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Legislation on the Research and Development and Innovation Support Program

SME and Entrepreneur Award Competition

The updated KOSGEB R&D and Innovation Support Program aims to support R&D and innovation projects of businesses and entrepreneurs in areas such as developing or improving an existing product/process/service, raising product quality or standards, or developing new techniques and production technologies that reduce costs. New applications submitted after January 31, 2020, are made according to the updated regulations. Only one R&D and Innovation Project can be supported at a time. If a business completes its current project, it can submit a new one.

Legislation and Resources:

Evaluation process:

  • Project applications are checked through the SME Information System (KBS) within a maximum of one month, in accordance with the criteria listed in the R&D and Innovation Support Program Application Control Table. At this stage, the application is checked to ensure it meets the application and eligibility requirements, conforms to the documentation format, and includes all necessary attachments.
  • The inspection carried out by the responsible personnel is sent to the relevant implementation unit manager for approval.
  • Applications found to be incomplete and/or contain errors during the verification process are opened for correction via the KBS system. The applicant is informed via KBS to make the necessary corrections.
  • If a project is found suitable after the review process, it is included in the Board Meeting Agenda via the KBS system and presented to the Board.
  • The board may accept or reject the project, request an opinion from a faculty member familiar with the project if there is no board member knowledgeable about the project's subject matter, or request corrections from the applicant for re-evaluation.
  • The reasons for rejection or any corrections requested by the board are communicated to the applicant via the KBS system.
  • If corrections are requested as a result of the board's evaluation, the applicant will be given a period of no less than one month to make the necessary adjustments. In this case, the R&D and Innovation Support Program Project Application Form and its attachments must be corrected via the KBS system and approved by the applicant within the period specified in the board's decision. Applications not approved within the specified period will be marked as rejected via the KBS system.
  • If applying as a business, the Undertaking is approved along with the R&D and Innovation Support Program Application Form during the project application process. The Undertaking is registered in the document registry simultaneously with the Support Program Application Form. In this case, the program start date is the date on which the first board decision regarding the support is registered in the document registry.
  • If applying as an entrepreneur, the business must be established and the Undertaking approved within 6 months from the notification date of the board's decision. The applicant may request an extension of up to 15 days after this period for the establishment of the business and the approval of the Undertaking. If the entrepreneur requests an extension of 30 days to approve the Undertaking, a one-time extension will be granted. The date the Undertaking is approved by the business via the KBS system and registered is the start date of the program. If the Undertaking is not approved within the given timeframe, the application will be considered rejected.

Evaluation criteria:

  • The competence of the project owner/entrepreneur and the personnel who will work on the project.
  • Research and Development and Innovation Aspects of the Project
  • Market research and commercial viability of the project.
  • The added value that the project will provide
  • Project budget and activity-timeline
  • Prepared by the OECD Oslo Guide And Frascati Guide

Project duration:

• From a minimum of 8 months to a maximum of 24 months, in increments of 4 months.

• The date the project is first approved by the applicant via the KBS system is the project application date.

• Program start date:

    • This is the date on which the initial board decision regarding support for business applications is recorded in the official documents.
    • If applying as an entrepreneur, the business must be established and the Undertaking approved within 6 months from the notification date of the board's decision. The applicant may request an extension of up to 15 days after this period for the establishment of the business and the approval of the Undertaking. If the entrepreneur requests an extension of 30 days to approve the Undertaking, a one-time extension will be granted. The date on which the Undertaking is approved by the business via the KBS system and registered is the start date of the program.
  • In this program, the project duration is considered the program duration, and the program completion date is considered the project end date.

Supported expenditure items, support amount upper limits, and rates are as follows:

Expense item

Upper limits (TL)

Support rate*

Seed Capital Support

  • This grant is awarded to entrepreneurs who meet one of the following conditions to cover business setup and office equipment expenses.
    • Entrepreneurs who are eligible to receive R&D support from public administrations within the scope of central government according to the Public Financial Management and Control Law No. 5018, and those who established their businesses within the last year as of the application date.
    • Students who are able to graduate from any undergraduate program at universities within one year.
    • Graduate or doctoral students, or those who received a bachelor's, master's, or doctoral degree no more than 5 years prior to the application date.
    • Teaching staff
  • Supported expenses: Support is provided for the following expenses incurred within 6 months of the date of the board's decision to support the project.
    • Business establishment phase notary fees (preparation and approval of the articles of association, signature circular/signature declaration of the business manager, certification of the books)
    • Obtaining business opening and operating permits and licenses.
    • Printing and certification of invoices, delivery notes, and expense receipts.
    • Registration of the business/tradesmen registry
    • Announcement of the business in the official gazette
    • Registration with the relevant rooms.
    • Fees for certified public accountants and accountants (the amount specified in the minimum fee schedule prepared in accordance with the provisions of the Regulation on the Principles of Fees for Certified Public Accountants and Chartered Accountants and published annually)

