УДК 338.24

Abdildinova M.N., Rayeva M.K.,

ROLE OF INNOVATION IN DEVELOPMENT OF KAZAKHSTAN’S ECONOMY AND FOREIGN EXPERIENCE IN INNOVATIONS DEVELOPMENT

Today Kazakhstan stands on the threshold of a new stage of social and economic modernization and political democratization.

Only if there are modern competitiveness and open market economy, not confined by the primary commodities sector, based on respect and protection of private property and contractual relations, initiative and enterprise of all members of society, it is possible to improve the country’s economy to the world standard level.

To achieve the goals set before the government and people it is essential to give consideration to innovation development of regional economy and Kazakhstan as a whole.

In the world of economic literature, the term “innovation” is interpreted as the transformation of the potential of scientific and technical progress in real progress embodied in new products and technologies. Innovation is a public economic process which, through the practical use of ideas and inventions, leads to creation of the best products and technologies with opportunity to get profit and additional income. The nature of notion “innovation” is that it is something better than existed before, something more effective which has only positive result. However innovation is also understood as a result of creative activity aimed at designing, creation and distribution of new kinds of products, technologies, organizational forms and etc.

In accordance with international standards innovation is defined as the eventual result of innovation activities embodied in the form of a new or improved product adopted in the market, new or improved technological process used in practice.

The State Statistics Committee (SSC) labels as innovation products those which are:

- produced serially for the first time in the country;

- subjected to quality improvement;

- based on domestic patents and inventions;

Strategy of Industrial and Innovation Development of Kazakhstan for 2003-2015 also considers innovative development. Strategy of Industrial and Innovation Development of Kazakhstan aims to conduct research and innovation policy to foster entrepreneurship in the organization of competitive and exported industries that provides renewal of technics, technologies, designing and commissioning of technics which is able to increase productivity of labor, quality of products, automate the production process as well as create new high-tech branches of industry.

The main prerequisites for strategy realization are:

- Firstly, ensure favorable institutional conditions;

- Secondly, identify and shape businesses’ innovative potential [1].

At present the government creates all the necessary conditions as the special structures like Kazakhstan Investment Fund, the Export Credit Insurance Corporation and National Innovation Fund were established. Institutional tools, to encourage investment activities in manufacturing and agriculture, were introduced.

Any state, pursuing the goal of foundation of modern society’s material basis faces problem of foreign technology’s use.

Therefore, there are countries–recipients in the world, which are divided into three groups:

- Unable to master and effectively use modern technology;

- Able to accept modern imported technology, properly use it to reach the world quality of products without further development;

- Able not only use advanced technology, but also to refine it so that their product surpasses primary source for quality, price and productivity.

The experience of successful countries in the innovative development sphere - Finland, Israel, South Korea - proves that the government should implement the function of the main ideologist of its manpower’s personnel training.

In developed countries the dynamic development of innovation - one of the main conditions of the innovation economy. According to the UN, the top ten innovative developed countries includes Japan, South Korea, Spain, UK, U.S., Sweden, the Netherlands, Canada, Australia, Singapore. It is innovation in the modern economy that provides efficiency and brings big profits in return. This is evidenced by the levels of development of countries such as the US., Japan and Western Europe. These countries have, in the words of Daniel Bell, occupied the top level of “technology ladder” [2].

In Kazakhstan the innovation economy is in the phase of formation. From 2003 National Statistics has been monitoring a more detailed analysis of this process.

In Kazakhstan quite a number of products, which were produced in the country for the first time, are massive, serial and so innovative.

In the period from 2003 to 2010 volume of innovative products of industry enterprises increased to 142.2 billion tenge. The maximum performance was achieved in 2006. In 2008-2009 owing to the impact of the global crisis innovation activity has decreased. The country managed to increase significantly the volume of production of the products in 2010. The largest volumes of innovative products workload were achieved in the manufacturing industry, mainly in the metallurgy, as well as in food processing, chemical industry, non-metal products, metal ore mining, production of electrical equipment, drinks. In industry, this performance is twice exceeds the nationwide level.

Bar chart-1. Level of innovative activity of the Kazakhstan enterprises,%

For comparison: the share of innovative companies in the United States is about 50%, Turkey - 33, Hungary - 47, Estonia - 36 and -9.1% in Russia [4].

In general, the innovative development of Kazakhstan is underdeveloped and has low activity. There are many factors constraining the dynamics of the innovation process.

