Current issues of financing research and development in Kazakhstan

Abstract

The article examines the research and development work’s (here and after - R&D) financing sources and changes in its cost. It examines the main indicators of science and development in Kazakhstan and provides an overview of the sources dedicated to this problem.Reviewing the issues of R&D financing the conclusion that it is necessary to activate and attract private capital in Kazakhstan’s practice has been made. The R&D finances to a greater extent free of charge, but there is a low degree of its implementation effectiveness. As far as the share of private business financial resources in R&D higher, the greater an effect of its returns in GDP. The private investments return to GDP is higher due to their profit orientation, flexibility and more active participation in innovative projects. Private companies try to choose highly promised projects and turn out to be more productive returns. The paper presents: a correlation analysis showing the dependence of the GDP and domestic R&D costs; a forecast of further growth in domestic R&D costs. The growth of R&D costs is an important aspect for the formation of a knowledge-based economy, as well as increasing the level of R&D costs to the industrialized countries level.