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INNOVATIONS IN KAZAKHSTAN

INNOVATIONS IN KAZAKHSTAN
Alyamova Zemfira, senior lecturer, candidate of economics

Gaukhar Abdrakhmanova , student

Luiza Murzatayeva, student

Aktobe State University named after K.Zhubanov, Kazakhstan

Conference participant

Among the competitive advantages of Kazakhstan, there is the huge potential of natural resources, political and social stability, as well as the neighborhood to large economies, such as Russia and China. New industrialization has created conditions for the principal industries growing.

Keywords: Private Partnership Centre, nature resources, global cybersecurity, national economy, social stability.

 

State investment and public – private partnerships are playing a vital role in the country’s growth. These are being promoted by the Kazakhstan Public – Private Partnership Centre (PPP), which was established in 2008 by the Ministry of Economic Development and Trade. The center aims to have set up PPP projects accounting for 20 per cent of total investment in the country by 2020. It says that there are already a number of PPP projects running in Kazakhstan, including three urban infrastructure schemes in Astana; two energy projects in the Aktobe region; two focusing on health and social services and road transport in the Almaty region; two for education; two for railroad transportation in East Kazakhstan; and one in West Kazakhstan for road transportation. Others  schemes include one within health and social services and two within education PPP in the Karaganda region; one for road and transport, three for transport and one for airports in the Mangystau region; and one in South Kazakhstan that is supporting health and social services.

Although Kazakhstan is well known for its health of nature resources, this has not stopped the government from targeting alternative energy and making innovation in this sector a priority. According to the government, country has significant renewable energy sources and capacity such as hydro, wind and solar. It has surveyed 10 sited for the construction of large commercial wind power plants (WPPs) which could generate a total of 1,000 mW. The government also says that research has revealed that the southern regions of the country have a capacity of 2,500 to 3,000 solar hours each year.

In February 2013, Deputy Prime Minister Issekeshev announced plans to invest in the construction of hydro, wind and solar power plants to add 1,040mW of renewable capacity by 2020. These include building 13 wind power plants with a total capacity of 793 mW, 14hydropower plants with a capacity of 170 mW and four solar power plants that are capable of producing 77 mW. 

These plans all aim to build on the progress Kazakhstan has already made with renewable energy. In October 2012, BISOL Group announced it was installing a two mW turnkey solar power plant in Kazakhstan after signing a contract with investor Samruk – Energo to construct and install a ground – mounted and sun – tracking PV system in the city of Kapchagay, Almaty province. A spokesperson for BISOL reports that the winter in Kazakhstan was quite harsh in 2012/13, causing some delay to the project. However, the installation of the two mW PV power plant has now reached the final stages, and it is expected to be completed by 15 May 2013.

The BISOL PV system will be in two parts: the main, eastern section will comprise 1,400 kW of BISOL monocrystalline  PV modules that are mounted on a fixed – ground substructure; the north – west part of the plant will consist of 61 solar trackers installed with 600 kW of the PV modules. Almasadam Satkaliyev, chairman of the board of Samruk – Energo says that the share of renewable sources in Kazakhstan’s energy mix should ‘‘rise from the current 0.5 per cent to 11 per cent by 2030’’.

Dr Uros Merc, CEO of BISOL Group, adds: ‘‘Investing in solar energy offers great potential and the two mW BISOL PV system will be amongst the first ones in Kazakhstan. At the same time, this PV system represents an important technological breakthrough and a technology transfer in one of the most resource – rich countries in the world. Kazakhstan’s electricity production potential using solar energy is huge; the south – eastern part of the state has more than 300 sunny days a year’’.

The government’s green agenda also encompasses regional initiatives that are aimed at reducing pollution.

The United Nations Development Programme is involved in a pollution – reduction project together with: Almaty City Administration; the European Bank of Reconstruction and Development; the International Finance Corporation; and the US Department of Energy. This aims to reduce the growth of transport - related greenhouse gas emissions in the city of Almaty while improving urban environmental conditions. Set to run from 2011 – 15, the project aims to:

  • -  improve public transport regulations and practices in Almaty;
  • -  improve public transport and air – quality management in Almaty;
  • -  improve the efficiency and quality  of public transport;
  • -  integrate traffic management;
  • -  demonstrate sustainable transport projects; and
  • -  enable government, industry and civil society to adapt to climate change and mitigate its impact through policies and energy efficiency measures.

