Ural Ö., Yıldız K., Demir Ö., Yüksek M., Usta İ.
AB Destekli Diğer Projeler, 2025 - 2029
Objectives and activities
Describe how the project is aligned with the objectives and activities as described in the Call document.
How does the project address the general objectives and themes and priorities of the call? What is the project’s
contribution to the overall Digital Europe Programme objectives?
The actions included in this call focus on the creation of a network of “European Digital Innovation Hubs” (EDIH),
aiming to cover all regions of the European Union and Associated Countries. One of the objectives is defined
as upgrading the selected entities to provide the complete set of services of an EDIH, including the necessary
infrastructure, in a specific geographical area, covering the needs of the local SMEs, small mid-caps and/or
public sector organisations with respect to their digital transformation. From this point of view, it is important to
note that Turkiye is not only an associated country but also an important trade partner for the EU and a
production base for the EU enterprises.
The emphasis on the manufacturing sector is related to its status as the carrier of the Turkish economy and the
expertise and capacity of the partnership. According to the World Bank, the share of manufacturing in the Turkish
economy corresponds to 22% of GPD. In the EU, SMEs, including those in the manufacturing sector, are the
backbone of Europe's economy. They account for over 50% of Europe’s GDP and provide two out of three jobs
in the private sector, highlighting the sector's critical role in economic stability and job creation (EU Industrial
Strategy, 2020). On the other hand, according to the SME strategy for a sustainable and digital Europe of the
EC, manufacturing SMEs are leading the charge in innovation, championing sustainable business models and
tackling environmental problems head-on. This sector is pivotal in Europe's shift to a sustainable and
technologically advanced economy, utilizing creative solutions to combat climate change and enhance resource
efficiency.
The foundational element of economic interactions between the EU and Türkiye is the Customs Union, which
was established in 1996. This pact permits the trade of industrial goods without any customs limitations between
the EU and Türkiye, highlighting the significance of the manufacturing industry. This integration promotes a
substantial exchange of manufactured goods, such as cars, machinery, and textiles, aiding in the economic
expansion and industrial advancement of both Türkiye and the EU.
Türkiye is the EU’s 7th biggest trade partner, representing 3.3% of the EU’s total trade in goods with the world
(imports and exports combined) in 2022. The EU is by far Türkiye’s largest merchandise import and export
partner. In 2022, 26% of Türkiye’s goods imports came from the EU and 41% of the country’s goods exports
went to the EU.
Total trade in goods between the EU and Türkiye in 2022 amounted to €198.1 billion (3.6% of the EU’s total
trade with the world). The EU’s imports from Türkiye were worth €98.6 billion and were led by textiles (€17.5
billion, 17.7%), closely followed by transport equipment (€17.3 billion), base metals and articles (€16.8 billion),
and machinery and appliances (€15.8 billion). These statistics highlight the critical importance of twin green and
digital transformation of the manufacturing sector in Türkiye since these strong economic ties often require
alignment of the policies and standards with those of the EU.
Based on the above, the primary focus of the project is to establish a European Digital Innovation Hub (EDIH)
in Türkiye that will play a pivotal role in advancing the digital and green transformation of SMEs and
small mid-caps in the manufacturing sector and the public institutions that closely work with the targeted SMEs
such as branches of the Ministry of Industry and Technology and the Ministry of Trade. The project encompasses
a comprehensive range of services and activities, including digital maturity assessment, pre-investment testing,
training sessions, consultancy/mentorship framework and workshops aimed at boosting the digital capabilities
of the target group with utilisation of latest technological offerings such as AI, big data applications, machine
learning, web 3.0, data storage, management and analysis tools, high-performing computing, as well as
developing qualified human capital, pathways to access funding opportunities and capability to receive incentive
boosts to become digitally mature, networking and B2B matching opportunities between all interested parties.
Securing funding is a pivotal aspect of the growth and development of the manufacturing sector, tackling
one of the primary obstacles encountered by SMEs and entrepreneurs in both areas. The European
Commission's initiatives, including the Investment Plan for Europe (also referred to as the Juncker Plan),
Digital Europe, Single Market Programme and Horizon Europe programs, are designed to enhance
financing accessibility for businesses throughout the EU and partner countries such as Türkiye. These
initiatives provide a mix of loans, guarantees, and equity financing, supporting investments in innovation,research and development, and the integration of new technologies. Moreover, the EU's commitment to aligning
regulations and standards, as illustrated by the Customs Union and the discussions aimed at its modernization,
seeks to establish a more unified and effective framework for trade and investment, which in turn directly supports
the manufacturing sector.
