Istanbul Development Agency releases startup innovation report

The Istanbul Development Agency (ISTKA) has released the ‘Startup-Friendly Demand-Oriented Innovation Policies Report’ to accelerate the scaling of technology-focused startups in Türkiye. The report suggests shifting focus from traditional supply-side incentives, such as R&D grants, toward demand-side mechanisms that create markets for new technologies.

A central recommendation is for public institutions to act as the ‘first big customer’ for innovative products rather than just providing subsidies. This approach aims to address critical challenges faced by early-stage entrepreneurs, including revenue continuity, commercialization, market validation, and bureaucratic hurdles.

By analyzing global models such as the US SBIR program, South Korea’s New Technology Procurement Guarantee, and Singapore’s GovTech model, the report proposes 42 policy recommendations organized into four strategic pillars:

1. Public Procurement and Supply Policies: Implementing flexible procurement processes and innovation-oriented evaluation criteria. 2. Regulatory Measures and Standards: Creating controlled testing environments and ‘Living Lab’ applications. 3. Financial Incentives and Financing: Developing mechanisms to reduce early-stage technology risks. 4. Ecosystem Integration and Data Governance: Establishing open data platforms to reduce information asymmetry.