Saturday, December 12, 2020

Abazov, Rafis and Zhumatay Salimov. "Technoparks in Kazakhstan: will they help develop the innovation sector?". The Central Asia-Caucasus Analyst, 4 October 2016.

 Abazov, Rafis and Zhumatay Salimov. "Technoparks in Kazakhstan: will they help develop the innovation sector?". The Central Asia-Caucasus Analyst, 4 October 2016.


  • Since the opening of the first 'technopark' in Almaty in 2003, the government of Kazakhstan has invested over $32 million (4.8 billion ₸) in the creation and development of 10 other technoparks in addition to Almaty.
    • The idea behind these technoparks is that the best way to encourage technology transfer, while keeping industry inside the country, is to create special clusters of innovation, modeled off of Silicon Valley in the US.
    • The government has been supporting these technoparks by investing heavily in surrounding infrastructure, providing financial privileges and tax exemptions to companies operating in those zones, and capital for startups in strategic areas; in 2015 alone, Kazakhstan gave out 1.6 billion ₸ ($100 million) in capital for startups in these zones.
  • The Kazakhstani government has recently moved up the ranking for global competitiveness, which it associates with improvements in the legal and financial support for industry in special economic zones and technoparks. 
    • There is a good amount of evidence to back up these claims, as the technoparks have attract the attention of many companies and universities, and most entrepreneurs from Kazakhstan have become involved in these technoparks as a place to basis their business operations. 
  • There are questions, however, about whether the success of technoparks has been worth their cost. The technoparks have noticeably failed to attract large amounts of private capital for fundraising, leaving most startup industries dependent on government financing. 
    • Kazakhstan has also failed to attract the high-tech manufacturing sector that it wished to establish, leaving technoparks largely based on low-employment startups using digital media or online retailers. 
  • Kazakhstan partially built its idea of technopark around similar plans pursued by Latvia, Estonia, and Belarus during the same period. These projects, however, were deemed more successful than Kazakhstan's own venture.
  • The authors place the blame of the underperformance of Kazakhstani technoparks on the lack of investment in education, and byzantine rules about bureaucratic requirements for foreigners in the country. They suggest that Kazakhstan should invest more in education to develop its professional class for employment in this sector and also advertise itself as a stable hub for tech professionals in the CIS, attracting entrepreneurs from Moldova, Georgia, and Ukraine in particular.

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