The article considers the directions of the Kazakhstan innovation system’s development in the framework of the Eurasian Economic Union. The estimation of the level of development of Kazakhstan's NIS compared to the innovation systems of member countries is given. The indicators of competitiveness of the economies of the EEU, including the Innovation and sophistication factors of the WEF Global Competitiveness Index is provided. Strengths and weaknesses of the innovation system of the EEU are identified. The article determines the perspectives of development of the Eurasian national innovation system, which will enhance the capacities of national systems through the integration of scientific, technical and industrial potential, strengthening the links between the main actors of the NIS (government, science sector, business), focusing on the establishment of joint competitive high-tech industries.
The worldwide trend in the development of national innovation systems is their output on the supranational level, formation in the framework of the territorial and regional associations of common scientific space which contributes to the growth of innovative activity in each of the member countries.
Kazakhstan, in its turn, is not stands aback from the integration processes. In accordance with the Agreement on October 6, 2007 the Customs Union was established, which includes Kazakhstan, Belarus and the Russian Federation. Formation of the Customs Union provides the establishment of the united custom territory, within which they do not apply customs duties and restrictions of economic nature, with the exception of special protective, antidumping and countervailing measures. The results of the removal of customs and other controls have led to the growth of mutual trade for the 9 months of 2011 by 44% within the Customs Union compared to the previous year. From January 1, 2012, along with the common market of goods, the market of services, capital and labor start its work in accordance with the already signed agreements on the formation of the Common Economic Space [1].
The Eurasian Economic Union (EEU) started operating on January 1, 2015. Armenia joined to it on January, 2 of this year, and Kyrgyz Republic — on August, 6.
In today's world economic system the level of socio-economic development of the country is largely determined by the ability to generate new knowledge and to implement it in high technologies. Innovative direction of development is considered a priority and promotes the competitiveness of national economies in an increasingly globalized world. Along that, the regional alliances designed not for only «to dynamise the development of united countries, but also to reduce the difficulties of social and economic development of its members by enlarging the regional production scale» [2].
In this light, the countries of the Eurasian Economic Union (EEU) have set the targets of long-term innovation development. The only one possible way to achieve them is the transition of national economies to the innovative social-oriented model, increasing the innovation activity of all subsystems of the innovation system.
Unlike the developed Western countries, the initial conditions for formation of innovative economy in the EEU-countries were much worse. The collapse of the Soviet Union has led to not just lag but even the disappearance of a number of branches of science and industry [3]. The communication between the key elements of the scientific and technical complex was broken, many of them were degraded, funding of R&D was sharply reduced, scientific and technical potential was declined, the prestige of the scientist in society was virtually leveled.
Qualitative changes began to take place since the beginning of the 2000s. The need for post-Soviet countries in the transition to a new level of development demanded revision of attitudes towards education, science, the development of innovation and high-tech areas of the economy.
The EEU member states among those countries were furthest in the formation of national innovation systems. However, the current stage of their development and growth rates are vary considerably. Table 1 shows the main indicators of innovation development of EEU countries.
Main indicators of innovative activity of EEU
T a b l e 1
Based on data from table 1, it can be noted that Russia shows the highest rates of innovation development at the present stage. With the largest population, development of economic and social sphere the Russian Federation in absolute terms is much superior to the rest of the EEU countries. At the same time Kyrgyzstan closes the top five countries of the Eurasian Union, indicating the lowest values of most indicators of innovation development.
Considering the relative performance, it is important to stress that Kazakhstan and Belarus by some indicators slightly inferior or even superior to the Russian Federation. For example, indicator of the number of patent applications per 1 000 employees in research and development in Kazakhstan and Belarus is almost 2 times higher than in the Russian Federation.
In general, the performance of innovation development of the countries is supported by the position of the EEU countries in the WEF Global Competitiveness Index. Kazakhstan, occupying the highest position in the general ranking of WEF, is inferior the leadership to the Russian Federation on the innovation and sophistication factors. Kyrgyzstan closes the top five countries (table 2).
Ranking of EEU countries in Global Competitiveness Index 2014–2015
T a b l e 2
Each of the EEU countries aims on the transition to an innovation-oriented model of economic development in the long term period. For Kazakhstan, the development of its own innovation system within the framework of an economic union would allow to integrate it into the global innovation trends that increase the scope of scientific, technical and development projects with further growth in the release of the national high-tech products with high added value.
To develop recommendations for the strengthening of mutual cooperation in the sphere of innovation between EEU countries, common problems and major differences in the implementation of the state innovation policy of the participating countries should be identified.
Russia and Kazakhstan now have all the major subsystems of NIS. However, their functioning is characterized by a low degree of coordination. The revitalization of the various scientific and technical organizations in the innovation infrastructure (technoparks, innovation clusters and centers of commercialization, venture capital business, university science, and others.) not yet have a synergistic effect for the formation of an integrated model of successful NIS countries.
