individuals, ra<strong>the</strong>r than well structured mechanisms. In o<strong>the</strong>r words, VP/PE need to be extended<strong>and</strong> <strong>the</strong>ir effectiveness need to be increased. It is clear that capacity <strong>and</strong> sources <strong>of</strong> existing VP/PEfirms are insufficient. While Turkey is trying to upgrade its prerequisite for long-termcompetitiveness, it faces with vicious circle due to low input innovation drivers <strong>and</strong> limitedmarket expectations. Therefore, new business development is limited <strong>and</strong> mostly not in hightech areas, whereas VC is not developed due to <strong>the</strong> low numbers <strong>of</strong> highly pr<strong>of</strong>itable eligibleinvestments.6.2.4. Tasks for improvement <strong>and</strong> future development <strong>of</strong> <strong>the</strong> Turkish <strong>SME</strong> sectorKnow-how in <strong>SME</strong>s, mechanisms <strong>and</strong> institutions supporting <strong>the</strong> commercialization <strong>of</strong>research results <strong>and</strong> <strong>the</strong> start-up <strong>of</strong> innovative businesses are not sufficient, relatedmeasurement should be taken to overcome <strong>the</strong>se bottlenecks in front <strong>of</strong> Turkey in gainingadequate benefits from international market.Companies need additional measures to encourage <strong>the</strong> creation <strong>of</strong> VC, PE etc, funds <strong>and</strong>financing <strong>the</strong> commercialization <strong>of</strong> R&D results. Also combined effects <strong>of</strong> scarcity <strong>of</strong> capital indomestic market, FDI, venture <strong>and</strong> PE capital funds, not only make difficult to start up, but alsohamper access to international export markets, toge<strong>the</strong>r with slowly developing internationalnetworks.Due to <strong>the</strong> low level <strong>of</strong> awareness <strong>of</strong> investment in R&D, <strong>of</strong> innovation in <strong>the</strong> privatesector <strong>and</strong> <strong>of</strong> <strong>the</strong> implementation conditions <strong>of</strong> <strong>the</strong> measures, responsiveness <strong>of</strong> <strong>the</strong> respectivetarget groups to <strong>the</strong> support measures is quite low. As a result, low technological levels <strong>of</strong><strong>SME</strong>s constitute <strong>the</strong> most important obstacle in front <strong>of</strong> <strong>the</strong>ir international competitiveness.Alternative ways should be developed to streng<strong>the</strong>n programs aimed at promoting technologydissemination towards <strong>SME</strong>s <strong>and</strong> keeping <strong>the</strong>m up with best practices at home orinternationally.Governments should adopt user-friendly administrative documents, public authoritiesshould be urged to increase <strong>the</strong>ir electronic communication with <strong>the</strong> <strong>SME</strong>s, which is faster <strong>and</strong>cheaper, <strong>and</strong> on-line access to information <strong>and</strong> services should be improved.Although <strong>the</strong> diffusion <strong>of</strong> ICT is among <strong>the</strong> priorities <strong>of</strong> <strong>the</strong> Turkish government, <strong>the</strong>broadb<strong>and</strong> penetration rate <strong>and</strong> overall ICT diffusion in Turkey is low. Thus, measures shouldbe improved to provide <strong>the</strong> dissemination <strong>of</strong> ICTs in <strong>SME</strong>s.Although Turkey shows relatively good performance in business financed university R&D<strong>and</strong> recent efforts to stimulate cooperation between firms <strong>and</strong> universities have demonstratedpositive results, <strong>the</strong>re is a need to encourage <strong>the</strong> improvement <strong>of</strong> university-industrycollaboration through <strong>the</strong> establishment <strong>of</strong> technological support <strong>and</strong> development centers,techno-parks <strong>and</strong> technology institutes as well as cluster development <strong>and</strong> networking amongfirms.Creation or initiation <strong>of</strong> <strong>the</strong> so called GREEN mutual fund instrument, which helpsenterprises dealing with ecological products <strong>and</strong> policies <strong>and</strong> operations, shall be developed.The driving force behind growth <strong>of</strong> Turkey has been relative cost advantages <strong>of</strong> its<strong>SME</strong>s. However, some countries, especially China <strong>and</strong> India are achieving <strong>and</strong> sustaining amuch better cost position. Changing <strong>the</strong> sources <strong>of</strong> competitive advantage from such nonmanagerialfactors as cheap labor <strong>and</strong> raw materials to such managerial competencies as goodmanagement practices, flexible <strong>and</strong> clever organizations, knowledge management, etc. shouldbe taken into consideration immediately.134
The recognition <strong>of</strong> <strong>the</strong> critical importance <strong>of</strong> <strong>the</strong> human capital has not been appreciatedadequately until now by <strong>SME</strong>s. The measurements that force <strong>SME</strong>s to employ/hire high-qualityhuman capital <strong>and</strong> suitable strategies to minimize shortage <strong>of</strong> skilled manpower in <strong>SME</strong>s shouldbe developed.Turkish <strong>SME</strong>s do not produce products at <strong>the</strong> quality <strong>and</strong> variety as much as it isexpected. The measures should be taken to enforce <strong>SME</strong>s to produce high quality productsra<strong>the</strong>r than to encourage <strong>the</strong>m. Increased attention should be paid to ensuring sufficientnational qualitative <strong>and</strong> quantitative data to make reliable evaluation outcomes <strong>of</strong> implementedstrategies <strong>and</strong> given supports.General knowledge about business <strong>and</strong> entrepreneurship needs to be taught at allschool levels. <strong>Entrepreneurship</strong> courses should be included in schools <strong>and</strong> universitiesthroughout