1 Al-Farabi Kazakh National University UDC 338:001.3(574) On

Al-Farabi Kazakh national university

UDC 338:001.3(574) On manuscript rights

ZHIDEBEKKYZY AKNUR

Management of commercialisation of the research results in Kazakhstan (taking for an example green technologies)

6D051700 – Innovation management

Dissertation for the degree of Doctor of Philosophy (PhD)

Scientific consultant Doctor of economic sciences, professor Mukhtarova K.S. Al-Farabi Kazakh National University

Foreign scientific consultant Doctor of economic sciences, Ph.D., professor Trifilova A.A. University of Exeter, UK

Republic of Kazakhstan Almaty, 2017 1

CONTENT

NORMATIVE REFERENCES…………………………………………… 3 NOTATIONS AND ABBREVIATIONS…………………….……………. 4 INTRODUCTION.………………………………………………………… 6 1 THEORETICAL ASPECTS OF COMMERCIALIZATION OF GREEN TECHNOLOGIES …………………………………..…………. 12 1.1 The models and mechanisms of commercialization of scientific research results ……………………………..……………..………………..…………. 12 1.2 The development of green economy concept in the world and theory of green technologies .…………………………………………………………... 25 1.3 Commercialization of green technologies as an emerging branch of scientific interest …………………………………………………………….. 38 1.4 Foreign experience in commercialization of green technologies………… 51 2 ANALYSIS AND ASSESSMENT OF THE COMMERCIALIZATION OF GREEN TECHNOLOGIES IN KAZAKHSTAN…………………… 70 2.1 Analysis of innovative development and commercialization system of research results in Kazakhstan ……………………………………………… 70 2.2 Assessment of the commercialization system of green technologies in Kazakhstan ………………………………………………………………….... 79 2.3 Determination of barriers to commercialization of research results in green technology field ……………………………………………………… 95 3 IMPROVEMENTS IN THE COMMERCIALIZATION MANAGEMENT OF GREEN TECHNOLOGIES IN KAZAKHSTAN 107 3.1 Organizational and economic mechanism for the commercialization of green technologies ……………………………………………………………. 107 3.2 Recommendations on the implementation of pilot projects in universities on the transition to green development ………………...... 120 CONCLUSION ……………………………………………………………. 126 REFERENCES …………………………………………………………….. 130 APPENDICES……………………………………………………………… 143

NORMATIVE REFERENCES

References to the following standards are made in this dissertation: Decree of the President of the Republic of Kazakhstan. On the Strategy of Industrial and Innovation Development of the Republic of Kazakhstan for 2003- 2015: approved by. May 17, 2003, No. 1096. Address of the President of the Republic of Kazakhstan Nazarbayev N.A. to the nation "The Kazakhstan way – 2050: common goal, common interests, common future". Astana, January 17, 2014. Concept for transition of the Republic of Kazakhstan to Green Economy. Approved by Decree of the President of the Republic of Kazakhstan on May 30, 2013 №557. The Code of the Republic of Kazakhstan dated January 9, 2007 No. 212-III “Ecological Code of the Republic of Kazakhstan”. Law of the Republic of Kazakhstan “On the commercialization of the results of scientific and (or) scientific and technical activities” from October 31, 2015 No. 381- V “About the approval of the Concept of Industrial-Innovative Development of Kazakhstan for 2015 - 2019 years”. (2013). Resolution of the Government of the Republic of Kazakhstan dated December 31, 2013. № 1497.

NOTATIONS AND ABBREVIATIONS

UNEP - United Nations Environment Programme SDG - Sustainable development goals OECD - Organisation for Economic Co-operation and Development MIT - Massachusetts Institute of Technology UN - United Nations

ICT - Information and communication technology EST - Environmentally sound technologies

IPC - International Patent Classification UNFCCC - United Nations Framework Convention on Climate Change

WIPO - World Intellectual Property Organisation

IGCC - Integrated gasification combined cycle

USDOE - United States Department of Energy

ROI - Return on investment SWOT - Strengths, Weaknesses, Opportunities, and Threats R&D - Research and Development IPR - Intellectual property rights

CA - Complementary assets BMA - Business, Management and Accounting

EEF - Economics, Econometrics and Finance USA - United States of America UK - United Kingdom PPP - Public-private partnership GII - Global Innovation Index BNIIP - Brazilian National Institute of Industrial Property CSIPO - China's State Intellectual Property Office IPO - Initial Public Offering KIPO - Korean Intellectual Property Office JPO - Japan Patent Office USPTO - United States Patent and Trademark Office USPC - United States Patent Classification CIPO - Canadian Intellectual Property Office NIIP - National Institute of Industrial Property IP - Intellectual Property 4

PACE - Pollution Abatement Costs and Expenditures EU - European Union ISO - International Organization for Standardization GDP - Gross domestic product TBI - Technological business incubation services LLP - Limited liability partnership JSC - Joint-stock company NATD - National Agency for Technological Development MES - Ministry of education and science CTC - Center for Technology Commercialization NIIP - National Institute of Intellectual Property RR - Research results USD - United States Dollars AHP - Analytic Hierarchy Process CI - Consistency Index RI - Random Consistency Index CR - Consistency Ratio MCDM - Multi-Criteria Decision Making ODA - Official Development Assistance SME - Small and medium-sized enterprises WTO - World Trade Organization PTC - Production Tax Credit RES - Renewable energy sources VAT - Value-added tax NIS - National Innovation System GCII - Global Cleantech Innovation Index

INTRODUCTION

General description of work. The thesis is devoted to the research of urgent problems of green technology commercialization in the Republic of Kazakhstan. Relevance of the topic. The relevance and importance of industrial-innovative development actively promoted since 2003 in Kazakhstan, with the adoption of the Strategy of Industrial and Innovative Development of the Republic of Kazakhstan for 2003-2015, one of the objectives of which was "to stimulate the creation of high technology and high-tech export-oriented industries" [1]. A lot of measures have been taken to support innovation infrastructure since. Based on the world tendencies of strengthening the science intensity of the economy, the President of the Republic of Kazakhstan has set a number of tasks to strengthen the role of science in the development of society. In 2014, in the Address of the President to the people of Kazakhstan "The Kazakhstan way – 2050: common goal, common interests, common future" N.A. Nazarbayev noted the importance of strengthening innovative industrialization. In this regard, tasks were set for the formation of a knowledge- based economy, the development of innovative industries and small and medium- sized businesses based on innovation [2]. Therefore, it is necessary to increase the potential of science in Kazakhstan, to focus on venture financing, the protection of intellectual property rights, the support of research and innovation, and the commercialization of scientific developments. The adopted Strategy "Kazakhstan-2050": a new political course of the state "puts clear guidelines for building a stable and efficient economy model based on the country's transition to the “green” path of development. In that case, green economy is instrumental to nation’s sustainable development. Transition to green economy will enable Kazakhstan to achieve the proclaimed goal of entering the top 30 developed countries of the world [3]. Leading countries of the world view the "green" development of the economy as a priority strategy and Kazakhstan also does not stand aside from this process. For many years, following work in this direction was conducted in the country: announcement of the "Environmental Protection" year [4], adoption of the Environmental Code [5], creation of the Council for Sustainable Development [6], launching of the partner program "Green Bridge" [7], establishing a “Green Academy” [8], adoption of various governmental programs to support this policy, etc. In addition, an important role in the promotion of green technologies was played by the international specialized exhibition EXPO-2017 with the theme "Future Energy", which was attended by about 100 countries around the world and about 10 international organizations [9]. Turning point in sustainable development of the country was the adoption of Concept of transition of the Republic of Kazakhstan to the “green economy” in 2013. It is expected to strengthen the development and implementation of green technologies and increase public awareness in our country. Observing the significant progress in creating the prerequisites for a "green economy" in Kazakhstan, it is obvious that there is a need to analyze domestic scientific 6

developments and their potential in the market of commercialization. Despite the adoption of the Law of the Republic of Kazakhstan “On the commercialization of the results of scientific and (or) scientific and technical activities” in 2015 [10], there are still significant barriers to the commercialization of research results even in conventional industries. Problems like fragmented links between science and industry, weak management of commercialization of technology are applicable to all research fields, however, as research shows, distinctive approach should be applied to R&D in green development field. In this regard, the study of commercialization management of green technologies is particularly relevant. Degree of elaboration of the research topic. Works of the scientists who made a great contribution to understanding the mechanisms of development of innovation processes and innovation systems, the interrelationship of economic growth and innovation, the innovative technological development of the national and world economy, the transfer of technology, innovation and venture entrepreneurship, the commercialization of technologies, intellectual property objects, the results research and development were used in this thesis, including: - Foreign scientists: Schumpeter J.A., Schmookler J., Conceiгo O., Fontes M. and Calapez T., Bessant J., Tidd J., Pellikka J.T., Malinen P., Diane A.I., Rourke D.L., Goldsmith R., Andrew J., Sirkin H., Rothwell R., Zegveld W., Gully B., Fuller A.W., Thursby M.C., Frischmann B.M., Datta A., Reed R., Jessup L., Komkov N.I., Bondarev N.N. - Domestic scientists: Dnishev F.M., Sabden O., Koshanov A., Alzhanova F.G., Kenzheguzin M.B., Zhatkanbaev E.B., Gabdulina A.S., Alibekova G.Zh., Zeinullin A.A., Zarubina V.R., Bishimbaeva S.K., Sagieva R.K., Kulembaeva A.S., Kosolapov G.B., Mukhtarova K.S., Kunanbaeva D.A., Turginbaeva A., Kupeshova S.T., Kanalin Zh.D. Following foreign scientists made considerable contribution to research of sustainable innovation problems, green growth and commercialization of green technologies: - Foreign scientists: Carson R., Lee D., Baumol W. J., Oates W., Misiolek W.S., Tietenberg T. H., Leopold A., Meadows D.H., Meadows D.L., Randers J., Behrens W.W., Pearce D., Markandya A., Barbier E.B., Stern N., Hu A., Zhang P., Andersen, M.M., Bessant J., Trifilova A.A., Schiederig T., Tietze F., Herstatt C., Rifkin J. - Domestic scientists: Sagieva R.K., Kanalin Zh.D., Mukhamediev B.M., Sansyzbayeva G.N., Esekina B.K. and Rakhimbekova S. The study of the degree of elaboration of the problems in the formation and development of the national system of commercialization of research results, particularly in green technologies, made it possible to conclude that this issue has not been sufficiently studied. The need for further research in this area is particularly acute due to the fact that in Kazakhstan, there is often a simplified approach to the problems of commercialization and innovative development in general. This is manifested, first, in the fact that innovation is viewed as a purely scientific and technical problem, although this is no less an economic and social 7

problem. Secondly, business in the republic has little incentive to develop green technologies and implement them. Thirdly, the conditions for obtaining high- quality results of scientific and technical activities with applied and commercial attractiveness have not been created in scientific organizations and universities. Forth, measures to promote green growth started only few years ago and did not become widespread. There are number of factors hindering implementation of green technologies in the country. The system of generation and dissemination of knowledge is at a level insufficient for the commercialization of knowledge. Thus, the objective state in the development of science, the immaturity of the conditions and prerequisites for the commercialization of research results in green technologies and a number of subjective reasons determined the urgency and necessity of the dissertation research. Purpose and objectives of the study. The purpose of the research is to develop organizational and economic mechanisms for improving the commercialization management system and to determine the directions for their development based on analysis and assessment of opportunities, problems, and barriers to the commercialization of scientific research results in the field of green technologies in Kazakhstan. To achieve this goal, the study set forth the following tasks that determined the logic of the dissertation work: - to analyze the theoretical aspects of commercialization process of research results and existing models of commercialization; - to conduct a comprehensive analysis of scientific publications on the research topic, and analyze works dedicated particularly to managerial and economic aspects of green technology commercialization; - to consider the evolution of green development concept in the world and clarify the scope of green technology notion; - to analyze the best foreign practice in the commercialization of green technologies and consider their applicability in Kazakhstan; - to analyze indicators of innovative development and innovation infrastructure that affects the commercialization of research results in Kazakhstan; - to study the features and problems of transition to green growth in Kazakhstan; - to identify and systematize the barriers to commercialization of green technologies in Kazakhstan; - to propose ways of overcoming the identified barriers and recommendation on the improvement of the management system of green technology commercialization in Kazakhstan. The object of research is green technologies in the Republic of Kazakhstan. The subject of research is a combination of organizational and economic relations in the formation and development of the system of commercialization of scientific developments in the sphere of green technologies in the Republic of Kazakhstan. The information base of the research is presented by regulatory and 8

legislative acts of the Republic of Kazakhstan and foreign countries, statistical materials of the OECD, the Committee on Statistics of the Ministry of Education and Science of the Republic of Kazakhstan, the National Center for Scientific and Technical Information, monographs and dissertations of Kazakhstani and foreign scientists, international bases like Scopus, Thomson Reuters, materials of publishers like Emerald, SAGE, EBSCO, Springer, and Internet resources. The methodological basis of the thesis work was the methods of general scientific cognition, analysis and synthesis, induction and deduction. The following basic research methods are used in the work: theoretical (generalization, analysis and systematization); Empirical research methods (methods of retrospective ("post factum") analysis, methods of peer review, questionnaires and interviews that establish and form experiments); Methods of data processing (qualitative and quantitative analysis, methods statistical processing of expert opinion using methods of mathematical analysis). The following scientific results were obtained as a result of the research: 1. The content of the concept of "commercialization of green technologies" is clarified based on a comprehensive literature review and analysis; 2. Classification of the policy of development support of green technologies on indicators of the national income and innovative development is developed; 3. The results of qualitative and quantitative research on identifying barriers to the development of the commercialization of green technologies in Kazakhstan are presented; 4. Practical recommendations for overcoming the identified barriers and improving the management system for the commercialization of research results on green technologies are developed; 5. Recommendations on the implementation of pilot projects in higher education institutions of Kazakhstan on the transition to green development are proposed. Main scientific provisions to be defended: 1. The author's interpretation of the concept of "commercialization of green technologies", implying that the primary goal in addition to financial profitability is the solution of the ecological and social components of society's development, the growth of the population well-being. 2. The author's classification of policies supporting the development of green technologies, including three groups of countries with high, medium and low national income and innovative development, formulated based on an analysis of key features of national policy; 3. The results of the conducted qualitative and quantitative analysis, reflecting the main barriers and key factors of the development of the commercialization of green technologies in Kazakhstan. 4. Organizational and economic mechanism for improving the management system for the commercialization of green technologies and practical recommendations for overcoming the identified barriers in the Republic of Kazakhstan. 9

Theoretical and practical significance Theoretical conclusions, obtained as a result of analysis and complex research of publications of domestic and foreign scientists, have scientific novelty and can become a basis for further research in this field. The practical significance is that conclusions and recommendations contained in the dissertation can be used to improve the efficiency of managing the commercialization of scientific research, in particular, green technologies; in enhancing the activities of the innovation department and the commercialization office at universities. The results of the research can also be included in lectures and seminars on such disciplines as “Innovation management”, “Green economy and governance”, “Commercialization of intellectual property”, “Management of intellectual property” and also on the proposed discipline "Commercialization of green technologies". Also, the research results can be used in the materials of state and public organizations consulting facilities of the innovation infrastructure of the Republic of Kazakhstan. Recommendations for the implementation of pilot projects can be useful in managing university campuses in the transition to green development. Approbation of the main results of the work. The results of the research were reported and discussed at foreign, international and republican conferences, including: International conference of students and young scientists "Farabi Alemi- 2015" (Almaty, Kazakhstan), International conference of students and young scientists "Farabi Alemi-2016" (Al-Farabi Kazakh National University), International scientific-practical conference “The financial resources ensuring “Green economy” – a new paradigm of sustainable development”, International Conference on Business and Economics (Seoul, South Korea, indexed in Thomson Reuters), II International Scientific and Practical Conference "On Some Issues and Problems of Economics and Management" (Krasnoyarsk, Russia). The results of the research were included in the research reports: - 1809 / GF4 "Formation of an Innovation Infrastructure for the Effective Integration of Science, Education and Production and Ensuring Transition to a Knowledge-based Economy” (2015-2017): - Chapter II, paragraph 2.1. Scientific and technological audit of research and development, implemented by scientists of Al-Farabi Kazakh National University – 2016 y. - Chapter II, paragraph 2.1. Definition of indicators for assessing the effectiveness of R&D – 2017 y. The reference on the use of the main scientific results in the materials of the report on the grant project and in the organization of the innovation department of the university is attached (Appendix A). Reference on the introduction of research results into the activities of Alliance of Technology Commercialization Professionals is attached (Appendix B). Publication of research results. The results of the research were published in eleven editions, including five in journals recommended by the Committee for 10

Control of Education and Science of the Ministry of Education and Science of the Republic of Kazakhstan, five in proceedings of foreign and local international conferences including one indexed in Thomson Reuters, and one in the journal "Journal of International Studies" indexed in Scopus. The structure of the dissertation. The work consists of an introduction, three chapters, conclusion, references, contains 47 tables, 29 figures and 5 appendices.

1 THEORETICAL ASPECTS OF COMMERCIALIZATION OF GREEN TECHNOLOGIES

1.1 The models and mechanisms of commercialization of scientific research results Commercialization of technology or research and development is any activity that is aimed at generating income from the use of research results, scientific competencies. The main forms (channels) of commercialization are: the use of intellectual property rights (patent assignment agreements and licensing agreements); creation of new companies based on technologies (using the results of scientific and technical activities); research contracts [11]. Knowledge creation is the process of coming up with new ideas. The most obvious method of knowledge creation is formal research and development, defined by the OECD’s Frascati Manual as follows: “Research and experimental development (R&D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge” [12]. New knowledge is an expected objective of an R&D project, but it has to be adapted to different contexts. As R&D is the formal creation of knowledge, including knowledge embodied in products and processes, the measurement focus is on the new knowledge, not on the new or significantly improved products or processes resulting from the application of the knowledge. Breakdown by type of R&D is currently recommended for use in all four national sectors of performance. It is usually more easily applied to R&D in the natural sciences and engineering than in the social sciences and humanities. Three types of R&D may be distinguished: – Basic research – experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view. – Applied research – original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific practical aim or objective. – Experimental development – systematic work, drawing on knowledge gained from research and practical experience, that is directed to producing new materials, products and devices; to installing new processes, systems and services; or to improving substantially those already produced or installed [13]. Proceeding from the view stated in Frascati manual, such objects as the results of R&D, scientific and technical services, scientific and technical education and training can be considered as objects of commercialization. Research is theoretical in nature (although they are usually oriented toward solving practical problems) and are based on analytical knowledge. Developments, in essence, are applied and are based on synthesized knowledge. Technology financing is generally concerned with the process of technology and 12

innovation management as well as technology commercialization. Technology financing is defined as the process of funding innovative businesses to turn technological inventions into commercial innovations. The financing mechanisms can be seen as co-evolving with the high-tech industry because their main activities involve research and development (R&D) [14]. Technology financing plays an important role in supporting high-technology start-ups at different stages of the innovation process. The terms “technology” and “innovation” have different definitions. New science or technology can lead to an invention, though it will not necessarily have commercial viability. The term “innovation” can be explained as the successful exploitation of new ideas. Today, innovation is increasingly seen as a powerful way of securing competitive advantage and offering new ways of opening up new markets [15]. More importantly, innovation has the underlying concept of commercialization – the successful entry of a new science or technology-based product into a particular market. Many scholars see technology as supply driven or technology pushed as it was suggested by J. Schumpeter [16], where innovations are perceived as a linear progression from scientific discovery or the lab to the marketplace. However, the demand-pull or market-pull model suggests the development of innovation where the market is seen as the source of new ideas to direct R&D [17]. Technology and innovation management requires the integration of R&D management, production and operations management, marketing management, product development, and organizational development. Management of innovation is not easy because the history of product and process innovations shows examples of good ideas that failed in commercialization [18]. Technology and innovation management often includes all the activities from lab to market. In other words, technology and innovation management is concerned with a process of converting knowledge into wealth (or turning technology into profits). Technology commercialization is generally concerned with the process of converting scientific R&D into useful products or services. The marketing of technology also involves trading in the form of intellectual property (IP) or IP commercialization for diffusion in the marketplace. In other words, the commercialization strategy includes trading technology in the form of IP to gain benefits from R&D investments [19-21]. Commercialization of innovation and effectiveness of innovation seem to depend on IP protection, commercialization strategy, and industrial dynamics. The process of technology commercialization can be viewed as exploiting scientific and technological knowledge developed in academic research communities to support the development of product/service innovations. Technology commercialization could also be seen as a business venture comprising the process of obtaining new ideas, developing new innovations based on the new ideas or knowledge, and manufacturing and marketing the innovations. Similarly, Myers 13

define technology commercialization as a process including proof of concept, limited application (establishing technology as a practical solution for a niche market), and widespread application (using technology to develop products in various applications) [22]. Generally, the steps toward commercialization begin with a technology review and a market review. A technology review focuses on assessing technology through prototypes, experiments, and patents. A market review focuses on identifying the potential market as well as the barriers and opportunities for a new business. The process of technology commercialization encompasses the stages of transferring the technology from lab to the marketplace. This process attempts to bridge the technological valley of death, a metaphor for the funding gap in bringing the university research to the marketplace. The process of technology commercialization also involves mobilizing resources to accelerate technology transfer and innovation uptake by the market. D. Isabelle presents a thorough literature review of various commercialization models and their differences. Outside of the literature, this work relies on industry- related publications [23]. Early literature places high importance on the early stages of commercialization; if early process is sound then major resulting problems may be avoided. J. Casto in 1994 promotes “concept definition” as an integral part of any model. It happens separately to other operations and is an integral building block for good practice [24]. Similar to Ginn and Rubenstein’s R&D stage, the concept definition is not only for the product itself, but for the entire organization surrounding that product. This process better enables the organization to understand how a product fits its goals, not just the outside market. Casto’s separation of concurrent activities is achieved through a reiterative loop process. This loop is necessary for the concept definition to work outside of the other commercialization processes. Loop diagrams represent an organization’s ability to continually review the product concept within the larger product development process. E. Shaw’s “two-tier model of corporate entrepreneurship and innovation” furthers the loop diagram. Her strategic framework is like other models through a breakdown of the process into different stages: Discovery, Opportunity Finding, Application, and Adoption and Diffusion [25]. The strategic framework then allows separate, concurrent actions to happen along the outside of the main framework; a reiterative loop like Casto’s, offering a corporation the ability to review. Resulting from industry publications, the United States Department of Energy (USDOE) innovation process model by D.L. Rourke was created to promote the commercialization of innovative products in the US energy technology industry [26]. This model divides the commercialization process into three major steps: Innovation, Entrepreneurial, and Managerial. Each major step contains separate stages: Technical, Marketing, and Business. Table 1 shows a breakdown of the Rourke model with these steps, stages and the required actions.

