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Deep Technology Entrepreneurship in Türkiye: Current Landscape, Barriers and Strategic Directions

In recent years, the concept of “deep technology” has begun to appear more frequently on the agenda of the technology and entrepreneurship ecosystem. This concept is regarded not merely as a vehicle for commercial success, but as a means of transformation grounded in scientific progress and strategic autonomy.
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agenda of the technology and entrepreneurship ecosystem. This concept is regarded not merely as a vehicle for commercial success, but as a means of transformation grounded in scientific progress and strategic autonomy. Deep tech encompasses ventures that place fundamental scientific discoveries, engineering innovations, and long-term R&D processes at their core. Spanning disciplines from artificial intelligence to biotechnology, from advanced materials engineering to quantum technologies, these ventures are not limited to economic returns alone; they also directly affect nations’ technological sovereignty and global competitiveness (OECD, 2023).

A common characteristic of ventures in these fields is that, due to long-term R&D processes and high technical complexity, they initially require significant financial investment, time, and qualified human capital. Since deep tech ventures often develop products and solutions that are difficult to commercialize in the short term, they do not typically appeal to conventional investor profiles. Therefore, in order to ensure sustainable progress in this domain, venture capital support, public incentives, university-industry collaborations, and strategic partnerships are of critical importance. The development of deep technology is made possible not only by the efforts of entrepreneurs, but also through political commitment, infrastructure investments, and inclusive innovation policies. In developed countries, such ventures guide strategic sectors and contribute to both economic growth and technological sovereignty. Thus, every investment made in deep technology is not only an investment in a single venture, but also an investment in a country’s future competitiveness.

The Outlook of the Deep Technology Ecosystem in Türkiye

Deep tech entrepreneurship in Türkiye is still at an early stage and is represented by only a limited number of examples. When data from Dealroom, Türkiye TechnoHub, and Hello Tomorrow are examined, it becomes evident that the vast majority of ventures operating in Türkiye are software-focused, rapidly scalable structures with low R&D intensity. In contrast, deep tech ventures constitute less than 5% of the entire ecosystem (Dealroom, 2025).

Among the current examples, several startups stand out: Entekno, operating in the field of advanced materials; Nanomik, offering biotechnology-based solutions; CoPrint, developing next-generation manufacturing technologies; and Agcurate, working on sustainable agricultural technologies. What these ventures have in common is their connection to universities and their long-term growth strategies based on R&D (Hello Tomorrow, 2023).

However, some structural weaknesses are evident across the ecosystem. The commercialization rate of deep tech ventures in Türkiye is quite low, indicating challenges in transferring developed technologies to the market. The limited number of patented technologies suggests that intellectual property management is not sufficiently effective, and there are deficiencies in protecting innovations. Moreover, the lack of widespread support mechanisms specifically tailored to deep tech within universities and technopark infrastructures reveals a weak link between scientific knowledge and the creation of commercial value. In addition to these, the processes of policymaking and strategic guidance for deep tech in the civil domain in Türkiye have yet to become fully institutionalized (OECD, 2024). In this regard, despite its considerable potential, Türkiye’s impact in the field of deep technology remains limited, and it fails to establish a sustainable competitive edge on a global scale.

Structural Barriers and Constraints

  1. Constraints of the Financial Ecosystem

The investment environment in Türkiye is characterized by low risk appetite and a focus on short-term returns. This poses a significant obstacle for deep tech ventures, as such initiatives are marked by long R&D cycles, high initial costs, and delayed cash flow (EIF, 2022).

Domestic venture capital funds in Türkiye are predominantly oriented toward software-based SaaS ventures. For instance, in 2023, only 6% of total VC investments in Türkiye were directed toward the deep technology sector (TechnoHub, 2023). Access to international funds, on the other hand, remains limited.

In Europe, institutions like the European Investment Fund (EIF) support the survival of deep tech ventures by providing patient capital. No equivalent mechanism currently exists in Türkiye. As a result, early-stage scientific ventures often struggle to find investors, a process that is both time-consuming and frequently ends in failure.

  1. Commercialization Capacity of Universities and Research Institutions

Universities in Türkiye possess the capacity to produce internationally recognized academic publications; however, there are serious shortcomings in the commercialization of these academic outputs (UNCTAD, 2025). Technology Transfer Offices (TTOs) face institutional challenges and have difficulty maintaining continuity in spin-off creation.

Several structural factors hinder the commercialization process. Most notably, since the academic incentive system is still largely based on publication count, faculty members are not sufficiently encouraged to engage in patent generation or entrepreneurial activity. Moreover, the lack of effective bridge mechanisms between universities and the entrepreneurial world limits the transformation of research outcomes into economic value. University-industry collaboration, for the most part, remains symbolic and has yet to acquire a systematic structure (OECD, 2024). Consequently, the rate at which scientific discoveries made in laboratories are converted into tangible products remains quite low. Furthermore, the insufficiency of funding mechanisms that would sustainably promote university-industry collaboration renders this process even more fragile.

  1. Inadequacy of Public Policies

In Türkiye, policies and regulations targeting the deep technology ecosystem are largely shaped around the defense industry. This orientation creates a significant gap for deep tech ventures operating in the civilian domain, both in terms of strategic direction and direct public support (NIF, 2025). Türkiye has yet to fully adopt mission-oriented innovation policies, which are frequently emphasized in the OECD’s 2023 and 2024 reports. In developed countries, such policies systematically employ tools like publicly backed pre-purchase guarantees, public-private co-investment schemes, startup acceleration programs, and regulatory sandboxes to facilitate the scaling and commercialization of deep tech ventures (OECD, 2023). In contrast, these tools have either been entirely excluded in Türkiye or applied only in fragmented and ineffective ways within limited incentive programs. As a result, the institutional and financial infrastructure needed for the development of deep technology ventures remains incomplete.

