"Cluster-level Strategy: Example of Software Cluster in Turkey"

LANA HOPKINSONM.A. International Business

Lana.Hopkinson@gmail.com

Opatija, 2009

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Mainly in 4 technoparks in Ankara:

METU Technopolis (MUTP)

Hacettepe Technopark (HTP) Focus sectors: ICT, Health Care & Medicine

Ankara Cyberpark (ACP): ICT (software development), Electronics

Gazi Technopark (Gazi University): ICT (software development)

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The market size of ICT in Turkey is around 14.5 billion dollars and 4.4 billion dollars of this amount belongs to IT.

The number of internet users is 10 million while the number of broadband subscribers is 1.6 million

Difficulties

Restricted expansion to international markets Cost-oriented domestic competition

Strategic Coherence Framework, State Planning Organisation, 2007

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Enterprise solutions (products + services): adapting, integrating

Professional software services (planning, building, integrating, and maintaining customised software systems)

Internet-based applications rented by Application Service Providers (ASP). So-called “On-demand software” or “Software as a service” (SaaS)

Embedded software including services

Packaged software for mass market

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Out of 501 enterprises in Ankara technoparks, 326 are software developers

Software65%

Other35%

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80% are educated to the university degree or higher level

80%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Higher education Other

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Rapidly growing and increasingly important industry

Software Cluster in Ankara exists but is “latent” High level of understanding of benefits, readiness

to participate in cluster initiatives Low entry barriers Good access to highly skilled labour Excellent knowledge infrastructure Extensive Government support for R&D Has potential to diversify into non-defence appl.

applications and expand in international markets

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Poor communication and information flows Lack of co-ordination and planning of joint

activities Limited access to international markets Insufficient intensity of innovation and new

product development, collaboration between Uni’s and businesses

Insufficiently developed entrepreneurship (culture and skills), relatively low start-up rate

Unexploited potential for linkages with other sectors (machinery, automotive, health, etc)

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Market Imperfect information ‘Free-rider’ problems, externalities and lack of co-operation between

enterprises Lack of financial resources and funding for commercialisation of R&D

results Policy

Existing rent and R&D subsidies for firms located in technoparks Exporters’ Unions currently exclude software development Start-up support is not focused on skills and competencies

Systemic Mismatch between company needs and Uni’s R&D High demand for technology transfer and innov. mgt services is not met

by technoparks Law on Higher Education prohibits entrepr. activities for professors

(changes are being made) Gov-t support to Uni’s is based on academic studies and citations in

scholarly literature, not on needs of industry Companies see science-industry cooperation as one-way assistance

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SHARED VISION (preferred future) “Ankara software cluster will become

an internationally linked and recognised centre of expertise for innovative software by 2020”

CLUSTER STRATEGY “To increase the proportion of

innovative cluster companies operating in higher added value markets”

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Cluster Actions

2009 2010 2011 2012 2013

Establish the Coordination & Management Agency

Maintain operations of CMA

Establish the Software Innovation Network

Maintain the Software Innovation Network

Establish the Centre for Embedded Software

Maintain the Centre for Embedded Software

Develop internationalisation and promotion strategy

Cluster Internationalisation and Promotion

Establish the Centre for Entrepreneurship

Maintain the Centre for Entrepreneurship

Establish the Online Portal for the Cluster

Maintain the Online Portal for the Cluster 21

Now the gratest challenge – implementation!

Hvala!

Lana.Hopkinson@gmail.com

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