Table 1 - Rourke model breakdown [27]

Stage Step Action Technical Product Definition Working Model Engineering Prototype/Test & Refine Marketing Preliminary Market Definition Innovation Market Analysis Product definition to Identify Market Barriers engineering prototype Business Define Development and Intellectual Property Strategy Find Money, File Patents Establish Intellectual Property, License Plan

Technical Production Prototype Limited Production Full Production Initial Growth Marketing Full Market Analysis and Plan Establish: Customers, Distribution, and Endorsements. Publish Expand: Distribution, Competitor Analysis, Response Entrepreneurial Increasingly Complex Business Find Big Money, Complete Business Prototype to production Plan, Form Business, Meet regulations, Arrange Insurance Find Big, Big Money, Start-up Business, Build Plant, Buy Equipment, HR Training, Arrange: Record Keeping, Purchasing, Transportation Monitor Costs, Finance Cash Flow, Refine Production Increasingly Complex

Managerial Technical Product Improvement, New Products Marketing Complexities Intensify Production for major market penetration Business Complexities Intensify

In Goldsmith’s commercialization model, Innovation stage starts early in the commercialization process and accomplishes the design of an innovative product or process, market analysis and the strategic business plan. The Entrepreneurial stage then finalizes all essential elements of the commercialization plan including: product design, the structure of the supply chain, the pricing and promotion plan, the securing of financing and the satisfaction of regulatory requirements. The Managerial stage is the final stage of the commercialization process and executes the initial production, distribution, sales and installation of the product. Breakdown of stages is shown in table 2.

Table 2 - Goldsmith’s commercialization model [28]

Stages Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Investigation Feasibility Development Introduction Growth Maturity Technical Technical Technical Engineering Pre-production Production Production analysis feasibility prototype prototype Step 13 support Step 1 Step 4 Step 7 Step 10 Step 16 Marketing Market need Market study Strategic Market Sales and Market assessment Step 5 Marketing plan validation Distribution diversification Step 2 Step 8 Step 11 Step 14 Step 17 Business Venture Economic Strategic biz Business start- Business Business assessment feasibility plan up growth maturity Step 3 Step 6 Step 9 Step 12 Step 15 Step 18

Each phase is broken into three phases: Technical, Marketing, and Business. Unlike the model of Rourke, Goldsmith uses distinct actions to define the process. He places details on linked, sequential website pages. Each page’s description provides actions, critical term definitions and milestones for the framework. For example, the web page for Innovation – Technical – Technology Concept Analysis defines the activity as “The process of determining that the physical features of the concept are potentially achievable and operational”; establishes the objective as “to succinctly define the concept, to assess the implementation potential of the technical aspects of the concept, and establish the uniqueness of the technical concept”; then asks the following questions, among others: - Have you completed a technology database search? - Have you researched related patents or copyrights? - Have you researched technical journals and trade magazines? Once answers are given correctly, we can move to the next stage. Randall Goldsmith’s commercialization model is a road map of strategies and actions for the commercialization of advanced technologies. The model breaks down into twelve activities that describe the process to maximize the chances for successful commercialization. Each sequence has a technical stage, a market stage and a

business stage. It follows a quite specific, ordered process as shown in Table 3.

Table 3 - Goldsmith’s commercialization model in stages [29]

Concept Technical Market Business Phase 1 2 3 4 Stage 1. Technical Analysis-Step 1. Market Needs Venture Assessment-Step Investigati (New, unique& technically Assessment-Step 2. 3. on feasible) (Product meets clear (Profitable product or Define concept market demand) venture opportunity) Confirm critical Conduct market overview Estimate profit potential assumptions Identify pricing structure Conduct self, enterprise, Survey state of the art market barriers commercialization Identify critical barriers risks assessments Evaluate applicability distribution channels Identify professional Determine technology trends and competitors needs and Patent, copyright, patent Background research capital needs search, license agreement materials Preliminary cost and revenue estimate

Developm Technical Market Business ent Phase Stage 2. Technically feasibility- Market Study-Step 5. Economic Feasibility- Feasibility Step 4. (target customers, market, Step 6. (Total cost associated to pricing) (Returns justify produce) Identify quantity investment) Develop working model Market size Formulate financial Test technical features Customers assumptions Assess preliminary Volume Develop pro forms producibility Prices Identify seed capital Conduct manufacturing Distribution Form advisory team assessment Competitors Financial model Assess safety & Primary market research represents business environmental features opportunity Finalize design Product working model

Continuation of table 3

1 2 3 4 Stage Engineering Prototype- Strategic Market plan – Strategic business plan- 3.Develop Step 7 Step 8. (detailed profile of Step 9. (final financial ment (Prototype that exactly target market) needs & seed capital) represents product) Identify marketing team Decide venture or license Develop prototype Define target market Finalize intellectual Identify materials and Select market channel property processes Field test Identify management Conduct tests Final based on input - team Develop manufacturing suppliers, market & Select organization methods customers structure Materials/functionality Write business plan prototype of end product The business plan

Stage Pre-production prototype- Validation-Step 11. Business start-up -Step 4.Introduct Step 10. (production, (make sales) 12. ion performance & reliability) Establish market (operational management Develop production relationship team) prototype Conduct limited sales Establish business Determine production Analyze sales function process Survey customers Hire staff Select manufacturing Refine marketing plan Execute contracts equipment Sales Secure first-stage Design field support financing system Demo product features A limited production

Commerci Technical Market Business al Phase Stage 5. Production-Step 13. Sales and distribution step Business Growth-Step Growth (Process dependable, 14. 15. (monitor objectives reliable & optimized) (Market share growth) to business plan) Prepare commercial design Expand distribution Monitor enterprise Establish quality control Analyze competitor position Construct facilities response Hire and train personnel Conduct full production Assess customer Execute contracts Finalize internal satisfaction Arrange financing distribution Assess distributor Institute vision, mission system satisfaction and Production Refine product features management policies Growing sales Increasing revenues

Continuation of table 3

1 2 3 4 Stage 6. Production Support-Step Market Diversification- Business maturity-Step Maturity 16. Step 17. 18 (Support of product) (Identity next generation (generating) Maximize production products) Establish SWOT process Establish after-market Develop market retention Invest profits support, Establish market scan Monitor product life repairs and spares Identify new markets cycle Warranty service Identify new products Monitor business trends Implement training New products Monitor management program technologies Maximum production Implement innovations Profits

The Goldsmith’s model was designed to provide a mechanism for commercializing new products and processes i.e. totally new ideas. This framework is not suited to commercialization of incremental innovation. One can assume that this framework was designed for new product introduction and new company creation which is most often reflective of emerging and disruptive technologies. They account for a very small percentage of total innovation where most of innovations involve adopting or adapting technologies [30]. A disadvantage of the Goldsmith model is its lack of flexibility in terms of feedback, since it is linear by nature. For example, in the case of technology adoption, it is not essential to go through the development phase, yet this model does not lend itself to interchanging the sequences in accordance with operational requirements or the stage of development of the product. For this purpose, the functional models seem more suitable. The linear model of Andrew and Sirkin shows a series of sequences in the commercialization process (figure 1). In the two initial phases related to idea generation and commercialization, investment in the project is deficient. In this model, the transition period between these first two phases is decisive for profitability and successful marketing.

Cumulative Cash Speed (time Scale (time to market) to volume)

Time Launch

Support (post launch) investment

Idea Commercialization Realization generation

Figure 1 - Commercialization model of James Andrew and Andrew Sirkin [31]

The time to volume correlates to the time needed to reach a profitability part after the product is launched onto the market. If product or service quickly reaches the optimal production scale, it will be able to generate profits, and market response will determine commercial success or failure. The third phase of realization emphasizes the profitability of investments. Commercial success can also be measured by this type of indirect benefits. The model of Rothwell and Zegveld shows that commercialization is an integral component of the innovation process (figure 2). The main idea of this model is related to the interaction of its components. According it, combination of market needs (market pull) and technological opportunities (market push) gives rise to innovation. Similar to Goldsmith’s model, this model is sequential, but also allows feedback between components.

New needs Needs from society and market

Development Prototype Manufactur Commerciali Market Ideas (R&D) production ing zation, Sell

New State of Art technologies and production Technology

Figure 2 - Commercialization model of Rothwell and Zegveld [32]

The R&D and commercialization components interact to create technological opportunities and satisfy the demands of the market. Chiasa V. noted that linear models dominated during the 1960s until the early 1970s; then there were linear models with feedback, called interaction and linkage models, that dominated from 1970s until the mid-1980s [33]. After that, models emphasizing the sequential process of innovation and commercialization were replaced by models in which function takes precedence over linearity (from the 1990s to the present). In this generation of models, the R&D, commercialization and financing functions interact in no particular order. Throughout this process, suppliers and customers, upstream and downstream in the process, provide continual feedback on the functions. This type of model also assigns a greater role to horizontal (external) partnerships. Gully’s commercialization model is an example of non-sequential process [34]. Its “life cycle” commercialization model offers a breakdown of only the early stage of the commercialization process and no technical side is presented. Gully model uses a reiterative-loop diagram to show the following sequence: Idea, Protection and Development of the Idea, A Decision to Sell or Not, Growing the business, and Beginning the Process again. What underlies more effective strategy depends on the commercialization environment. This idea is reflected in Gans and Stern’s rubric, which defines four distinct environments represented in Figure 3. Starting with the “Attacker’s Advantage”, IPR and CA are both considered weak. This occurs when legal means for protecting the entrant’s IPR are either unavailable or considered ineffective, and the lack of CA is not a hinder to entry [35]. Industries in this quadrant are ones in which technological competition determines competitive advantage and that advantage is often short lived as new entrants continually threaten leadership positions [36].

Yes Greenfield competition Ideas factory

Excludable

technology

Reputation based ideas No Attacker’s advantage trading

No Yes

Incumbent complementary assets add value

Figure 3 - Commercialisation environment according to Gans and Stern [37]

Belying the idea that commercialization of innovation is a simple construct are the multiple definitions, conceptualizations, and operationalization that have emerged across studiеs. Commеrcialization of innovation rеfеrs to thе activitiеs rеquirеd for introducing an innovation to markеt. Еxpеrts mеasurеd commеrcialization of innovation as thе еarly indication of commercialization, operationalized as thе first salе of thе targеt product or sеrvicе. Howеvеr, whеn an innovation is introduced in thе markеt, only tеchnology еnthusiasts typically procure in thе еarly stagе, and such еnthusiasts comprisе lеss than thrее pеrcеnt of thе markеt. Reaching thе mainstream markеt in this mannеr is oftеn difficult, and thе thrеshold for "successful" commеrcialization of an innovation will likеly liе somewhere between these two extremes - single sale on the one hand and saturating the mainstream market on the other. We therefore define the ability to commercialize an innovation as a firm's capacity to bring a product into a market and reach the mainstream of the market beyond the initial adopters [38]. A comprehensive look at all of the literature and industry-based commercialization models offers differing processes for launching a product to market. University science and technology research system refers to the system of complementary university resources that together act as inputs into different types of productive processes (research, education, training, and socialization) that generate a wide range of socially valuable research outputs (research results and human capital). General structure of university science and technology research system and its outputs are shown in Figure 4.

University S&T Research System Complementary capital resources aggregated within and used collectively and continuously: - human capital Inputs - governance capital - physical capital - intellectual capital - financial capital

Production process Production - Research processes processes - Educational processes - Training processes - Socializing processes

Human capital: people - Skilled labour - Research community members Outputs Intellectual capital: research results - Basic / applied - Commercial / noncommercial

Figure 4 - Simple view of university science and technology research system and its outputs [39]

Innovation protection also emerged as a theme within the commercialization of innovations. While most of the articles concentrated on means of innovation protection, such as trademarks, patents and copyrights many linked protection with other themes such as innovation sources, innovation type, development, and deployment. For an easier assimilation of the six themes that lead to the commercialization of innovations, following figure should be created (figure 5). It shows how the six themes fit into the main activities of discovery, development, and deployment that broadly describe the process of innovation commercialization. Depending on the scope of an innovation, a manager of a project can simply start

from deployment of a prototype, seek customer feedback, and develop the innovation.

Entrepreneurial Activities to Commercialize Innovations

Discovery: Market Development: Develop and Deployment: Sell and recognition for Innovation Manufacture the innovation Distribute the Goods into goods

Sources of Types of Market entry Protection Development Deployment innovations innovations

Organizational Product versus Entry-time Effectiveness Design and Launch time Creativity Process Assessment & of Protection manufacturing First Mover in house vs. Research and Radical versus Advantage Protection collaboration Selling and/or Development incremental versus Licensing and Competence Process of Compatability Alliances and Agricultural / developing the Analysis innovation Collaborations component- Pricing

Launch pad: Innovation Competence spinout, Distribution Engines Enhancing subsidiary, or versus joint venture Technology competence Marketing Clusters destroying innovations Technology Spillovers

Figure 5 – Entrepreneurial steps to commercialization of innovations: themes from the extant literature [40]

Commercialization is an attempt to profit from innovation by incorporating new technologies into products, processes, and services and selling them in the marketplace. For many new technologies, commercialization implies scaling up from prototype to volume manufacturing and committing greater resources to marketing and sales activities. In industries such as pharmaceuticals and aircraft, commercialization is also contingent on receiving product approval from relevant organizations. Typically, the cost of commercialization activities far exceeds that of R&D. Many innovations are developed to the prototype stage or are produced in small volumes, but are not fully commercialized because the financial and managerial resources required are too great. Such innovations are often licensed to another firm, sold off in the form of a divestiture, or simply passed over [41]. The commercialization of technology presents significant challenges and the likelihood of success is often overestimated by those engaged in research with little commercial experience. In Kazakhstan and other countries with economies in transition, this is a particularly serious problem, given the share of research carried out in public institutions. Increasing awareness of pitfalls and the involvement of partners with a commercial understanding in research decisions is important to assess 24

and respond to market needs.

1.2 The development of green economy concept in the world and theory of green technologies Though environmental problems have challenged humankind since time immemorial, policy scientists have given serious attention to environmental issues only since the 1960s. A series of industrial accidents and media events such as the publication of Rachel Carson’s Silent Spring in 1962 highlighted the environmental consequences of unfettered industrialization [42]. Responding to public concerns, from the 1970s onwards, the United States Congress has enacted a series of laws stipulating environmental standards and technologies for firms. These policies were often backed by zealous monitoring and enforcement. In the 1980s the policy community began articulating their dissatisfaction with the inefficiencies of command and control policies, specifically questioning the capacities of governmental agencies to implement detailed regulations. Since the late 1980s, particularly after the Rio Summit of 1992, policymakers appear to have accepted that governmental coercion alone will not be sufficient in forcing firms to adopt environmentally sustainable policies; “right incentives” must be provided [43- 47]. More recently, policymakers are beginning to play down their adversarial role, and are highlighting the potential gains of collaborating with firms in developing and implementing environmental policies. Today the task of ensuring the sustainable development of human civilization is being viewed as the guiding principle of the life of the economy and of the society in general. UNEP defines a green economy as “one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities” [48]. The OECD has defined green growth as follows: “Green growth is about fostering economic growth and development while ensuring that the natural assets continue to provide the resources and environmental services on which our well- being relies. To do this, it must catalyze investment and innovation, which will underpin sustainable growth and give rise to new economic opportunities” [49]. The Earth Summit Rio 1992 provided the vision and important pieces of the multilateral machinery to achieve a sustainable future. Nevertheless, many authors around the world, such as environmentalists, scientists, politicians, economists have made a huge contribution in attempting to create a more sustainable future. For example, A. Leopold published his well-known book in 1949, wherein the main message is that the land is not there to serve us, but that we need to live in community with the land [50]. P.L. Ehrlich states that population growth and environmental deterioration are inextricably linked, and proposes four action items to address the crisis. He also accentuated that gargantuan efforts are necessary to increase food production and feed all human-being [51]. R.Buckminster Fuller argues that short-sightedness and siloed thinking are the 25

main causes of impending ecological crisis. His book is a remarkable for its overall message as for its elaboration of concepts that were ahead of their time. Also, he suggested considering the planet as a closed system, using a metaphor “Spaceship Earth” to indicate it, so there is no “away” [52]. In 1972, group of authors published a commissioned report to the Club of Rome, which is known as a book “The limits to growth”. Their book was revolutionary, and reports 13 scenarios for the future based on a computer simulation model developed at MIT. Despite variations, all of them produce a sobering conclusion, namely that “the behavior mode of the system is clearly that of overshoot and collapse. Authors claim that growth trends in world population, industrialization, pollution, food production and resource depletion suggest that biophysical limits will be reached sometime within the next 100 years [53]. One of the turning points in the sustainable development is the publication of the Brundtland report, also known as “Our common future”. This report introduces the three fundamental components of sustainability – environment, economy and society – and highlights what is needed in each area to achieve sustainable development. It makes it clear that we cannot achieve success in one of these areas at the expense of areas. Being considered one of the first comprehensive assessments of both the social, environmental and economic problems facing the world, one should admit that the UN Conference in Environment and Development held in Rio de Janeiro in 1992 was a direct outcome of this Brundtland Report [54]. Critically, the green economy concept is more than merely “greening” economic sectors; it is a means of achieving the sustainable development imperatives of: - Improving human well-being: securing better healthcare, education and job security; - Increasing social equity: ending persistent poverty and ensuring social, economic and financial inclusion; - Reducing environmental risks: addressing climate change, ocean acidification, the release of hazardous chemicals and pollutants, and excessive or mismanaged waste; and - Reducing ecological scarcities: securing access to freshwater, natural resources and improving soil fertility. In most countries, and Kazakhstan is not an exception, the transition to a green economy requires changes to existing governance approaches, institutions, and markets. This transition will take different paths in different countries depending, inter alia, on a country’s domestic context, natural capital, and socio-economic priorities Doubtless, Kazakhstan has a distinct understanding of the state management assuming that promotion of the green economy is the main way and the only one in maintaining a sustainable development. President of Kazakhstan N.A. Nazarbayev in the message "Strategy" Kazakhstan-2050": new political course of established state” indicates 10 global challenges that the twenty-first century poses to humanity, as well as measures taken 26

in Kazakhstan to address them. In addition, he instructed the Government to revise the legislation on copyright and patents, as well as an analysis of all previously issued patents and registered copyrights for possible commercialization [55]. We considered the most influential books about sustainability. They gave us an information on the pressing social and environmental challenges we face as a society. These are the top 50 sustainability books as voted for by the University of Cambridge Programme for Sustainability Leadership's alumni network of over 3,000 senior leaders from around the world. In addition to profiles of all 50 titles, many of the authors share their most recent reflections on the state of the world and the ongoing attempts by business, government and civil society to create a more sustainable future (table 4).

