Economical science

                                                                               

Master of management, Zhanabaeva A. S.

 

D. Serikbayev East Kazakhstan state technical university,

Republic of Kazakhstan

 

INNOVATION PROCESSES DEVELOPMENT IN AGRICULTURAL COMPLEX OF KAZAKHSTAN REPUBLIC

 

         It is highlighting the fact that agriculture is the main source for raw industry and light manufacturing. There is human interaction with nature, which in influenced by health, emotional and psychological conditions of the person.

         As it is known, agriculture appeared at the beginning of our civilization and has been developing very intensive during the last two centuries. For instance, there were worked in the agro industry about 80%  in the middle of XVIII century, 40% in the end of XIX and approximately 5% in 90-es (only 2,5% in the USA).

         Agricultural production depends on two factors: the plant – growing and the cattle  -breeding. Likewise, seasons cause the work rhythm of processing factories.

Big dependence from the climate of agriculture gives the necessity of creating insurance funds, which could give opportunities from different cataclysms.

Thus, the basic peculiarities are:

1.                     Intimate interaction: economical factors with biological.

2.                     Human interaction with biological factors in the industrial process.

3.                     Special role of nature in the process of agricultural industry is caused by economical laws.

4.                     Enormous diversity of the climate conditionals, quality and location, which relative to outlet.

5.                     The presence of natural components of the efficient force with social factors’ increasing productivity.

6.                      Considerable rupture between working period and getting of final product.

The agricultural industrial brunches aggregate is the Agro industrial Complex (AIC).

There are three fundamental directions:

1.                 Means production for agriculture and its industrial maintenance.

2.                 Agriculture.

3.                 Yield, storage, processing. Transportation and realizing of agriculture production.

In fact, Engineering and Economics maintenance from big machine – building firms and dealer enterprises spread in develop countries; so, due to this fact, separate firms can’t get the technical support because of economic unprofitableness. 

It is noticeable that AIC activity is regulated by government via price mechanism, taxation, credit policy, giving agriculture subsidies for encouragement of export.          Thus, production of competitive output is possible with using science – technology achievement. It allows leading unbroken renewal of agricultural production. While agro industrial bases on progress, innovation agrarian economy only is beginning. However innovation activity can’t be possible without new technologies.

         Therefore, there are obvious priorities:

1.                     Energy and resource saving technologies of production. Likewise, storage and processing of the agriculture products.

2.                     Innovations, which allow filling domestic market with cheap and quality food and remedy.

3.                     Innovations, which allow increasing effectiveness, reliability, repair ability of agricultural equipment.

4.                      Measures for improvement of ecological situation.

         Consequently, government should finance the creating of economy innovation. It could be possible by Venture Capital Company, alliances or joint venture.

         As concerns Kazakhstan, agricultural commodity producers are supported by KazAgroFinance from 2009. This company helps with maintenance of modern equipment, assimilation new processing technologies. It is noticeable that finance of invest projects is based on the joint action plan (stabilization of finance system and economy). Accordingly, KazAgroFinance announced about competitive selection of borrowers’ applications. So, there will be offered some measures.

         Herewith the state provides:

         - The choice of priorities for innovation;

         - Strategic planning, the list of goods and services which may be subject to public order;

         - The creation of self-organizing mechanisms in innovation sphere, encouraging participation for large capital in innovative projects; expertise and analysis of innovative projects.

         Necessary conditions for building an innovative economy - monitoring, development of innovation infrastructure, facilitate prompt delivery to producers of the results of scientific and technological activities, specific recommendations on various aspects of science of agricultural production. In the future, high hopes for information and advisory services of AIC.

         Already now, their importance has increased dramatically due to the downsizing of highly skilled professionals working directly in the agricultural enterprises, peasant (farm).

         Based on the above innovation policy in the AIC should be based on:

         - Innovative production forecasts, the main directions of development of scientific and technological achievements in the agro-industrial complexes in the short, medium and long term;

         - Selection and implementation of basic innovations that have a decisive influence on the increase of production efficiency and competitiveness;

         - Infrastructure development of the innovation process, including the information and consultative support commodity-producers, as well as training;

         - Maintenance and development of scientific and technical potential;

         - Promote the development of small innovative business;

         - Maintenance of formation sources of financing of innovation activities from the budget, funds of enterprises, commercial banks and insurance companies, foreign funds, extra-budgetary funds R & D financing;

         - Enhanced cooperation at the federal and international levels, to all stakeholders;

         - The creation of economic and legal environment of innovation policy, improvement of tax legislation.

         In plant innovation processes should be designed to: increase of plant products produced on the basis of improving soil fertility, increase crop yields and improve product quality; overcoming the degradation and destruction of the natural environment and the greening of production; reduction of energy consumption and decrease depending crop productivity on natural factors; more efficient use of irrigated and drained lands; savings in labor and material costs; maintenance and improvement of environmental ecology.

         Therefore innovation policy should be based on crop improvement breeding methods - the creation of new varieties of crops with high productive potential, the development of scientifically based farming systems and seed.

         Supporting competition, you can achieve the highest rates of economic development through intelligent introduction of the most effective and innovative processes that can reduce the costs of production, lower prices and, ultimately, lead to the welfare of citizens and society as a whole.

 

References

1. A survey of agricultural economics literature, Volume 4 – Agriculture in Economic Development, University of Minnesota Press, 2005.

2. http://www.narea.org/journal/issues.html

3. Economic Importance of Agriculture for Poverty Reduction, OECD publishing, 2010