The Science Fund of Kazakhstan
may acquire functions of a venture fund enabling to attract more private
investors into the scientific sphere and accelerate the commercialization of
domestic scientists’ startups, the Minister of Science and Higher Education
Sayasat Nurbek announced. Members of the Senate, an Upper House of the Kazakh
Parliament, considered and approved the draft law ‘On Science and Technology
Policy’ and accompanying amendments to other bills in the first reading.
According to Nurbek, the Science Fund can now act as a guarantor and
co-investor in attracting venture capital investments into knowledge-intensive
projects. Also, investors directing funds into scientific research will be
provided with the most favorable tax incentives for the first time under the
mechanism which has been discussed with the Finance Ministry. All this will
help enhance the competitiveness of the scientific potential and the
contribution of science to the country’s economic development.
“If the law is passed, any
private company seeking to invest in innovation, establish joint ventures, or
undertake joint projects with research institutes, and increase the value-added
chain of their production to 150 percent, will be eligible for tax incentives.
This is a great mechanism, internationally known as super-deductions. Thus, a
private company intending to invest in innovation approaches the government to
inquire about how it will incentivize the company. The government responds by
indicating that it will not levy taxes on these investments by the company.
This is the first time that we are implementing such a mechanism,” said Nurbek.
