Istanbul Development Agency proposes new demand-oriented startup policies

The Istanbul Development Agency (ISTKA) has released the ‘Startup Friendly Demand-Oriented Innovation Policy Report’ to accelerate the scaling of domestic technology startups. Developed in collaboration with Viveka, the report advocates for a shift from traditional supply-side supports, such as R&D grants and tax incentives, toward demand-side policies where the public sector acts as a ‘first major customer’ for innovative products.

The report aims to help early-stage startups achieve market validation and sustainable cash flow within Turkey before expanding globally. It analyzes successful international models, including the US Small Business Innovation Research (SBIR) program, South Korea’s New Technology Procurement Guarantee, Singapore’s GovTech model, and European Union pre-commercial procurement practices. To address structural issues in the ecosystem, the study proposes 42 specific policy recommendations organized into four main pillars, including reforms to public procurement laws and procurement policies.