Table 4 - Most influential books about sustainable development in chronological order

Period Title Author Year of publication 1 2 3 4 1940- A Sand County Almanac Aldo Leopold 1949 1960 1961- Silent Spring Rachel Carson 1962 1970 Unsafe At Any Speed Ralph Nader 1965 The Population Bomb Paul L. Ehrlich 1968 Operating Manual for R. Buckminster Fuller 1969 Spaceship Earth 1971- The Limits to Growth Donella H. Meadows, Dennis L. 1972 1980 Meadows, Jørgen Randers and William W. Behrens Small Is Beautiful E.F. Schumacher 1973 Gaia James Lovelock 1979 1981- The Turning Point Fritjof Capra 1982 1990 Our Common Future (‘The World Commission on 1987 Brundtland Report’) Environment and Development The Dream of the Earth Thomas Berry 1988 A Fate Worse Than Debt Susan George 1988 Staying Alive Vandana Shiva 1989 Blueprint for a Green David Pearce, Anil Markandya 1989 Economy and Edward B. Barbier For the Common Good Herman Daly and John B. Cobb Jr 1989 Human Scale Development Manfred Max-Neef 1989 (1989) 1991- Changing Course Stephan Schmidheiny and 1992 2000 Business Council for Sustainable Development (BCSD) The Ecology of Commerce Paul Hawken 1993

Continuation of table 2

1 2 3 4 Maverick Ricardo Semler 1993 When Corporations Rule the David C. Korten 1995 World

Biomimicry Janine M. Benyus 1997 Cannibals with Forks John Elkington 1997 The Hungry Spirit Charles Handy 1997 Banker to the Poor Muhammad Yunus 1998 The Crisis of Global Capitalism George Soros 1998 Factor Four Ernst von Weizsäcker, Amory 1998 B. Lovins and L. Hunter Lovins False Dawn John Gray 1998 Development as Freedom Amartya Sen 1999 No Logo Naomi Klein 1999 Natural Capitalism Paul Hawken, Amory B. Lovins 1999 and L. Hunter Lovins Business as Unusual Anita Roddick 2000 The Mystery of Capital Hernando de Soto 2000 2001- The Civil Corporation Simon Zadek 2001 till now Fast Food Nation Eric Schlosser 2001 The Skeptical Environmentalist Bjørn Lomborg 2001 Cradle to Cradle William McDonough and 2002 Michael Braungart Globalization and its Joseph E. Stiglitz 2002 Discontents The Corporation Joel Bakan 2004 Presence Peter Senge, C. Otto Scharmer, 2004 Joseph Jaworski and Betty Sue Flowers The Fortune at the Bottom of the C.K. Prahalad 2004 Pyramid The River Runs Black Elizabeth C. Economy 2004

Capitalism as if the World Matters Jonathon Porritt 2005 Capitalism at the Crossroads Stuart L. Hart 2005 Collapse Jared Diamond 2005 The End of Poverty Jeffrey D. Sachs 2005 The Chaos Point Ervin Laszlo 2006 Heat George Monbiot 2006 An Inconvenient Truth Al Gore 2006 When the Rivers Run Dry Fred Pearce 2006 The Economics of Climate Nicholas Stern 2007 Change Note – Compiled by author based on [56-65]

Green development is a new form of development that uses an integrated approach toward economics, society, and ecology. It is characterized by increasingly rational consumption, low consumption, low emissions, and preserving ecological capital. Based on green innovation, its fundamental aim is the accumulation of green wealth and improved human welfare to achieve harmony between humanity and nature. Green development is the logical result of the scientific outlook of development. According to A. Hu, green development constitutes a profound criticism of, and fundamental break with, traditional “black” development, and inherits and transcends the concept of sustainable development. Sustainable development, as a correction to the excesses of more than 200 years of capitalist industrialization, cannot address the fundamental essence of this developmental paradigm, and so cannot fundamentally change it. The pattern of high consumption and over-consumption is rigidly locked into the social fabric of developed countries, making it very difficult to reduce per capita resource consumption and pollution emissions. However, by adopting green development, developing countries may find a new way to achieve green innovation and avoid repeating the mistakes of the traditional form of development. Sustainable development requires people to passively adapt to the constraints of nature, whereas green development requires humanity to seize the initiative and launch programs that are in harmony with nature. Sustainable development is based on anthropocentrism, whereas green development is an integrated system of humanity and nature; sustainable development is based on convergence, whereas green development can support expansion. Sustainable development means not passing on a depleted environment to future generations, but green development means “planting trees now to provide shade for future generations,” i.e., adding more inputs and passing on enriched ecological assets. “The implementation of green development depends on several different factors. First, green development needs to create a road leading to an ecology-oriented civilization. Traditional western-style development, characterized by high consumption, pollution, and emissions, is fundamentally driven by capital and built on free competition and self-interested markets; sustainable development is a partial amendment of this traditional form of development, whereas green development marks a fundamental change from the traditional developmental paradigm. Green development is characterized by self-discipline and based on a green market and reasonable consumption. Therefore, traditional paths of development, whether based on the doctrines of Adam Smith, Keynesianism, or monetarism, still focus on adjustments to government and the market. In contrast, green development lies outside the traditional model of development and focuses on the processes of humanity and nature, moving from a wantonly predatory approach to nature to harmony and self-discipline, and from previous economic centrism and the primacy of pure economic interests to comprehensive eco-socio-economic integration and respect for society, humanity, and nature. Thus, economic, social, and natural systems form a united and coordinated trinity on this road to development” [66]. 29

Green development is based on green system theory, i.e., the interdependence and mutual influence of humanity and nature. First, green production theory means saving and investing in resources, improving utilization efficiency, clean production, and the repeated use and recycling of materials. Second, green consumption theory means developed countries moving from over-consumption to moderate consumption, and developing countries moving from low consumption to reason-able and green consumption. Third, green development theory means the promotion of comprehensive and coordinated development between humanity and nature, and between people, as well as permanent and fair human development. Equity is the core value of green development, not just in one area, but comprehensively, including at least four main areas: economic, social, natural, and international equity. International inequity, the largest inequity, has historically exacerbated the other three areas, a fact that has been intentionally ignored and neglected by western countries. “Second, green development is a road of innovation and leaping ahead. Traditional “black” development relies mainly on predatory resource consumption, wanton pollution, and emission of greenhouse gases. It is characterized by pollution first, treatment later; destruction first, repair later; and emissions first, reduction later, and is locked into rigid patterns of excessive consumption, waste, and abandonment. In contrast, green development gives full play to people’s initiative; it harnesses the macro-guidance of national strategy, the enthusiasm of local innovation, and the subjectivity of enterprise-level innovation. It accelerates the transformation of economic development and changes the original development path to one that tunnels through Kuznets’ curve to achieve a society characterized by high income per capita and low inequity. Green development aims to achieve development decoupled from non-renewable resource consumption, pollutant emissions, and greenhouse gas emissions and to substantially reduce resource, environment, and ecology costs, thereby establishing a new era of sustainable development” [67]. Finally, green development entails a new set of values and a new development philosophy based on the scientific outlook of development. Modern western economic theory is based on an individual making rational decisions; it pursues increases in the speed and volume of material production in terms of value and derives economic strategies and policies based on consumerism, which leads inevitably to development characterized by high consumption, depletion, and emissions. Over the past 200 years, the industrial revolution guided by western economic concepts has greatly enhanced human material life; however, it has also caused great harm to the living environment. The green development concept, in contrast to the traditional “black” development concept, is a blend of eastern and western cultures, and represents a new developmental paradigm. The green development concept does not focus on the pursuit of rapid material development and boosting volumes and values, it focuses on the quality and cost of development, ecological construction, environmental protection, ecological asset values, and carbon decoupling. 30

“During the development of human society, scientific and technological progress and economic changes go through a “revolutionary” period that has profound effects on human society, the economy, politics, and culture, and these ultimately drive the advance of human civilization. Since the mid-eighteenth century, because of three industrial revolutions, human society has developed toward industrialization and modernization. Zhang Peigang wrote an article in 1949 titled “Agriculture and Industrialization: Exploration of Industrialization Issues of an Agricultural Country” in which he stated that through “combinations of changes in a range of essential production functions” in the national economy, industrialization can be launched to promote long-term sustained economic growth and changes in social productivity, thus fundamentally changing the socio-economic structure” [68]. Different types of industrial revolutions result from different combinations of strategic production functions. It is commonly accepted that there have been three industrial revolutions, in which the new combinations of strategic production functions involved changes in the following: population size, composition, and geographical distribution; major resources and energy; social system; production technology; and cultivation of entrepreneurial innovation. Therefore, to launch a new industrial revolution, we must promote changes in the strategic production functions. The first industrial revolution created the “steam age” (1760–1840) and marked the transition from agricultural to industrial civilization; it was a major turning point in the history of human development. Industrialization is, in essence, a qualitative change in the combination of strategic production functions, which initially used coal, rather than muscle power, as the major energy source, thus starting the process of carbon emissions and global warming. After that, in the “electric age” of the second industrial revolution (1840–1950), heavy industries such as electricity, steel, railways, chemicals, and automotive arose and used oil as the new energy source. This revolution promoted the rapid development of transportation, both within and between countries, and a globalized international political and economic system gradually emerged. After two world wars, the third industrial revolution gave rise to the “information age” (1950–2000). With further maturing of global political and economic structures, an unprecedented level of development of human civilization was achieved. However, over the course of more than 200 years, humanity has undertaken unprecedented plunder and destruction of natural resources. In the previous three industrial revolutions, technological innovations continued to promote changes in the combination of strategic production functions, but the mechanism did not reflect equity between humanity and nature or between countries. On the contrary, because of “market failure” caused by externalities, natural resource exploitation and the economic exploitation of southern countries by northern countries have become increasingly serious as technology has advanced. This process has ultimately led to a global economic crisis and the double crises of the ecological environment and climate change. Humanity is now entering the fourth industrial revolution, the green industrial 31

revolution (table 5). One can see the green industrial revolution as follows: a series of strategic production functions undergo a transition process from natural to green input elements, in which green production gradually becomes dominant and permeates all of the society. The consequence of this process is that economic development becomes gradual and is decoupled from natural elements. The green revolution involves the following processes. Green industrial revolution is a process in which green elements replace traditional “black” components, and green processes arise from combinations of these elements. From the first to the fourth industrial revolutions, the input elements have changed and become recombined. The new features supersede traditional aspects, and the green industrial revolution introduces merely green production elements (including physical capital and technological capital) into strategic production functions to achieve a substitution of natural elements and the greening of element combinations. The replacement of natural elements and the gradual achievement of a dominant position by green production elements will ultimately result in the decoupling of economic growth from the consumption of natural elements.

Table 5 - Main features of the four industrial revolutions (1750–2050)

Dimensions First Second Third Fourth 1 2 3 4 5 Period 1750-1850 1850-1950 1950-2000 2000-2050 Total world 0.8-1.1 1.1-2.5 2.5-6.1 6.1-9.3 population World GDP 0.5-0.7 0.7-5.3 5.3-36.7 36.7 (trillion USD) Leading United Kingdom United States, United States, China, United countries United Kingdom, Japan, Europe, States, European former Soviet former Soviet Union, Japan, Union Union India Following United States, France, Japan, China, India, Other developed countries France, Germany Australia, Taiwan, South countries Taiwan, South Korea, Hong Korea, Hong Kong, and Kong, and Singapore Singapore Leading A substantial Manufacturing, Rise of the Rise of service industries increase in communications, information sector, knowledge agricultural transportation economy and a economy, and productivity, dominant service green economy rapid sector development in manufacturing Main Steam engine, Variety of new ICT and nuclear Green energy, technologies cotton textiles, products and technology technology, and porcelain consumer goods building and transportation 32

Continuation of table 5

1 2 3 4 5 Economic Emergence of Emergence of Rapid Multinational organizations commercial large enterprises, development of companies, SMEs, companies international multinational network economy began companies and companies, virtual close cooperation SMEs companies Main energy Coal Oil, natural gas Oil, natural gas, Rapidly rising nuclear energy proportion of non- fossil energy, declining share of fossil energy Energy Low A small increase Increasing Substantial utilization rate increase Pattern of Upward trend Upward trend High and Moderate and consumption excessive rational consumption consumption Quality of Beginning of Continued Serious First steps in environment deterioration deterioration deterioration improvement Carbon Beginning to Growth Rapid growth Beginning to emissions grow decouple or even decline The gap Beginning to Continued Rapid expansion Beginning to between expand expansion narrow humanity and nature Note – Compiled by author based on [69-70]

The "technology" term is about the application of knowledge for practical purposes. The "green technology" field covers an evolving group of methods and materials, from techniques for generating energy to non-toxic cleaning products. The current expectation is that green technologies will bring innovation and changes in daily life. In these early stages, it is impossible to predict where they may eventually lead. The main goals which give information about developments in this rapidly growing field are shown in Table 6.

Table 6 - Goals of green technology development

Goals Description 1 2 Sustainability meeting the needs of society in ways that can continue indefinitely into the future without damaging or depleting natural resources. In short, meeting present needs without compromising the ability of future generations to meet their own needs. "Cradle to cradle" ending the "cradle to grave" cycle of manufactured products, by creating design products that can be fully reclaimed or re-used.

Continuation of table 6

1 2 Source reduction reducing waste and pollution by changing patterns of production and consumption. Innovation developing alternatives to technologies - whether fossil fuel or chemical intensive agriculture - that have been demonstrated to damage health and the environment. Viability creating a center of economic activity around technologies and products that benefit the environment, speeding their implementation and creating new careers that truly protect the planet. Note – Compiled by author based on [71]

By strict definition, green technology refers to the use of technology to come up with features, functionality and cost savings that would benefit the environment. Right now, green technology can mean very different things, such as waste management, alternative power, air and water purification, renewable energy and energy conservation. In truth, however, all green technologies fall under two very broad classifications: 1) Technologies that help you deal with global warming and; 2) Technologies that help make growth sustainable. Technology for sustainable growth includes processes such as recycling and resource management. Green technology is also known as clean technology or environmental technology. Green technology is an enclosed term. It deals with using science and technology to conserve the environment. A lot of techniques fall under this term including the use of green chemistry, environmental monitoring, and even more. These things have to offer with ensuring that the environment remains protected. This technology can be used to breathe life back into a broken ecosystem. Some of the factors that contribute for the green technology are as follows: − Recycling. Green technology helps manage and recycle waste materials. Green technology allows using the recycled products in an efficient manner. This technology can be used for waste management, waste materials incineration, and more. − Cleansing of water. Green technology purifies water. The shortage of pure drinking water is a significant matter. Using various technologies, a lot of campaigns have recently managed to provide individuals with clean drinking water. − Cleansing the environment. Dealing with carbon emission is yet another main thing, while the human being race is increasing in conditions of various technologies. Green technology helps you to reduce carbon dioxide emission and purify the air. It allows people and other living things to breathe properly. − Conserving energy. Energy is being conserved by using such technology. Alternatives to devices that use a lot of electricity or fuel are being introduced to the population. People using environment-friendly devices and appliances is motivated. 34

− Rejuvenating ecosystems. Green or Clean technology is also being utilized to breathe life into ecosystems which may have suffered a lot of destruction due to human engagement. Using this technology, tress is replanted, waste is handled and recycled. This ensures that the damaged environment can start out again, and this time stays conserved. The distinguishing feature of a “green” technology is that it generates or facilitates a reduction in environmental externalities relative to the status quo. This reduction can be in production (e.g. SO2 scrubbers or windmills) or in consumption (e.g. efficient appliances or hybrid cars). Some green technologies impose both new capital costs and increased operating costs on their users, so that their adoption occurs only because the resulting reduction in the externality is desired or required. In other cases, the reduction in pollution is associated with more efficient use of material and/or energy inputs, so that operating costs are reduced along with the reduction in pollution. Because of this, some studies and public advocacy claim that large “free lunches” or even “paid lunches” are to be had through wider adoption of existing technologies that would both reduce environmental impacts and save money for the adopters [72]. Economists tend to be sceptical of such claims, emphasising that the analyses frequently ignore aspects of consumer preferences and/or costs beyond the obvious installation costs that must be borne by adopters [73]. It is often difficult to distinguish empirically the extent to which the barriers to more widespread adoption are real social costs versus market failures [74]. As has been widely recognized, long-term sustainable economic growth can only be achieved at the global level through the development, diffusion, and deployment of green or environmentally sound technologies (ESTs). Though the process of developing, diffusing, and deploying technologies is complex and many- faceted, one thing is clear: A key first step in the process is determining which green technologies exist and who the major players in this field are. Armed with this knowledge, scientists and engineers as well as decision-makers in government and industry can more effectively plan research and development activities, forge strategic partnerships, and carry out technology transfer, as necessary. The “IPC Green Inventory” was developed by the IPC (International Patent Classification) Committee of Experts to facilitate searches for patent information relating to so-called Environmentally Sound Technologies (ESTs), as listed by the United Nations Framework Convention on Climate Change (UNFCCC). ESTs are currently scattered widely across the IPC in numerous technical fields. The Inventory attempts to collect ESTs in one place, although it should be noted that the Inventory does not purport to be fully exhaustive in its coverage. ESTs are presented in a hierarchical structure in Table 7 and it was approved by WIPO (World Intellectual Property Organisation). It should be noted that each EST and its corresponding IPC place do not necessarily coincide, and that the EST may represent a subset of the corresponding IPC place.

Table 7 - “IPC Green Inventory” according to WIPO [75]

Field / Subfield ALTERNATIVE ENERGY PRODUCTION Bio-fuels Integrated gasification combined cycle (IGCC) Fuel cells Pyrolysis or gasification of biomass Harnessing energy from manmade waste Hydro energy Ocean thermal energy conversion Wind energy Solar energy Geothermal energy Other production or use of heat, not derived from combustion, e.g. natural heat Using waste heat Devices for producing mechanical power from muscle energy TRANSPORTATION Vehicles in general Vehicles other than rail vehicles Rail vehicles Marine vessel propulsion Cosmonautic vehicles using solar energy ENERGY CONSERVATION Storage of electrical energy Power supply circuitry Measurement of electricity consumption Storage of thermal energy Low energy lighting Thermal building insulation, in general Recovering mechanical energy WASTE MANAGEMENT Waste disposal Treatment of waste Consuming waste by combustion Reuse of waste materials Pollution control AGRICULTURE / FORESTRY Forestry techniques Alternative irrigation techniques Pesticide alternatives Soil improvement ADMINISTRATIVE, REGULATORY OR DESIGN ASPECTS Commuting, e.g., teleworking, etc. Carbon/emissions trading, e.g. pollution credits Static structure design NUCLEAR POWER GENERATION Nuclear engineering Gas turbine power plants using heat source of nuclear origin

To assist in the retrieval of information relevant to specific fields of technology, including green technologies, patent information is organized according classification schemes such as the International Patent Classification (IPC) developed by the World Intellectual Property Organization (WIPO) and used by over 100 patent offices worldwide. The IPC system divides all fields of technology into hierarchical sets of sections, classes, subclasses and groups. It is an indispensable tool for industrial offices, in conducting searches to establish the novelty of an invention, or to determine the state of the art in a area of technology. The IPC is also used by industry to search patents and to find technological and business-related information to aid research and development and find potential partners [76]. The green development system is based on the economic, natural, and social systems and emphasizes the full, fair, harmonious, and sustainable development of the three systems. Going from “black” to green development entails the comprehensive transformation of the economic–natural–social system, with the economic system moving from “black” to green growth, the natural system moving from ecological deficit to surplus, and the social system moving from unfairness to fairness. Green development is the intersection and union of two or all three aspects, i.e., of green growth, green benefits, and green wealth, and the ever-expanding process represents continuous green development (figure 6). This is called the three circles model of green development.

Economic system

Green growth

Green Green benefits wealth

Natural system Social system

Figure 6 - Three circles model of green development [69, p. 39]

In the green development system, the green economy, green benefits, and green wealth are not isolated and fragmented, but are interrelated, mutually restrained, and interpenetrating. The green development system is dynamic and includes the creativity of the economic system, the vigor of the social system, and the vitality of the natural system. Green development is an open system, and it maintains close contact with the outside world through material and information flows; it mutually interacts with the huge positive externality of the outside world.

1.3 Commercialization of green technologies as an emerging branch of scientific interest Achievement of environmental objectives, and minimization of the cost of such achievement, are dependent on the creation and diffusion of new, environmentally more benign technologies. Market failures with respect to technological change are conceptually distinct from environmental externalities, meaning that deployment of new environmentally beneficial technologies suffers from a “double externality” that makes it an important subject for public policy. Although major engineering disciplines already dedicate studies to commercialization problems of green technologies, there is not much research ongoing in the management disciplines [77, 78]. This is despite the growing importance of green technologies in the modern world [79]. M.M. Andersen states that “environmental innovation research is still in its early phase, and there are worldwide very few actual innovation researchers working with environmental issues” [80]. Very few scholars conduct researches dedicated to commercialization problems of green technologies particularly from the managerial and economic approach. To address this gap, we concluded a study into a literature review asking a question of what is the state of the art in academic research on commercialization of green technologies. To address the above research question, we conducted a literature survey with three levels of analysis [81, p. 77]. To begin with, we looked at the data base of: Google Scholar, Scopus, and Thomson ISI Web of Knowledge. Google Scholar is convenient because it is freely available to anyone who can access Internet [82]. J. Li et al. stated that the main weaknesses of Google Scholar are total lack of citation analysis tools, which are widely available in other citation databases; there is no author information provided, and searchers cannot save searches or export citations [83]. P. Jacso (2005) compared Web of Science, Scopus, and Google Scholar according to different features and found that Google Scholar showed lack of competence and understanding of the basic issues of citation indexing [84]. M.E. Falagas et al. in 2008 compared PubMed, Scopus, Web of Science, and Google Scholar and found Scopus’s citation analysis was faster and included more articles than the citation analysis of Web of Science [85]. J.M. Bosman et al. In 2006 compared coverage and functionality of Scopus, Web of Science, and Google Scholar databases and concluded that Scopus is likewise rated most highly of these three citation databases [86]. 38

Updated daily, Scopus covers 60 million records, including abstracts of more than 21,500 peer-reviewed titles from more than 5,000 publishers, including 4200 open-access journals, 360 trade publications, 113000 books and 530 book series. After analyzing advantages and disadvantages of all databases listed above, we selected SCOPUS for the study. We collected data from SCOPUS database in April 2016. First, we found 25,097 documents by searching “commercialisation” in “Article Title, Abstract, Keywords” field, then searched “green technology” within these results. After that, there were 2133 publications in our dataset, which marked as “general” category. The extracted publication types include journals, conference proceedings, books and others (figure 7). The second level of our analysis narrows and deepens the analysis to the specific subject are “Business, Management and Accounting” and “Economics, Econometrics and Finance” (marked as BMA and EEF respectively). As a result, 188 documents were found (figure 8). Publications were analyzed using bibliographic information of the authors, publication years, content coverage, countries, journal names and citation frequency.

Article Conference paper Book chapter Book chapter Review Article in press Note

Figure 7 - Segmentation of general category of publications by types

Note – Compiled by author based on own research

Article Review Conference paper Book chapter Book Short survey Article in press Note Business article Conference review

Figure 8 - Segmentation of BMA and EEF category of publications by types

Note – Compiled by author based on own research

In the third level of our analysis, we identified the most active journals with at least 10 articles related to commercialization of green technologies both in general and 3 articles for BMA and EEF categories. This methodology was adopted from the research of Schiederig et al, 2012 [87]. First level of our analysis focuses on aggregated number of publications. Figure 9 shows the chronological development of the publications using two categories: 2133 in general and 188 in BMA and EEF. Figure 9 reveals that the first article related to commercialization of green technology was published in 1979. However, there were very few publications until 1995, i.e. less than 5 per year in both categories. Between 1995 and 2004 figures shows steady growth in “general” (from 10 to 46 respectively), whereas “BMA and EEF” still has only 1-4 publications per year. Number of publications in “general” exceeded 50 only in 2005 followed by remarkable progress. For example, there were 115 publications for 2009, 218 for 2012 and 299 for 2015. Similar patters can be observed to the “BMA and EEF”: 12 for 2008, 18 for 2012 and 36 for 2015. For 2016, the graph shows the number of publications for January to April only.