20.000

%100

Rent Support: Rent support is provided to entrepreneurs who apply for a project and who have established their business within the last year prior to the application date, benefiting from R&D support provided by public administrations within the scope of central government according to the Public Financial Management and Control Law No. 5018. Rent support is calculated based on the net rent (excluding withholding tax and common expenses).

Office Rent in Technology Parks: 30,000 TL (maximum 1,250 TL per month)

Office Rent Outside Technopark: 24,000 (maximum 1,000 TL per month)

%75

Personnel Expense Support

  • Non-reimbursable support is provided for existing or newly hired personnel, provided they work full-time within the scope of the project.
  • Entrepreneurs who establish their businesses as capital companies, or a partner involved in the project, are eligible for Personnel Expense Support. In this case, the applicant entrepreneur or the partner working on the project must not own another business, hold a partnership in any business, or be employed by another business/institution/organization under the provisions of the Social Security Institution (SGK) to receive this support.
  • Foreign nationals can also be employed under this support program.
  • The Board decides on the number, qualifications, and duration of support for the personnel requested within the scope of the project.
  • The daily net minimum wage, calculated by dividing the monthly net minimum wage (including the Minimum Living Allowance for single and childless individuals) by 30 (based on the minimum daily wage determined by the Minimum Wage Determination Commission for each year), is multiplied by the educational level coefficient specified below to determine the daily support upper limit.
    • For associate degree graduates and those who can graduate from a bachelor's degree program within one year, the rate is 1.25 times higher.
    • 1.5 times the rate for bachelor's degree graduates.
    • 1.75 times the payroll for Master's degree graduates.
    • Twice the price for those with a PhD.

150.000

%75

Support for Machinery-Equipment, Hardware, Consumables, Software and Design Expenses

  • Expenses for raw materials, supplies, machinery, equipment, hardware, software, molds, design, and outsourced services/labor for testing and prototype development are supported.
  • The purchased machinery and equipment can be new or used.
  • The purchased machinery, equipment, hardware, software, and similar movable assets cannot be sold, leased, or have their usage rights transferred for a period of 3 years.,
  • The specifications for machinery, equipment, hardware, consumables, software, and design that the Board decides to support represent the minimum technical specifications. Provided that the specifications of the machinery, equipment, hardware, and software meet the minimum requirements specified in the Board's decision, support payments will be made based on the amount determined by the Board for that expenditure item. If the specifications of the purchased machinery, equipment, hardware, and software do not meet the minimum requirements specified in the Board's decision, the KOSGEB Directorate will submit this matter to the Board, and support payments may be made only if the Board approves.

150.000

%75

(Yerli Malı Belgeli Ürün olması halinde %90)

Support for Machinery-Equipment, Hardware, Consumables, Software and Design Expenses (Reimbursable Support)

  • Expenses for raw materials, supplies, machinery, equipment, hardware, software, molds, design, and outsourced services/labor for testing and prototype development are supported.
  • The purchased machinery and equipment can be new or used.
  • In repayable support, the repayment plan consists of 8 installments every 3 months, with a 6-month grace period following the project completion. For repayable support, a guarantee equal to the support amount is obtained from the business before the support payment is made. If a bank guarantee letter is obtained, it must cover a period of at least 2 months after the final repayment date. However, if the business cannot obtain a long-term bank guarantee letter, a bank guarantee letter with a minimum validity of 1 year may be accepted. If a repayable support surety letter is obtained, the maturity date must be the last day of the month following the final payment date of the support.
  • The purchased machinery, equipment, hardware, software, and similar movable assets cannot be sold, leased, their usage rights transferred, or used as collateral for a period of 3 years.
  • For repayable loans, a Bank Guarantee Letter or KGF (Credit Guarantee Fund) Guarantee Letter is required. **
  • If purchased with a Letter of Guarantee issued by KGF (Credit Guarantee Fund), KGF may establish a right of pledge, blocking, or lien as security for the guarantee.
  • The specifications for machinery, equipment, hardware, consumables, software, and design that the Board decides to support represent the minimum technical specifications. Provided that the specifications of the machinery, equipment, hardware, and software meet the minimum requirements specified in the Board's decision, support payments will be made based on the amount determined by the Board for that expenditure item. If the specifications of the purchased machinery, equipment, hardware, and software do not meet the minimum requirements specified in the Board's decision, the KOSGEB Directorate will submit this matter to the Board, and support payments may be made only if the Board approves.

