Public-private partnership as the basic mechanism of innovative development of economy

Tazhiyeva S.K., Tynabekova G.N.

Al-Farabi Kazakh National University, Kazakhstan, Almaty

gumi_9313@mail.ru

 

One of the priorities in the framework of the State program of forced industrial-innovative development of Kazakhstan for 2014-2019 is to provide effective interaction between the state and business in development of priority sectors of the economy. The creation of innovations, project implementation and production require concentration of a large number of resources in the enterprise that are often not under force to small businesses. Therefore, at present one of the conditions of economic development an effective innovation policy, which is based on the equal public-private partnership and aimed at uniting the efforts of government and private business on development of innovative activity [1].

Public-private partnership is one of the main economic-organizing mechanisms of enhancing innovation activity in the country, attracting long-term investments [2].

Public-private partnership is a recognized tool of interaction of business and government. It allows you to attract private investment to solve a wide range of socio-economic tasks on the basis of adequate and fair sharing of responsibility and benefits.

In public-private partnership greater role to the entrepreneur. He should be interested in the development and implementation of innovations at the enterprise. Innovative activity of domestic enterprises still remains at a low level. States, made necessary to adopt a system of measures to increase the motivation of private business, engaging him in the innovation process. It is necessary to take measures to stimulate the flow of private investment, creation of tax incentives for investors that Finance R & d and companies introducing domestic technology. Currently, the country has established certain tax benefits for research organizations. But today, it is important to stimulate not only offer development services, but also the demand from the private sector. Today there are practically no tax incentives to increase the demand for science — those privileges, as declared in the Tax code, not the work suffers from the lack of a mechanism of tax administration.

Available in the Tax code benefits involve compensation only for corporate tax in the amount of 7.5% R & d costs and do not actually work due to the lack of clear procedures of tax administration. In foreign countries created the effective practice of tax incentives. For example, the deduction of expenses on research and development from taxable income are in the US, 16 % in Canada in Singapore this indicator can reach 100 %.

In Kazakhstan according to the statistics of science funding the private sector does not exceed 10 %. Government-funded scientific and technical programs with great difficulties find application in practice. For comparison: in developed countries, over 60% of scientific research is funded by private companies.

In the sphere of innovations the most important area of public-private partnerships should be purposeful implementation of the measures for involvement in the innovation process academic universities and business in the formulation of priorities for public funding of basic and applied research.

Capacity-building in PPPs, as a rule, includes training and other measures that extend the capabilities of governments to implement effective and meaningful way is already developed and working botany program PPP. The PPP is a fairly new concept for Kazakhstan, the number of running projects is still insignificant. The main projects implemented in the field of construction of transport infrastructure no projects in the fields of health and education — the most developed in foreign countries applications of PPP.

For the realization of priorities of innovation development requires large-scale involvement of the real business in development of priority sectors. Illustrative is the experience of Poland, which is currently adopted in the implementation of investment projects in the electricity sector (renewable energy), and waste management. The state's role is to balance business interests with national priorities and short-term tactical priorities with long-term strategic prospects.

The development of innovative PPP projects is impossible without the involvement in the process of science. The development of science in the framework of the mechanisms of state and private partnership may be extended along the following directions:

            implementation of joint research and innovation projects, organization of

joint scientific publications and the participation in competitions for national and international grants;

            training for managers, the creation of centers for advanced studies, a joint test centers;

            enhanced linkages with business, participation in processes of commercialization of new ideas and technologies, introduction of new technologies into production.

The result to be achieved the transformation of the science sector in the effective component of the national innovation system of the country. And the main task of scientific-technical policy of the state should be ensuring the concentration of resources (including the resources of private investors) on priority directions of innovative development [3].

The transition of our country with raw materials to innovative way of development can help venture capital and public-private partnerships. The development of venture business in Kazakhstan, in our view, largely based on new models of public-private partnerships.