The legal framework in the field of innovation in Russia is quite heavy, includes acts of different levels: international, federal and regional; of different status — conventions, agreements, federal and regional laws, decrees, orders, state programs, federal programs, concepts, forecasts, etc. The majority of legislation of the Russian Federation has no clear subject of legal regulation; the content of the fundamental laws for innovative concepts is determined by different ways, not always taken into account the legislation of related areas of regulation and federal law [5; 99].
According to researchers [1; 20], one of the most critical «narrow» places of Russia's innovation system is the connection between the research carried out by public institutions and private companies. There are a number of structures designed to fill this niche, such as technology parks, centers for the commercialization of innovation, technology transfer centers, communities of business angels. However, despite these efforts, the gap between the public and private sector research and development has not yet been overcome.
Lack of coordination between the research and development sector, the higher education sector and the business sector determines the low efficiency of commercialization of research results, poor functioning of the mechanism of transfer of knowledge and new technologies for the domestic and world markets.
Human potential of high school sector of science is remained untapped. According to the OECD, in 2013 Russia ranked first in the number of holders of diplomas of higher education (53%). But that is still a gap between the high level of participation in tertiary education in the country and the lack of specialized training for specific areas of innovation. Russian universities produce knowledge in management, but do not provide practical skills to apply this knowledge, do not form the competencies that allow managers to successfully carry out its functions [6].
Republic of Belarus, which has a high technical potential, but do not have sufficient resource base, also keeps the strategy of transition of the national economy in mode of intense innovation.
To date, the innovative system of Belarus represents a set of legislative, structural and functional components, ensuring the development of innovative activity in the country [7]. However, despite the relatively high among the EEU countries share R&D expenditures, measures on conservation and the development of scientific, technological and innovative potential, Belarus now formed only a few elements of the NIS: scientific and educational institutions, innovation-oriented manufacturing enterprises, specialized enterprises of innovative infrastructure with varying degrees of innovation.
Among the main problematic issues of functioning of NIS Belarus are the following:
- Underdevelopment of the legal framework in terms of regulating the relationship between the actors of the NIS at all stages of innovation, stimulation of innovation activity of enterprises;
- The limited domestic demand for new technologies and innovation, the lack of mature markets of high-tech products;
- The lack of developed financial mechanisms to support specific components of innovation infrastructure, independent innovation projects, such as: venture capital funds, insurance, innovative investments, leasing of high-tech equipment, high-tech stock market for companies, ;
- Weak links between research organizations, educational institutions and industrial enterprises;
- Low level of development of small innovation
Innovative development of Armenia is based on a systematic understanding of innovation. Currently, the construction of NIS in the republic is defined as a strategic purpose, which implies taking specific practical steps to achieve it.
During the most of the period of its independence, Armenia had no a clear vision and policy in the field of innovation, only in the mid-2000s the emphasis in policy has shifted in favor of research and innovation development. The number of important legislation acts was adopted.
Undeveloped connections between science and industry are one of the weakest links in the structure NIS of Republic of Armenia. The management structure is divided between the State Committee for Science and the Ministry of Economy, which effectively enhances the dissociation of the two sub-sectors, and does not provide the development of the relationships between them. On the other hand, in some areas the Republic of Armenia has developed scientific basis, the potential of which is not fully utilized. Only fragments of innovation system are developed in Armenia. The disunity in the management of research and development and innovation takes place in the country [8].
The republic has numerous agencies responsible for the implementation of programs to promote innovation, which are often very small. Clear coordination between various bodies contributing to the innovative development has not been established.
The R&D expenditures, which needed to ensure innovation-based competitiveness, are at a very low level. The lack of data on the R&D expenditures of private companies complicates the understanding of innovation activity of the companies. The innovative potential of the company is not only limited to low R& D activity, but also the shortcomings in the management of engineering and technological processes and innovations. Low demand for innovation does not stimulate technology renovation on the majority of enterprises. The main asset of NIS of Armenia is qualified labor force, however, there is the shortage of personnel in the management of engineering and technological processes and innovations.
The Republic of Kyrgyzstan on most indicators of innovation development is at the closing position among all countries of the EEU. Its innovation system is characterized by low level of integration of organizational, legal, structural and functional components, preventing the development of innovation. At this stage of development the national innovation system is a set of individual elements, which do not contribute to the overall goal of innovative development.
Sphere of Science of Kyrgyzstan is in decline. The recommendations of the Public Expert Council under the President on the reformation of the system of science in Kyrgyzstan, say that the lack of innovation in science, its isolation from the innovation processes in education invariably affect the quality of education. The teaching staff and researchers from higher education today do not have an incentive to participate in science and research. Students are trained on outdated materials and procedures being in complete isolation from the achievements of science and technology.