300.000

%75

(Yerli Malı Belgeli Ürün olması halinde %90)

Project Development Support

100.000

%75

Consulting Support

  • The costs of consultancy services that the business will receive from domestic/international universities, Technology Transfer Offices (TTOs), Technology Development Zone (TDZ) management companies, faculty members assigned to Technology Development Zones/Technology Transfer Offices, faculty members with companies in Technology Development Zones, or research centers/institutes established by public institutions/organizations in technical, design, finance, project management, etc. matters, for the development of its project, are covered by the support program.
  • It does not cover food, accommodation, and transportation expenses.
  • Destek üst limiti 25.000 TL (%75)

Educational Support

• This covers the expenses for training services that those involved in the project will receive from domestic/foreign institutions/organizations. Training support only covers consultancy fees.

• Does not cover food, accommodation, and transportation expenses.

• Destek üst limiti 10.000 TL (%75)

Industrial and Intellectual Property Rights Support

• The application and/or registration expenses of the business for Patent, Utility Model, Design Registration, and Integrated Circuit Topography Registration Certificates are supported. Payments made to the Turkish Patent and Trademark Office (TürkPatent) and/or its equivalent institutions/organizations abroad, as well as to Patent Attorneys authorized by TürkPatent, are covered by this support.

• The business may request payment for these expenses and costs during the application and/or registration phase.

• Destek üst limiti 20.000 TL (%75)

Project Promotion Support

• This includes expenses for brochures, catalogs, CDs, websites, web/mobile-based promotional materials, and promotional events such as meetings, all used to promote the project.

• Brochures/catalogs, CDs, web pages, and mobile applications prepared/printed using this support must include the KOSGEB logo and website address.

• Destek üst limiti 5.000 TL (%75)

Support for Domestic and International Congress/Conference/Trade Fair Visits/Technological Cooperation Visits

  • Transportation (round-trip air/road/rail/sea travel tickets from your location to the city/country where the event is held, or between countries if traveling to multiple cities/countries), accommodation, and participation/entry expenses for domestic and international congresses/conferences/symposiums and fairs/technological cooperation visits related to the project topic are supported.
  • More than one person may participate in each overseas visit, provided they are all involved in the project.
  • The maximum support limit for each visit is 2,000 TL for each domestic visit and 6,000 TL for each international visit.
  • Toplam destek üst limiti 15.000 TL (%75)

Testing, Analysis and Certification Support

  • The project supports the costs of testing, analysis, control-inspection, and calibration services that the business will receive from laboratories established by public institutions/organizations or universities, as well as testing, analysis, and calibration services accredited in domestic and foreign laboratories, and product certification.
  • Testing and analysis services performed at KOSGEB laboratories are not covered by this support.
  • The costs of shipping, insurance, and similar expenses for products, materials, parts, and samples subject to testing, analysis, inspection, and calibration services, as well as the accommodation, transportation, and meal expenses of personnel providing these services if they are performed at the company's facilities, are excluded from the scope of support.
  • Destek üst limiti 25.000 TL (%75)

Subsidies are provided based on prices excluding VAT.

* Practices to increase the support rate:

  • Projeye konu satın alınacak makine, teçhizat ve yazılımın; Sanayi ve Teknoloji Bakanlığınca 13/09/2014 tarih ve 29118 sayılı Resmi Gazete’ de yayımlanan SGM 2014/35 sayılı Yerli Malı Tebliği’ne uygun olarak alınmış yerli malı belgesi ile belgelendirilmesi halinde, destek oranına %15 ilave edilir.

• If the applicant declares in the project application that Open Source Software (software whose code can be examined, modified, and distributed in its modified form) is used, and if it is found to be suitable during the assessment at the end of the project, % 15 will be added to the support rates for expenses paid under non-reimbursable grants other than Initial Capital Support and Personnel Expense Support. If Open Source Software is to be used in the project, the type of software and its area of use in the project must be declared in the Project Application form. It is essential that the software is important and necessary for achieving the main objectives of the project and obtaining the expected results. See details for more information. Implementation Guidelines Article 29.

