New Generation OIZ Model for Technological Transformation of Industrialists

February 6, 2019

The report “Transformation of OIZs in Turkey towards 2023” by the Ministry of Industry and Trade and United Nations Development Programme (UNDP) reveals that industrialists prefer OIZs on account of high quality infrastructure and predictable investment environment.

The report “Transformation of OIZs in Turkey towards 2023” authored by Assoc.Prof.Dr. Mehmet Cansız, Dr. Zeynep Kurnaz and Esen Çağlar was released in the context of the Project “Technology Development in OIZs” implemented jointly by the Ministry of Industry and Trade and UNDP.

Prepared under the Project that aims to transform OIZs in digitalisation, R&D, innovation, innovative class and entrepreneurship to boost OIZ contribution to firms, the report demonstrates once more that OIZs contributed, by providing infrastructure services, to alleviating the financial burden on firms as well as enhancing competitiveness.

Based on the results of 293 interviews in 12 OIZs in 9 provinces, the report reveals that firms are generally satisfied with the services provided by OIZs, and prefer OIZs particularly on account of high quality infrastructure and predictable investment environment.

Of the interviewed firms, 77% report that OIZs have positive impact on firm productivity, and 71% indicate that they would again choose OIZ if they were to make the same investment again.

Need for New Generation OIZ

Of the interviewed industrialists, only 17% report that OIZs impact firm innovativeness, which indicates that OIZs are yet short of the desired impact on innovation.

The report holds that the fact that OIZs have high impact on productivity but low impact on innovation points out to the importance of updating/upgrading the services provided by OIZs as Turkey is in transition from a productivity-based economy to an innovation-based one.

The need for transformation occasioned by the innovation-based economy and digitalisation also raises the need for revising OIZ practices. In this context, it becomes obvious to switch to a new generation OIZ model that responds to the needs of OIZs and real sector.

To enhance firm innovativeness, it is important to engage in establishing and operating Technology Development Zones within OIZs, organising capacity-building programmes in digitalisation and Industry 4.0, and developing university-industry cooperation.

Rise of “White Collars” in Industry

The report also offers recommendations to respond to firms’ innovation needs, and improve OIZs contribution in this area.

Proposing that new structures may be established with a focus on innovation capacities of firms operating in OIZs, the report offers various alternatives including a Technology Development Zone or Technology Transfer Office in partnership with a university; a market development centre or competence and digital transformation centre or innovation centre in partnership with a chamber of industry; a testing centre in partnership with a sector association or university; or an R&D Institute in partnership with a foreign research entity.

Another recommendation by the report highlights the design and management of new generation multi-functional zones, which may aptly be named “Industry and Technology Cities”

Pointing out that trends of digitalisation in industry increase the need for highly qualified workforce while reducing the need for blue-collar force, the report underlines that a zone which is needed by Turkey, occupied by firms and employees that produce high added value, use and develop advanced technology should be designed in a style to include production areas with high rates of white collars and responding to their needs and expectations.