While firms operating in Kazakhstan have been getting on with the business of developing technology and innovation, the government has been working behind the scenes to drive innovation with both regional and global partners. In 2011, President Nazarbayev told the UN General Assembly’s annual general debate that a global pact on information and cybersecurity was vital to deter the increasingly frequent hack attacks against governments, businesses and other institutions. He stressed the need for what he called ‘an international legal framework for the global information space’, and said this could  be based on the nine elements of the global cybersecurity framework that the General Assembly adopted in 2002. [1]

New industrialization has created conditions for the principal industries growing. First of all, within the frames of the SPAIID (The State Program of Accelerated Industrial Innovative Development) there were opened 443 new productions to the total amount of 1.8 trillion KZT, including 54 projects in the first half 2012 resulting in changes in the economy structure. The Program implementation resulted in an unemployment decrease, upgrade of goods and    services quality, competitiveness improvements in the national economy and conditions improvement for business conduct.

In a whole, the SPAIID indicators counted for five years are ahead of the schedule. For example, gross added value in machine building composes 169.4%. Production volume increased from 300 billion to 500 billion KZT.

A key target for five years was to ensure growth of GDP from 16 to 2 trillion KZT by 2015, but the 2011 results were 26 trillion KZT. The growth of processing industry is sustained. With this, despite high price on raw commodities, the growth rate of the processing industries surpasses the production industry for the second year.

Production growth is indicated in almost all fields of the processing industry and in all Kazakhstan region, except for Mangstau and Kyzylorda.

Chemical industry is one of the consistently developing industries; pharmaceutical industry is among developing industries with high indications. Chemical industry production increased by one third. Export of high-value added products increased two times against 2010 level.

Intense pace of construction became a new impulse to increase a share of Kazakhstani produced construction materials. In certain types of products the share of domestic construction materials increased by 100% (asbestos, limestone, plaster, construction solutions, tiles, slabs, bricks and concrete items). Thanks to the industrialization program, 23 types of Kazakhstani construction materials started being export to 20 world countries.

The gross value added (GVA) in the construction industry exceeded 160%. As per preliminary calculations, growth of domestic construction materials volume up to 80% was achieved prematurely. It already composes 67%. The mining sector GVA achieved 49%. Export of high technology products increased by 58%.

Along with this performance is increasing as well. It has grown in the processing industry by 32% from 38.6K USD per capita in 2008 up to 51K USD in 2011. More than 300 innovative projects obtained governmental support. About 100 tools were developed to support entrepreneurship. 1,500 enterprises participated in the non-energy support export program. Total processed products export exceeded 22 billion USD.

As per preliminary data, all enterprises participating  in the Industrialization map launched products for 300 billion KZT within 6 months only.

Separately should be noted that today over 100 products new for Kazakhstan are being produced, including sea metal structures, turbine racks, composite metal plastic pipes, energy saving devices, medicaments and many others. However, development of new products and establishment of new enterprises requires a stable demand. With this the production should be commercially viable and exportable. This is especially important for those industries that are highly import-dependant, and, first of all, machine building.

Further industrial innovate development will be focused on information of the community oriented on the knowledge economy on high-level wealth and life quality. With this purpose, synergy is demanded of all activities relating to science, new technologies, business community and state, social modernization, education and regional aspect. First of all, systemic base will be provided to the technologies development, determined as a result of technological forecast as a response to the challenges of a new industrial revolution.  [2]

Among the competitive advantages of Kazakhstan, there is the huge potential of natural resources, political and social stability, as well as the neighborhood to large economies, such as Russia and China. Some years ago the government of the republic adopted a policy of continuous improvement of the laws on investment and taxes. As a result today, considering the “Doing business in Kazakhstan” index, the country ranks 49th in the world in terms of favorable conditions for that, 17th in the tax burden, and in terms of investor protection the country is far back, to be among the top 10. [3]

 

References:

  • 1.  Innovation: an economic driving force // Astana Economic Forum 2013.
  • 2. Tastenov A. Industrialization through innovations: fist achievements // KAZENERGY. Special edition, 2012.
  • 3. Gadhov S. Foreign investment: from quantity to quality // Kazakhstan, №2, 2013.  
Comments: 1

Zulfugarzade Teymur El'darovich

Повышение инновационной активности экономики - актуальная проблема и, одновременно, базовая задача для любого индустриально развитого государства. Работа имеет важность для развития современной науки и заслуживает достаточно высокой оценки.
Comments: 1

Zulfugarzade Teymur El'darovich

Повышение инновационной активности экономики - актуальная проблема и, одновременно, базовая задача для любого индустриально развитого государства. Работа имеет важность для развития современной науки и заслуживает достаточно высокой оценки.
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