According to scientists [9]. Among the major problems of innovative development of the country are the following:
- weak development of the innovation system due to the lack of a systematic approach to innovation, as well as the legislative framework that would facilitate the legal regulation of relations in the field of innovation;
- the absence of important elements of the innovation infrastructure (technological parks, specialized business incubators) for the development of small innovative business;
- undevelopment of the mechanisms of implementation of technological innovations in the industry, as well as the moving them to the market;
- low investment and innovation activity of enterprises, aging and wear of the major part of fixed assets, technological backwardness of a number of industries;
- the lack of qualified managers in R&D;
- the lack of cooperation between university science and the business sector, and as a consequence, the lack of joint research and
At the same time Kazakhstan innovative system takes already, to some extent, an image of working body, bringing some tangible results. Applied research has got more than 50% of domestic R&D expenditures, there is 3-fold increase in the share of innovative products in the country's GDP in 2014 compared with 2009. However, there are a number of problems. The main of them include the lack of developed mechanisms of interaction between the elements of the innovation system, low innovation activity of enterprises (about 8%), lack of participation of small and medium-sized businesses in the financing of R&D, lack of a crucial mass of innovation.
Each country, which joined the Eurasian Economic Union, has a certain potential for innovation and economic development, due to national characteristics. The Russian Federation has considerable scientific innovative potential, significant results and achievements in the field of nano-, biotechnology, nuclear energy, aerospace technology, communications and information technology. The consumer market, the largest among the EEU potentially allows to develop a system of production, oriented on the consumption of competitive innovation products.
At the same time, the potential of the Republic of Kazakhstan provides conditions for the development of innovative business with qualified personnel. There are some programs of industrial and innovative development in a wide range of industries. Since 2012, national researchers have received significant benefits in the area of commercialization of research results. Intellectual property rights obtained by researchers and scientific organizations as a result of R&D financed from the state budget, now may be assign to scientific organizations.
At the same time, Belarus has a developed transport and communication potential, has at its disposal high-tech manufacturing facilities, including petrochemical and engineering industries, the availability of qualified labor, significant scientific and human potential in the field of high technologies. The country develops the sphere of implementation of biotechnology, information technology, modern software and hardware [3].
All of the EEU countries are characterized by high intellectual potential, coupled with low wages. The high level of education is in great importance because it is much higher than in other countries with the appropriate level of per capita income.
Regarding the Kyrgyz and Armenian Republics it should be noted that scientific, technological and innovation potential of these countries is much lower than in other states of the EEU. Their major asset in matters of innovative development is skilled labor force. However, both countries have the necessary conditions for the development of innovative potential and its integration into the common economic space.
Summarizing brief analysis of innovative development of EEU countries it should be noted that they pay a lot of attention to the state support and stimulation of innovation, the creation of an efficient innovation infrastructure that promotes the development of innovation, science and technology activity as well as personnel training. However, today there is some lag in the innovative development to compare with the developed countries.
The main problems includes, in our opinion, the lack of funding innovation sphere (only Russia and Belarus have the share of R&D expenditures more than 0.5% of GDP), low level of innovation and investment activity of the private sector. There is a low level of susceptibility of businesses to innovate technological, poorly used opportunities for commercialization of technologies and intellectual property. Economic dependence on mineral exports is retained serious in Russia and Kazakhstan.
In this light, it becomes obvious that in order to ensure the growth of the economies of the Eurasian Economic Union it is necessary to unite the efforts of all its members. In our view, negotiation of the negative trends is only possible through the integration of innovative, human, scientific and technological potential. There is a need of the Eurasian innovation system formation which is based on global experience in the development of innovative systems.
The purpose of the formation of the Eurasian innovation system is, in our view, increasing the competitiveness of the economies of the EEU in the global division of labor by expanding the capacity of national systems of innovation through the integration of scientific, technical and industrial potential, strengthening the links between the main actors within the NIS (government, science sector, business), focus on the establishment of joint competitive high-tech industries.
Formation of the Eurasian innovation system involves the development of institutions and relationships between them, which contribute to the implementation of the full cycle of innovation, starting from R&D and ending with the creation of the necessary conditions for the introduction of innovative products in the finished production. At the same time, according to well-known economist Sergey Glazyev, «the basic structural element of the created Eurasian innovation system should become the Center of High Technologies of the Eurasian Economic Community» [10]. In this situation, it is required the unification of innovative systems of EEU states aimed at forming a common innovation space, capable to provide the concentration of all available resources for optimal utilization.
The effective functioning of the Eurasian innovation system is possible, but this requires coordinated purposeful work of all participating EEU countries. It is necessary to develop and implement a coherent strategy for economic development. In particular, it is requires the consistency in innovation, science and technology, licensing, patent policy, the adoption of new programs in the field of innovation.
Also, it needs the institutional and financial mechanism of common innovation space, covering all states of EEU. Particular attention should be paid to the development of venture capital and international funds to support projects in the area of innovation.
At the same time, it is necessary to improve the scientific and technological sector, focused on the implementation of the acquired knowledge in the form of license and know-how, as well as consulting and other services of an intellectual nature.
Among other important things it is the preparation in the EEU framework the agreements governing the import and export of results of research and development. Also it is the need to establish and introduce a single law for the protection of intellectual property in the EEU.
In our view, the implementation of these measures will contribute to the formation the effective innovation system in the space of EEU, as well as enhance the competitiveness of its participants in the world economy.
In addition, if the innovation systems of the EEU members are considered as part of a common Eurasian innovation system, their formation should be carried out simultaneously with its formation.
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