Another dimension that highlights the critical importance of the manufacturing sector in the relationship between
the EU and Türkiye is supported by a network of investments and technology exchanges that drive innovation
and economic expansion. European enterprises make direct investments in Türkiye, encouraged by EU policy
frameworks and agreements, to capitalize on Türkiye's advantageous location, skilled labour force, and vibrant
economy. Such investments play a key role in technology transfer and boosting the competitiveness of the
industry. The EU's encouragement of entrepreneurship and innovation in Türkiye, as detailed in several
European Commission (EC) strategy documents like the EU Industrial Strategy and the SME Strategy for a
Sustainable and Digital Europe, aims to foster a business-friendly ecosystem that supports the inception and
growth of businesses. These strategies underscore the importance of cultivating entrepreneurial skills and
equipping startups and SMEs with the resources and conditions needed for innovation and success.
Boosting productivity in the manufacturing industry through technological innovation and enhancing workforce
skills is a mutual goal that is vital for staying competitive on a global scale. The implementation of Industry 4.0
technologies, bolstered by EU financial support and cooperative initiatives, serves as a prime example of this
commitment, allowing companies to refine their manufacturing processes and enhance operational efficiency.
The European Commission's emphasis on digital transformation, as part of its Digital Single Market strategy,
together with investments in developing the skills of the workforce, highlights a dedication to workforce upskilling
and preparation for the future needs of the manufacturing industry. These approaches aim to ensure that both
the EU and Türkiye can utilize their manufacturing capabilities not only for economic gain but also as a vehicle
for building a deeper and more cohesive partnership centered around innovation, environmental sustainability,
and technological advancement.
Apart from economic considerations, the manufacturing sector contributes to the strategic and geopolitical
dynamics between the EU and Türkiye. Collaborations in areas like energy, automotive production, and defence
have implications beyond mere economics, influencing regional stability and security. The advancement of
infrastructure initiatives, construction of energy conduits, and formation of cooperative manufacturing ventures
highlight the profound strategic significance of the relationship between the EU and Türkiye.
In this context, MIDAS project is committed to address not only the digital transformation of the SMEs, but create
impact in every policy dimension that the EU put critical importance as explained above.
In summary, serving in line with the EU Green Deal priorities and the objectives of Digital Europe and
this specific call, MIDAS will;
- significantly improve the digital capacities of the SMEs and small mid-caps,
- create a hub for Turkish and European SMEs to develop collaborations,
- secure sustainable funding in times where markets face interrupted flow of capital, and
- improve the digital skills leaving no one behind
Targeting the manufacturing sector aligns with the call’s requirement for our EDIH to specialise in a specific area
and promise a strong spill-over impact in wider EU policy priorities towards Türkiye such as green and digital
transformation according to the objectives and vision of EU Green Deal. Thus, the digital transformation of the
manufacturing sector through the services and infrastructure offered by MIDAS is expected to contribute and
align with green transformation and EU Green Deal in following dimensions:
a) Efficiency and Reduced Emissions: Digital transformation in manufacturing often leads to increased
efficiency and reduced waste. Technologies like the Internet of Things (IoT), big data analytics, and
artificial intelligence can optimize production processes, reducing energy consumption and lowering
greenhouse gas emissions. This shift is in line with the goals of the EU Green Deal, which emphasizes
efficiency and sustainability in industrial processes.
b) Sustainable Supply Chains: The EU Green Deal emphasizes the importance of sustainable supply
chains. As Turkish manufacturers export significantly to the EU, digitally transforming their supply
chains to be more transparent, efficient, and sustainable can help comply with the increasing
environmental standards set by the EU. This will include better tracking of resource use, reduced
transportation emissions, and the use of sustainable materials.
c) Innovation and Green Technologies: The EU Green Deal encourages innovation in green
technologies, which is a crucial aspect of digital and green transformation in manufacturing. By investingin and adopting new technologies, Turkish manufacturers can not only improve their efficiency but also
develop new, sustainable products and services, aligning with the Green Deal’s objectives.
d) Access to the EU Market: Compliance with environmental standards, including those promoted by the
EU Green Deal, is often necessary for access to the European market. Turkish manufacturers, through
digital transformation, can ensure that their products meet these standards, thereby facilitating trade
and economic relations with EU countries.
e) Regulatory Compliance and Incentives: The EU Green Deal involves a range of regulations and
financial incentives designed to promote green practices. By digitally transforming, Turkish companies
can more easily comply with these regulations and potentially benefit from the incentives offered for
sustainable practices.
f) Energy Transition: Part of the digital transformation in manufacturing includes a shift to renewable
energy sources, which is a key aspect of the EU Green Deal. Using digital tools to manage and optimize
energy use, especially from renewable sources, aligns Turkish manufacturing with EU priorities.
Furthermore, the project actively contributes to the Digital Europe Programme's overarching goals by fostering
innovation ecosystems, connecting businesses with relevant stakeholders, and facilitating collaborations
between universities, research institutions, public institutions and private sector actors. MIDAS, through its
commitment to innovation, skills and capacity development, network building and collaboration framework,
reinforces the broader Digital Europe Programme objectives of enhancing digital capabilities, fostering
collaboration and ensuring the accessibility of digital benefits across diverse sectors and regions of the European
Union.