With Innovation Centres and Model Factories Fostering Entrepreneurship and Innovation Culture in Three Provinces, the Great Structural Transformation Starts in Manufacturing Industry

February 19, 2021

Photo: Levent Kulu / UNDP Turkey

Innovation Centres and Model Factories are now operational in Izmir, Mersin and Gaziantep under the Turkey Resilience Project in Response to Syria Crisis (TRP) implemented by the United Nations Development Programme (UNDP) in cooperation with T.R. Ministry of Industry and Technology, and with funding from the European Union (EU). Aiming to boost innovation, digitalization, entrepreneurship ecosystem and productivity in manufacturing, the centres will ensure a technology-oriented transformation of local manufacturing industry, improve competitiveness, prepare enterprises for the new industrial revolution to trigger sustainable growth. Chambers of commerce and industry and organized industry zones engage in the project as local implementation partners.

The European Union (EU) and United Nations Development Programme (UNDP) initiate structural transformation in economy through the Innovation Centres and Applied Capability and Digital Transformation Centres (Model Factories) operationalized in Izmir, Mersin and Gaziantep. Three Innovation Centres and Model Factories have become operational in Izmir, Mersin and Gaziantep under the Turkey Resilience Project in Response to Syria Crisis (TRP) implemented by UNDP in cooperation with the Ministry of Industry and Technology (MoIT) with funding from EU. The centres will provide guidance to enterprises on entrepreneurship, process innovation, digitalization and lean manufacturing to improve their competitiveness, prepare them for the new industrial revolution.

The UNDP statement indicated that a delegation headed by Ambassador Nikolaus Meyer-Landrut, Head of EU Delegation in Turkey visited Mersin Innovation Centre and Model Factory and reviewed on site the activities of the centre which would guide enterprises and entrepreneurs on entrepreneurship, digitalization and lean manufacturing. Ambassador Meyer-Landrut was accompanied by Ms. Gül Taşkıran Battal, Head of Department of Productivity Applications of MoIT; Mr. Ayhan Kızıltan, Chairman of the Board of Directors of Mersin Chamber of Commerce and Industry; Mr. Sabri Tekli, Chairman of the Board of Directors of Mersin-Tarsus Organized Industry Zone; UNDP representatives and industrialists.

Operating on a total area of 5,000 m2 including 3,800 m2 of closed space, Mersin Innovation Centre and Model Factory will work with Cukurova Development Agency on productivity issues, and with KOSGEB on entrepreneurship. Enterprises and entrepreneurs receiving training and consultancy services from the Centres will also be provided financial support.

The Model Factories and Innovation Centres operationalized in Izmir, Mersin and Gaziantep will develop an ecosystem of investment and entrepreneurship for local enterprises, SMEs and entrepreneurs, guide companies through digital transformation, increase productivity in the manufacturing industry through innovation and lean manufacturing. Innovation Centres and Applied Capability and Digital Transformation Centres (Model Factories) operationalized under the project will improve the competitiveness of companies, open new avenues of exports, and contribute to qualified employment.

The Centres also support all enterprises ranging from large companies to SMEs in building infrastructure and human resources necessary for digital transformation. The Applied Capability and Digital Transformation Centres (Model Factories) focuses on preventing losses in manufacturing processes, integrating digital technologies in manufacturing systems, and ensure energy efficiency transformation at manufacturing SMEs. Set up as an actual factory, the Model Factory also has CNC lathing and milling, bending presses, laser cutting machine, assembly line, and a production line with operators. Capable of serving all sectors, the Model Factory particularly employs experiential learning techniques to foster lean manufacturing and digital transformation capabilities. Through the Model Factory operationalized in 2020, SMEs receiving theoretical and practical training made significant progress in productivity, quality, cost and energy efficiency.

SMEs that will benefit from the Model Factories are expected to save time, capital and energy as well as reduce cost of production, product development and therefore have resources to further invest, expand and recruit new employees.

On the other hand, the main goal behind the Innovation Centres is to support local business and entrepreneurship eco-systems to become a centre of attraction for innovative businesses and large companies, through increasing competitiveness and innovative competencies of the economic actors in Izmir, Mersin and Gaziantep. Innovation Centres offer capacity building services, specialized programs (Innovation Roadmap Commercialization Roadmap, Growth Accelerator etc.), laboratory and office services, awareness and ecosystem development activities for entrepreneurs. These centres which aim to transform İzmir, Mersin and Gaziantep to national and global hubs for innovation and entrepreneurship, will also support sustainable development in these cities.

Bringing together UNDP’s expertise in sustainable development and EU’s support, the project will create 2,000 jobs and ensure the establishment of 150 new companies or joint ventures.