Order R&D 2021 Year 1st Call

April 3, 2021

TÜBİTAK has announced the 2021 First Period Call for Proposals for Order-Based R&D Projects (call code: 1707 Order R&D – 2021 – 1) to support SMEs in transforming solution proposals for the technological needs of Customer Organizations into commercially viable outputs through R&D. Under this call, R&D projects will be supported where the project output will be commercialized by the Customer Organization or Supplier Organization (Commercialization Responsible Organization); R&D activities are carried out by one or more Supplier Organizations; the Customer Organization contributes to the R&D costs of the Supplier Organization(s); and the project has high commercialization potential and can be quickly transformed into a product. The Customer Organization will contribute to the R&D costs of the Supplier Organization(s). There are no subject or sector limitations in this call; R&D projects with high commercialization potential from all sectors and technology fields can be supported. Market research and technical feasibility studies must also be submitted with project proposals. In the supported projects, the expenses of the supplier organization(s) will be covered jointly by both TÜBİTAK and the client organization. There is no limit on the number of applications.

Suitable types of collaboration:

Development of products or product components to be marketed and commercialized by the Customer Organization and/or Supplier Organization.
Development of processes, machinery, equipment, etc. that will not be marketed by the Customer or Supplier Organization, but will be used solely by the Customer Organization (the processes, machinery, equipment, etc. to be used by the Customer Organization must provide significantly improved economic returns compared to the current situation or similar situations).

Projects that were successful in the 1st call for proposals in 2020: https://www.tubitak.gov.tr/sites/default/files/21566/siparis_ar-ge_desteklenen_projeler.pdf

The deadline for pre-registration applications is Monday, April 12, 2021 (at 5:30 PM).

Project applications will begin to be accepted via PRODİS: Monday, February 22, 2021.

Application deadline: Monday, May 3, 2021 (23:59)

Announcement: https://tubitak.gov.tr/tr/duyuru/1707-siparise-dayali-ar-ge-projeleri-icin-kobi-destekleme-cagrisi-1707-siparis-ar-ge-2021-1-acildi

Call for Proposals (Information Note): https://www.tubitak.gov.tr/sites/default/files/21566/1707_siparis_ar-ge_2021-1_cagri_dokumani.pdf

Online application system: https://eteydeb.tubitak.gov.tr/teydebanasayfa.htm

Definitions

Definition

Explanation

Client Organization

Capital companies established in Türkiye, regardless of their sector and scale, that require an R&D-based solution and sign a cooperation agreement with a Supplier Organization to meet this need.

Supplier Organization(s)

Small and medium-sized enterprises (SMEs) based in Türkiye that have signed a cooperation agreement with the Client Organization and are participating in R&D activities within the scope of the project.

Cooperation Agreement

The contract signed between the Customer and Supplier Organization(s), submitted to TÜBİTAK as an annex to the project application, specifies the provisions regarding the project description, the responsibilities of the parties, the sharing of intellectual property rights, and the resolution of legal disputes, covering matters not regulated in these Implementation Principles and related legislation.

Economic Feasibility Report

The document attached to the project proposal contains information such as the technical feasibility of the project output, market research, expected impact in terms of added value, productivity and competitiveness, production, sales and marketing strategies, any additional investment plans, sales targets by year and profitability projections.

Product/Process Development Phase

The period during which the supplier organization conducts R&D activities to improve the project output and its related expenses are supported.

Commercialization Plan

A document submitted in the final stage of product/process development that includes descriptions and plans for the work done and to be done for the commercialization of the project output.

Commercialization Phase

The time used to monitor the implementation and commercialization process of project results.

Organization Responsible for Commercialization

The organization that will be determined by the project partners during the application phase and will be primarily responsible for the commercialization phase of the project.

Who can apply?