• Provided that a new project application is submitted within 3 years from the date of being declared the category winner under the KOSGEB SME and Entrepreneurship Awards, a one-time additional % 10 will be added to the non-refundable support rates, excluding Initial Capital Support and Personnel Expense Support. See details for more information. Implementation Guidelines Article 30.

  • Her halükarda bu destek programında belirtilen Başlangıç Sermayesi Desteği ve Personel Gideri Desteği haricindeki geri ödemesiz destek oranlarına ilave edilecek oran %15’i geçemez.

**Collateral and KGF guarantee letter for repayable loans:

Points to consider:

  • Before applying Implementation Guidelines Reviewing the document is recommended.
  • Businesses/entrepreneurs whose project applications have been rejected cannot reapply to KOSGEB units for the same project.
  • In the event that force majeure circumstances such as earthquakes, fires, floods, similar natural disasters, legal strikes, lockouts, general epidemics, terrorist acts, sabotage, war, or the declaration of partial or general mobilization occur during the implementation of the program, the KOSGEB President will decide whether to suspend or continue the support process until these circumstances have ended.
  • Only one R&D and Innovation Project can be supported at a time by the beneficiary. If the beneficiary completes their current project, they may submit a new one.
  • All notifications and applications can be submitted in writing or electronically. All documents and information within the scope of the Support Program can be accessed electronically.
  • Excluding legal obligations such as taxes and social security contributions, support cannot be received from different institutions/organizations for the same expense.
  • The beneficiary's owners, partners, employees, and their spouses, mothers, fathers, siblings, or children cannot be members of the board, observers, or opinion providers for the beneficiary's application.
  • If the implementing units determine that beneficiaries have received excessive or unjustified payments as a result of erroneous procedures, the excess or unjustified payments will be recovered from the beneficiary together with legal interest calculated from the date of payment.
  • In cases of public damage identified as a result of control, audit, investigation, final judgment, or trial, action is taken in accordance with the relevant legal provisions.
  • For any document prepared in a foreign language, a Turkish translation prepared by a sworn translator may be required when necessary.
  • Information and documents provided to those involved in the evaluation and monitoring processes of applications submitted under this program are considered confidential commercial information belonging to the beneficiaries and may not be transferred to third parties in any way.
  • Any changes to the beneficiary's title and/or type during the program period must be reported by the beneficiary to the implementing unit. The beneficiary's information is updated, and the support process continues. The ownership of the machinery, equipment, hardware, software, and similar movable assets purchased with support under the project belongs to the beneficiary's legal entity and shall remain in effect for a period of 3 years from the date of approval of the commitment letter;
    • The movable assets in question cannot be sold, leased, transferred, or pledged to any other person, institution/organization. However, if the said movable assets are purchased with a Letter of Guarantee issued by KGF (Credit Guarantee Fund), KGF may establish a pledge, block, or lien right on them as collateral for the guarantee.
    • If a precautionary measure, provisional attachment, or provisional seizure is placed on the movable assets in question, the beneficiary must notify KOSGEB in writing within 7 days, along with all supporting documents. Otherwise, the support amount will be collected with legal interest. The ownership status of the movable assets under the precautionary measure/attachment is evaluated by the Board.
    • The provisions of this paragraph shall not apply to machinery, equipment, hardware, software, and similar movable assets that are integral parts of a prototype, in cases where the liquidation of the beneficiary has begun or the prototype has been closed, or where the prototype has been sold.
  • From the date the program start date is notified to the beneficiary until the final monitoring date, a sign measuring at least 30x50 cm must be displayed in a visible location at the workplace, displaying the KOSGEB logo along with the statement "This business has been supported by KOSGEB."
  • The receipt is provided by the beneficiary.
  • In calculating the deadlines, the day of application is considered the starting point; if counting forward, counting starts from the next day, and if counting backward, counting starts from the previous day. Public holidays are included in the deadline. The last day of the deadline is a public holiday.
  • If the deadline falls on a holiday or weekend, it expires at the end of the first business day following the holiday.
  • It is possible to benefit from the same type of support provided it is within different support programs. However, documents showing the expense incurred can only be used for one support program.

For more information and questions: https://www.kosgeb.gov.tr/site/tr/genel/mudurlukler

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