Context of research policy
Based on a detailed analysis of the global and domestic trends of science and technology development, as well as the results of positioning the competitiveness of Kazakhstan in comparison with other countries, there is set of goals and objectives of scientific and technological development of Kazakhstan till 2020. A list of products and services that are needed for Kazakhstan to achieve the desired option of development by 2020 were defined.
The introduction of technological forecasting and planning in Kazakhstan primarily is aimed at:
Research policy: objectives and priorities
The priorities for Kazakhstan for the period of up to 2020 were identified to support agricultural sector, mining and metallurgical sector, the energy sector, the sector of oil and gas, engineering, information and communication technologies, chemicals and petrochemicals.
Currently, Kazakhstan is in the period of transition from resource-based economy to innovative development and thus the country is not able to develop immediately all areas of scientific and technological development, because of lack of development of science and innovation areas within the country. National Innovation Policy is aimed at achieving the following objectives:
In Kazakhstan, the synthesis of science and industry, the implementation of research achievements to the business environment is also a major area of innovative development. To create foundations of innovative development legislative and institutional measures have been taken in the first place. Laws allowing for the development of special economic zones and reduction of administrative barriers for business, laws on state support of industrial innovation, energy conservation and efficiency have been developed and adopted.
A whole package of measures to support innovation has been adopted. For example, in the Law “On State Support of Industrial Innovation”5 the basis for the tax incentives, whereby enterprises can reduce the tax base by 50% of the cost spent on R&D. Subsoil users will allocate at least 1% of the total annual income on their own R&D. These measures will help involve and engage business into innovative activities. Certain tax benefits will be received by developing venture capital industry. Companies implementing investment strategic projects as well as producers of high-tech products will be exempt from taxes for 7 years (Energy Focus, 2015).
Highest Science and Technology Commission (hereinafter - HSTC) approved the new priorities of Kazakhstan's research as the following:
These priorities are focused on scientific and technological development of production and human health, and necessarily imply the transfer of research results into innovations.
There are 1527 projects completed in 2014 by governmental grant funding and 45 scientific and technical programs for program-targeted funding. The 927 research projects out of 1527 were devoted to fundamental research and 600 projects to applied research.
According to the results of 2014, 408 projects have received 510 protective documents (patents and pre-patents), of which for the priority “Intellectual potential of the country” - 54; “Sustainable use of natural resources, raw materials processing and production” - 167; “Information and communication technologies” - 18; “Life sciences” - 213; “Energy and Engineering” -58.
A competition among scientific and technological programs (hereinafter - STP) in the framework of program-oriented funding for the 2015-2017 has been conducted for the first time in 2014. HSTC has selected 107 scientific and technical programs for 2015-2017, which were distributed among governmental bodies as the following:
Research organizations, universities and individuals submitted 5749 projects in five priorities of the scientific development in 2014 according to the results of the competition for 2015-2017 grant funding of research. The 865 projects out of 5749 were rejected due to non-compliance to the requirements of the tender documentation. There were 1781 projects or 36% approved for funding out of the 4884 applications, which were admitted for expertise.
Analysis of the 2115 projects implemented in 2011-2014 shows that 52% of the projects are in the field of basic research in natural sciences, as well as basic and applied research in the field of social sciences and humanities. At the same time, 48% of applied research accounts for other priorities, including energy - 9%, rational use of natural resources, processing of raw materials and products - 12%, information and telecommunication technologies - 9%, life sciences – 18%6.
Tools of financial support especially for innovations were expanded, new tax breaks and incentives for the development of small and medium business in the sphere of high technologies were introduced. The role of special economic zones, which are one of the tools to attract investments, were strengthened. On May 20, 2015, President Nursultan Nazarbayev has identified 100 Concrete Steps7 set out by to implement the five institutional reforms. “One hundred concrete steps are a response to global and local challenges and, at the same time, it is a plan for the nation to join the top 30 most-developed countries in the new historical conditions. One hundred concrete steps will give Kazakhstan a margin of safety that will help the country through a difficult period, implement the Kazakhstan 2050 Strategy and strengthen Kazakh statehood. The plan lays out radical changes in society and the state, the main goal of which is treatment of systemic diseases, not just smoothing their exterior symptoms”.