Small and medium-sized enterprises (SMEs) or large-scale customer organizations and SME-sized supplier organizations will submit a joint application. The customer organization will be the point of contact during the application and support phases.
- The Supplier Organization will submit an R&D project encompassing the work to be carried out. The Supplier Organization will conduct the R&D work to improve the product (or process). The Customer Organization will monitor that the project is being carried out as intended.
  - The project application is submitted jointly by the Client Organization and the Supplier Organization as a single project application. The Client Organization and the Supplier Organization sign a Cooperation Agreement.
  - The Cooperation Agreement also specifies the organization responsible for commercialization.
  - Even if the Customer and Supplier Organizations jointly commercialize the project output, only one of the organizations will be designated as responsible for commercialization.
- Multiple Supplier Organizations can be project partners, provided that each of them is an SME (Small and Medium-sized Enterprise). A project cannot have more than one Customer Organization.
- The submitted projects must have at least one project staff member with a bachelor's degree in a relevant field at both the Client Organization and the Supplier Organization. Applications for projects that do not meet this requirement will not be accepted. TÜBİTAK will evaluate this condition as follows:
  - The supplier organization must have a bachelor's degree holder whose expertise is technically compatible with the R&D work to be carried out in the project. TÜBİTAK may consider the suitability of employees who have experience related to the project topic but hold a bachelor's degree in a different field.
  - The client organization must have a bachelor's degree in a relevant field to adequately monitor, manage, and coordinate the work to be carried out on the project.
  - The above explanations are for illustrative purposes only; project teams should be formed with appropriate Bachelor's degree graduates according to the project's subject matter.
- The client organization can apply for different projects with different SMEs.
- The client organization can apply for different projects with the same SME.
- A supplier organization may participate in more than one project.
- According to the provisions of the Corporate Tax Law No. 5520 and related legislation, organizations that fall under the category of "Related Party" cannot participate in the same project as both a Customer Organization and a Supplier Organization.
  - To be eligible for a project application, there must be no partnership relationship between the Client Organization and the Supplier Organization.
  - If a natural person or a legal entity is a partner in both the Customer Organization and the Supplier Organization, those two companies cannot participate in the same project as both the Customer Organization and the Supplier Organization.

Expected Impact

Sharing the financing risk of projects, increasing collaborations among industrial organizations, and transforming R&D outputs into commercial products.
These collaborations and project management will allow organizations with relatively more experience to transfer their expertise to SMEs (In this way, large firms will be able to direct projects that they struggle with due to corporate inertia to SMEs that can act faster).
The emergence of secondary (spin-off) companies

Supporting

Indicator Budget

75 million TL

Project Budget Upper Limit

2.5 million TL

Support Rate

It is essential that the expenses of the Supplier Organization are covered jointly by TÜBİTAK, the Customer Organization, and the Supplier Organization itself.
- Müşteri Kuruluş izleme aşamasında dönem raporunda beyan edilen giderin %40’ını Tedarikçi Kuruluşa öder. TÜBİTAK giderleri değerlendirir ve belirleyeceği “kabul edilen harcama tutarının” %40’ını Tedarikçi Kuruluşa hibe destek olarak verir. Kalan kısmı Tedarikçi Kuruluş kendisi karşılamış olur.
  - TÜBİTAK: %40
  - Müşteri Kuruluş: %40
  - Tedarikçi Kuruluş: %20

Supported Expenditure Items

Only the following expenses of the Supplier Organization related to the Product/Process Development Phase of the project are supported. Expenses related to the Commercialization Phase are not supported.
- Personnel expenses
- Expenses for purchasing tools, equipment, software, and publications.
- Material and consumable expenses
- Travel Expenses
- Consulting fees
  - Consulting fees paid by project partners to each other are not eligible for support.
  - According to the Corporate Tax Law No. 5520 and related legislation, consultancy expenses received from entities considered related parties to a Customer or Supplier Organization are not supported.
- Service procurement expenses
  - Expenses for services received from each other by project partners are not supported.
  - According to the Corporate Tax Law No. 5520 and related legislation, service expenses received from entities considered related parties to a Customer or Supplier Organization are not supported.

Payment

Müşteri Kuruluş harcama ve giderler ile proje faaliyetlerinin uygunluğunu dönemsel olarak değerlendirir ve Tedarikçi Kuruluş ile mutabık kaldıktan sonra TÜBİTAK’a sunulacak dönemsel harcama tutarını belirler. Müşteri Kuruluş dönemsel harcama tutarının %40’ını Mali Müşavir (MM) raporu tarihine kadar Tedarikçi Kuruluşun banka hesabına yatırır, ardından dönem raporu TÜBİTAK’a sunulur.
TÜBİTAK, Dönem raporunu değerlendirir ve Kabul Edilen Harcama Tutarını belirler. TÜBİTAK, Kabul Edilen Harcama Tutarının %40’ını Tedarikçi Kuruluşa öder. Kabul edilen harcama tutarı; proje faaliyetleri ve karar yazısı ile bildirilen desteklenecek giderler doğrultusunda, ilgili mevzuat hükümleri ve izleyici görüşleri dikkate alınarak belirlenir.
TÜBİTAK will not make any advance payments under this call for proposals.

