrepreneurship. Among all such initiatives in the country is the establishment of Technology Development Zones, also widely known as Technoparks. Such a zone bridges academia and industry to the government and gives a platform for innovating, collaborating, and growing local and foreign businesses.

This article provides an overview of Technoparks in Turkey, focusing on their core features, incentives, and legal considerations for UK and global businesses looking to explore this dynamic environment.


Technoparks in Turkey: A Springboard to Innovation and Investment

If you haven't decided on the type of company that best fits your venture in Turkey and want some support for the incorporation procedure, please take a closer look at our article series with an in-depth focus on how a company gets set up. With such, one would be getting much information regarding types of corporate structures and also on the ways a business gets incorporated. You can find it further below:


Technoparks in Turkey: A Springboard to Innovation and Investment

1. What are Technoparks?

Technoparks, also known as Technology Development Zones, refer to those areas that foster technology-based start-ups, scale-ups, and mature companies dealing in research and development. Being situated around the universities and research facilities, the Turkish Technoparks provide:

  • Excellent interaction with the academics by the use of the skilled faculty, educated graduates, and state-of-art research projects for immediate reach; 

  • R&D infrastructure modern labs, high-value equipment, space-sharing workplaces.

  • Innovation Ecosystem, On-site networking, mentorship programmes, strong connections to governmental bodies and funding agencies.

Since their inception, technoparks have served as catalysts to develop a more knowledge-based Turkish economy and always attracted entrepreneurs/investors throughout the world.



2. Key Incentives and Benefits

The comprehensive suite of tax, customs, and employment incentives is one of the biggest attractions of Technoparks in Turkey. Significant examples include:


Income/Corporate Tax Exemptions

  • Corporate Tax Relief: Companies conducting R&D, software, and design activities within Technoparks enjoy corporate/income tax exemptions until 31 December 2028 for revenues derived from qualified projects.

  • Salaries: Incomes from salaries related to R&D, design, and support personnel are exempt from income tax, in line with specified limits on the share of support staff.


VAT Exemption

  • VAT exemption for certain software and R&D services ranges from data management to game development if provided within the Technopark.

  • Machinery and Equipment: Purchases needed by qualified projects may also benefit from VAT exemptions to reduce operational costs.


Exemption from Customs Duty

  • Exemptions from customs duties can be applicable for companies importing hardware, components, or any other kind of supply for R&D and software development. Such a measure will encourage the importation of more value-added tech materials for the development process.


Social Security Premium Support

  • Some percentage of an employer's social security contributions can be subsidized for staff involved in R&D or design activities. This may help substantially in offsetting the relatively high labor costs of such skilled personnel.


Salary Support for R&D Personnel

  • The Turkish Ministry of Industry and Technology also provides partial salary support for qualified R&D personnel, especially those with mathematics, physics, chemistry, and biology backgrounds, under certain conditions, thereby enticing the very best.


Minimum Bureaucracy for Foreign Investors

  • All foreign companies are entitled to simplified procedures, making it easier to start and operate a business within a Technopark.



3. Leading Technoparks in Turkey

While there are a number of Technoparks in the country, the following few stand out in terms of infrastructure and collaboration opportunities:

  • İTÜ ARI Teknokent (Istanbul)

  • Located at Istanbul Technical University, it houses start-ups and multinational tech firms alike.

  • ODTÜ Teknokent (Ankara)Operating on the Middle East Technical University campus, it has a long history of nurturing cutting-edge R&D in fields such as defence, IT, and energy.

  • Teknopark Istanbul (Istanbul)Specialises in strategic sectors like aviation, aerospace, maritime, and biotechnology.

  • Bilkent Cyberpark (Ankara)Established by Bilkent University, it hosts a large community of software, electronics, and healthcare innovators.

  • Ege Technopark (Izmir)Known for agricultural tech, biotechnology, and healthcare-focused R&D.

These hubs reflect Turkey’s commitment to fostering a diverse and advanced technology ecosystem.



4. Major Sectors Within Technoparks

Technoparks in Turkey are home to a wide range of sectors, including but not limited to the following:

  • Software Development: AI, Big Data, Cybersecurity

  • Biotechnology and Medical Technologies

  • Defense and Aerospace

  • Renewable Energy and Green Technologies

  • Advanced Materials and Nanotechnology

  • Agricultural Technologies and Food Safety

  • Mechatronics and Robotics

This diversity widens the horizons of cooperation and enhances R&D potential throughout the country.



5. Procedure for Starting a Technopark Company

Firms wishing to get a place in Turkey's technoparks go through the following procedures:

  1. Identify an Available Space Technopark

    Some Technoparks are highly demanded, and therefore availability is limited. Research options carefully, noting sector focus and facilities.

  2. Prepare a Special R&D Project

    • Draft a proposal detailing your company’s focus, objectives, and the scope of your R&D or software/design activities.

    • Emphasise innovation, commercial viability, and alignment with Technopark goals.

  3. Submit the Project

    • Present your proposal for preliminary assessment. The Technopark’s arbitration board will verify that your project meets required R&D criteria.

  4. Set Up or Relocate Your Company

    • Once approved, proceed with forming a new entity within the Technopark or relocating an existing company into its designated premises.

    • This step involves registering with Turkish authorities and adhering to local legal and administrative procedures.

  5. Begin Operations

    • Finalise your leasing agreement and comply with Technopark regulations. You can then access tax incentives, specialised facilities, and robust networking opportunities.



6. Legal and Regulatory Environments to Consider

Though Technoparks boast an impressive array of opportunities, both foreign and UK-based businesses need to consider:

  • Company Incorporation Rules: Ensure your preferred legal structure (Joint Stock Company, Limited Liability Company, or Branch) is compliant with both Turkish Commercial Code requirements and Technopark regulations.

  • Ongoing Compliance: R&D projects should be documented, followed up, and reported according to local regulations. Timely filing and proper documentation are very much crucial for continuing the tax exemption.

  • Intellectual Property Rights: Secure patents, IP protections wherever necessary, but most importantly in cases where the software or some advanced technology would be commercialized.

  • Employment Law: Have a basic introduction to Turkish Labour Law, the social security contributions, and related employee incentives existing in Technoparks.

Engaging qualified legal counsel ensures your venture meets these obligations while maximising the incentives on offer.


7. How CCS Law Can Help

At CCS Law, we pride ourselves on providing the entire gamut of legal services for companies starting their businesses in Turkey's Technoparks. Our services range from:

  • Market Entry Strategy: Advisory on the most advantageous structure and location of your business

  • Incorporation and Regulatory Compliance: Assist in drafting the project proposal, filing of the necessary documents, and liaisoning with the Technopark management.

  • Tax and Incentive Advisory: Helping you through the complex exemption of taxes, social security subsidies, and other government incentives. 

  • Contracts and IP Protection: Making sure that agreements are strong and your intellectual property is well protected in Turkey. 

  • Ongoing Legal Support: From annual filings to dispute resolution, we offer continuous legal oversight to maintain your operational compliance.


Ready to Innovate in Turkey?

Contact CCS Law today for expert assistance in establishing your presence in one of Turkey’s Technoparks. Whether you’re a start-up, SME, or large corporation, our team will help you navigate the legal complexities and seize the abundant opportunities awaiting you in Turkey’s rapidly expanding tech landscape.


Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance tailored to your specific circumstances, please consult with a qualified legal professional.

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