Five institutional reforms include:
Step 63 of “The 100 Steps” foresees the development of two innovative clusters to accelerate the creation of a knowledge-based economy. Scientific centres and laboratories will be established at the Astana business campus of the Nazarbayev University to conduct joint scientific and research projects, their development, testing and commercialization. They will be encouraged to cooperate with local and foreign high-tech companies. Solving problems on a transfer of advanced technology and commercialization of research results will be given to cluster "Park of innovative technologies". The "Park of innovative Technologies" is a Smart City of high-tech industries. Activities of the Park of innovative technologies are aimed at the development of high technologies in the following sectors:
The principal activities of the participants of the Park of Innovative Technologies will be conducting research, professional training of staff on higher education programs, production of goods and services in the above mentioned areas. There are special tax and customs regimes in the park, stipulated by the current legislation.
Step 64 of “The 100 Steps” foresees the development of the law “On commercialization of the results of research and (or) science and technological activities”, which defines the process of financing innovation implementation in industry. The focus of scholarly grant and program structure will be reformed to reflect the needs of the State Program of Accelerated Industrial and Innovative Development (Nazarbayev, 2015).
The main purpose of the adoption of the Law is to increase the efficiency and effectiveness of the scientific sphere, the level of innovation and to achieve the development of high-tech industries in the priority areas of the economy of Kazakhstan. Achieving this is made possible through the promotion of commercial use of the results of scientific and (or) scientific and technical activities, to increase the share in the implementation and financing by subjects of private enterprise of research, development and implementation works8.
Policymaking and coordination
Main policymaker in the field of R&D in Kazakhstan is High Scientific Technology Committee (HSTC) headed by Prime Minister of Kazakhstan, which includes all ministries of Kazakhstan. The Ministry of Education and Science is a Secretary to the Committee.
The Ministry of Education and Science developed “Law on Science”9, which was agreed with all relevant ministries and HSTC, and only after approval of the Parliament (Majilis) is sent to the President. MES coordinates this process. According to the Law, MES will train personnel in occupations demanded by enterprises operating in priority sectors of the economy based on the state educational order. The Ministry of Foreign Affairs coordinates special agreements, such as the Enhanced Partnership and Cooperation Agreement between the EU and Kazakhstan.
National Research Councils in priority areas are being created in Kazakhstan. They are formed from a number of Kazakh and foreign scientists, and are crucial in making final decisions on the implementation of specific research projects and programmes. Decisions of the National Research Council will be binding for execution by the authorized bodies - the Ministry of Education and Science, other ministries, coordinating research: health, agriculture, etc..
Thus, the role of the scientific community in decision-making, is not just getting stronger, it becomes leading. The role of the HSTC, as a strategic authority, sets the national priorities for science in accordance with the economic priorities of the country and forms proposals for funding of scientific and technical activities of the state budget becomes stronger (Omarkhanov, 2011).
The Government of the Republic of Kazakhstan created the National Centre for State Scientific and Technical Expertise (NCSSTE), in order to ensure unity of administration, independence, transparency and publicity of expertise of scientific, technical and innovative projects and programmes. The Centre is funded from the state budget. The competence of NCSSTE includes the following:
NCSSTE is entitled to:
JSC "National Agency for Technological Development" (NATD) was established to assist in the coordination of innovative development processes and the provision of state support. NATD is a part of the JSC "Baiterek National Management Holding". The Holding was established in accordance with the Decree of the President of the Republic of Kazakhstan dated 22 May 2023 with a view to facilitate the development and diversification of the economy, attracting investments, development of clusters and improving corporate governance. The authorized capital stock of the Holding Company comprises of 10 developmental institutions, including NATD. Thus, NATD became closer to the commercialization stage and collaboration with business organizations (NATD, 2015)10.
The functions of the Agency includes: operational activities to increase the innovative systems, development of information-analytical support, carrying out works on technology foresight and planning; coordination of technology programmes, monitoring results of implemented projects; creation of data bank on innovation projects and the implementation of the commercialisation of services; the management of innovation infrastructure; cooperation with international organisations.
JSC "Damu, Entrepreneurship Development Fund"11 is a National Institute of Development, the operator for the asset management of the state. "Damu" was established based on the Decree of the Government of the Republic of Kazakhstan of 26.04.2023 № 665 "On the establishment of small business development fund". The mission of the Fund is to promote quality development of SMEs in Kazakhstan through comprehensive support, including a wide range of financial instruments and competencies development programs.
