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Interaction between the state, business and science - an essential condition for the development of innovations in Kazakhstan

 Interaction between the state, business and science - an essential condition for the development of innovations in Kazakhstan - e-history.kz
Kazakhstan has some progress in the development and implementation of regulatory instruments in scientific innovation.

The main subjects of innovation are science, business and government. At the same time at different stages of their role in the innovation process is not static.

Kazakhstan has some progress in the development and implementation of regulatory instruments in scientific innovation. Patent laws were adopted, venture capital funds and technology parks were created and system of statistics of science and innovation close to the international standards was established.

Comparison of lists of regulation and real measures of national innovation policy shows that it covers many areas developed world practice recommendations in this area.

However, the majority of undertaken measures do not give feedbacks as to engage into private business innovation is very difficult. The most difficult thing here is to bring national business to realization of the necessity of enhancing the participation in innovation, implementation and support of research and development.

In general, despite the priority of innovation policy in Kazakhstan many issues remained unsolved. They are following:

  • Many important elements related to the practical implementation of innovations are absent in the innovation system, and those which exist are poorly integrated into a unified development strategy;
  • Direct budget support is poorly complemented by stimulus measures;
  • Chosen priorities are not accompanied by specific measures;
  • General measures such as tax regulation, competition and antitrust policy have small share;
  • Innovation policy does not yet have a systemic nature, it does not combine activities in the field of science and technology, education, industry and regional initiatives.
  • At the forum of «Innovative Kazakhstan-2020», President of Kazakhstan Nursultan Nazarbayev said that we need a long-term and holistic strategy of innovative development.

Such an approach is consistent with international experience, which shows that, although the market plays an important role in stimulating innovation activity, it cannot ensure the dynamic development of innovation. The increasing importance regulating role of the state, forming the one hand, long-term strategy for the development of innovation in the coherence between the concepts of social and economic development, and on the other hand, implementing concrete measures to support and stimulate innovation.

Influence of the state on innovative activity can be carried out in several ways:

  • State initiates offers of scientific and technical ideas and the formation of an innovative infrastructure, i.e. Creating innovative resources;
  • State develops special procedures, directed to improvement of the business innovation activity;
  • State forms all economic environment, favorable to innovation;
  • The state acts as an element of the structure of demand for innovations.

The first direction may be implemented by the state innovation policy, under which the problem should be solved training specialists, strengthening innovative capacity, establishing effective relationships between basic science and industry, the formation of innovation infrastructure.

The second direction involves the development of measures of a technical nature, aimed at stimulating innovation activity, such as the development of programs to support innovation in small firms, the provision of risk capital from public funds, the establishment of centers of innovation, providing incentives for innovators, etc.
Creation of economic conditions for business activities that stimulate innovative activity is the third direction and provides indirect control measures (tax breaks, accelerated depreciation, the regulation of certain markets, industries).

The state’s role in the structure of demand for innovation, as a fourth area, can be determined by the fact that it is a significant segment in the structure of aggregate demand, therefore, a strong demand for innovations can be brought to his side, including in the form of state order.

In order to improve the efficiency of public administration should be to change the approach to the formation of state programs in the field of innovation. It is necessary to create a portfolio of innovative projects and programs for which there is scientific and inventive world-class reserve, subject to priority development. The most promising projects should be combined into a national innovation program, which should be linked to the priorities of the state industrial, structural and investment policy. Such a program should include a component of a State program of forced industrial-innovative development of the country (SPFIID) and maintain a coordinated resource, dates and implementing a set of certain measures.

Use of scientific potential for the development of innovation requires a shift of focus on the final stage of the innovation cycle. Meanwhile, for the innovation policy in the country is characterized by the promotion of the development of science in the public sector and the higher education sector, which is mostly concentrated fundamental science. Industrial research and development as the object of innovation policies remain in the background. It is necessary to pay more attention to industrial innovation. State innovation policy should focus also on research and development in the private sector, where until a busy quarter of all human capacity in sphere of Innovation development.

Research and development directly in the workplace has particular importance in the development of such areas of innovation. However, it is weak area emerging in the country of innovation system. 11 industrial enterprises involved in the research and development.

An important aspect of strengthening the innovative orientation of science is to expand its financing, including by strengthening the contribution of the private sector. The experience of developed countries shows that it needs to direct financial support from the state supported by strong tax incentives and benefits for the private sector investment in this area. Thus, tax incentives for research, development work and the introduction of domestic technologies are required.

Stimulation of demand for scientific production has a great importance. Momentum for the deployment of research must come from large national companies, foreign investors, which, in turn, this should prompt the state, using indirect levers of economic regulation (taxes, preferences).

It is necessary to enhance the role of foreign investors in the development of science in Kazakhstan. In abroad, the share of foreign sources account for up to 20% of total spending. In Kazakhstan, the share of foreign investors is 1–2%, despite the fact that foreign investment has a sufficiently high share of the total investment in fixed assets, from 20 to 30% in recent years.

The interests of the development of science and innovation should contribute to the redistribution of natural resource rents received in the primary sector. This question has been raised for long time.

This year, the law on subsoil use, in accordance with which define the obligations of subsoil users to deduct 1% of the total annual income on research and development activities was amended. According to the Ministry of Industry and New Technologies of funding research and development of subsoil users will increase to $ 250 million.

It is also advisable to extend to the practice of the science of government meetings on import substitution, the results of which are signed contracts for the supply of Kazakh products to enterprises with foreign participation, implementing major investment projects. It is necessary to ensure that foreign investors signed similar agreements not only with industrial and construction companies, but also with scientific organizations. Perhaps it makes sense that the concluded contracts with foreign investors to provide their obligations to purchase services from the national scientific research institutes.

It is essential part is to follow the principles of the system, determined in the proportionality of innovation and production areas. The fact that despite of the importance of the scientific component of the innovation processes of the enterprise the enterprise is their main subject in the innovation policy.

In Kazakhstan there are very small innovative activities of small business in general, not to mention the fact that the number of small innovative enterprises is only a few dozen, there is even a special statistics. There are no large high-tech corporations.

Meanwhile, small and large business plays an important role in the innovation process in the market economy. An each of them has its own «niche».

The Program of innovation and promotion technological upgrading envisaged increasing the share of innovative enterprises to 10% by 2014, i.e. more than 2 times compared to the level of recent years. However, apart from the fact that until 2015 in Kazakhstan will be created at least 5 industry-forming joint ventures in high-tech and medium-tech sectors, and at least 15 SMEs focused on the supply of goods and services for industry forming projects, other specific measures are proposed. Therefore it is necessary along with it include measures to enhance the innovation activities of private businesses, especially small.

In the post-crisis development priority should be given to projects that a particular company may provide at least a small, partial reduction of its costs, improving product quality or provide access at least to the local, the local market with new products. The role of small business, the innovation potential of which is not used in the practice, plays significant role.

But small companies characterized by their ability to take risks, so they can better adapt to the changing situation on the market, to respond to its new needs. All this will allow small businesses to obtain concrete results. Although, it should have an appropriate support is in order to implement it.

Significant financial resources have been allocated to small and medium-sized businesses. Other incentives, such as tax holidays at least for those small businesses that are engaged in the production of specific products, for example, in the processing industries are necessary.

It can not only be export-oriented, but relatively simple and cheaper than imported products. Help can be provided for these enterprises in other forms such as rent, land, etc.