Innovative activity in Kazakhstan: obstacles and ways of overcoming them.

ANEL S. SAKHARIYEVA

Kazakh National University named after al Farabi, Kazakhstan

 

In the modern world, when we are witnessing the replacement of technological waves, an innovative activity – one of the main reasons of “the welfare of nations”, the factor of their prosperity.

Today innovations are not only an essential condition of the economic development and security of the country, but it is a foundation for creation of knowledge economy, which can bring billion incomes. The process of innovations introduction becomes a religion of new times for every country, corporation or individual.

In Kazakhstan an innovative activity was and is still one of the main priorities of the national economy diversification, aimed at overcoming its raw-material sector prevalence. It is called for not only provision of the development of economically perspective sectors, but to solve social problems, including unemployment.

In 2003 the Strategy of industrial-innovative development of the Republic of Kazakhstan was elaborated and accepted as a main state development program and within its framework since that time new progressive innovative clusters, innovative infrastructure were created and are maturing from day to day.

The current period of innovative development of the country can be characterized as a transition from the scientific understanding of conceptual bases of innovative mechanisms and related defined problems to the development of own innovative system.

Summarizing the results of the innovative development of the country during last 20 years, the following key aspects can be emphasized:

1. A change of universities’ role, which are transforming into real integrators of education, science and business. They are becoming centers of regional innovative clusters, which dispose necessary conditions for all phases of innovations life cycle.

2. Step-by-step work on scientific manpower provision for implementing innovations.

3. Improvement of legal, administrative and economic state support of innovations development, aimed at activation of all elements of the national innovative system.

4.   Development of sciences, which were defined as key directions on the bases of world tendencies and resource advantages of the country.

5. Continuation of elaboration of new mechanisms of innovations financing [1].

In general, country’s macroeconomic tendencies demonstrate positive shifts due to improvements of all elements of the national innovative system, mobilization and development of the scientific potential. At the same time, according to the conclusions of the World Bank, currently there is no significant progress in increasing of innovative system effectiveness. It is related to a set of institutional and economic problems, such as loss of contact between researches and production necessities, absence of mechanisms of R&D results commercialization, deficit of venture financing, etc.

According to the investigations of foreign experts, the situation in Kazakhstan can be characterized by an absence of coordinating system of joint financing and collaboration between government and private sector. There are number of other systemic barriers for innovative development in the country. Among them are the following:

-            poor physical infrastructure;           

-            lack of innovation culture;

-            high degree of bureaucracy;            

-            small domestic market;

-            low level of competition, high level of monopolization;

-            weak connection and coordination between government, business, science and education;

-            financial gap between R&D and commercialization stage, due to high cost of capital, high risks and limited sources of funding [2].

Resting upon the leading foreign experience, by defining the factors and reasons negatively influencing on innovative activity, there is a possibility to elaborate further steps of innovative development of the country. Obviously, vast majority of obstacles are related to institutional problems. Thus they can be overcome by conducting a consistent government innovative policy.

In the conditions of global competition the education system is considered as a departing point of social-economic progress. In regard to this manpower policy has to become a main priority of innovative strategy of Kazakhstan and has to include the following components: 

1.   Modernization of study process in the system of higher and postgraduate education in order to orientation of graduates to obtain new competencies, allowing create and commercialize their own ideas.

2.   Foundation of business schools and programs on innovative entrepreneurship and creation of highly technological enterprises.

3.   Use of “Bolashak” program graduates intellectual potential for setting up science intensive firms. This will provide a transfer of new knowledge obtained abroad in the economy of the country.

4.   Activation of international collaboration of universities with the leading research centers of the world through conducting joint R&D, organization of mirror laboratories, inviting scientific and managerial experts.

5.   Widening of availability and increasing quality of vocational technical education.

For creation of consistent and effective national innovative system in Kazakhstan it is necessary to realize the following organizational mechanisms:

1) In common with the Office of scientific-technical policy by the President of the United States, to create an independent body, which activity will be devoted to a promotion of industrial and regional coordination of researches by defining their priority directions and excluding doubling.

2) In common with the British experience to establish a number of industrial work groups, as a mechanism of monitoring and government consultation with professional society. On the initial stage the task of the industrial work groups is to determine the most perspective foreign technologies, subject to transfer to Kazakhstan for setting up own innovative production.

3)  Completing transformation of leading universities into research and innovative centers. It implies opening of high technologies zones, which have to become engines of economic modernization of regions. Their infrastructure has to include research and project institutes, basing on the Universities’ open laboratories, business incubators, venture funds, social-entrepreneurship corporations, closely interacting with development institutes and industries. In order to attract investments, the high technologies zones have to be granted the status of free economic zones.

4) To increase the effectiveness of researches in the sphere of fundamental science it is necessary to move from management of cost to management of results; in the sphere of applied science and creation of innovative infrastructure it is necessary to provide an introduction of state-private partnership.   Here the Finnish experience is the most appropriate. The Finnish model of innovative development is based on trilateral collaboration: Universities, state enterprises and private companies, which unite their research resources.

For providing favorable conditions of the national innovative system development it is necessary to form a systemic legislation, regulating all stages of innovative activity and government support, including intellectual property rights protection. First of all, requires provision of a maximum approximation of Kazakhstan existing laws to the international standards. Also regulatory mechanisms have to stipulate the following aspects [3]:

1.       Conditions of creation of innovative infrastructure establishments for all stages of innovative cycle.

2.       Improvement of legislation in the sphere of intellectual property rights protection. Currently the most topical issues here are: 

·     Assessment of intellectual property value and conditions of its involvement into business activity;

·     Participation of authors in incomes or in equity capital;

·     Defining the share of the intellectual property in the charter capital;

·     Licensing abroad.

3.       Moral and material accountability of participants of innovative activity for its results.

4.       Consistent assessment of innovative activity on a national, regional, industry levels using a system of target indicators by the example of the European Innovative Board. This instrument will allow organizing a system of innovative processes management, oriented on expected results.

Taking into account that the innovative market is very risky it is necessary to adopt the following indirect economic methods of stimulation of innovative activity:

1)       tax deductions and preferences;

2)       government co-financing of start-ups;

3)       stimulation of venture funds;

4)       further development of the national stock market and financial tools;

5)       stimulation of license trade of intellectual property.

        From another side the government has to develop and maintain competitive environment to stimulate innovations.

Realization of the suggested institutional and economic measures will lead to forming of effective national innovative system, in which all parts of innovative processes will be interconnected, coordinated and mutually supported.  

 

REFERENCES

1.     Mutanov G. M. Innovation: Creation and Development. – Almaty: Kazak Universitety, 2012. – 224 p.

2.     Burnston D., Chadotsang T., Dong K. and others. Stimulation of Industrial-Innovative Development in Kazakhstan. – Columbia University, 2011. – 152 p.

3.     Innovation Performance Review of Kazakhstan. – Geneva: United Nations Publications, 2012. – 155 p.