320 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020

Figure 9 - Development of annual publications

Note – Compiled by author based on own research ______General ------BMA and EEF

SCOPUS clusters publications in 26 subject areas. We reduced it to 14 subject areas with at least 70 publications (figure 10). Thus, the majority of publications in our dataset (447) relates to the field of “engineering”. 398 publications were related to “Agricultural and Biological Sciences”, 372 to “Energy”, 353 to “Chemistry”, 324 to “Biochemistry, Genetics and Molecular Biology”, 320 to “Chemical Engineering”, 307 to “Materials Science”, and 294 to “Environmental Science” respectively. Other fields like “Social Sciences” (190), “Physics and Astronomy” (176) and “Medicine” (170) have less publications than above-mentioned ones. “Business, Management and Accounting”, which we indicated as BMA, has 159 publications, whereas “Economics, Econometrics and Finance” (EEF) only 72. These figures prove our statement that research related to commercialization of green technologies from managerial and economic approach is not well developed.

Engineering Economics, 450 Agricultural and Econometrics and… 400 Biological Sciences 350 Immunology and 300 Energy Microbiology 250 200 Business, Management 150 Chemistry and Accounting 100 50 0 Biochemistry, Genetics Medicine and Molecular Biology

Physics and Astronomy Chemical Engineering

Social Sciences Materials Science Environmental Science

Figure 10 - Share of publications by subject areas

Note – Compiled by author based on own research

Next, we limited document type of “general” category to “articles”, and there were 1108 articles among 2133 documents. Then we identified the most cited articles with at least 200 citations in total. The most cited paper is by T.K. Todorov et al. (2010) published in Advanced Materials [88]. The earliest paper appeared in 1991 by R.F. Davis in the Proceedings of the IEEE. Four articles among these 18 papers have more than 500 total citations. By analysis of annotations of 18 articles, we found that only 11-ranked paper of J. Singh and S. Gu (2010) is specifically dedicated to commercialization issues of technology, whilst others have engineering priorities [89]. This paper was published in Renewable and Sustainable Energy Reviews journal. In addition, we calculated annual citations for each paper, which showed that some articles with high total number of citations have low annual citations (table 8).

Table 8 - Articles with the highest number of citations in “general” category

Cites Cites/ Pub Author (s) Title Journal year year 1 2 3 4 5 6 594 99 2010 T.K.Todorov, High-efficiency solar cell Advanced Materials K.B. Reuter, with earth-abundant liquid- D.B. Mitzi processed absorber 536 38.28 2002 C.C. Chan The state of the art of electric Proceedings of the and hybrid vehicles IEEE 42

Continuation of table 8

1 2 3 4 5 6 526 58.44 2007 Q. Sun, Bright, multicoloured light- Nature Photonics Y.A.Wang, emitting diodes based on L.S. Li, quantum dots (...),C.Yang, Y. Li. 508 26.7 1997 Akasaki, Crystal growth and Japanese Journal of Isamu, conductivity control of group Applied Physics, Amano, III nitride semiconductors and Part 1: Regular Hiroshi their application to short Papers & Short wavelength light emitters Notes & Review Papers 462 23.1 1996 D.E Clark, Microwave processing of Annual Review of W.H. Sutton, materials Materials Science 436 43.6 2006 K.W. Oh, A review of microvalves Journal of C.H. Ahn Micromechanics and Microengineering 419 69.83 2010 P.V. Kamat, Beyond photovoltaics: Chemical Reviews K. Tvrdy, Semiconductor D.R. Baker, nanoarchitectures for liquid- J.G. Radich junction solar cells 348 21.75 2000 S.J. Pearton, Fabrication and performance Materials Science F. Ren, A.P. of GaN electronic devices and Engineering R: Zhang, K.P. Reports Lee, 324 54 2010 F. Talebnia, Production of bioethanol Bioresource D. from wheat straw: An Technology Karakashev, overview on pretreatment, I. Angelidaki hydrolysis and fermentation 306 12.24 1991 R.F. Davis III-V Nitrides for Electronic Proceedings of the and Optoelectronic IEEE Applications 289 48.16 2010 J. Singh, S. Commercialization potential Renewable and Gu of microalgae for biofuels Sustainable Energy production Reviews 251 15.68 2000 D.A. Tillman Biomass cofiring: The Biomass and technology, the experience, Bioenergy the combustion consequences 249 31.12 2008 D. Das, T.N. Advances in biological International Journal Veziroglu hydrogen production of Hydrogen Energy processes 246 41 2010 J.M. Ogden Prospects for building a Annual Review of hydrogen energy Energy and the infrastructure Environment

Continuation of table 8

1 2 3 4 5 6 245 40,83 2010 T.D. Nielsen, Business, market and Solar Energy C. intellectual property analysis Materials and Solar Cruickshank, of polymer solar cells Cells S. Foged, J. Thorsen, F.C. Krebs

218 13,62 1998 S.S. Catalytic partial oxidation of Fuel Processing Bharadwaj, natural gas to syngas Technology L.D. Schmidt 217 36,1 2010 R. Capelli, Organic light-emitting Nature Materials S.Toffanin, transistors with an efficiency G.Generali, that outperforms the (...),A.Facche equivalent light-emitting tti, M. diodes Muccini

214 26,75 2008 L.M.Goncalv Dye-sensitized solar cells: A Energy and es, V. De Zea safe bet for the future Environmental Bermudez, Science H.A. Ribeiro, A.M. Mendes

Note – Compiled by author based on own research

The same analysis was done to the second group – “BMA and EEF” (table 9). By limiting document type to articles, we had 129 articles among 188 documents. We selected 10 articles with at least 71 total citations. The paper of D.-J. Kim and B. Kogut (1996) published in Organization Science has 181 total citations and leads the list. As we expected, key research areas of these journals are related to business, management and economy issues. Two of the most cited articles were published in Technological Forecasting and Social Change. In comparison with the previous table, number of total and annual citations is substantially low.

Table 9 - “BMA and EEF” articles with highest number of citations

Cites Cites/ Pub Author (s) Title Journal year year 1 2 3 4 5 6 181 9,05 1996 D.-J. Kim, B. Technological Platforms Organization Science Kogut and Diversification 167 9,27 1998 R.W. Jr Key factors affecting Journal of Product Veryzer customer evaluation of Innovation discontinuous new Management products 44

Continuation of table 9

1 2 3 4 5 6 158 12,15 2003 C. Tanner, Promoting Sustainable Psychology and S.W. Kast Consumption: Marketing Determinants of Green Purchases by Swiss Consumers 132 8,25 2000 M. Klofsten, Comparing Academic Small Business D. Jones- Entrepreneurship in Economics Evans Europe -The Case of Sweden and Ireland 117 6,50 1998 N.S. Argyres, Privatizing the intellectual Journal of Economic J.P. commons: Universities Behavior and Liebeskind, and the commercialization Organization of biotechnology

114 6,33 1998 J.B. Schmidt, Are really new product Journal of Product R.J. Calantone development projects Innovation harder to shut down? Management 77 6,41 2004 M. Lemon, Organizational culture as a Technovation P.S. Sahota knowledge repository for increased innovative capacity 76 6,33 2004 M. de Goede Repoliticizing financial Economy and Society risk 71 11,83 2010 B. van Bree, A multi-level perspective Technological G.P.J. on the introduction of Forecasting and Social Verbong, G.J. hydrogen and battery- Change Kramer electric vehicles

71 10,14 2009 V. Norberg- Creating Incentives for Technological Bohm Environmentally Forecasting and Social Enhancing Technological Change Change: Lessons from 30 Years of U.S. Energy Technology Policy

Note – Compiled by author based on own research

In the next level of our analysis, we tried to identify countries with the highest number of articles related to the research topic. It appears that most of publications in “general” category originate from USA, China and United Kingdom (figure 11). Meanwhile, pattern is slightly different for “BMA and EEF category: leaders are USA, United Kingdom and Germany. Figure 12 shows that countries from all continents are putting their effort in studying commercialization issues of green technology, whereas only USA, European countries and Australia consider 45

managerial and economic issues of this topic.

800 684 700

600

500

400

300 205 187 200 153 122 116 110 91 78 100 62 58 57 54 43 34 34 31 29 29 25 23 23 0

Figure 11 - “General” articles sorted by countries

Note – Compiled by author based on own research

70 61 60 50 40 28 30 20 13 12 12 11 8 10 7 6 5 0

Figure 12 - “BMA and EEF” articles sorted by countries

Note – Compiled by author based on own research

In the third level of analysis, we selected 15 journals with 10 or more articles related to commercialization of green technologies (table 8). Together, these journals 46

published 216 papers, which is equivalent to 19,49% of all “general” articles. Clearly, Renewable and Sustainable Energy Reviews with 36 papers (16,66%) stands out, followed by International Journal of Hydrogen Energy with 23 papers (10,64%). Nine journals have published 11 or more but less than 20 papers and 4 journals have 10 articles each. Article of Aslani A. [90] is one of the best examples showing the attempt to identify barriers to commercialization and strategic variables regarding renewable energy technologies.

Table 10 - Top journals with 10 or more papers related to commercialization of green technology

Rank Journal name Number of Share of total (%) papers 1 Renewable and Sustainable Energy Reviews 36 16,66 2 International Journal of Hydrogen Energy 23 10,64 3 Biotechnology Advances 17 7,87 4 Journal of Power Sources 15 6,94 5 Bioresource Technology 14 6,48 6 Biomass and Bioenergy 13 6,01 7 Energy Policy 12 5,55 8 Energy and Environmental Science 12 5,55 9 Proceedings of SPIE the International Society for 12 Optical Engineering 5,55 10 Industrial and Engineering Chemistry Research 11 5,09 11 Solar Energy Materials and Solar Cells 11 5,09 12 Rsc Advances 10 4,62 13 Renewable Energy 10 4,62 14 Biofuels Bioproducts and Biorefining 10 4,62 15 Green Chemistry 10 4,62 Total 216 Note – Compiled by author based on own research

We analyzed journals in “BMA and EEF” category and selected 14 journals with at least 3 papers related to the topic (table 11). These 14 journals published 55 articles in total.

Table 11 - Top “BMA and EEF” journals with 3 or more papers related to commercialization of green technology

Rank Journal name Number of Share of total (%) papers 1 2 3 4 1 Journal of Product Innovation Management 8 14,54 2 Technological Forecasting and Social Change 6 10,90 3 Technovation 6 10,90 4 Journal of Cleaner Production 4 7,27 47

Continuation of table 11

1 2 3 4 5 Research Policy 4 7,27 6 Agricultural Economics 3 5,45 7 International Journal of Biotechnology 3 5,45 8 Journal of Commercial Biotechnology 3 5,45 9 International Journal of Technology Management 3 5,45 10 European Journal of Innovation Management 3 5,45 11 Business Strategy and the Environment 3 5,45 12 Food Policy 3 5,45 13 Journal of Engineering and Technology 3 5,45 Management Jet M 14 Technology Analysis and Strategic Management 3 5,45 Total 55 Note – Compiled by author based on own research

According to the Table 11, the three most active journals are Journal of Product Innovation Management with 8 papers (14,54%), Technological Forecasting and Social Change with 6 papers (10,90%) and Technovation with 6 papers too (10,90%). Other journals have 4 or 3 papers in each. It should be noted that topics of publications in these journals varies widely, so the table does not necessarily reflect a strategic priority of any journal. Innovation is an important driver of the transition towards green growth. Therefore, importance of commercialization of green technologies cannot be underestimated. In this paper, we analyzed existing body of literature in this field. The total number of articles in “general” category is 2133 and by analyzing chronological development of publications, we can conclude that this topic became widespread only in 2000s. However, number of publications dedicated to managerial and economic approach of topic is still low, with only 188 in total. Substantial progress is observed only after 2008s. Moreover, the vast majority of publications are focus on particular technology and industry; researches dedicated to key variables of successful commercialization of green technologies, profitability and competitiveness of green technology and so on are very rare. It is noticed that most influential articles were published in countries like USA, UK, China, India, Canada, Germany and Australia. Despite that, our analysis showed that hardly any institution clearly focused on the research of green technology commercialization issues. Journals like Renewable and Sustainable Energy Reviews, Journal of Product Innovation Management, Technological Forecasting and Social Change, Technovation can be useful for scholars who study green innovation management [81, 85 p.]. According to the results similar of comprehensive analysis of Kazakhstani scientific journals for the last five years, we found that articles about

commercialization of green technologies from economic and managerial view are virtually absent. According to the results of similar comprehensive analysis of Kazakhstani scientific journals for the last five years, we found that articles about commercialization of green technologies from economic and managerial view are virtually absent. In order to analyze relevant publications to the research topic, we used an electronic catalogue of the National library of Kazakhstan. As it was mentioned before, search using combination of key words “commercialization” and “green technologies” did not give any results. However, it should be noted that there are publications related to commercialization issues separately, and problems of green growth and sustainability. First, we found 46 publications by using key word “commercialization” both in Kazakh and Russian languages. Previous analysis was corrected using results of search from October 2017. All publications were analyzed by types and sources of publication. As a result, the overwhelming majority of publications is scientific papers published in Kazakhstani journals (24), rest of them are 8 newspaper articles, 5 books or book chapters, 2 papers in conference proceedings and 1 law on commercialization of research results (figure 13).

Books Laws 13% 2%

Newspapers 20%

Scientific Conference papers proceeding 60% materials 5%

Figure 13 - Segmentation of publications found by “commercialization” key word in Kazakhstan

Note – Compiled by author based on own research

Theoretical basis of technology commercialization, mechanisms and proposals on improving commercialization system in Kazakhstan, technology transfer support issues are considered in scientific works of Dnishev F.M. [91-94], Sabden O. [95-97], Alzhanova F.G. [98], Kenzheguzin M.B. [99], Zhatkanbaev E.B. [100], Alibekova G. 49

[101], Zeinullin A.A. [102], Zarubina V.R. [103] and others. Bishimbaeva S.K. [104- 106] considered foreign experience of Japan and Germany and their applicability in Kazakhstan. Mechanism of organizational and economic organization and methodology of innovation commercialization were considered in works of Kulembaeva A.S. [107] and Kosolapov G.B. [108]. Sagieva R.K. considers the problems of building a knowledge-based economy, including the problems of commercializing new ideas [109]. Papers of Kanalin Zh.D. related to establishing dialog platforms between science and business should be also highlighted because of high relevance and practical importance [110]. In the next stage, we found 200 publications using key words such as “green”, “green economy” and “green growth”. However, most of them are published in newspapers and magazines and cannot be considered as a scientific research, although, such a tendency has a great impact to increasing awareness of population about growing importance of green economy (figure 14).

Regulatory framework Scientific 2% journals 12%

Conference proceedings 9%

Newspapers and magazines 77%

Figure 14 - Segmentation of publications found by “green”, “green economy” and “green growth key words in Kazakhstan

Note – Compiled by author based on own research

As result shows, 154 papers out of 200 were published in newspapers and magazines, 25 in scientific journals, 17 in conference proceedings accordingly. 4 documents were classified as regulatory framework. By analyzing papers, we can conclude that studies dedicated to particularly commercializing of green innovations are very rare. It also proves our statement about novelty of the topic. Sagieva R.K. is one of the first authors in Kazakhstan considering economic mechanisms to stimulate the development of green economy, 50

which would lead to broad commercialization of green products [111-112]. Sakharieva A.S. claims that state policy in the field of eco-innovations should cover the innovation process, from the research stage to the stage of commercialization [113]. Kanalin Zh.D. examines intellectual property problems in green economy, foreign experience and policy encouraging implementation of green innovations [114]. Other authors who considered green growth from economic view are Mukhamediev B.M. [115], Sansyzbayeva G.N. [116], Esekina B.K. [117-118] and Rakhimbekova S. [119-120]. However, the study of scientific publications related to research topic has limitations. First, we narrowed our scope of search to Scopus excluding Google Scholar and Thomson ISI Web of Knowledge. Next, we searched for “commercialization” and “green technologies” as keywords in the electronic catalogue of the National library of Kazakhstan, which do not cover full range of scientific publications in the country. In other words, we understand that certain amount of papers might be excluded from the analysis. To tackle this issue, thorough analysis of existing body of literature was conducted, allowing us to cover most relevant papers, reports and books. Both previous analysis of green technology concept and comprehensive literature review in worlds and Kazakhstani scale lead us to following conclusions. As “commercialization of green technologies” we should consider activities related to the practical application of research results in green technology field, with the aim of bringing new or improved products, processes and services to the market aimed both at receiving profit and ensuring sustainable growth with the benefit to environment. A distinctive feature of this definition is the allocation distinguishing the purpose and scope of implementation. Purpose of commercializing green technologies, despite its obvious need to make a profit, is facilitating green growth, foster eco-friendly innovations and ensuring that the environment remains protected. As economy is usually opposed to ecology, formation of new term and new concept of green technology commercialization would serve for greater purposes of humankind. Scope of implementation is another distinctive feature of a new concept. It should be noted that green technology is also known as clean technology or environmental technology. There is an attempt to classify green technologies based on patent applications, however, this list is expanding rapidly. More and more science fields, technological research and studies are dealing with the issues of conserving the environment.

1.4 Foreign experience in commercialization of green technologies The climate change issues condition growing importance of green technologies. Different research and statistics show clear signs of increasing temperatures on the Earth, a rise in a sea level around the world, a rise in ocean temperature, shrinking glaciers in Greenland and Antarctica, rising of acid concentration in ocean harming water creatures and so on. 97% of Climate Scientists in the UN IPCC (United 51

Nations Intergovernmental Panel on Climate Change), which involves more than 2,500 scientists from more than 130 countries, have a consensus on the existence of climate change and its consequences [121]. Recently, the global community took another essential step towards preventing ecological catastrophe. 174 states and the European Union signed the Paris agreement on 12 December 2015, agreeing with the common objective of “Holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change” [122]. Even though national climate action plans are not entirely meet globally agreed targets; this was an unprecedented momentum in addressing climate change. Before analyzing foreign experience in commercialization of green technologies, we must emphasize that terms as "green innovation", "cleantech", "eco- innovation", "environmental innovation", "sustainable innovation" are often used synonymously. According to the research of Schiederig T. [87, 188 p.], among the total number of 8,516 publications in the dataset of analysis, 40.7% (3,469) apply the notion ‘environmental innovation’, 31.9% (2,716) the notion ‘sustainable innovation’, 17.6% (1,495) ‘eco-innovation’ and 9.8% (836) the notion ‘green innovation’. The study showed that different notions of innovations with reduced environmental impact are used interchangeably. Therefore, it is important to cover all these terms to form a clear overview of existing practice and policies in foreign countries. The top 10 economies in the Global Innovation Index (GII) 2014 edition are Switzerland, the UK, Sweden, Finland, the Netherlands, the USA, Singapore, Denmark, Luxembourg, and Hong Kong (China). Nine of these economies were already in the GII top 10 in 2013; Ireland, which was in the top 10 in 2013, dropped to 11th place this year, and Luxembourg climbed up into the top 10 from 12th position in 2013. Identifying the underlying conditions of a country and comparing performances among peers is the key to a good understanding of the implications of a country’s ranking on the GII [123]. The remarkable stability of the top 25 and the steepness of the trend line between these top 25 and their middle-income followers is a phenomenon reflecting an inability of middle-income countries to compete with both high-skill economics and low-cost economies. To address this situation, knowlеdgе-basеd growth strategies arе rеquirеd to еncouragе innovation and crеativity through a supportivе еcosystеm. To rеach that goal, thеsе middle-income economies must closely monitor the quality of their innovation inputs and outputs yet another tool to achieve innovation competitiveness. The top three R&D-performing countries – United States, China, and Japan – accounted for over half of the estimated $1.435 trillion in global R&D in 2011. The United States, the largest single R&D-performing country, accounted for just under 30% of the 2011 global total, down from 37% in 2001. The economies of 52

East/Southeast and South Asia – including China, India, Japan, Malaysia, Singapore, South Korea, and Taiwan – represented 25% of the global R&D total in 2001 but accounted for 34% in 2011. China (15%) and Japan (10%) were the largest R&D performers in this group. The pace of real growth over the past 10 years in China’s overall R&D remains exceptionally high at about 18% annually, adjusted for inflation. The European Union accounted for 22% total global R&D in 2011, down from 26% in 2001 [124]. Another index relevant to the topic is The Global Cleantech Innovation Index (GCII). The study was conducted in 2012, 2014 and 2017 years. The main idea of providing this research is to identify countries which have most significant potential to produce and commercialize clean technology innovations in the future. Analysis is based on the date covering 15 indicators of creation, commercialization and growth of cleantech start-ups in 40 countries. The GCII uses information about the results of national policies, and data on producing cleantech entrepreneurs and supporting commercialization of their companies. The overall score for each country is based on the average between inputs to innovation, and outputs of innovation. Results given in Table 14 were determined by four sets of 21 metrics, condensed into 15 indicators, drawn from both third-party research and Cleantech Group’s proprietary data. The raw data for each indicator was normalised using a max-min scaling method to allow for comparisons on a standard scale.

