1. 1 The Innovation Performance Review of Kazakhstan: Main Conclusions and Recommendations

2. 2 The United Nations Economic Commission for Europe (UNECE) One of five UN Regional Commissions Promotes economic cooperation and integration in the wider Eurasian region One of its missions: to promote economic growth, knowledge-based development and higher competitiveness of countries and businesses in its member States

3. 3 Innovation Performance Review of Kazakhstan Undertaken at the request of the Government of Kazakhstan Supported by the Eurasian Development Bank Jointly implemented by international and national experts Reviews critically the national innovation system and innovation policy framework Provides concrete policy recommendations in these areas

4. 4 Structure of the Review 1. Recent economic and innovation performance 2. National innovation system and innovation governance 3. Framework conditions, innovation policies and instruments 4. Knowledge generation 5. Industry-science linkages and collaboration in the innovation process 6. Innovation support institutions 7. Financing innovative entrepreneurs 8. Innovation and international economic integration Annex. Prospective innovation-driven investment projects

5. 5 Strengths of the national innovation system (NIS) of Kazakhstan Innovation is a policy priority at the highest level of national strategy and policy In implementing this strategy Kazakhstan has made a remarkable progress in developing the NIS All the building blocks of modern innovation systems (in terms of institutions and policy frameworks) are already in place The Government allocates increasing amounts of public resources in support of innovation

6. 6 National Strategy Government programmes to support Inovation Innovation policy & public institutions Framework conditions Conducive business environment Transparency and predictability of the environment Policy instruments and incentives for innovation Support to entrepreneurship Business sector Large companies (inc. FDI) Mature SMEs New TBFs Intermediaries Technology transfer offices Incubators; Technoparks Innovation brokers Innovative entrepreneurship SME development University startups and spinn-offs Knowledge generation Higher education Research institutions Support infrastructure Banking system Early stage financing (business andgels; VC) Support to risk sharing Information systems and networking The National Innovation System (NIS): today … Market demand Consumers (final demand) Producers (intermediate demand)

7. 7 National Strategy Government programmes to support Inovation Innovation policy & public institutions Framework conditions Conducive business environment Transparency and predictability of the environment Policy instruments and incentives for innovation Support to entrepreneurship Business sector Large companies (inc. FDI) Mature SMEs New TBFs Intermediaries Technology transfer offices Incubators; Technoparks Innovation brokers Innovative entrepreneurship SME development University startups and spinn-offs Knowledge generation Higher education Research institutions Support infrastructure Banking system Early stage financing (business andgels; VC) Support to risk sharing Information systems and networking …and in the future Market demand Consumers (final demand) Producers (intermediate demand)

8. 8 Review recommendations: Enhancing the national innovation system (NIS) Strengthen connectivity within the NIS  horizontal instruments that facilitate linkages  public support to coordination and risk-sharing mechanisms  use of policy instruments that boost the demand for innovation  develop/diversify services that facilitate innovation activities  support more widely non-technological innovation  assist more energetically knowledge-generating organizations in transforming ideas into innovation projects  targeted development of innovation linkages (between large and small domestic companies, between foreign and domestic companies, etc.) The Review recommends a number of concrete actions Apart from policy measures it discusses the creation of a National Innovation Council (NIC), with representatives of the business sector and the relevant ministries

9. 9 Review recommendations: Improving the coherence of innovation policies Align strategic objectives with the results of foresight programmes and other priority-setting mechanisms Improve the bottom-up flow of information and ideas and their integration into innovation initiatives, through a consultation process Introduction of new demand-oriented public support schemes targeting chains of innovation activity Support the emergence of new innovative enterprises and especially new technology-based firms Strengthen mechanisms to monitor and evaluate the results of policy programmes

10. 10 Review recommendations: Foster enhanced knowledge generation & transfer Differentiated policy instruments according to the type of R&D, the level and type of risk Foster enhanced collaboration with foreign direct investors to encourage innovation activities Strengthen linkages and foster the creation of collaborative networks among innovation stakeholders Specifically targeted instruments to facilitate the development of technology-based SMEs

11. 11 Review recommendations: Strengthening industry-science linkages The scope of horizontal policies and instruments should be widened at the expense of the narrowing of vertical ones Strengthen the role of intellectual property rights (IPRs) as a driver of innovative development  assigning ownership rights to individual researchers/inventors  creating favourable conditions for the creation of firms based on the results of their research  elaboration of precise guidelines to this effect Introduction of criteria in the evaluation of knowledge producing organizations related to the measurable effects of external linkages

12. 12 Innovation support institutions Kazakhstan has set up a network of innovation support institutions. Challenge: how to make it more effective (improved linkages) how to increase its scope (regionalization) Issues identified in the Review:Instruments Insufficient number of innovative companiesPre-incubation initiatives Increased role of universities as source of potential companies “Enclavisation” of technology parksTeams specialised in developing linkages Horizontal programmes to encourage collaboration Underdeveloped skills to run technology parksTraining programmes in collaboration with the private sector Changes in the curricula of education institutions Low visibility of technoparksEfforts to increase domestic and external projection and brand image

13. 13 The way forward The Innovation Performance Review of Kazakhstan is not an end in itself; it just highlights some possible benchmarks on the way forward The UNECE is ready to work together and in close cooperation with the Government of Kazakhstan for the practical implementation of the recommendations of the Review During the V Astana Economic Forum we shall be holding a round of consultations with the Government to develop a Implementation Plan for joint future efforts in this area

14. 14 Thank you! Rumen Dobrinsky Director UNECE Economic Cooperation and Integration Division E-mail: rumen.dobrinsky@unece.org Telephone: +41(0)22 917 24 87