Amirbekuly Y., Professor; Omarov B., PhD students

University Narxoz, Kazakhstan

Analysis of possibilities of innovative entrepreneurship in the Republic of Kazakhstan

 

The dynamic development of Innovative Business - one of the main terms of Innovation Economy. This high-tech economy presupposes the existence of an efficient Innovation System and the establishment of institutions supporting innovative entrepreneurship.

In today's economy, innovation is not only manifest themselves as a powerful strategic tool, but also as the most stable and, in some sense, inexhaustible element of the productive forces.

Especially actualized economic and administrative problems of Innovative Business in the first decade of the century XXI. The need to systematize representations of what we call the innovation process, is further enhanced in the 2000 s. under the influence of the phenomenon, dubbed the new industrial and innovative economy and knowledge-based economy, resulting in a significant research activity in the field of innovation development in this period.

As part of the "Strategy" Kazakhstan-2050": a new policy established state started work to achieve the industrial-innovative development of the country. This is an Innovative Industrialization, instead of that industrialization, which was in all countries of the world at the beginning of the last century. Our industrialization must conform to the current way of development of the world economy. The solution of the problems facing the country require a significant increase in the role of science and industrial-innovative development of the country.

President of Kazakhstan N.Nazarbayev in his Address to the Nation emphasized that "2015 should be fully operational National Innovation System, and by 2020 - it should already yield results in the form of developments, patents, and ready technologies introduced in the country" [1].

This article focuses on the fact that the leading direction of the economic development strategy of Kazakhstan has to be a transition to industrialization based on current scientific and technological revolution. Analyzing the process of turning science into a direct productive force, it should focus on three areas: functional (the identification of Science function in the development of production), historical (the definition of phasing) and structural (structure of science, highlighting elements that act as a direct productive force).

«Innovation - the result of the activity of individuals and (or) legal entities, received practical implementation in the form of new or improved production facilities, technologies, goods, works and services, organizational solutions of technical, production, administrative and commercial nature, as well as other socially useful results with a view to ensuring ecological security in order to enhance economic efficiency» [2].

Innovation - is the process of achieving the goal, to improve the quality of life of society by state and market regulation, covering research, development and introduction of new economic entities of science-based ideas. The state of society, the political, economic, social, as a rule, determines, and perhaps requires an appropriate Innovation Policy, with all the consequences that its principles and approaches in general.

The situation of the world leaders in the share of expenditure on research and development is characterized by the following data as a percentage of GDP: 2.98 - Japan, 2.69 - US 2.48 - Germany, 2.15 - France, 1.87 - Great Britain 1 84 - Canada, 1.23 - India, 1.04 - Italy and China and Russia - by 1.00 percent. The number of employed 10,000 people in research and development is allocated for the above countries as follows: Japan - 51.0; US - 41.0; Russia - 34.8; Germany - 31.6; Canada - 29.9; France - 27, 2; United Kingdom - 26.7; Italy - 11.3; China and India, respectively - 5.5 and 1.6 people [3].

For Kazakhstan, according to statistics for 2015, these two characteristics of innovation activity totaled 0.23% of GDP and 10.1 people per 10 000 population, which is lower compared to 2012 for 2 people. The volume of innovative production in the country amounted to 82.5974 trillion tenge to 0.48% of GDP. If compared with 2014 - 1.19% and in 2013 - 0.69%, then there is a tendency reducing the volume of innovative products. Expenditure on technological innovation in 2015 amounted to 61,050.9 million tenge, or 0.36% of GDP (for comparison, in 2013 - 0.65%, 2014 - 0.71%).

The effectiveness of innovation or enterprise level of efficiency of Innovative Development is measured by various indicators: the Growth Competitiveness Index (GCI - Growth Competitiveness Index); share of high-tech products in merchandise exports of the country; the country's share in global exports of informatization equipment; labor productivity (GDP per person employed); indicator of inventive activity. 

Expenditure on research and development is one of the main indicators of innovation. Table 1 shows the performance of domestic spending on research and development in Kazakhstan in comparison with the world's leading scientific powers, as well as the EU and the OECD as a whole.

 

Table 1. Gross domestic expenditure on research and development in 2005-2015 y.

Страны

Internal costs a million dollars for the professors and teachers

The share of domestic expenditure on research and development in GDP in 2005,%

The share of domestic expenditure on research and development in GDP in 2015, %

The growth rate of the share of domestic expenditure on research and development for the period 2005-2015, %

Israel

8 794,4

3,52

4,28

21,6

Germany

83 974,8

2,40

2,78

15,8

France

47 953,5

2,16

2,21

2,31

Italy

24 752,6

1,02

1,27

24,5

Finland

7 555,0

3,96

3,96

24,9

Japan

148 719,2

3,02

3,33

10,3

USA

398 194,0

2,64

2,79

5,7

China

120 613,5

0,76

1,70

123,7

Russia

33 368,1

1,00

1,24

24

Turkey

8 681,2

0,47

0,85

80,9

Mexico

5 719,6

0,39

0,37

-5,1

Kazakhstan

259,9

0,08

0,24

200

EU

299 635

1,72

1,90

10,5

OECD

964 414,1

2,16

2,33

7,9

A source: OECD, Main Science and Technology Indicators database, December, 2015.

 

According to the data table shows that most large domestic expenditure on R&D have Israel (4.28% of GDP), Finland (3.96%), Japan (3.33%). However, if we consider Kazakhstan as compared with other countries, it is obvious that the share of research and development costs in GDP is very low and amounts to 0.24%. High rates of growth of domestic spending on research and development shows and China - 124%.

