# Istanbul startup innovation report and new support program

> Live situation record from CLSTR: https://clstr.news/situations/istanbul-development-agency-startup-innovation-report
> Updated: 2026-09-10T08:32:51.000Z. Sources: 7. Developments: 3.

The Istanbul Development Agency (ISTKA) released the ‘Startup-Friendly Demand-Oriented Innovation Policies Report’ to accelerate the scaling of technology-focused startups in Türkiye. Developed in collaboration with Viveka, the report advocates for a strategic shift from traditional supply-side incentives, such as R&D grants and tax incentives, toward demand-side mechanisms.

A primary recommendation is for public institutions to serve as the ‘first big customer’ for innovative products to help early-stage entrepreneurs achieve market validation, revenue continuity, and sustainable cash flow before expanding globally. 

By analyzing international models—including the US SBIR program, South Korea’s New Technology Procurement Guarantee, Singapore’s GovTech model, and European Union pre-commercial procurement practices—the report proposes 42 policy recommendations. These are organized into four strategic pillars: public procurement and supply policies, regulatory measures and standards, financial incentives and financing, and ecosystem integration and data governance.

Building on these innovation goals, ISTKA, coordinated by the Ministry of Industry and Technology, has announced a 300 million TL support program for innovation-driven industries. The initiative aims to bolster Istanbul’s role as a leader in the sector, noting that the city accounts for approximately three-quarters of the national innovative economy turnover. Financial support for individual projects will range from 5 million TL to 20 million TL. The program targets two areas: supporting scalable infrastructures and business models to increase production capacity, and strengthening Istanbul’s identity as an innovative city through projects like the revitalization of public spaces and the conversion of idle buildings into production centers. Applications are due by December 4, 2026.

## Timeline

### 2026-09-10: Istanbul launches 300 million TL innovation support program

The Istanbul Development Agency has launched a 300 million TL program to support innovative industrial projects with grants ranging from 5 million to 20 million TL per project.

2 sources. https://clstr.news/cluster/istanbul-launches-300-million-tl-innovation-support-program

### 2026-08-20: Istanbul Development Agency proposes new demand-oriented startup policies

The Istanbul Development Agency released a report proposing that the Turkish public sector act as a primary customer for local tech startups to drive innovation and market validation.

2 sources. https://clstr.news/cluster/istanbul-development-agency-proposes-new-demand-oriented-startup-policies

### 2026-08-17: Istanbul Development Agency releases startup innovation report

The Istanbul Development Agency released a report proposing demand-oriented innovation policies to help Turkish tech startups scale by positioning the public sector as a primary customer.

3 sources. https://clstr.news/cluster/istanbul-development-agency-releases-startup-innovation-report

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Cite as: Istanbul startup innovation report and new support program. CLSTR, https://clstr.news/situations/istanbul-development-agency-startup-innovation-report