Table 12 - Ranking of countries according to Global Cleantech Innovation Index 2017 [125, p.13]

201 201 Inputs to Outputs General Cleantec Emergin Commercialis 7 Country 7 Innovati of Innovati h- g ed Ran Scor on Innovati on Specific Cleantec Cleantech k e on Drivers Innovati h Innovation on Innovati Drivers on 1 2 3 4 5 6 7 8 9 1 Denmark 4,07 3,80 4,34 3,04 4,55 3,49 5,19 2 Finland 3,96 3,25 4,66 2,80 3,69 6,19 3,13 3 Sweden 3,86 3,36 4,35 3,69 3,03 4,73 3,98 4 Canada 3,76 3,30 4,23 3,29 3,30 5,13 3,33 5 USA 3,59 3,30 3,88 3,43 3,18 5,46 2,31 6 Israel 3,56 2,94 4,19 2,70 3,18 5,96 2,41 7 UK 3,37 2,97 3,77 2,92 3,02 4,97 2,58 8 Germany 3,33 2,47 4,18 2,31 2,64 4,58 3,78 9 Norway 2,90 3,23 2,58 2,63 3,82 2,21 2,95 10 Switzerla 2,89 3,04 2,74 3,14 2,94 2,68 2,79 nd 11 South 2,86 2,19 3,54 2,35 2,03 3,55 3,53 Korea

Continuation of table 12

1 2 3 4 5 6 7 8 9 12 Japan 2,75 2,51 3,00 2,49 2,53 3,50 2,49 13 France 2,75 2,30 3,20 1,93 2,67 4,64 1,75 14 Singapore 2,71 2,04 3,39 2,78 1,30 2,43 4,34 15 Netherlands 2,71 2,71 2,70 3,07 2,35 2,58 2,82 16 Ireland 2,64 2,63 2,64 2,92 2,35 3,41 1,87 17 Austria 2,52 2,56 2,49 2,39 2,73 1,81 3,17 18 China 2,31 2,44 2,18 2,20 2,68 2,25 2,11 19 Belgium 2,26 2,29 2,23 2,12 2,45 1,94 2,53 20 Australia 2,04 2,77 1,31 2,86 2,68 1,51 1,11 Note – the higher index score, the better support for cleantech innovations

Denmark is in the first place of the GCII 2017 Index ranking. The main contributors to such a strong position are the high amount of capital from cleantech funds and growing number of eco-friendly organizations. Additionally, Denmark showed a substantial evidence of commercialized green inventions and increasing in renewable energy jobs. Finland and Sweden are next on the list. In comparison to 2014 Index, 2017 Index make following conclusions: countries will have a higher index if they address the increasing demand for renewable energy and other clean technologies, support start-ups by giving access to multiple channels and increase international cooperation across world's green ecosystem. However, one can observe that commercialization efficiency varies by country, as shown by the conversion rate analysis. Usually, countries with low innovation inputs tend to have a low conversion rate. Similarly, countries with above-average scores for inputs to innovation tend to have above average conversion rates. Nevertheless, countries such as Germany, Singapore, and South Korea, are the most efficient producers of outputs from their measure of inputs, which means they commercialized more green innovations without having leading inputs to innovation scores. This determined the choice of the Germany for analysis of foreign experience. 1. Germany can be considered as the international market leader and chief innovator regarding energy-efficient and environmental-friendly technologies. German scientist and companies show the highest number of patent applications submitted to following areas: energy-efficient technical procedures and processes, efficient building services technology, energy-efficient industrial cross-application technologies. For example, German researchers and companies submitted between 30 and 40% of global patent applications in these areas between 2002 to 2004 [126]. Germany currently is willing to take on a pioneering role internationally by proving that resource efficiency in a highly developed country can be increased without deterioration of prosperity. This country can already demonstrate increased economic performance with reduced resource use. German government adopted a National Sustainability Strategy in 2002 and set a goal to double raw material productivity by 2020 compared with 1994. Therefore, Federal Cabinet took German 54

Resource Efficiency Programme (ProgRess) on 29 February 2012 [127]. The primary goal of this program is to make the extraction and use of natural resources more sustainable and to reduce associated environmental pollution as far as possible. By analyzing supporting environment to the development of green innovations, we can distinguish main strategies, policies and programs which served as a strong base (table 13).

Table 13 - Main strategies, policies and programs supporting green growth in Germany

Direction 1: Eco-innovation 1 2 National Vision and High-Tech Strategy (2006) - renewed in 2010 Strategy National Policy and Eco-Innovation Program (former, Environmental Technology Program) Programs The Master plan on environmental Technology (2008) ProgRess program promoting the understanding of resource efficiency as a competitive advantage Research program on Material Efficiency and Resource Conservation Integration of the closed-cycle and waste management into a sustainable resource conserving substance management (2004) Identification of Relevant Substances and Materials for a Substance Flow-Oriented, Resource-Conserving Waste Management (2006) Act for Promoting Closed Substance Cycle Waste Management and Ensuring Environmentally Compatible Waste Disposal (1994, latest update 2006) 5th Federal government energy research program Network, Partnership NeMAT (Netzwerken zur Materialeffizienz) program and Organizations Solar Valley-grid parity for solar power in Germany Cool silicon-climate friendly communications The Centre for Resource Efficiency (2009) Direction 2: Sustainable development National Vision and The Framework Research Program for Sustainable Development (FONA) Strategy National ICT Strategy "Germany Digital 2015" and Action Plan "Germany: Green IT Pioneer" National Research Strategy for BioEconomy 2030 The German Federal Sustainable Development Strategy (2002) The High-Tech Strategy 2020 for Germany (2010) National Raw Material Strategy (2010) National Policy and The "Saarlandisches Umweltmanagement - Forderprogramm" – Goal is Programs an increase of EMAS-certified enterprises in order to tackle the sustainable resource-management issue The Research for Sustainable Development Program of the Federal Ministry of Education and Research (2010) The national eco-label scheme "Blue Angel" The federal government runs three subsidy programs A subsidy program for renewable energy (MAP)

Continuation of table 13

1 2 An energy advice program A program for remodeling federal government buildings The Integrated Energy and Climate Package (2007) The National Energy Efficiency Plan (2008) National Biomass Action Plan (2009) and Action Plan for the Industrial use of Biomass (2009) National Resource Efficiency Network, Partnership International partnerships for sustainable climate protection and and Organizations environmental technologies and services (CLIENT) The national "Resource Efficiency Network" Direction 2: Support of SMEs National Policy and The KfW bank program "Energy efficiency advice for SMEs" Programs BMU-Umwelt innovations program supports primarily SME investing in processes for the abatement of any environmental damage DEMEA Consultative programs on material efficiency Material Efficiency Award Scheme The Mikrokreditfonds Deutschlanda guarantee fund and sponsors mainly SME (2009) Network, Partnership PROINNO (innovation partnerships for small and medium enterprises) and Organizations ZUTECH (future technologies for SMEs) Innonet (support of innovative networks) (2008) Note – Compiled by the author based on [128-129]

As a result, there is evidence that Germany has been making significant progress in climate change policy by successful implementing of green technologies: - greenhouse gas emissions fell by almost 25 percent since 1990 despite an increase in GDP; - greenhouse emissions per capita declined almost 26 percent; - country surpassed targets committed to Kyoto Protocol; - the share of power produced by renewable energy broke a record at 35 percent in the first half of 2017 [130]; - country preventer emission of 144,6 million tons of CO2 through equivalent use of renewables; - primary energy consumption per capita fell by 8,5 percent; - energy efficiency increased by over 40 percent in comparison with 1991; - over 378 000 new jobs were created in renewable energy sector; - Germany was the second largest exporter of potential climate products with 13,2 percent share out of total in the world; - over 5000 projects were supported between 2008 and 2013 by National Climate Initiative [131]. The social and economic stability of Germany is based on the development of high technologies and is aimed at the production and export of high-tech products. In 56

this regard, the national innovation system of Germany is in continuous development and meets the requirements of society, the national economy and politics. The innovative policy of Germany is carried out at the federal level and is based on the following principles: 1. The continuous increase in the volume of public funding for research and development, with emphasis on the successful areas of science and technology. 2. The development of the “innovative elevator” mechanism, as well as the creation of institutional conditions necessary for the introduction and commercialization of innovations. The innovative policy of Germany, is focused on the formation of integration links between scientific structures and the business community. 3. Professional training and professional development of employees of technical specialties, engineers, designers. Every year, up to 100,000 new engineers and scientists who have graduated in technical universities or universities join the German economy. The modern education system provides the German economy with a reliable flow of qualified professionals who are in demand by the business, especially small innovative enterprises. 4. A key role in the development of the national innovation system in Germany is played by small and medium-sized businesses, represented by 3.5 million small companies, accounting for 99% of the total number of enterprises. The share of small innovative business is 54% [132]. Thus, it can be argued that every second German company is engaged in innovative activities. Germany, like most developed Western countries, uses two main ways to create attractive conditions for investing in research and development. The first way is to reduce the overall tax burden, and the second is to introduce specific tax incentives in the innovation sphere. The federal infrastructure supporting small and medium-sized enterprises includes 374 centers for the diffusion of new technologies, 15 information centers and 115 export support centers. Approximately 25% of small enterprises are actively involved in the production of export products. In Germany, there are more than 180 incubators and technological parks interacting with universities, research centers and large industrial companies. Over 200 industrial associations, 55 craft chambers, 46 trade confederations and 82 chambers of commerce and industry carry out extensive public support for small and medium-sized enterprises on interaction at various levels with legislative and executive bodies [133]. In Germany, there is a highly efficient system for the protection of intellectual property rights. It is based on the existence of an established system of legislation, an efficient judicial system and reliable supervisory mechanisms that protect the rights of intellectual property holders. Here, many patent law institutes were born, which were later adopted by many countries, such as, for example, the Utility Model Law. Germany also for the first time developed the institute of indirect protection, the system of deferred examination of applications was developed, applied and improved, the legislation on business inventions was developed, the theory of 57

equivalents was developed scientifically and widely used in interpreting the patent formula, etc. Germany's patent legislation served as the basis for organizing the necessary institutes of patent law in countries that adopted the German patent system (Austria, Japan, Scandinavian countries, Switzerland, the Netherlands, some countries in South America, etc.). The peculiarity of legislative support of Germany's innovation policy is that the legislation stimulates not only the producer of innovative products, but also investors and users of these products, thereby ensuring attraction of investments in innovative industries. This is extremely important for our country, where there is practically no demand for innovative products. It is obvious that at first all innovative technologies are more expensive than traditional ones. The use of incentive mechanisms for buyers to purchase innovative products ultimately leads to the inflow of funds into innovative industries, making this product more accessible over time, expanding the scope and increasing the volume of its use. Considering experience of Germany, we can conclude following: 1. Germany`s environmentally friendly innovations are facilitated by strong policy and state measures focused on resource efficiency such as Sustainable Development Strategy, Waste Policy and Resource Efficiency Strategy for Innovation, and Economic Growth and Competitiveness. 2. Investment in eco-industry and environmental regulation is activating the eco- innovation of the private sector based on the high standard of the national general competitiveness and innovation capacity. Consequently, it creates green jobs and activates commercialization of green technologies. 3. Manufacturing and technology industry consists of a large proportion of SMEs and known to be advanced. As a result, the country has various policy measures to promote and support SMEs’ innovation and technology advancement. This also leads to promoting green technologies. 4. Developed innovative infrastructure along with state support created an excellent condition for the development and commercialization of green technologies. 2. South Korea is on the 11th place in the The Global Cleantech Innovation Index 2017, but indicators for effectiveness of commercialised technologies are much higher than other countries (Commercialised Cleantech Innovation column of Table 14). South Korea's progress in dealing with climate change can be assessed by following statistics given by official sources and estimated for the past decade: - Greenhouse gas emissions productivity increased by 19.5% from 2000 to 2009. A consumption-based CO2 emissions productivity increased by 8.0% from 2005 to 2009, while production-based CO2 emissions productivity increased by 2.9% respectively. - Energy efficiency in the country increased by 10.2% between 2000 and 2010. - The proportion of new and renewable energy has been steadily increasing. It rose to 2.61% in 2010 in comparison with 1.51% of 2000. It was approximately 2.7% 58

in 2012 and 3.6% in 2014. The new target is to reach 18.2% share in 2035. - Urban green space per capita showed an increase of 19.5% compared to 2005. - R&D expenditure of government to green growth rose from 6.5% in 2002 to 17.5% in 2010. Indicators of policy response and economic opportunities shows next: - Government plans to increase R&D budget steadily. Most of the government R&D spending is related to green technologies directed at sustainability, improvement of life, nuclear fusion and space technologies. - The number international patent applications from Korean scientists shows a remarkable growth from 1,573 in 2000 to 9,639 in 2010. - The share of green official development assistance increased from 1.7% in 2006 to 12.4% in 2009. - the proportion of GDP dedicated to environmental protection expenditures rose from 2.71% in 2004 to 3.06% in 2009 [134]. According to official data, environment-related industry in South Korea increased by 14.9 percent a year with annual sales of $76 billion over the past five years. As tendency shows, government and private expenditures are dedicated to preventing of ecological deterioration and restoring a polluted environment. South Korea is recognized as a leader in the development of "green technologies" by the United Nations Environment Program in 2009. The green development strategy of South Korea is supported by the plan "Green Growth", which was launched in 2009. Green Growth National Strategy of South Korea set an ambitious aim to become world's 7th largest Green economic power by 2020, and 5th largest by 2050 [135]. This plan led to the increase of state investment to green innovations, international cooperation, and commercialization of green technologies. South Korea was the first country in the world to choose nature conservation as the central strategy for national development. The Korean "green growth" strategy covers a wide range of areas, including new and renewable sources of energy, waste processing, transportation, freshwater treatment, and gardening. The implementation of this strategy is being demonstrated today in the Complex, located in the heart of Seoul and consisting of 6 pavilions, which showcase the latest "green" technologies: "Green House" shows the technologies used in everyday life; in the pavilion "Green Transport" you can see cars on hydrogen elements; in the pavilion "Green Energy" - a real city of the future, which uses a variety of alternative energy production technologies. A special center ("Green Village") has been built there, all of whose energy needs are met by biomass, a by- product of agricultural production. There are also ecologically clean farms and a city in which electricity is transmitted through special economic wires. The exhibition complex is organized in such a way that people can see and feel the benefits of the "Green Growth" strategy. Korea adopted the principle of concentration and boosting R&D investments, narrowing the technological gap with the global leaders. They selected 27 key green technologies as priority areas for investment and commercialization, admitting that 59

the progress will require more time and resources to be globally competitive. The government has played multiple roles as a provider of direction, target setter, and financier. Key policies include expanding basic research and general technology development through green technological convergence, fostering specific technologies for greening energy-intensive industries, investing in eco-friendly technologies with the highest potential impact, and strengthening green R&D infrastructure. However, according to “National Green Technology R&D Master Plan” adopted in 2009, levels of “green” technology remains at 50-70% of advanced countries figures, and its share of the global green energy market is very low at 1.4%. Besides, percentage of technical publications and patents, which reflects a nation’s technological competitiveness and efficiency of R&D investments, falls far behind the average of the world’s leading countries [136, p. 145]. Anticipated growth of global green market contributed in setting ambitious goal of improving the nation’s technological level up to 80% of that of the world’s leaders by 2012, and up to 90% by 2020. Therefore, the National Science and Technology Council formulated the “National Green Technology R&D Master Plan,” which is a comprehensive outline of the government’s strategy and investment plans. Furthermore, Korean government formulated the “Strategic Roadmap for Commercialization of Green Technologies” to help the industrial sector build capabilities to compete in the global market [136, p. 146]. In response to the National Green Technology R&D Master Plan, government investments in green technology R&D activities increased steadily, reaching US$ 2.8 billion in 2013. This figure accounts for about 17.9% of the total national R&D budget. The average annual growth rate in green technology R&D expenditures was 15.8% during 2008-2013, which surpasses that of the overall national R&D expenditure that stood at 9.0% over the same period. R&D investments in 27 key green technologies in 2013 was estimated at US$ 2.1 billion [136, p. 174]. It should be noted that stages which R&D are generally divided into are basic research; applied research and experimental development; and analysis of expenditures. According to statistics of Korea, nearly half of the government investment in green technology was allocated to experimental development (48.6%), whereas basic and applied research were 22.3% and 19.6% respectively. These figures demonstrate how the Korea has continued to place the focus on technology commercialization rather than nurturing knowledge-based assets through basic research. Korean experience in commercialization of green technologies provides following valuable lessons for developing countries like Kazakhstan: 1. Technology innovation was a critical element to the national economic development plan from its earliest stages of economic growth. The government of Korea has played multiple roles, providing direction and setting of priority technology areas, adopting national strategies and action plans, and financing spending on R&D. Such strong government intervention is most effective during the 60

early stages of a nation’s industrial development. Effective administration and governance were key to success in this process. 2. The critical driver of motive power to innovate was a competition in the international market, which put an enormous amount of pressure on technological learning and development. Developing technical competence was not an option but a necessity. 3. The main elements of technology innovation are people, knowledge, and money. Korean innovation strategy was always dedicated to nurturing talents and fostering the required human resources for R&D activities. It is undeniable that their success from taking such a strategic direction owes much to the nation’s mentality that shows the highest respect for education and scholarships. To achieve this, Korean government implemented policy reforms during the late 1990s that aimed to create “research-focused universities”. Thus, the more significant portion of public R&D funds was allocated to the research laboratories of universities. According to green technology agenda, the government once again designated universities to become centers of excellence that participate in cooperative R&D activities between academia and industries, which is very important to Kazakhstan's practice. 4. Promotion of “selection and concentration” principles can be beneficial especially for developing countries that seek to create and harness domestic green technologies. Korean strategies on green technologies demonstrated methods of investment prioritization. This process involved an understanding of current technological competitiveness, market demand, projections on technology commercialization and market creation, and grouping of technologies according to their investment needs timeframe. Doubtless, promoting green innovation has become a key priority for national and international environmental policy in recent years. Therefore, several national intellectual property offices in the world took measures to fast track ‘green’ patent applications. These countries are Australia, Canada, Israel, Japan, Korea, the UK, and the US. More recently, the Brazilian National Institute of Industrial Property (BNIIP) and China's State Intellectual Property Office (CSIPO) have launched similar programs. The primary purpose of this program is to allow patents covering "green" technologies to be examined as a matter of priority, shortening time needed to obtain a granted patent from several years to just a few months [137]. Green patents fast track schemes have been implemented in nine countries so far. Table 14 briefly describes each of these schemes.

Table 14 - Main features of Green patent fast track program in different countries

Country Main features of fast track policy 1 2 United Kingdom - started in May 2009 - no additional fee is required - shortens time from 2-3 years 9 months

Continuation of table 14

1 2 Australia - started in September 2009 - examination of application begins within four to eight weeks South Korea - started in October 2009 - program entitled "super-accelerated examination system for green technology" - only Korean government funded technologies are eligible Japan - started in November 2009 - program entitled "Green-technology related applications" - first response on the application in two months

United States of - started in November 2009 America - program entitled "Green Technology Pilot Program" - imposed restrictions on number of claims - examination starts immediately instead of 2-3 years waiting Israel - started in December 2009 - no extra fees for green patent applications - applications are examined within three months Canada - started in March 2011 - declaration stating environmental-friendly character is needed - first action within two months instead of 2-3 years Brazil - started in April 2012 - limited to 500 applications - additional fee is required (approximately USD 500) - examination within two years instead of five years and four months China - started in August 2012 - covers some non-environmental technologies along with green ones - examination within one year Note – Compiled by the author based on [138]

Efficient allocation of financial resources between projects and their performers also assumes the agreed (fair) distribution expected revenues between customer, contractor and customer results projects. There are several approaches to building mechanisms of agreed expected income distribution: based on weighted level of labor costs intellectuality of the project participants, based on the distribution of agreed margins and others. The analysis of the conditions and prospects of commercialization of the research results shows the need for a radical practical measure by the government to develop effective mechanisms financing of innovative systems based on motivating, maintain, develop and stimulate (rather than limiting and prohibiting) innovative activity approaches. The distribution of income from the commercialization of technologies is considered in Table 15, which is covered the overwhelming majority of European countries.

Table 15 – The distribution of income from the commercialization of technologies in European countries [139]

Country Authors Laboratories University Technology Other and transfer departments center Sweden 90 0 0 0 10 Portugal 63 6 29 2 0 South Korea 50 - 35 10 5 Ireland 47.8 23.2 18 11 0 Spain 47.6 15.2 32.6 4.3 0.3 Italy 47.3 8.6 39.6 4.5 0 Finland 46 20 30 - 0 United Kingdom 45.8 19.3 29.3 5.6 0 Israel 43.7 2.5 29 24.8 0 France 42.1 15.6 29.7 12.6 0 Other European 41.8 17.6 35.4 3.9 1.3 countires Austria 38.1 23.1 17.4 19.1 2.3 Norway 33.3 24.9 15.1 26.7 0 Germany 29.3 15.6 42.5 4.6 8 Switzerland 27.6 28.8 32.7 10.9 0 Netherlands 25.4 43.7 20.7 10.2 0 Denmark 25.3 24.9 49.8 0 0 Belgium 23.7 40.3 29.1 - 6.9

To sum up, the university's revenues from the commercialization of intellectual property generally can be distributed as follows: - income is distributed equally between the university and the developers; - the distribution of income is carried out in each case individually; - developers receive from 30 to 50% of revenue, 20% - the division for the commercialization of intellectual property, the rest to the university; - developers receive from 40 to 60% of revenue, 10-15% - the unit for the commercialization of intellectual property and the remainder to the university; - incomes are distributed in the following ratio: 50% goes to the developers, 20% to the structural subdivision of the developers and 30% to the university budget. It is noteworthy that Kazakhstani universities mostly do not yet receive income from the commercialization of intellectual property, as the system of commercialization in our country is at the earliest stage of development. Therefore, the order of income distribution is not yet clearly defined [140]. Universities, as a rule, try to encourage developers of the intellectual property, considering their property interests as much as possible. After all, the entire system of commercialization can be efficient only if developers benefit from using the university in their commercial activities. Organizational support of the innovation process depends on the characteristics of management and is inextricably linked to the legal and financial security. 63

However, the solution of regulatory problems does not exclude the creation of an innovative centralized management infrastructure to meet the requirements and conditions. Many countries have used the prescriptive approach to stimulating innovation processes at national and regional level (the regions are sometimes served as an object for the experiment). However, this approach may have the opposite effect without considering the needs of the market. The satisfactory solution of the tasks on the organization of an integrated system of infrastructure (legislative, financial and organizational) will provide the necessary conditions to achieve world-class manufacturing intellectualization including the formation of the foundations of the post-industrial society. It is required to form sectoral and cross-sectoral infrastructure support of innovation in implementing the national projects. Therefore, support and incentives should be implemented by improving the management of public organizations and the construction of the public-private partnership (PPP) mechanism. The data in Table 16 is the result of the analysis which allows highlighting the level of competence and protection of national interests, the involvement of business and society in innovation and technology commercialization.