Product/Process Development Phase and Commercialization Phase

Product/Process Development Phase

Maximum 24 months (Even if the support period is extended, it will not exceed 24 months.)
In the final phase of the project's product/process development stage, in addition to the Period Report, a Project Final Report and a Commercialization Plan are also submitted. The Period Report will include the following documents:
- Technical Report
- Financial Consultancy Project Expenditure Evaluation Report
  - The MM report also includes commitments that the conditions in the Call for Proposals are met (the Customer has made payments to the Supplier Organization; they are not related entities; no consulting or service expenses are incurred between them; and no consulting or service expenses are incurred from a related entity).
- Expense Forms
- The Client Organization's commitment that the proposed expenses are relevant and appropriate to the project and that the project is progressing in line with its objectives.
Projects are monitored by taking into account the term report, observer feedback, and project proposal.

Commercialization Phase

The commercialization phase will not be planned to be shorter than 12 months.
During the project monitoring process, it may be possible to complete the Commercialization Phase earlier than the project proposal.
TÜBİTAK monitors the activities of the Commercialization Responsible Organization during the Commercialization Phase of the project.
The Client Organization continues to submit Periodic Reports during the commercialization phase monitoring process. The Periodic Report for the commercialization phase differs from the one for the product/process development phase and only includes the Commercialization Report.

Total Project Duration

Maximum 36 months

Explanation with an Example

For product/process development and commercialization phases, a phase-based timeframe can be established, not exceeding a total of 36 months. Planning can be done to determine how much time each phase requires, and the necessary time can be allocated to these phases. Examples are given below:
- If 12 months are planned for the product/process development phase, the commercialization phase can be a maximum of 24 months.
- If 18 months are planned for the product/process development phase, the commercialization phase can be a maximum of 18 months.
The project monitoring process can only request an extension for the Product/Process development phase. Since the total project duration cannot exceed 36 months, the Commercialization phase can be shortened if necessary. For example:
- If the project proposal plans for 18 months for the Product/Process Development phase and 18 months for the Commercialization phase, and a 5-month extension is requested for the Product/Process Development phase, the Commercialization phase duration should be updated to 13 months accordingly. The suitability of the allocated timeframe for the Commercialization phase will also be considered when evaluating the extension request.

Documents to be Submitted as an Appendix to the Project Proposal

Economic Feasibility Report (Appendix to the project proposal.)
Cooperation agreement (Annex to the project proposal.)
Undertaking (An undertaking stating that the Client Organization did not produce the project output and that the Project partners are not related organizations is uploaded to PRODİS.)

Evaluation Criteria

The industrial R&D content, technology level, and innovative aspects of the project.
Project plan and suitability of the organization's infrastructure.
The potential for project outputs to be transformed into economic benefit and national gain.

Points to Consider

Before applying Call for Proposals with Innovation Support Programme Implementation Guidelines’It is recommended to review [the following].
Organizations that have previously received pre-registration approval on an organization basis will not need to re-register or submit pre-registration documents.
The output of the project submitted to the call will be expected to be commercialized by the Customer Organization and/or Supplier Organization by bringing it to market. If the project output is a process or a machine, equipment, etc., to be used only by the Customer (project outputs that will not be marketed by the Customer or Supplier Organization, but will only be used by the Customer Organization), it will be expected that this process/machine, etc., will provide significantly improved economic returns compared to the current situation or similar situations and will be used by the Customer Organization. How the project output product or process/machine, etc., will provide these elements must be explained in the Economic Feasibility Report.
The Cooperation Agreement also specifies the Organization Responsible for Commercialization. TÜBİTAK monitors the activities of the Organization Responsible for Commercialization during the Commercialization Phase of the project.
Applications are not accepted for projects where the Supplier Organization manufactures an identical product to one that the Customer Organization currently produces or has previously produced. The Customer Organization must submit a commitment letter regarding this matter during the project application process.