As part of the strategic lines of Damu Fund for financial and non-financial support for SMEs, it is expected to ensure positive dynamics to increase the amount of financial support to SMEs, expanding areas of cooperation and mechanisms for financing/co-financing of SMEs in collaboration with private financial institutions; to attract additional funding on domestic and foreign markets to increase volumes of SME financing, consulting services infrastructure development for entrepreneurs, training of entrepreneurs and improving competencies, as well as introduction of a unified information platform for SMEs and the development of remote consulting.
"Damu" Fund is represented in all regions of Kazakhstan. Regional Network constitutes of 16 branches in all regional centers, as well as in the cities of Astana and Almaty. In addition, as part of training and consulting programs, "Damu" Fund provides coverage of audiences in all 209 cities and regions of Kazakhstan (DAMU, 2015).
National research programmes
New State Programme for Development of Education and Science in the Republic of Kazakhstan for 2016-2019 was accepted on March 1, 2016, by the Decree of the President of Kazakhstan. Ministry of Education and Science, Ministry of Agriculture, Ministry of Health and Social Development, Ministry for Investments and Development, Ministry of Finance of the Republic of Kazakhstan, Ministry of Culture and Sports, Ministry of National Economy, Ministry of Internal Affairs, governments of Astana and Almaty regions are responsible for the implementation of the Programme in accordance to their competences.
The program aims to increase the competitiveness of education and science, and development of human capital for sustainable economic growth. According to the Programme, the proportion of design and experimental activities to the total amount of financing of research and development activities in 2017 will amount to 21.2%, and to 22.3% in 2019. The proportion of projects, which are subject to commercialization to the total number of applied research projects in 2017, will be equal to 17.5%, and to 20% in 201912.
The Law contains the mechanisms for financing the implementation of innovations into production in order to promote the commercial use of the results of scientific and technical activities, as well as increasing the share of funding by private research enterprises for development and implementation works. New approaches for grant and program-oriented funding of research programs and commercialization of research results through co-funding by businesses are planned to be introduced. 90% of research projects administered by the MES by 2019 will be implemented only on the basis of co-funding.
The World Bank project “Promoting productive innovation”, which will open calls for proposals to support the development and commercialization of start-ups with the participation of business representatives of Kazakhstan and JSC “Science Fund”, is planned to be implemented. Consolidation of technology commercialization cycle will be provided to facilitate the development of start-up companies through the provision of grants for research groups, creation of consortia with industrial sector and social innovation, formation of venture capital funds, development of brokerage activities, creation of offices abroad and increasing the technological and capacity-building aspects of technology transfer offices13.
There will be mandatory requirements to receive patents during the implementation of research projects in order to improve the effectiveness of implemented research projects. Technology commercialization offices in 11 higher educational institutions will be created to provide skills training to meet the needs of enterprises, which operate in priority areas, according to the State Programme for Industrial-Innovative Development of Kazakhstan (hereinafter – SPIID).
In the framework of the program, the work for strengthening the capacity and scientific status of Kazakhstan will be conducted. In particular, the introduction of normative legal basis of university activities; changes in the regulatory legal acts in education and science sector for improving the targeted training of PhD students for industrial research organizations; introduction of mechanisms for the use of the scientific potential and material and technical base of scientific research institutes and research centers to improve the quality of doctoral students and undergraduates in leading universities of the country. Technology implementation departments in business enterprises will be created. The productivity of a scientist will be assessed by Hirsch index (h-index), based on the number of publications and citations of these publications.
Two innovation clusters: “Astana Business Campus” at Nazarbayev University and “Innovative Technologies Park” in Almaty will be created to carry out joint research projects and development work, as well as their further commercialization, as a basis for the formation of a knowledge-based economy. For development of innovation, transfer of advanced technologies and implementation of specific R&D projects, leading research centers and universities of Kazakhstan and foreign countries will be involved in the work of the innovation cluster “Innovative Technologies Park”.
Research centers and laboratories will be located at “Astana Business Campus”, Nazarbayev University in order to combine foreign and Kazakh companies, high-tech small and medium enterprises, venture capital funds, scientists, businesspersons, financiers and students to generate innovation and improve the competitiveness of Kazakhstan's business.
During the implementation of the “Promoting productive innovation” project of the World Bank an office of technology commercialization and innovation Observatory will be created. Modernization of research and innovation structures of research institutes and universities, international accreditation of academic laboratories with GLP standards will be carried out.