TurkeyNational bankruptcy laws should be assessed in <strong>the</strong> light <strong>of</strong> good practice as well as taxsystems should be adapted to reward success, encourage start-ups, favor small businessexpansion <strong>and</strong> job creation, <strong>and</strong> facilitate <strong>the</strong> creation <strong>and</strong> <strong>the</strong> succession in small enterprises.Fur<strong>the</strong>rmore, legal base should be developed to create additional financial supportingmechanisms i.e. business angels.Although <strong>the</strong>re are many agencies providing various services to <strong>SME</strong>s, <strong>the</strong> servicenetwork is not well-developed. It should be broadened throughout <strong>the</strong> country.Not only <strong>the</strong> large numbers <strong>of</strong> informal businesses need to be encouraged to move into<strong>the</strong> formal sector, but also measures should be taken to discourage corruption <strong>and</strong> to promoteethical <strong>and</strong> corruption-free working practices. Consultant accreditation system, business matchmakingsystem, awareness <strong>of</strong> <strong>SME</strong>s regarding IPRs should be improved.REFERENCES1. European Trend Chart on Innovation Annual Innovation Policy Trends <strong>and</strong> Appraisal Report, Greece,2006.2. European Trend Chart on Innovation Annual Innovation Policy Trends <strong>and</strong> Appraisal Report, Turkey2006.3. Giannitsis, T, Licensing in a newly industrializing country: <strong>the</strong> case <strong>of</strong> Greek manufacturing, World<strong>Development</strong>, Vol.19, No 4, 1991.4. Investment Advisory Council for Turkey Progress Report, Prime Ministry Undersecretariat <strong>of</strong> TreasuryRepublic <strong>of</strong> Turkey, 2006.5. Komodromou G., Measures for The Support <strong>of</strong> Greek <strong>SME</strong>s, Seminar on European Community <strong>SME</strong>Policy, February 2007.6. National Reform Program 2005-2008 Implementation Report, Ministry Of Economy <strong>and</strong> Finance,Hellenic Republic, 2006.7. National Strategic Reference Framework 2007 – 2013, General Secretariat Of Investment <strong>and</strong><strong>Development</strong> Ministry <strong>of</strong> Economy <strong>and</strong> Finance, Hellenic Republic, 2006.8. Overview <strong>of</strong> <strong>the</strong> Greek Venture Capital Market (Version 3), Ministry <strong>of</strong> <strong>Development</strong> General Secretariatfor Research <strong>and</strong> Technology S&T Policy Planning Directorate, 2007.9. Piperopoulos P., Barriers to innovation for <strong>SME</strong>s: empirical evidence from Greece, International Journal<strong>of</strong> Business Innovation <strong>and</strong> Research Volume 1 - Issue 4 – 2007.10. Private Equity in Turkey, A Practical Guide for Turkish Companies <strong>and</strong> Investors, Deloitte, 2007.11. <strong>SME</strong> Strategy <strong>and</strong> Action Plan, Turkish State Planning Organization, 200412. Special Report on <strong>SME</strong>s, Ninth <strong>Development</strong> Plan (2007-2013), Turkish State Planning Organization,2006.13. Strategic <strong>Development</strong> Plan for Research, Technology <strong>and</strong> Innovation under The 2007-13 NSRFFramework (2nd Draft, Rev.1), General Secretary <strong>of</strong> Research <strong>and</strong> Technology Planning & ProgrammingDirectorate, Ministry <strong>of</strong> <strong>Development</strong>, 2007.135
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1. SME DECLARATION AND WORKING GROU
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While comparing the BSEC and EU doc
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cooperation with the United Nations
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GENERAL ASSESSMENT OF THE BSEC WG O
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“Armenia's new law introduces a n
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(iii)Share of the labor force of SM
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The following data represents some
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RankDocuments for export(number)Tra
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3.1.4. FINANCING SMEsProf. Dr. Sela
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3.1.4.3. Mutual and loan guarantee
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introduction of e-signatures, only
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The Code of Conduct for Civil Serva
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Trading Across Borders Enforcing Co
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as with all non-governmental organi
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Bulgarian SMEs obtain additional ca
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usiness is not approaching them oft
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The preparatory project of the NDP
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Incubators host on average 11 SME,
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Programs. The program is implemente
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development instrument is extremely
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accounting standards, including med
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corporations and open held corporat
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promoting SME sector, cooperation w
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very early steps of its democratic
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Federal funds, private capital, esp
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4.3. MOLDOVATable 14.Dimensions Neg
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Related andsupportingindustriesDome
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Technological:Internetaccessibility
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Domesticdemand• Still not many pe
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international investments• Govern
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