Along with the fact it should be noted in last year's positive trend in R & D spending growth in Kazakhstan in 2013 - 0.21%, in 2014 - 0,22%, in 2015 - 0.24% of GDP. The structural analysis of domestic spending on research and development by source of funding in all countries most of the accounts for business and government. Together, these sectors account for about 80-90% of all Financial Investments [4]. 

The most characteristic structural difference of Kazakhstan from developed countries is the predominance of the share of public funding.

In Kazakhstan, one can observe a tendency to reduce the share of public sector in carrying out R & D by 28.3% in 2015 relative to 2012, while there was a sharp increase in the share of the private non-profit sector from 1.1% in 2012 to 9.2% in 2015 year. Currently, in the Republic of Kazakhstan there are a number of problems related to staffing in the field of science. There is a long-term downward trend in the number of specialists engaged in scientific, technical and technological development. In terms of the WEF, "The availability of scientific and engineering personnel" Kazakhstan has worsened its position by 17 points in 2015 and holds 91 seats. This is due to the fact that this area is not attractive for long-term career growth due to the characteristics of the Kazakhstan labor market in the scientific field, which primarily manifested in the low wage level, has a negative impact not only on the number of frames of science, but also on their quality. And only by the end of 2015 it was recorded an increase in this indicator - 10870 people, engaged in research and development, which exceeds the same indicator of 2012 by 7.7% [5]. 

According to the number of researchers who have completed research and development, Kazakhstan is now inferior to many foreign countries. For example, according to the US figure of Kazakhstan exceeds 114 times, 58 times in Japan, Russia 44 times, 24 times in Germany.

In Kazakhstan there is a shortage of personnel capable of managing innovation processes and projects. Overall, despite some positive developments in the scientific field staff of the Science of Kazakhstan requires effective government support and incentives.  

As is known, the development of the modern world is based on the progress in science and technology and innovation. This process is characterized by large dynamics, speed changes spurred by the growing globalization of economic, political and socio-cultural life of various countries and regions - regardless of their level of development.

Globalization as a whole was the result of more open economic policies in a growing number of countries and a significant reduction in the cost of transport and communications. This has increased global competition. And reduce product life cycle, force companies to develop new products and services faster and to introduce them into circulation. Globalization makes knowledge more accessible, there is a rapid internationalization of research and development and innovation. This in turn affects the international cooperation in the sphere of research and development, which is becoming more open and intense.

Rapidly growing integration of different technologies, which leads to an increase in the number of multi-disciplinary knowledge and technology, also had a positive impact on both processes: the internationalization of R & D and innovation. The higher the demand for Interdisciplinary International research, the less the possibility of a separate company. Complexity makes innovation more expensive and more risky, stimulating companies to find partners with the necessary experience to get quick access to a variety of knowledge and technology. The reason for the internationalization of R & D is their low cost (for example, in developing countries).

In developed countries, developers of scientific, technological and innovation policies attach increasing importance to the areas of scientific and technological development and innovation, which are focused on the growth of public benefit or social welfare. This is primarily the industry focused on maintaining health - biotechnology, nanobiotechnology and pharmaceuticals. And also, it is the information and communication technology, the sphere of influence that covers almost the whole of social life, all kinds of production and services, and the spiritual and the material.

In the context of the ongoing transformation of the economy of Kazakhstan and formation of a competitive economic system undergoing radical transformation of its multiform housekeeper. The main way in improving the competitiveness of Kazakhstan acquire technological transformation - to overcome the technological degradation, development of technology modern fifth and perspective sixth technological structures. For example, in Russia and other countries are now tasked transition to innovative type of economic development, in Kazakhstan - to industrially-innovative, due to not yet fully developed industrial sector of the economy and focus on strategy to support high-tech manufacturing, the innovative sector and entrepreneurship. The structural transformation in the economy of Kazakhstan is to overcome hypertrophy on energy resources and export-oriented sector, advance the development of processing industries, increase the proportional and balanced economic development, ensuring on this basis of sustainable growth based on production modernization - namely, the rapid modernization.

On the basis of this central strategy as a promising model of development in 2015 it was approved by Presidential Decree on State program of Kazakhstan industrial-innovative development for 2015-2019. The program aims to ensure sustainable and balanced economic growth through diversification and increase its competitiveness.

According to the survey, among the priorities for Kazakhstan for the period up to 2020 included such industries - agriculture, mining and metallurgical complex, the energy sector, the oil and gas sector, mechanical engineering, information and communication technologies, chemicals and petrochemicals, which are among the twelve priority sectors strategy.

In 2016, according to the technology in a pilot mode target technology programs with appropriate funding sources will be developed together with business to implement them. Thus, in determining the priorities of innovation development of Kazakhstan's most advanced forecasting methods were used.

Many technologically advanced countries moved to world leadership for decades and have a fairly consistent and long history in the field of science and innovation.

The analysis shows that Kazakhstan has all chances to go their own way to innovate and become more successful in a number of world leaders of innovation. In order to ensure high rates of annual growth of innovative business indicators in market conditions, requires deliberate government policy, not only in innovation, science and technology, but also in socio-economic sphere.

 

The literature:

1. "Strategy" Kazakhstan-2050 "New Political Course of Established State" Message from the President of the Republic of Kazakhstan to people of Kazakhstan. Kazakhstanskaya Pravda, 14.12.2012.

2. Law of RK "On state support of industrial-innovative activity" on January 9, 2012. http:// www.online.zakon.kz

3. Amirbekuly Y. Innovative Business: a training manual. Almaty, Economics, 2015.

4. Official website of the Statistics Committee of the Ministry of National Economy Republic of Kazakhstan – http:// www.stat.kz

5. Kazakhstan innovation portal Innovus – http:// www.innovus.kz