Factors that hinder active innovative development of the country include: lack of business incubators, technology transfer centers, science parks, i.e. this arises the need of shaping and development of innovation infrastructure. The innovation infrastructure is in constant evolution, from simple forms of innovation units to more complicated ways of restructuring. Competitive environment in the global market, low level of branch management, as well as the limited time frame of commercialization and unequal volumes and conditions of realization have led to situation when the country’s venture capital funds cannot invest innovative technology. In addition to the above the organizational system ought to work clearly. The organizational methods of innovation policy should include the establishment of an accurate organizational innovation-driven system, in which each element will be endowed with specific functions, internal and external connections, and will carry out its activities in accordance with common goals and objective of the whole system.

Comprehensive scientific organizations, including economic, marketing, information, commercial units, must be founded. At the same time thoroughness of the innovation process organization is very essential: from planning fundamental and applied research and development of the most priority areas for innovation sphere (with regard of demand for scientific production) to the final phase of innovation development and its adoption in the production process.

Another factor which is hampering the modernization of the national economy and the dynamics of the innovation process is the low level of funding in research and development, science and technology.

At the conference “Build strong Kazakhstan together” on July 4, 2011 President N. Nazarbayev noted that the state budget increased investment in research and development. By 2015 expenditure will account for 1% of GDP. This will be more than 2 billion U.S. dollars. And 60 % of these funds will be directed to research and development work what has never been done before [5].

World experience shows that without the help of the state, the development of innovations is a complex process. Implementation of the U.S. scientific and technological policy bases on the well-developed institutional structure. Special feature of American structure of science and technology management is the close interaction between the state and private business. Proportion of the mixed organizations that are financed by the state and private sources is very significant.

Among them - the Council of Scientific and Industrial Research, the National Academy of Sciences and the American Association for the Advancement of Science.

Fundamentals of the modern concept of science and technology development in Japan were established by the Japanese government in the early postwar years. Exactly in this period the long-term forecasts of the national economy’s development were made and priority sectors and R&D spheres were determined.

At the top of the hierarchical system of public administration of scientific and technical progress in Japan is the Science Council, headed by the Prime Minister. Its members are ministries and representatives of the largest private industrial corporations. The Science Council formulates strategic line of scientific and technical development of the country and determines size of R&D expenditures from the state budget.

In leading European countries (Germany, UK, France) national public authorities play an important role in shaping national scientific and technical potential, supporting corporations which are able to raise the competitiveness of their products and national economy. Despite the variety of administrative structures, the differences in principles of macroeconomic politics, tactical goals and so on, the Western European countries have much in common. State Scientific concept of these countries is based on encouraging “national champions” - few large corporations that can compete with the leading firms of the USA and Japan. They get the vast majority of public funds for industrial research and development.

Sweden and Finland spent on science 4th % of GDP. Germany and France raise research spending to 3.5. % In 2010, world business leaders have invested in research and development more than 500 billion dollars.

World renowned economists predicted that XXI century will be the century of nano- and biotechnology, microelectronics, semiconductor and energy technologies. Who will be able to master these products will be competitive in the next decade.

Head of State N.A. Nazarbayev has defined innovation as further priority for the country’s development. In a new message to the people of Kazakhstan “Strategy “Kazakhstan-2050”: a new policy of the established state”, he defined the goal for 2050, to create a welfare society based on a strong state, economic development and opportunities of universal labor. A strong state is particularly important to ensure the conditions for accelerated economic growth [6].

It is very significant for Kazakhstan to develop in the short term competitive innovation environment, which on the one hand generates innovative solutions, on the other - instantly finds their application in practice thereby making a profit.

References

1. Strategy of Industrial and Innovation Development of Kazakhstan for 2003-2015

2. D. Bell The future post-industrial society. Experience in social forecasting. — М.: Academia, 1999.

3. R.Alshanov Kazakhstan's economy in 20 years: innovation and diversification // Kazakhstan Pravda, 18 november 2011

4. Тоlegen Е.Т. Study of Innovation Development of Kazakhstan. Аstana - 2011 //www.economy.kz/

5. «Build strong Kazakhstan together», President's speech N.A.Nazarbayev at the Forum July 4th, 2011 http://www.zakon.kz/top_law_news/vystuplenie-prezidenta-respubliki.

6. Message from the President of the Republic of Kazakhstan to the people of Kazakhstan «Strategy "Kazakhstan-2050": a new policy established state» // http://www.akorda.kz/ru/