Kazakhstan's bold innovation push targets 3% GDP growth by 2035

Kazakhstan is pushing ahead with plans to boost its innovation sector. Recent reforms and major projects have already delivered measurable economic benefits. The government’s latest moves aim to strengthen research, expand science cities, and support high-tech businesses across the country. The Stimulating Productive Innovations project has generated a total economic impact of 53 billion tenge. One of its standout successes was the development of Asia Trafo’s 500 kV high-voltage shunt reactor, which included a real-time monitoring system. This single project alone contributed 16 billion tenge to the economy.

Another supported initiative, EcoSave, helped farmers increase crop yields by 15% while cutting pesticide use. The project also led to the creation of Tumar Ventures, a venture fund that has so far backed 90 startups. To accelerate growth, oversight of innovation has now shifted to the Ministry of Science and Higher Education. The government is also rolling out new tax breaks, offering up to 300% deductions for research and development spending. These incentives are part of a broader strategy outlined in the Concept for High-Tech Territories, which supports the expansion of science cities and technology parks. Currently, Kazakhstan ranks 81st in the Global Innovation Index and 55th in the Economic Complexity Index. Under the latest plans, the share of innovative products in the country’s GDP is expected to rise to 3% by 2035.

The reforms and investments are designed to strengthen Kazakhstan’s position in science and technology. With new tax incentives, expanded infrastructure, and a focus on commercialising research, the government aims to lift innovation’s contribution to the economy. The target of 3% of GDP from high-tech products by 2035 will depend on the continued success of these initiatives.