  1. Human Capital and Talent Pool

One of the most critical needs for ventures operating in the deep tech space is qualified human capital. Although the number of students enrolled in STEM (science, technology, engineering, and mathematics) disciplines in Türkiye is relatively high, a significant portion of these students either pursue careers abroad or are absorbed into the defense industry. Engagement with civilian deep tech ventures remains limited (AI Index, 2025).

There is a lack of incentive structures that would retain talent with both strong scientific and entrepreneurial capabilities within the ecosystem, particularly in R&D centers, universities, and technoparks. This makes it difficult for startups to recruit talent and scale effectively.

  1. Strategic Recommendations and Policy Instruments

To develop its deep technology ecosystem, Türkiye must go beyond merely supporting individual ventures; it must also transform the structural and institutional environment in which these ventures can thrive. This transformation requires a comprehensive, coordinated, and long-term national strategy, supported by appropriate policy tools and the capacity for systematic implementation.

5.1 A National Deep Technology Fund Should Be Established

Patient capital mechanisms, such as those created through actors like the EIF (2022) in Europe and Bpifrance in France, play a critical role in the sustainability of deep tech ventures. Establishing a similar structure in Türkiye would contribute to the institutionalization of the ecosystem. A “National Deep Technology Fund” should be structured with an exclusive focus on deep tech, and managed transparently by a team of specialized professionals. Beyond providing capital, the fund should offer comprehensive support to entrepreneurs, including technical mentorship, incubation, international commercialization assistance, and guidance in public collaboration processes. In addition, the fund should develop co-investment mechanisms to attract private investors and encourage them through risk-sharing instruments.

5.2 Market Access Should Be Facilitated Through Public Demand

Market access for deep tech products is often disrupted due to the difficulty of finding early buyers. At this point, the state can act as a first adopter, serving as a strategic policy tool. In domains with public service characteristics, such as health, agriculture, environment, and urban planning, pre-purchase guarantees should be provided for deep tech solutions. Public procurement should be designed as a strategic innovation policy tool for such products (OECD, 2023). This would make it easier for startups to secure their first customers and accelerate their scaling processes.

5.3 University-Based Entrepreneurship Should Be Strengthened

The intersection between academic knowledge and entrepreneurial practice is indispensable for deep technology. In this regard, the institutional and financial capacities of Technology Transfer Offices (TTOs) operating within universities should be enhanced. Performance-based incentive systems should be implemented for activities such as patent generation, licensing, and spin-off creation, and participation of academics in entrepreneurial efforts should be facilitated. Furthermore, technoparks and TTOs should not remain confined to local connections; they should establish partnerships with European deep tech networks to enable knowledge and resource transfer (UNCTAD, 2025).

5.4 Experimental Environments Should Be Created Through Regulatory Sandboxes

Many deep technologies operate in domains that fall beyond the boundaries of current legal frameworks, encountering considerable regulatory uncertainty. In fields such as biotechnology, artificial intelligence, and quantum technologies, “regulatory sandbox” mechanisms should be established to enable venture testing processes, minimize legal risks, and facilitate coordination with public authorities. These structures would create mutual learning environments for both regulators and startups, preventing legal frameworks from unduly restricting innovation (NIF, 2025).

5.5 Strategies for Internationalization and Talent Attraction Should Be Developed

To enhance the global competitiveness of deep tech ventures in Türkiye, integration with international funding sources, knowledge networks, and talent pools is of critical importance. In this context, active participation should be ensured in platforms such as Hello Tomorrow, EIC Pathfinder, and the NATO Innovation Fund, and Turkish-origin ventures should be matched with these mechanisms. Moreover, bridges should be built with Turkish scientists and engineers living abroad, and repatriation programs should be developed to reintegrate diaspora talent into the domestic ecosystem (Hello Tomorrow Türkiye, 2023).

Conclusion

Despite its considerable potential, deep technology entrepreneurship in Türkiye continues to face numerous structural, financial, and institutional barriers. While the rapid commercialization and lower capital requirements of software- and service-based ventures attract the bulk of investment, deep tech ventures are often left outside the system due to their long-term R&D processes, high initial costs, and delayed revenue streams. This situation cannot be overcome through the efforts of individual entrepreneurs alone.

For deep technology ventures to succeed, patient and strategic investment resources are essential. These ventures, particularly at early stages, carry high levels of risk and therefore require a support approach that goes beyond the conventional venture capital mindset. Most of the time, they do not generate revenue within three to five years; yet, they work on technologies with the potential to create critical impact at both national and global levels. This means that success in deep tech demands not only knowledge, vision, and determination, but also long-term financial commitment.

At this point, the role of public support, strategic funds, and institutional investors becomes vital. Just as institutions like the EIF in Europe and Bpifrance in France have done, Türkiye must also establish a globally competitive fund structure dedicated exclusively to deep tech. Additionally, tools that facilitate market access, such as public procurement, regulatory sandboxes, and pre-purchase guarantees, can accelerate the return on investment.

Increasing the share of deep technology within Türkiye’s entrepreneurship ecosystem will not only strengthen technological sovereignty, but also promote sustainable development, high value-added production, and the creation of qualified employment. For this reason, investment in this domain is not only an investment in individual ventures, but also a reflection of a nation’s ambition for the future.

If Türkiye aims to become a leading country in deep technology, it must begin today to build a structure that inspires entrepreneurs, instills confidence in investors, and institutionalizes public-private-university collaboration. This structure must encompass not only financing, but also vision, infrastructure, and coherent, sustainable policy frameworks.

References

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