So, to attract investment in the "sowing" stage (seed) to perform a special seed-funds that, depending on sources of funding can be public, public-private or private. In Kazakhstan there are projects to research in knowledge-intensive industries on the basis of which is possible in the long term, the organization experienced, and then serial production parts and equipment in the space industry, who said at the budget financing.

However, these projects, for one reason or another, cannot be financed by the Republican budget, also they are funded at the expense of the sectoral departments. In our opinion, these projects can be successfully financed sectoral or regional public-private venture capital Fund, if any, would be organized.

In view of the availability of high risks, venture financing, usually is attractive only to certain categories of investors.

In market economies, which include Kazakhstan, the composition of potential sources of capital for the venture capital industry is the same as in developed countries, but the distribution densities of these sources in the total volume of investments in venture capital funds varies considerably. If in developed markets are major sources of capital funds are pension funds and insurance companies, in the countries with market economy the center of gravity is shifted towards the public sector and institutional investors. For PPP development and venture capital financing in Kazakhstan should:

       The provision of the legal framework of venture capital financing in Kazakhstan;

       Creation and promotion of sectoral and regional public-private venture capital funds;

       The legislation of Kazakhstan it is necessary to identify typical risks for investment projects and to define the risk matrix that will allow to balance risks and timely identification of responsible parties.

Statistics the probability of success of the development of the venture capital firms that received funding:

       On average, only 6 breakthrough high-tech business ideas turn into million business, achieve success and go for an IPO.

       Less than 20% of firms that received venture capital funding, become liquid.

       60% of high-tech firms that received venture capital financing, end their operation due to bankruptcy.

       30% of venture firms as a result come to merge with other companies or liquidation.

       10% of venture firms succeed and thereby compensate for the loss of 90% of the firms collapsed [4].

There are certain relationship between the processes of the development of innovation and venture business. On the one hand, the innovative activities there are conditions conducive to the development of venture business. On the other — a business venture as its development, has a stimulating effect on innovation. According to information of Agency on statistics of Kazakhstan, 2015 year on research and development work spent 69302,9 billion. Of them 40424657 thousand tenge (58.3 per cent) at the expense of the Republican budget, 25356647 thousand tenge (36,6%) — at the expense of own funds of enterprises, 1254664 thousand tenge (1,8%) is due to foreign investment, 1972508 thousand tenge (2,8%) – by other means.

According to the same source, in 2015 Kazakhstan implemented the innovative products worth 377196,7 million tenge, including "products of the newly introduced or underwent considerable technological changes" — by 76%, "the products subject to improvement" — 7%. In Kazakhstan venture financing was developed since 2003-2004 In 2003 established the national innovation Fund (now the National Agency for technological development NATD), with which there are 7 domestic venture capital funds. In the absence in Kazakhstan of the law of venture capital financing, the concept of "venture capital investment" is not clearly defined. At the same time, USÀ venture capital investment in high-tech (high-tech) or innovative companies, not listed on the stock exchange [5].

Kazakhstan should develop its own strategy to hold on the crest of scientific and technical progress, the basis of which should be a balanced state support of science-intensive, innovative industries and technologies. The measures of state support and promotion of private investment, including in the PPP will contribute to sustaining economic growth, reducing dependence of the economy on raw material sectors due to the active development of small and average business, increase of its gross domestic product to 50% by 2050. The use of the private sector in the implementation of PPP projects the most advanced technical solutions, innovative technologies will improve the development of socially-oriented sectors of the economy and production.

Sources:

1. The state program of forced industrial-innovative development of Kazakhstan for 2010-2014, dated March 19, 2010 ¹ 958. — Astana, 2010.

2. Eroshevich, E. Public-private partnership in scientific-technical sphere // Science and innovations. — M., 2009. — No. 12. — P. 51-55.

3. Zholdasbayev S. Innovative industrialization. Mode of access: nif.kz/1904? page=25.6

4. http://lsm.kz/innovatsii-v-kazahstane-nuzhno-vnedrit-cherez-venchurnoe-finansirovanie-i-gchp.html/karibaeva-aliya-2

5. www.stat.gov.kz