The following measures will be applied to improve the management and monitoring of the development of science:
The project “Humanitarian Platform “Mangilik El” (Eternal Land) will be realized as part of the introduction of new mechanisms for research in the social and humanitarian sphere. The budget of the program for 2016-2019 will be specified after the approval of the republican and local budgets for the relevant financial years in accordance with the legislation of the Republic of Kazakhstan. Activities, implemented by the local executive bodies, will be implemented within the planned funds in local budgets for the planning period14.
The main paper of Kazakhstan, which determines the S&T indicators is the Order of the Government of the Republic of Kazakhstan # 1291 adapted on the 30th November 2010 is “On approval of the cross-sectoral plan of scientific and technological development of the country until 2020”15.
Innovative Development of Kazakhstan for 2010-201416 elaborated in accordance with the key areas of the Strategic Plan of Development of Kazakhstan until 2020, which is the second stage of the Kazakhstan Development Strategy up to 2030. The Programme is aimed at ensuring the sustainable and balanced economic growth through diversification and an increased competitiveness. In the period up to 2015, the main priority of the rapid industrialization was the implementation of major investment projects in the traditional export oriented sectors, with animation of new business opportunities for small and medium-sized businesses through the purposeful development of local content, the subsequent redistribution and recycling. Systematic measures of the economic policy will focus on the formation of a favorable macro environment and an investment climate, but also on measures to improve productivity and competitiveness of the national economy.
The State Program on Industrial-Innovative Development of Kazakhstan for 2015-2019 (hereinafter - SPIID)17, which was adopted in 2015, is designed in accordance with the long-term priorities of the Strategy "Kazakhstan-2050" for the implementation of key direction "Accelerating economic diversification" of the Strategic plan for development of the Republic of Kazakhstan until 2020. SPIID is a logical continuation of the State program on forced industrial-innovative development of Kazakhstan for 2010-2014 (SPFIID) and takes into account the experience of its implementation. The Program is part of an industrial policy of Kazakhstan and focuses on developing the manufacturing industry with concentration of efforts and resources on a limited number of sectors, regional specialization using the cluster approach and the effective regulation of the industry (MID, 2014).
In February 2011, Kazakhstan adopted a Law "On Science"18 assigned to regulate relations in the field of science and scientific and technological activities, the definition of basic principles and mechanisms of functioning, and the development of the national scientific system. It has the following main components:
Law "On Science" identifies new research funding tools, such as grants for basic research and industry targeted activity. The public research institutions and universities have the right to spend means of grants to improve their scientific infrastructures and utilities, information and communication needs, staff expenses and specific research needs. The funding can be provided based on calls for proposals and tenders.
In January 2012 the Law "On State Support for Industrial Innovation"19 was signed, aimed at establishing the legal, economic and institutional bases promoting industrial innovation in priority sectors of the economy and the identification of measures of state support.
The objectives of the state support of industrial and innovation activity are to:
The law requires the formation of industrial-innovative small and medium-sized businesses, providing a comprehensive and rational industrial-innovative development of regions of the country, increase in productivity and production capacity.
The Ministry of Education and Science of RK (MES) and the Ministry for Investments and Development of RK (MID) are the main stakeholders in research, technology and innovation policy in Kazakhstan. The Committee of Sciences is responsible to conduct all R&D&I activities of the MES. The National Agency for Technology Development (NATD) is the operational body of the MID. Both organizations manage programs and projects available for participation of foreign scientists and innovators.
The Committee of Sciences (CS-MES) is responsible for the coordination of scientific and technical programmes, projects in fundamental and applied research. CS-MES launches regularly calls for grants for applied and basic research. The last calls were announced for the period of 2015-2017.
NATD provides nine types of innovation grants; six out of them foresee involvement of foreign researchers in different activities: increasing knowledge of local engineers, consulting and advisory services, implementation of lean technologies, and doing high-tech and industrial research.
Funding for foreign participants in projects supported by the CS-MES is limited by fee for lecturers and travel and accommodation costs. Participation in the innovation grants of NATD is subject to individual agreements in accordance to the type of grants.
Participation rules of the programmes launched by both, SC-MES and NATD, foresee participation of only individuals (physical bodies) and not legal bodies (institutions).
Other option to participate in national programmes of KZ is to be an expert-evaluator. For example, within last 5 years 1758 foreign experts from 70 countries participated in proposal evaluation together with 1229 Kazakh experts.
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(research structure - research policies - international cooperation) (URL: http://www.increast.eu/_media/Kazakhstan_Country_Report_2016_EN.pdf)