Table 16 – The experience of organizational support of technology commercialization in developed countries [141]

The problem of Mechanism of decision making Implemented in organizational support countries 1 2 3 Sufficiency, excess or The presence of the business sector, which owns European Union deficiency in the 2/3 of the research capacity as a result of market number of research regulators innovation - supply and demand institutes and scientists The development of technology parks and European Union tehnozones, technocomplex and diversified corporations The development of clusters of scientific Germany associations, the so-called AN-institutions, integrating the capabilities of institutions and universities – points of sale technology Interpenetration and Creation and development of new technology- Sweden fusion of science policy holding companies, oriented to the needs of and technology with industry and the commercial market (support in industry politics patenting, licensing, establishment and development of spin-off companies, technology companies) State support of public Development of the mechanism of PPP Australia and private initiatives Higher Institutes of Technology as a "virtual" Netherlands research institutes of actual companies and public research organizations

Continuation of table 16

1 2 3 Building partnerships, cluster networks and European Union platforms for public-private cooperation State support for staff exchange Germany Inter-ministerial program of cluster studies - seven Finland programs aimed at improving the ability to collaborate across the research system and improve the reliability and flexibility of innovation; development of sector funds The selection of highly Design and development of the mechanism of European Union profitable results to innovation intermediaries between public R&D, United States start the academic research and private business – commercialization institutions of technology transfer process

The main areas which require reform (including the implementation of national projects) are as follows: - An effective national innovation policy and its implementation; - Management of innovation systems; - Development and support of innovative clusters within national innovation systems; - The development and support of all members of the national innovation system; - Creation and support of development of innovative communications and databases to facilitate cooperation and partnership in the national innovation system; - Creating favorable conditions for patenting in the public sector; - The introduction of tax incentives for R&D in the private sector. Analysis of relevant literature identifies a range of policies that foster domestic low-carbon innovation in emerging economies. Countries that are strong at cleantech commercialization are a mix of countries that have an overall strong commitment to environmental protection, resource efficiency, climate mitigation and renewable energy goals, while also having the necessary market sophistication and size to scale domestic emerging innovations. These countries are not driven merely by moral commitments to address climate change but also by the urgency to deploy lean technologies to solve mounting public health and environmental issues. Overview of country profiles presented in Global Cleantech Innovation Index 2017 [125, p. 30] and Global Innovation Index ranking allowed us to identify main directions of key national policies in the commercialization of green technologies in forty countries (Appendix C). While the literature on the diffusion of environmental technologies is relatively sparse, it is possible to identify some enabling factors. These include strengthening IP protection, removing barriers to international trade and investment, developing sufficient absorptive capacity, and promoting collaboration between market actors. 65

Most important papers related to identification green technology commercialization barriers are shown in Table 17.

Table 17 - Articles dedicated to study of green technologies diffusion barriers [142]

Article Technology Barrier(s) to Data Key Results Diffusion 1 2 3 4 5 Jaffe and Thermal Up-front costs US Lower adoption costs are Stavins 1995 insulation matter residential 3x more likely to encourage more construction adoption than increased 1979-1988 energy costs. Hassett and Residential Up-front costs US Installation cost savings via Metcalf energy matter households tax 1995 conservation more 1979-1981 credits encourage adoption

Kemp 1997 Thermal Inadequate Netherlands Government subsidies do not home information households lead to adoption. Epidemic insulation model fits data better than rational choice model. Metcalf and Attic Inadequate US Actual energy savings are Hassett 1999 insulation information Residential less Energy than promised. Consumption Survey, 1984, 1987 Reppelin- Clean steal Import barriers Adoption of Import barriers restrain the Hill 1999 technologies electric arc adoption of foreign- furnace in 30 produced countries, goods. 1970-1994 Howarth et Energy- Agency decision Green Lights Voluntary programs lead to al. 2000 saving making and Energy wider adoption in technology problems, Star companies. (efficient inadequate programs Inadequate information lighting information inhibits adoption. equipment) Nijkamp et Energy- Economic barriers Survey of Economic barriers affect al. 2001 efficient - alternative Dutch adoption more than financial technology investment companies and - low energy costs uncertainty barriers. - capital replacement Mulder et al. Energy Complementarities N/A Complementarities and 2003 efficiency among learning by- technologies technologies doing process impede adoption.

Continuation of table 17

1 2 3 4 5 Anderson Company- Inadequate U.S. Companies adopt additional and Newell level information Department projects with improved 2004 adoption on technologies, of Energy’s information. Up-front costs of energy- initial Industrial have saving costs and payback Assessment 40% greater effect than projects years Centers energy recommended of adoption database, costs by energy 1981-2000 audits

As recent empirical evidence suggests, foreign technology suppliers take all these factors into account when defining their strategies concerning emerging markets [143]. They also assess the level of relevant expertise and the overall business environment [144]. Finally, particular attention should be given to SMEs, which significantly contribute to innovation, growth, and employment in these economies. This diversity of policy options provides more flexibility in addressing green technology commercialization problems that may be local, regional, national or international. As a result of analysis of foreign experience in supporting green growth and diffusion of green technologies, we classified a range of national policy priorities according to different level of income and innovative development (table 18).

Table 18 - Classification of key national policy priorities for supporting green technologies

Characteristics of Key national policies countries 1 2 High level of Introduce environmentally-friendly performance standards and carbon national income pricing. and innovative Increase mitigation and adaptation innovation and diffusion through development subsidies, venture capital incentives, and policies to encourage collaboration among companies and other sources and users of green technologies. Assist developing countries in enhancing their technological absorptive and innovative capacities to support green growth initiatives Support transfers of know-how and green technologies to developing countries. Support middle-income-country participation in long-term energy R&D projects. Share data related to formation and implementation of green development with developing countries. Middle level of Introduce eco-friendly standards. national income Establish incentives for imports of green technologies

Continuation of table 18

1 2 and innovative Create long-term conditions for local production of green products in rapidly development industrializing countries. Create incentives for fostering green technologies in rapidly industrializing countries with a critical density of innovation Improve the business environment. Strengthen the IP regimes in green patenting. Facilitate climate-smart foreign direct investment. Increase links between academia and research institutions, the private sector, and state body Low level of Low level of national income and innovative development national income Invest in engineering, design, and management skills in general. and innovative Increase funding to research institutions for adaptation research, development development, demonstration, and diffusion of technologies as a basis for developing of green technologies. Increase links between academia and research institutions, the private sector, and state body. Introduce subsidies for adaptation green technologies in production Improve the business environment. Import outside knowledge and green technology to research universities. All countries Remove barriers to trade in green technologies. Remove subsidies to high-carbon technologies. Redefine knowledge-based institutions, especially universities, as source of the diffusion of low-carbon practices in the future Note – Compiled by author based on own research

In summary, a meaningful comparative analysis of policy options poses, even within a single country, significant challenges. Several authors highlighted the difficulties associated with the ranking of available policy instruments, arguing that such an assessment depends on a range of factors. For instance, the perceived costs of environmental externalities and the state of technology, as well as the innovator’s ability to appropriate spillover benefits of new technologies to other companies, the values of innovation, environmental benefit functions, and the number of companies producing emissions [145]. At the same time, the existing literature has repeatedly stressed the need for policymakers to select and combine different instruments, thereby taking into account the country and industry-specific conditions. Сonclusions on the first chapter. Technology and innovation management requires the integration of R&D management, production, and operations management, marketing management, product development, and organizational development. Management of innovation is not easy because the history of product and process innovations shows examples of good ideas that failed in commercialization. Technology commercialization is concerned with the process of converting scientific R&D into useful products or services. A comprehensive look at all the literature and industry-based commercialization models offers differing

processes for taking a product to market. Fostering green innovations has become a key priority for national and international environmental policy. Green growth is considered not only as an essential means to tackle environmental issues and transit to sustainable development, but also as a driver of economic growth, especially in a time of economic downturn. By analysing experience of foreign countries like Germany and South Korea in the commercialization of green technologies, valuable lessons for Kazakhstan has been concluded. Classification of national policies has been proposed based on the analysis and overview of modern policies in a number of states like USA, UK, Korea, China, Canada, Denmark, Israel, Japan, Brazil and others listed in Global Cleantech Innovation Index. Importance of green technologies is growing in the modern world. Although major engineering disciplines already dedicate studies to commercialization problems of green technologies, there is not much research ongoing in the management disciplines. A literature review asking a question of what is state of the art in academic research on commercialization of green technologies showed that this is an emerging branch of scientific interest. The novelty of research topic, lack of theoretical and practical background in commercialization of green technologies became a basis for proposing the author’s concept and methodology for empirical research.

2 ANALYSIS AND ASSESSMENT OF THE COMMERCIALIZATION OF GREEN TECHNOLOGIES IN KAZAKHSTAN

2.1 Analysis of innovative development and commercialization system of research results in Kazakhstan Currently, innovation is the main way to achieve economic growth and improve competitiveness. In developed countries, the dynamic development of innovation is one of the leading components of the innovation economy. Even though the course towards an innovative economy was taken in 2003, innovation activity in Kazakhstan is at the early stage of development: there are no significant technological breakthroughs, nor signs of fast implementation of local R&D results [146]. Kazakhstan took 78th place out of 127 countries in Global Innovation Index 2017, dropping three positions from 2016. However, Innovation efficiency ratio is very low with the only 116th position in the list. According to this analysis, following aspects are considered as strength (position among 127 countries): - "Cost of redundancy dismissal, salary weeks" – 22; - "Business environment" – 31; - "Graduates in science & engineering" – 26; - "QS university ranking, average score top 3" – 35; - "Government’s online service" – 31; - "Ease of protecting minority investors" – 3; - "High-tech exports less re-exports" – 30. On the contrary, categories that are essential for innovative performance not only rated as average, but indicated as weaknesses: - "Expenditure on education, % GDP" – 104; - "Global R&D companies, avg. expend. top 3, million $US" – 43; - "Venture capital deals/billion PPP$ GDP" – 88; - "Innovation linkages" – 121; - "State of cluster development" – 109; - "Scientific & technical articles/billion PPP$ GDP – 118; - "Intellectual property receipts, % total trade" -101 [147]. Comparing strengths and weaknesses, one must admit that Kazakhstan clearly lags behind regarding indicators such as “Research & development”, “Knowledge & technology outputs”, “Innovation linkages”, “Knowledge diffusion” taking lowest positions among countries studied. To analyze innovative development and commercialization of research results system of Kazakhstan, following main indicators were chosen: 1. Share of R&D expenditure in GDP. 2. Innovative activity level. 3. Patent applications field. 4. The volume of innovative products and the volume of innovative services provided. 5. Personnel involved in scientific and research work. 70

6. Availability of infrastructure that ensures the functioning of markets for innovation, and related services. Statistical information from Committee on statistics of Kazakhstan, reports of National Agency of Technological Development, National Institute of Intellectual Property, data from World Bank and other official sources were used in this analysis. 1. Research and development expenditure (% of GDP). The existing structure of R&D in Kazakhstan is conditioned by the practice of funding science. As a result, most of the scientific developments are "stacked on a shelf" [148] and are not brought to scientific and technical products ready for introduction into the market. This situation is primarily due to the deterioration of the field of industrial science, as well as in the design and engineering and technology organizations of the country. It is noticeable that even if share of R&D expenditure falls (figure 15), the amount of allocated money grows steadily (figure 16). This is due to the growth of GDP in the whole country, which leads to the fact that the share of spending on R & D is reduced in percent. R&D expenditure share was 0,14 percent in 2016 slightly decreasing from 0,17 percent which was quite stable for previous three years. Graph of internal expenditure on R&D in Kazakhstan from 2003 to 2016 is given in million tenges and clearly has an opposite trend. According figures for 2016 was 66 600,1 million tenges also declining from 69 302,9 million tenges from 2015.

0,30 0,28 0,25 0,25 0,24 0,25 0,23 0,22 0,21 0,20 0,17 0,17 0,17 0,16 0,15 0,15 0,14 0,15

0,10

0,05

0,00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Figure 15 - Dynamics of changes in R&D expenditure (in % GDP) in Kazakhstan from 2003 to 2016

Note – Compiled by author based on [149]

80 000,0

70 000,0

60 000,0

50 000,0

40 000,0

30 000,0

20 000,0

10 000,0

0,0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Figure 16 – Dynamics of changes in internal expenditure on R&D in Kazakhstan from 2003 to 2016 (million tenge)

Note – Compiled by author based on [149]

2. Innovative activity level. The indicator of innovative activity level in 2015 was only 8.1%, that is, out of 31784 enterprises surveyed, only 2585 enterprises used innovations. The same indicator in 2016 was 9.3%, with 31077 and 2789 respectively. At the same time, the growth of innovative activity is evident. Over the decade, the innovative activity of enterprises has grown almost 2.5 times, while the share of innovative products / services in GDP has decreased almost 1.5 times (figure 17).

6,0

5,0

4,0

3,0

2,0

1,0

0,0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2,3 3,4 4,8 4,8 4,0 4,0 4,3 5,7 5,7

Figure 17 - The level of innovative activity of enterprises and organizations for technological innovation

Note – Compiled by author based on [149] 72

3. Patent applications field. In the accounting year 2016, the National Institute of Intellectual Property received 6948 applications. The leading share of applications received is for trademarks - 4719 applications, of which 3111 were filed by national applicants, 1608 - by foreign applicants. The total number of applications for inventions was 1221, of which 990 of national applicants, 231 from foreign applicants. Industrial designs received 239 applications, of which 89 came from national applicants, 150 from foreign applicants. For utility models - 716 applications, 654 of which were filed by national applicants, 62 – foreign [150, p. 13]. Information on received applications for inventions, as well as the distribution of filed applications between national and foreign applicants from 2012 to 2016 are presented in Figure 18.

100% 130 212 272 232 231 90% 80% 1373 1824 1740 70% 1721 990 60% 50% 40% 30% 1503 2036 2012 1221 20% 1503 10% 0% 2012 2013 2014 2015 2016 Filed, total By national applicants By foreign applicants

Figure 18 – Breakdown on patent applications in Kazakhstan from 2012 to 2012

Note – Compiled by author based on [150, p. 17]

The patent activity of Kazakhstan is developing positively, but very slowly. In the issuance of security documents, the issuance of patents for inventions is substantially dominant (rise by 35% in comparison with previous years). Data on issued protection documents for inventions to national applicants with regional distribution show that the largest number of patent holders is in Almaty city - 361 (44.7%), Astana city - 135 (16.7%) and South Kazakhstan oblast - 70 (8.6%). 4. The volume of innovative products. Over the decade, the innovative activity of enterprises has grown steadily, while the share of innovative products in GDP has decreased. The volume of innovative products produced in Kazakhstan in 2016 amounted for 445 775,7 million tenge showing slight increase, however it is much

lower that figures for 2013 and 2014 (figure 19).

700 000,0

600 000,0 578 263,1 580 386,0

500 000,0 445 775,7

400 000,0 379 005,6 377 196,7

300 000,0 235 962,7

200 000,0 142 166,8

100 000,0

0,0 2010 2011 2012 2013 2014 2015 2016

Figure 19 – Dynamics of changes in the share of innovation in GDP for 2005- 2015 (million tenge)

Note – Compiled by author based on [149]

The structure of expenditure on innovations can also be distinguished by its type such as product or process innovation, and its ownership as well. Figure 20 shows the dynamics of product and process innovations spending by ownership type for 2005, 2010 and 2015 years.

property of other states, their legal entities and citizens

private property

state property

Total

property of other states, Total state property private property their legal entities and citizens 2015 655 361,0 18 200,4 606 141,4 31 019,3 2010 235 501,7 7 839,6 218 666,4 8 995,7 2005 67 088,9 4 072,5 44 056,5 18 959,9

Figure 20 - Dynamics of product and process innovations spending by ownership type in Kazakhstan (million tenge)

Note – Compiled by author based on [149] 74

As it is noticeable from the Figure 20, the main source of funding for innovation in Kazakhstan is the company's own funds. The general trend by all indicators is upward. 5. Personnel involved in scientific and research work is also one the important indicators characterizing state of scientific development of the country. Table 19 presents number of employees involved in research and development work in Kazakhstan.

Table 19 - Breakdown of employees involved in R & D in Kazakhstan for 2011- 2016 (people) [149]

2011 2012 2013 2014 2015 2016 Number of employees involved in R & D, people (total in Kazakhstan) 18 003 20 404 23 712 25 793 24 735 22 985 of them: research specialists 11 488 13 494 17 195 18 930 18 454 17 421 of them: Doctors of science - 1 065 1 688 2 006 1 821 1 828 doctors by profile 1 486 719 605 596 549 493 PhD 95 131 218 330 431 456 Candidates of science 3 286 3 629 4 915 5 254 5 119 4 726

The general trend is upward with growing number of workers who deal with research and development. Corresponding figures increased from 18 003 in 2011 to 22 985 in 2016. 6. Availability of infrastructure that ensures the functioning of markets for innovation, and related services. An important component of the formation of a national system for the commercialization of scientific developments is the creation of its industrial infrastructure, which includes technology parks, technology commercialization centers, industrial design bureaus, technology commercialization offices, international technology transfer centers, organizations that are part of the system Scientific and technical information, technology transfer networks, venture funds, consulting firms, exhibition centers, experimental stations. The main task of the production infrastructure is to ensure the transfer of technologies from the developer to the industry. To date, there are eight regional technology parks in cities of Karaganda, Uralsk, Almaty, Astana, Shymkent and Ust-Kamenogorsk (table 20). Technology parks provide technological business incubation services - assistance to innovators in the implementation of their innovative projects at the initial stages.

Table 20 – Technological parks in Kazakhstan

Name of State Year of Founders City organization share % establishme nt

Technopark 35,6 2004 JSC "RIC" Gradient ", JSC Uralsk Algorithm LLP CITT, RGKP" ZKATU them. Zhangir Khan ", JSC" Research Institute "Gidropribor" Saryrka LLP 84,3 2004 JSC CITT, JSC "National Karagandy Company" SEC "Saryarka" LLP "Technopark 53,7 2004 JSC "KazNITU them. K.I. Аlmaty KazNTU them. K.I. Satpaev ", JSC NATD Satpayev » LLP "Regional 100,0 2007 JSC NATD Аstana Technopark of Astana » LLP "Regional 91,9 2008 JSC NATD, RIC "Maximum" Shymkent Technopark of the LLP South Kazakhstan Region" LLP "East 50,3 2004 EKSTU them. D. Serikbayev. Oskemen Kazakhstan regional LLP "CB GMO", JSC CITT technical park" Altai " Technopark LLP 100 2012 JSC NATD Almaty Alatau LLP "Almaty 100 2005 JSC NATD Almaty Regional Technopark"

Note – Compiled by author based on [151]

By operating technological parks, a complex of service and infrastructure services to support innovators in the implementation of their ideas: from development of a business plan to qualified consultations in the process of its implementation. The main task of regional technological parks is to assist in the development of industrial and innovative activities by assisting in the search for potential investors. Business incubations services in technological parks are provided free of charge on a competitive basis and cover expenses for legal, accounting, economic support, provision of infrastructure, project manager services, business plan development, specialized consulting, development of technical documentation, project promotion, general and administrative support, testing, certification, licensing, patenting in Kazakhstan and testing of products on the market [152]. The NATD supervises the activities of offices and regional centers for the commercialization of technologies, with the assistance of which applications for grants for the commercialization of technologies are being filed. 76

Branch design bureaus carry out service support of innovative projects by mastering the products stipulated by technological memorandums. A technological memorandum is concluded between the industry ministry and national companies, subsoil users, large backbone enterprises. It provides guaranteed purchase of products from domestic producers in the event of the organization of its production in Kazakhstan. To date, four branch design bureaus have been established: agricultural and transport engineering in Astana, mining equipment in Ust-Kamenogorsk and oil and gas engineering in Petropavlovsk (table 21).

Table 21 – Industry design bureaus [151]

Title State share, Founders City % LLP "Design bureau of transport engineering" 100,0 JSC CITT Astana Design Bureau of Mining and Metallurgical 100,0 JSC CITT Ust- Equipment LLP Kamenogorsk Design Bureau of Oil and Gas Equipment LLP 100,0 JSC CITT Petropavlovsk Design Bureau of Agricultural Machinery LLP 100,0 JSC CITT Astana

International technology transfer centers. Four international technology transfer centers have also been established based on public-private partnerships (table 22).

Table 22 - International Technology Transfer Centers [151]

Title Partner Year of establishment The Kazakh-French Center for Technology French company 2009 Transfer, CEIS The Korea-Kazakhstan Center for The Innopolis 2011 Technological Cooperation Foundation The Kazakh-American Center for Innovaro Inc. 2013 Technological Cooperation The Kazakh-Norwegian Center for Development Norway 2013 Technological Cooperation Kazakhstan-China Center for Technological Center for High 2014 Cooperation Industrial

"National Agency for Technological Development" plays a vital role in the diversification of the economy. During the period of its activity, 328 projects were supported through innovative grants by the amount of 12.2 billion tenges. As a result, more than 1 thousand jobs were created, goods for 115 billion tenges produced and 6.1 billion tenges of taxes were paid. To implement the mission of NATD, agency will carry out following activities

in three strategic areas: 1. development of technology transfer system; 2. development of technology commercialization system; 3. development of technological competencies. NATD provides innovative grants, that is, budget funds provided to the subjects of industrial and innovative activity on a gratuitous basis for the implementation of their industrial and innovative projects within the priority areas of granting innovative grants. In 2016, work was continued to consider applications for innovative grants received in 2015-2016. From the received 463 applications, in 2016 212 applications were considered and 66 contracts for the amount of 1 billion 996 million tenges were signed. According to information provided by the grantees, 539 jobs were created at the end of 2016. Grantees received 3.9 billion tenges of taxes paid, products worth KZT57.7 billion were issued. At the same time, exports are 27.9 billion tenges (in 2015 - 8 billion tenge). Adoption of the Law of the Republic of Kazakhstan "On the commercialization of scientific and (or) scientific and technical activities" in 2015 became an important milestone in the formation of a national system for the commercialization of scientific developments. The law defined participants, mechanisms and measures to stimulate the commercialization of research results. Despite the significant scale of measures taken in recent years to support innovative activity, key problems remain: 1) insufficient stimulation of transfer of advanced technologies; 2) inefficiency of mechanisms for solving and searching for priority technological tasks of enterprises and businesses; 3) low level of the business's susceptibility to technological innovations; 4) lack of technological and managerial competencies; 5) under development of innovative technologies in the education system; 6) imperfection of the control system for the implementation of innovative projects. Thus, the analysis of the institutional environment for the commercialization of technologies in Kazakhstan shows that the national system for the commercialization of scientific developments is at the development stage. The national system for the commercialization of scientific developments originates based on a national innovation system, which, is characterized by an initial stage in the development of a network model of innovation. As a result, the effectiveness of the system of commercialization of scientific developments suffers, which is manifested in relatively low scientific potential, weak information propaganda of domestic scientific developments, the lack of direct and indirect stimulation of industry to introduce domestic scientific developments, one-sided development of innovation infrastructure.

2.2 Assessment of the commercialization system of green technologies in Kazakhstan Green Economy is vital to the sustainable development of the country. Transition to Green Economy will enable Kazakhstan to achieve the goal of entering the top 30 developed countries in the world. According to estimates of, by implementing a course of actions proclaimed in Green Economy Concept, the GDP will additionally increase by 3%, more than 500,000 new jobs will be created, new industries and services will be developed by 2050. Total amount of investments required for the transition to a Green Economy is estimated at 1% of GDP per annum, which is equivalent to USD 3 to 4 billion [153, p.3]. There main reasons for transitioning to a Green Economy are as follows: 1. Inefficient use of resources. According to scientists, this leads to USD 4 to 8 billion of lost funds by the economy each year and may hit USD 14 billion by 2030. Moreover, the energy-saving potential is estimated at USD 3 to 4 billion per year, which will likely to reach USD 6 to 10 billion per year by 2030 [154]. 2. The imperfection of the system of tariff and price formation for energy resources does not create an incentive for technological improvement of the industry. 3. At present, Kazakhstan is facing a severe deterioration of the state of natural resources and the environment in all the most important environmental indicators. Almost a third of the agricultural land is now degraded or under serious threat, and more than 10 million hectares of potentially arable area in the past was abandoned. At the moment, a deficit of 13-14 billion cubic meters of sustainable water resources is forecasted to meet the needs of the economy by 2030. Pollution of the environment has a severe negative impact on human health. 4. Kazakhstan inherited a significant territory in economic indicators, in the standard of living and the state of the environment. The development of new industries and "green clusters" will reduce disparities in regional development and use their potential in renewable energy, agriculture, water management, waste management and other sectors. World experience has shown that the "green economy" stimulates regional development, contributes to social stability, and increases economic potential by creating new jobs in the "green economy" sectors. 5. The world community expects Kazakhstan to implement landmark projects successfully: EXPO-2017 exhibition titled "Future Energy" and the "Green Bridge" Partnership Program to promote sustainable development in the Central Asian and other regions of the world. Such countries of the region as Mongolia, China and South Korea have already started implementing ambitious green economy plans, voiced by the presidents of these countries. For example, South Korea already invests 2% of GDP annually in the "green" sector, while China's investments are at 1.5% of GDP with an expected growth of up to 2% by 2015 [155]. The Green Economy Concept is to be implemented by the provisions of the Constitution of the Republic of Kazakhstan, Strategy “Kazakhstan-2050” and “Kazakhstan-2030: Prosperity, Security and Growing Welfare of All the 79

Kazakhstanis” and the Strategic Plan for the Development of the Republic of Kazakhstan until 2020. The matter of the Green Economy Concept implementation will be regulated by legislative acts of the Republic of Kazakhstan related to the transition towards Green Economy [156]. The tools for implementing specific tasks of the Concept by sector are the existing program documents as amended and supplemented with respect to the implementation of the main areas of the Green Economy Concept, such as the Program of Agro-Industrial Complex Development for 2013-2020, the State Program for Industrial and Innovational Development of Kazakhstan, Concepts of innovative development of the Republic of Kazakhstan until 2020, local development programs, strategic plans of governmental bodies, Zhasyl Damu Industry Program and other industry programs that will be updated to include new areas of focus such as on air quality, waste management, prevention of desertification and land deterioration, improving soil fertility, development of fisheries, aquacultures and fish breeding. The top-priority measure to assess the situation and determine action priorities is to introduce a system of indicators of sustainable development. These are primarily indicators of the resource intensity and energy intensity in economic growth and specific indicators of pollution. Moreover, accumulated environmental damage, resource depletion, landscape degradation and the impact of pollution on human health should be taken into account. It is principally important, especially to determine prospects for development and to assess the use of 3 renewable energy sources, to evaluate ecosystem services (including various ecosystems, biological resources, biodiversity and area of protected natural reserves). Therefore, we compare key indicators of green economy for Kazakhstan and other developed countries in Table 23.

Table 23 - Key indicators of green economy for Kazakhstan in comparison with other countries

Countries Energy The The share Carbon Urban Exhaustion Satisfaction efficienc share of dioxide pollution of natural with the y of renewable emissions (mg/m3) resources actions for the (GDP fossil energy per capita (% оf) protection of per unit fuels (% of (tonnes) the of (% total) environment energy) of (% satisfied) total) 1 2 3 4 5 6 7 8 Norway 8,1 58,6 45,3 10,5 16 10,6 51,5 Netherlands 7,7 92,5 4,4 10,5 31 0,8 66,1 Germany 8,3 80,1 8,9 9,6 16 0,1 61,8 Sweden 6,6 31,1 32,4 5,3 11 0,2 62,9 Denmark 9,5 80,4 18,9 8,4 16 1,5 64,3 France 7,4 51,0 7,6 6,1 13 0,0 57,5

Continuation of table 23

1 2 3 4 5 6 7 8 Czech 5,5 81,5 5,4 11,3 18 0,3 56,6 Republic United 10,1 90,2 2,8 8,5 13 1,2 66,8 Kingdom Poland 6,8 93,8 6,3 8,3 35 1,0 43,6 Belarus 4,1 92,1 5,5 6,5 7 0,9 50,6 Russia 3,0 90,9 3,0 12,1 16 14,5 18,3 Kazakhstan 2,5 98,8 1,1 15,3 15 22 37,4 China 3,7 86,9 12,3 5,2 66 3,1 73 Note – Compiled by author based on [157-158]

Kazakhstan has a considerable potential for renewable energy, hydro, wind, and solar energy mainly, which is enough to provide a significant part of its needs for energy resources. So, with a total capacity of water resources in 170 billion kW / h it can be used about 30 billion kW / h efficiently. Today Kazakh hydro produce is about 8 billion kWh, which is less than 30% of the economically feasible potential. Another perspective is wind energy. Kazakhstan has wind energy potential 1820 billion kW/h particularly in Jungar Gates (Almaty region). It would not only cover the growing needs of the south of Kazakhstan's electricity, but also it could be exported in general. According to the Ministry of Energy and Mineral Resources, it’s considered to construct wind farms in 46 regions of the country with total capacity of more than 1 million kW / h by 2030. In addition, develop solar industry, especially in the south and south-west of the country is a great opportunity for Kazakhstan. The number of sunshine hours per year reaches 2200-3000 hours here, and annual solar radiation is 1300-1800 Vatt/m2. Considering this factor, solar collectors can be applied widely to the needs of the heat, saving energy and reducing pollution [159]. Transitioning to Green Economy will require following guiding principles: 1) Improvement of resource productivity. 2) Responsible use of resources. 3) Modernization of the economy using the most efficient technologies. 4) Investment attractiveness of measures for efficient use of resources. 5) Prioritization of profitable measures. 6) Education and culture supporting the environment in the business community and among all citizens of Kazakhstan. The social aspect of transitioning to Green Economy is expressed through the creation of new jobs in the five industrial clusters which will make it possible to diversify the economy of Kazakhstan. There are provisions for the development of new technologies and facilities for the sustainable use of natural resources; standards for sustainable forest management

have been developed; methodological approaches to environmental protection, flora and fauna preservation have been defined. The results of the most promising scientific developments have been introduced into the real economy with the support of the state, primarily through the mechanism of the State Program of Industrial- Innovative Development, which was first drawn up in 2003. Currently a new program for the period 2015– 2019 is being implemented [160]. The state’s efforts are aimed at applying an integrated approach to promote high-tech R & D, within which the innovation infrastructure facilities (research and production centers, industrial parks, etc.) implements the whole range of activities - from the scientific idea of development to its implementation, including for the area of «green» economy. Currently, there are some innovation infrastructure facilities: research and technology parks, research and production centers, business incubators, etc. On November 22 2012, Astana was chosen by the International Exhibitions Bureau as the venue to host EXPO-2017, which will focus on the theme "Future Energy." The theme is aimed to concentrate on both the future of energy, but also on innovative, but practical energy solutions, and their global impact. The Ministry of Education and Science of Kazakhstan, the Ministry of Investment and Development of Kazakhstan, development institutions – JSC «NMH» KazAgro», JSC «Baiterek» JSC «Entrepreneurship Development Fund Damu», JSC «National Science and Technology Holding «Parasat», JSC «KazAgroInnovation», JSC «National Agency for Technological Development», JSC «Kazakhstan Industry Development Institute», LLP «Technology Commercialization Center» Innovation Park Eurasian National University named after LN Gumilev and a number of public organizations of Kazakhstan support the competition of technological innovations for green economy [161]. The mission of the online competition “EXPO 2017” is to bring together the entire scientific and innovative potential of the country to find the best «green projects» in the country, to accompany their implementation, thereby providing content filling EXPO 2017. Innovative projects were received by following sections (figure 21): 1) Renewable and alternative energy sources – 47; 2) Clean technologies in the traditional energy sector (storage and transportation of energy, coal, hydrocarbons, coal mine methane, passing gas oil and others.) – 36; 3) energy efficiency and resource conservation – 28; 4) «green» chemistry and new composite ecological materials, recycling of waste (solid, liquid, air) and CO2 – 42; 5) organic agriculture, adapting to climate change, promoting the absorption of CO2 and methane emission reduction, and sustainable water supply – 36 [162].

Organic agriculture and Renewable and water resources alternative 19% energy 25%

"Green" chemistry and new ecological materials, waste management 22% Clean Energy technologies in efficiency traditional and resource energy saving 19% 15%

Figure 21 - Innovative projects in green technologies for EXPO-2017

Note – Compiled by author based on [162]

Kazakhstan aims to diversify the economy with alternative, cleaner sources of energy and will reform its agricultural and industrial sectors to spur scientific innovation and the use of advanced technologies. Such strong government endorsement should stimulate economic drivers of green development. Of course, 'greening' the economy of an oil-producing resource- based country requires sustained political commitment, significant long-term investments and a range of other enabling conditions. During the study, we analyzed more than 50 sources of information including laws, conventions, concepts, programs, reviews, and reports of international organizations, as well as the sites of government agencies and nongovernmental organizations. According to the results of such a comprehensive analysis, we found that the scientific works about stages of development and establishment of a green economy are virtually absent [163]. This has led us to draw up our vision of the evolution of green technologies in Kazakhstan. As a result, we have identified the key moments in the history of independent Kazakhstan regarding the green technologies based on the following aspects: the adoption of laws, ratification of conventions, the establishment of competent authorities and companies, major events and other factors (figure 22).

2030-and 1992-2002 2003-2012 2013-2019 2020-2030 further

Figure 22 – Stages of green technologies’ development in Kazakhstan

Note – Compiled by author based on own research

Descriptions and key features of each stage are briefly given below: 1. 1992-2002 years – the period of formation of the basic principles, concepts and the emergence of the foundations. This period includes following key events: - 1992 – Kazakhstan took part in the “Earth Summit” in Rio de Janeiro which brought together more than 100 heads of state and government representatives from 178 countries. Its main result was the adoption of the “Declaration on Environment and Development”, “Agenda XXI century”, the two conventions – “Convention on Climate Change” and “Convention on Biological Diversity”. - 1993 – the economic crisis in the region caused by the collapse of the Soviet Union in 1991, limited the opportunity to continue the sustainable development program. - 1997 – Kazakhstan established a National Council for Sustainable Development. - 1997 – adoption of the law “On Environmental Protection”. - 1998 – declared as "The year of the protection of the environment" under the auspices of the United Nations. - 1999 – as a result of tight fiscal and monetary policy the government managed to keep inflation low and relatively balanced budget, which gave further growth prospects. - 2000 – the Central Asian sub-regional report was prepared for the World Summit on Sustainable Development, which includes an overview of the progress made by the government in implementing the recommendations. 2. 2003-2012 years – the period of serious steps by the government in terms of support and major events remarkably influenced the course of development of green technologies. Key events which occurred in this period are indicated below. - 2003 – the adoption of Strategy of Industrial and Innovation Development of Kazakhstan for 2003-2015. - 2003 – Kazakhstan Business Association for Sustainable Development was established. - 2007 – adoption of “The Environmental Code” of Kazakhstan. - 2007 – the National Program on Wind Energy Development in the Republic of 84

Kazakhstan till 2015 was developed, with an outlook to 2024. - 2010 – the initiative of Astana under the name “Green Bridge”: Partnership of countries in Europe, Asia and the Pacific for the implementation of “green growth”. - 2010 - Decree of the Government of the Republic of Kazakhstan for 2010-2014, called “Green Development”. - 2012 – The Kazakh delegation took part in the next United Nations Conference on Sustainable Development in Rio de Janeiro, Brazil, called Rio + 20. - 2012 – Kazakhstan's capital Astana chosen to host the international exhibition EXPO-2017 by secret ballot of the member countries of the International Exhibitions Bureau in Paris. Subject of the exhibition is “Energy of the Future”. 3. 2013-2019 years – the period of active development of green technologies and increased public awareness in our country. Key events both occurred and planned are as follows: - 2013 – Concept of transition of the Republic of Kazakhstan to the “green economy” approved by the Decree of the President of the Republic of Kazakhstan. - 2013 – the year of “Environmental culture and environmental protection” in the Republic of Kazakhstan. - 2013 – “Coalition for green economy and development of the G-Global” was established. - 2013 – “International innovative-educational center” Green Economy” was established to provide training on green innovations, technologies and promotion of green reforms and projects. - 2014 – “The program of modernization of the system of solid waste management for 2014 – 2050” was developed and approved. - 2014 – The Council for the transition to a “green economy” is formed by the President of the Republic of Kazakhstan. - 2014-2015 – numerous competitions with grant funding were announced over the green technologies and innovation. - 2017 – Kazakhstan hosts International Exposition EXPO-2017 with the focus on the theme “Future Energy”. 4. 2020-2030 years – development based on sustainable use of natural resources, use of renewable energy based on high technologies. This will be the period based on the established green infrastructure, transformation of the national economy, oriented at rational water use, motivation and stimulation of development and broad implementation of renewable energy technologies, as well as construction of facilities based on high energy efficiency standards. 5. 2030 and further – the transition of the national economy to the principles of the "third industrial revolution". Facing the prospect of a second collapse of the global economy, humanity is desperate for a sustainable economic game plan to take us into the future. Here, Rifkin J. explores how Internet technology and renewable energy are merging to create a powerful "Third Industrial Revolution." He asks us to imagine hundreds of millions of people producing their own green energy in their homes, offices, and factories, and sharing it with each other in an “energy internet”, 85

just like we now create and share information online. Rifkin's vision is already gaining traction in the international community. The European Union Parliament has issued a formal declaration calling for its implementation, and other nations in Asia, Africa, and the Americas, are quickly preparing their own initiatives for transitioning into the new economic paradigm [164]. Methodology. The quantitative methods of research have long won strong positions in scientific research. These methods assume that the characteristics of the social environment constitute an objective reality that is relatively constant in time and within certain parameters. The dominant methodology of the quantitative research is to describe and explain the characteristics of the external behavior of this reality by collecting numerical data on the objects under study. Subsequently, these accumulated data are subjected to statistical analysis. Qualitative research methods assume that individuals build social reality in the form of meanings and interpretations and that these designs, as a rule, are temporary and dependent on the situation. The dominant methodology, in this case, is to discover these meanings and explanations (interpretations) by an intensive study of situations in the natural conditions provided that the necessary data are subjected to their analytical induction [165]. Both research approaches have different contextual differences, while qualitative studies can complement quantitative studies to obtain more reliable results [166]. In this study, both quantitative and qualitative methods of analysis are used. The quantitative method of this research work is based on statistical and microeconomic analysis to present certain calculated values for constructing theoretical conclusions. The calculated values represent a convincing scientific proof of how events occur and by what principle they work. Carrying out of qualitative research assumes acknowledgment of results of the quantitative analysis. In the research work, a method of peer review is used, which involves obtaining an expert opinion on the issue under investigation, drawing on the experience, knowledge, and recommendations contained in the judgments of competent specialists [167]. The generalized view of experts obtained because of quantitative evaluation and processing of results allows to receive an informed decision, to understand the existing laws or to plan the forecast of further directions of action. The method of expert assessments as a scientific research tool makes it possible to solve many problems, to determine the ordered order of objects (phenomena), factors, options for actions, etc. By the degree of their importance. An expert possessing a certain potential of knowledge and being a repository of a large volume of rational information acts as a competent source of this information, whose opinions and arguments are subsequently quantified. It should be noted that when studying a phenomenon (object) in a study, it is reasonable to base it on information obtained from several experts. This allows obtaining more reliable and objective results, as well as additional data and information on the dependencies of some phenomena, objects of research, which do not appear in explicit form in the opinions of experts. 86

To solve the set research problems, the most common method is interviewing as one of the main forms of expert assessments and preferred methods for gathering the necessary information [168]. Various types of interviews can be used to obtain peer reviews [169]. The interview can be structured, unstructured or semi-structured [170]. A semi-structured interview is widely used in modern studies since it allows the interviewer (interviewer) to obtain a description of the interviewer's environment (interviewee) concerning the interpretation of the values of the phenomena described [180]. Some foreign scientists drew attention to many advantages of a semi- structured interview [190]: - The interviewer (interviewer) spends more time with the interviewer (interviewee), which increases mutual understanding; - the interviewer (the interviewee) provides his point of view, opinion, the perception of a phenomenon in more detail than the researcher (interviewer) expects to receive; - The interview uses a language that is understandable and convenient for participants, rather than trying to understand theoretical research terms or adjusting to the concepts under study; This type of interview allows you to discuss issues that naturally arise during interviews. We aimed to consider the commercialization issues of green technologies in Kazakhstan as the main tool of establishing sustainable economy. In this research, 14 projects were selected out of 43 potentially successful projects and 9 experts were invited from this field. As a result, 23 interviews with experts in green technology were conducted and analyzed. Research objectives are to determine the availability of patents in projects and to identify key factors and barriers that affect the successful commercialization of technologies based on the respondents' opinions. Questions for the representatives of the projects were based on a literature review and pilot interview. It is important to distinguish main research question and subsidiary questions according to the methodology of qualitative research [172]. All experts were interviewed on condition of anonymity. Interviews were conducted by the method of story-telling, where the researcher asked basic questions to guide the conversation in the right direction, subsequently the story of an expert based on his personal experience and deep knowledge [173-174]. A great experience and professionalism of the experts revealed several hidden factors and the specific problems of green technologies. For the clarity of selection Figure 23 and Figure 24 presents the segmentation of respondents.

have from 1 to 10 patents have from 11 to 19 patents have 20 and above patents don't have a patent

Figure 23 - Segmentation of experts on the number of patents

Note – Compiled by author based on own research

scientists private sector national companies

Figure 24 - Segmentation of experts

Note – Compiled by author based on own research

The information in Table 26 reflects important information about respondents, which allows you to verify the competence of selected experts. The table indicates such data as the project industry, the role of the respondent in the project, experience on the project topic and general field experience, the number of patents on the project topic and the total number of patents of the interlocutor.

Table 24 - Information on respondents (projects)

Respondent Experienc General Number of General Field / scope ’s role e in experience in patents by number of project, this field, year project patents year Alternative energy Project 6 10 – - manager Alternative energy Project 5 10 4 3 manager Biotechnology, Junior 5 5 - - alternative energy researcher Energy of the future, Project 8 25 1 17 heat power manager engineering Alternative energy Project 10 40 1 9 manager Energy saving Project 4 5 1 2 manager Energy Efficiency Project 6 6 - - manager

Alternative energy Project 1 2 - 3 coordinator Alternative energy Project 6 6 1 3 coordinator Biotechnology Project 15 46 4 38 manager AIC, Biotechnology Project 10 40 1 38 manager

Biotechnology, AIC Project 12 20 2 11 manager

Soil and wastewater Project 15 50 3 19 treatment manager

Processing of raw Project 18 30 4 15 materials, sewage manager treatment Note – Compiled by author based on own research

Information on the remaining 9 experts is reflected in Table 24. Of these, 1 has a long experience of a scientist and subsequently founded his own company, 2 scientists represent other universities, 5 represent private companies that are potential buyers of green technologies, and 1 representative of a national company.

Table 25 - Information on other respondents

Experience, year Field / scope Respondent’s role Number of patents Alternative energy Professor, 20 40 CEO Biotechnology, alternative Scientist - 10 energy Soil cleaning, alternative Chairman of the - 30 energy Board of Directors Standardization and Director, Founder - 21 rationing,energy Alternative energy Sales Manager - 5 Energy Efficiency Executive Director - 11 Energy audit, energy saving Deputy General - 20 Director, Professor Alternative energy Branch Manager - 3 Power Engineering General manager - 15 Note – Compiled by author based on own research

Analysis of inventive activity is traditionally held with the study of statistical data on the availability of patents and other protective documents. However, the existence of a patent does not guarantee its use. Unfortunately, the low level of commercialization of domestic developments proves this theory. Therefore, it is important to understand the commercialization process from the inside, to find out the reasons for the low level of implementation of university research, to take into account the opinion of scientists and immediately take the necessary measures. Conducted expert interviews have allowed to reveal some factors that were noted during the preliminary literature review. As a result, we have selected the most significant factors and important barriers that affect the successful commercialization of green technologies in Kazakhstan (table 26).

Table 26– Factors and barriers affecting the commercialization of green technologies in Kazakhstan

Factors Description 1 2 Financial 1. Lack of funding of R & D phase of the project 2. Lack of funding for clinical research, field testing, or production of the industrial design 3. The high cost of the necessary technology 4. Lack of scientific capital to start their own production 5. Low wages of scientists

Continuation of table 26

1 2 Infrastructure / 1. Insufficient development of domestic production, which could be applied for Technical green technology 2. Lack of development of the material-technical base for advanced research 3. Poor communication with the industry, making it difficult to conduct tests of the invention and its further advancement on the market 4. Priority use of ready-made foreign technology Legislative 1. Lack of incentives for the introduction of new green technologies in the industry. Payment of the fine for causing harm to the environment is much cheaper than the introduction of green technology into production. 2. Lack of incentives for cooperation with domestic research institutes to long- term research projects 3. Lack of intellectual property protection Personnel 1. The deficit of professional staff in the field of innovation management 2. Deficit of highly skilled economists and managers, their isolation from the production 3. Deficiency of lawyers in the field of intellectual rights, including international qualifications 3. Poor communication between scientists and government officials due to the lack of expertise of specialists in the management of commercialization Socio-cultural 1. Low demand for green technology in the domestic market 2. Lack of awareness about the relevance of the use of green technology, low environmental awareness 3. The low purchasing power of the population Personal 1. The scientist is an inventor, but not a seller. The reluctance of scientists to engage in self-promotion and commercialization of the invention. 2. Weak market research, resulting in the first scientist comes up with an invention, and then looking for a buyer. 3. Reluctance to risk and not to disclose information on the intellectual property Others 1. The presence of a rich hydrocarbon reserves in the country, which reduces the profitability of renewable energy 2. Bureaucratic obstacles 3. Low effectiveness visit thematic exhibitions 4. High competition from foreign suppliers Note – Compiled by author based on own research

56% of respondents noted the importance of the financial problem. It is known that the universities are mainly carried out research works, but to commercialization of the product, it must pass the R & D stage, the production of industrial design, testing and field studies, the creation of the final product / technology, the search for investors, start-up of production, marketing, promotion, etc. That is not entirely correct to expect the commercialization of technology from the research project with a small budget. For each of the above steps it requires huge resources and time. 47% of respondents noted the infrastructure and technical problems. Most projects have domestic and international patents. However, links with industry and production scale are necessary for further commercialization. In the absence of the 91

corresponding production in the country, a scientist forced to seek foreign producers, where the disclosure of intellectual property secrets carries a certain risk. Therefore, companies in the field of green technologies, working in Kazakhstan are inclined to buy ready-made foreign technology than to invest in non-tested invention, which requires additional costs. Experts generally noted positive trends in the development of the legislative framework relating to the protection of intellectual rights, and the development of innovative activities. However, 47% believe that additional legislation stimulating the use of green technologies in the industry. 21% of respondents confronted with the facts of misuse or insufficient protection of intellectual property. The importance of having highly skilled personnel has noted 43% of respondents. It should be noted that the state began training in innovation management are only a few years ago. Therefore, there is a shortage of professionals in the field of innovation management. The clear majority of scientists reported that they do research and invents, and other specialized staff should carry out economic calculations, do market research, search for investors, manage projects, sell technology and so on. The important role played by social and cultural factors. 30% of the experts believe that the lack of awareness on the relevance of the use of green technology, low environmental awareness determines the low demand in this area. 34% of experts drew attention to the personality of the scientist. As noted earlier, the scientist is not an economist or businessperson, so often research project is not aimed at solving existing problems of production or business, and is a continuation of a previous research scientist. That is, the scientist first gets the patent, then looking for ways to implement. We classified answers of experts by the factors which interfere to the successful commercialization of innovations both in green technologies and other fields (table 27).

Table 27 - Terms for the development of commercialization and the factors hampering innovation activities in Kazakhstan

Terms of innovation Factors hampering innovation activities 1 2 The demand for innovation Underdevelopment of the national high-tech market; State erroneous position to warrant the incompatibility of fundamental research to the innovation process Capacity development (achievements, The lack of institution innovation managers, personnel, infrastructure) professional experience and knowledge in the field of commercialization of innovative structure Incentives and motivation to engage in The lack of policies of state protectionism of innovation activities national science, including the innovative grants, grants for youth and women; favorable conditions

Continuation of table 27

1 2 for venture capital funds The legal, economic and organizational Inharmonious legislation on IP; the absence of a conditions developed institute of public contracts; bureaucratic restrictions innovation as the costs of transition from a planned to a market economy; lack of regulation of product markets and related standards, competition rules Note – Compiled by author based on own research

Direct, but anonymous quotes from the interviewees are used to support our analysis, because examining theoretical scheme and active work of both interviewer and interviewee can make the research lively and original [175]. The main guiding questions during an interview with experts are presented in Appendix D and Appendix E. Table 28 indicates some of interviewed experts’ important comments on selected aspects to support our conclusions.

Table 28 – Interviewees’ views about the development and commercialization of green technologies in Kazakhstan

Directions Excerpts from an interview in key areas 1 2 Financial “For scientific research, a maximum of ¼ of the requested amount is allocated. This is barely enough to pay salaries to project participants”. “There are problems in the mechanism of organization and allocation of grants for science. From next year, it is required that 25% of the project is financed by the co-investor. Who will invest in a research project in which results are not yet received?” “Funding for R & D is insufficient”. “There are businessmen who are interested in developments that have money. But they say, "we will give you room and money, come and do the production, and in six months we need a profit."

Infrastructure / “The material and technical base is sufficient for the most primitive scientific Technical experiments. We must understand that all scientific achievements are created on modern equipment”. “You cannot rely on transfer technology. No one is selling modern and efficient technology. Sell only obsolete or generics”. “The biggest obstacle to the commercialization of the project is the industry's disinterest in introducing new technologies”. “The energy sector is a basic and traditional infrastructure. Any innovation will be introduced slowly” “There is no intermediate stage between R & D and production”. “The inefficiency of building such a plant on the territory of the country due to the small number of people (a small scale of the domestic market). Cheaper to carry ready-made things from abroad” 93

Continuation of table 28

1 2 Legislative “Adopted in 2015, the law on commercialization is not much improved the situation. The financial motivation of scientists is spelled out, but this is not the main reason, as long as there are other unsolved problems”. “The new law does not solve the root of the problem. The problem is that the responsible people for the development do not understand the specifics of the problem”. “Without legislative coercion or incentives, existing plants do not want to change anything in a working station. It's easier and cheaper to pay a fine”. “The new law on commercialization did not affect our work in any way”.

Personnel / “Scientists know what to do and what they do. If scientists are given an staff assignment, they can do anything. Problem in management”. The government determines the priority direction. Are they all needed? “How can officials identify promising technologies? Therefore, the definition of the priority direction should come from scientists, and not from officials”. “There is no connection with experts who would promote technology, would be engaged in economic calculations and marketing”. “Scientists and entrepreneurs speak different languages. Ideally, the production staff should have a science / research / development department. And it is the engineers of this department who must conduct negotiations with scientists from universities and research institutes”. “An urgent need for qualified personnel. Regarding the lack of adequate financing and labor remuneration, there is an outflow of specialists”. “We need specialists in the maintenance of green technologies. There are very few competent experts in technical literature”. Socio-cultural “Low interest of the authorities in the use of green technologies”. “It is necessary to improve the ecological literacy of the population. If a person sees that technology and development will improve his life, he will use it. This will open the way for domestic developments”. “Demand from the residents of remote areas is great. But the low purchasing power of the population does not satisfy the demand”. “In general, the country retains traditional thinking, that is, to use oil, coal, gas, etc. Until natural resources are exhausted, few will seriously engage in the commercialization of technologies in RES”. Personal “We are not interested in promoting technology to the market and trying to make money on it. We are scientists, not businessmen. We do not want to walk and bow before businessmen, to seek money. This should deal with other people. And we just want to convey the result of our many years of work into reliable hands”. Note – Compiled by author based on own research

On the commercialization of green technologies in the country is influenced by other factors. For example, the experts noted that the presence of the rich hydrocarbon reserves in the country reduces the profitability of renewable energy. High competition from foreign suppliers, where green technologies are developed 94

with 60 years of XX century, is also a significant impact on domestic inventors. It is essential to building a productive relationship between science, production, and business. This applies to all fields of science. Commercialization of new green technologies significantly contributes to sustainable development. Necessary measures have been taken for this purpose, but some problems and challenges need to be solved. The green economy is more than just environmental in scope; it is also about development and the economy. From a development perspective, a green economy might benefit both developed and developing countries. Kazakhstan cannot remain aside from the sustainable development through green technologies; in fact, it can be a new impetus for the future development of the country.

2.3 Determination of barriers to commercialization of research results in green technology field To validate of the identified barriers to commercialize green technologies have been carried out the experts from academia and industry. A workshop was conducted in which experts (four from academia, two from management and two from industry) were invited for a brainstorming session to seek their opinion on how important a role the barriers play in hindering the implementation of green technologies in the Kazakhstani context. Barriers identified through extensive literature review and semi- structured expert interviews were validated through discussions with experts (academia and senior/middle-level engineers/managers) and twenty-one barriers have been categorized into six dimensions based upon their nature in adoption of green technologies, i.e. Financial & Economic, Infrastructure & Technical, Legislative, Personnel & Staff, Socio-cultural, Personal. These identified barriers to commercialize technologies are shown in Table 29.

Table 29 - Barriers to green technologies commercialization

Dimension Dimensions of Barrier’s Barriers ’s number barriers number 1 2 3 4 1 Financial & 1.1 High costs of necessary technologies (FE1) Economic (FE) 1.2 Lack of funding for R&D phase (FE2) 1.3 Low wages of scientists (FE3) 1.4 High initial costs for own production (FE4) 2 Infrastructure & 2.1 Insufficient material base (IT1) Technical (IT) 2.2. Lack of national infrastructure (IT2) 2.3 Poor communication (IT3) 2.4 Priority for foreign ready-made technologies (IT4) 3 Legislative (LE) 3.1 Lack of intellectual property protection (LE1) 3.2 Lack of incentives for industry (LE2) 3.3 Drawbacks in commercialisation law (LE3)

Continuation of table 29

1 2 3 4 4 Personnel & 4.1 Lack of trained people in innovation management Staff (PS) (PS1) 4.2 Lack of experience (PS2) 4.3 Isolation of consulting specialists from industry (PS3) 4.4 Lack of understanding among officials (PS4) 5 Socio-cultural 5.1 Low demand in domestic market (SC1) (SC) 5.2 Low purchasing ability of population (SC2) 5.3 Lack of awareness (SC3) 6 Personal (PL) 6.1 Reluctance of a scientist to engage in commercial process (PL1) 6.2 Overlooking proper market research (PL2) 6.3 Faith & Beliefs (PL3) Note – Compiled by author based on own research

Barriers to commercialize green technologies ranking problem in the Kazakhstani context has been dealt with the Analytic hierarchy process. Sensitivity analysis has also been applied to examine the robustness of the preferences given by the decision makers in adapted AHP methodology. The AHP methodology compares criteria, or alternatives concerning a criterion, in a natural, pair-wise mode. The resultant can be used to compare and rank the alternatives and, hence, assist the decision maker in making a choice. The Analytic Hierarchy Process (AHP), was introduced by Thomas Saaty in 1980. It is a useful mathematical procedure for the hierarchical representation of the essential elements on the increasingly simpler constituent parts and further processing the sequential judgments of the evaluator on paired comparisons. As a result, the relative degree (intensity) of the interaction of elements in the hierarchy can be expressed. These judgments are then expressed numerically. The main advantage of the method of analyzing hierarchies, developed by the American mathematician T. Saaty, is the ability to compare the criteria and variants of solutions in pairs, which significantly facilitates the justification of the conclusions drawn. Also, the AHP incorporates a useful technique for checking the consistency of the decision maker’s evaluations, thus reducing the bias in the decision-making process. The AHP evaluates a set of evaluation criteria and a set of alternative options, then the best solution among them must be accepted. It should be noted that, since some of the criteria may be contrasting, it is not true that the best option is one that optimizes each measure, rather than one that achieves the most appropriate compromise between the different criteria. AHP generates a weight for each criterion by partial comparisons of decision criteria. The higher the weight, the more important the relevant criterion. Further, for 96

a fixed criterion, the AHP assigns an estimate to each option by the partial comparison of options that make decisions based on this criterion. The higher the score, the better the performance of the option concerning the criterion in question. Finally, AHP combines weight criteria and parameter estimates, thereby determining the global score for each option and the subsequent rating. The global estimate for this option is a weighted sum of scores obtained by all criteria. [176]. AHP is a very flexible and powerful method because of the results, and therefore the final rating is obtained based on paired relative estimates of both the criteria and options provided by the user. The calculations made by the AHP are always guided by the decision maker's experience, and AHP can, therefore, be viewed as a tool that can transform the estimates (both qualitative and quantitative) made by the decision maker into the multicriteria ranking. Also, AHP is simple, because there is no need to create a sophisticated expert system with built-in knowledge of solution developers. On the other hand, AHP may require a large number of user estimates, especially for problems with many criteria and parameters. Although each assessment is very simple because it requires the expert to express how the two options are compared to each other, the load of the evaluation task can become unreasonable. The number of pairwise comparisons grows with the number of criteria and options [177]. AHP can be implemented in three simple sequential steps: 1) Calculation of the weight vector of the criteria. 2) Calculation of the matrix of parameter estimates. 3) Options ranking. Each step is described in detail below. It is assumed that m evaluation criteria are considered, and n options should be evaluated. A useful method for validating the results will also be introduced. To evaluate the weights for the different criteria, the AHP starts establishing a pairwise comparison matrix A. The matrix A is a × real matrix, where is the number of evaluation criteria considered. Each entry of the matrix A represents1 𝑚𝑚 𝑚𝑚 > 1, then𝑚𝑚 the th the importance of the th criterion relative to the th criterion.𝑗𝑗𝑗𝑗 If criterion is more important than the th criterion, 𝑎𝑎while if < 1, then the th 𝑗𝑗𝑗𝑗 criterion is less important𝑗𝑗 than the th criterion.𝑘𝑘 If two criteria𝑎𝑎 have the same𝑗𝑗 𝑗𝑗𝑗𝑗 importance, then the entry is 1. The𝑘𝑘 entries and 𝑎𝑎satisfy the following𝑗𝑗 constraint: 𝑘𝑘 𝑗𝑗𝑗𝑗 𝑗𝑗𝑗𝑗 𝑘𝑘𝑘𝑘 = 1 𝑎𝑎 𝑎𝑎 𝑎𝑎 = 1 for all . The relative importance between two criteria is Obviously,𝑗𝑗𝑗𝑗 𝑘𝑘𝑘𝑘 measured𝑎𝑎 ∙ according𝑎𝑎 to a numerical scale from 1 to 9, as shown in Table 32 and Table 𝑗𝑗𝑗𝑗 33, where it is assumed𝑎𝑎 that the th𝑗𝑗 criterion is equally or more important than the th criterion. The phrases in the “Interpretation” column of Table 30 is only suggestive and may be used to translate 𝑗𝑗the decision maker’s qualitative evaluations of 𝑘𝑘the relative importance of two criteria into numbers. It is also possible to assign intermediate values which do not correspond to a precise interpretation. The values in 97

the matrix are by construction pairwise consistent. On the other hand, the ratings may in general show slight inconsistencies. However, these do not cause serious difficulties 𝐴𝐴for the AHP.

Table 30- Table of relative scores [178]

Value of ajk Interpretation 1 j and k are equally important 3 j is slightly more important than k 5 j is more important than k 7 j is strongly more important than k 9 j is absolutely more important than k

Table 31- The fundamental scale of absolute numbers [179]

Intensity of Definition Explanation Importance 1 Equal Importance Two activities contribute equally to the objective 2 Weak or slight 3 Moderate importance Experience and judgement slightly favour one activity over another 4 Moderate plus 5 Strong importance Experience and judgement strongly favour one activity over another 6 Strong plus 7 Very strong or An activity is favoured very strongly demonstrated over another; its dominance importance demonstrated in practice

8 Very, very strong 9 Extreme importance The evidence favouring one activity over another is of the highest possible order of affirmation Reciprocals of If activity i has one of above the above non-zero numbers assigned to it when compared with activity j, then j has the reciprocal value when compared with i

AHP has the following steps: Step 1: Establishing the hierarchical structure. Experts are requested to make pair-wise comparisons between barriers and dimensions using a nine-point scale. Twenty-one barriers to commercialize green technologies have been identified from an extensive literature review semi-structured expert interviews, validated and categorized into six dimensions based on their nature through discussions with experts. These identified barrier dimensions and barriers have been converted into hierarchical-level processes, which include four levels: Level 1: Goal (Analysis of barriers to commercialize green technologies ranking problem in the Kazakhstani context). Level 2: Represents the priority of the identified six dimensions of barriers. Level 3: The hierarchy contains priority of barriers within dimension. Level 4: Contains overall ranking or priorities of barriers renewable/sustainable energy technologies in the Kazakhstani context. Step 2: Constructing the pair-wise comparison matrix. Construct a set of pair- wise comparison matrices. These pair-wise comparisons of dimensions and barriers have been converted into comparison matrices. These comparison matrices have been solved with the AHP methodology to determine priority matrices. Global priority weights are associated with dimensions and local weights are associated with barriers within the specific dimension [180]. Step 3: Calculating the consistency A comparison matrix is said to be consistent if = for all , and . However, we shall not force the consistency. For example, > has value 3 > 1 𝑖𝑖𝑖𝑖 𝑗𝑗𝑗𝑗 𝑖𝑖𝑖𝑖 and > has value 5 > 1, 𝐴𝐴we shall not insist that > 𝑎𝑎 must𝑎𝑎 have𝑎𝑎 value 15𝑖𝑖 𝑗𝑗> 1. 𝑘𝑘This too much consistency is undesirable because we are𝐵𝐵 dealing𝐴𝐴 with human judgment.𝐴𝐴 𝐶𝐶 To be called consistent, the rank can be𝐵𝐵 transitive,𝐶𝐶 but the values of judgment are not necessarily forced to multiplication formula = . Saaty proved that for consistent reciprocal matrix, the largest Eigen value is 𝑖𝑖𝑖𝑖 𝑗𝑗𝑗𝑗 𝑖𝑖𝑖𝑖 equal to the number of comparisons, or = . Then 𝑎𝑎he 𝑎𝑎gave 𝑎𝑎a measure of consistency, called Consistency Index as deviation or degree of consistency using the 𝑚𝑚𝑚𝑚𝑚𝑚 following formula ƛ 𝑛𝑛 = 𝑚𝑚𝑚𝑚𝑚𝑚−1𝑛𝑛 Knowing the Consistency Index, ƛthe next question is how do we use this 𝐶𝐶𝐶𝐶 index? Saaty proposed that we use this index𝑛𝑛 − by comparing it with the appropriate one. The appropriate Consistency index is called Random Consistency Index (RI). He randomly generated reciprocal matrix using scale , , …,1, …, 8, 9 and get the random consistency index to see if it is about 10% or less.1 1 The average random consistency index of sample size 500 matrices is shown in the9 8Table 34 below.

Table 32 - Random Consistency Index (RI) [181]

n 1 2 3 4 5 6 7 8 9 10 RI 0 0 0.58 0.9 1.12 1.24 1.32 1.41 1.45 1.49

Saaty proposed what is called Consistency Ratio, which is a comparison between Consistency Index and Random Consistency Index, or in formula = If the value of Consistency Ratio is smaller𝐶𝐶𝐶𝐶 or equal to 10%, the inconsistency is 𝐶𝐶𝐶𝐶 acceptable. If the Consistency Ratio is greater𝑅𝑅𝑅𝑅 than 10%, we need to revise the subjective judgment. “The acceptable CR range varies according to the size of the matrix, i.e. 0.05 for a 3 by 3 matrix, 0.08 for a 4 by 4 matrix and 0.1 for all larger matrices, n4¼5. If the value of CR is equal to or less than that value, it implies that the evaluation within the matrix is acceptable or indicates a good level of consistency in the comparative judgments represented in that matrix. In contrast, if CR is more than the acceptable value, inconsistency of judgments within that matrix has occurred and the evaluation process should therefore be reviewed, reconsidered and improved. An acceptable consistency ratio helps ensure decision maker's reliability in determining the priorities of a set of criteria” [182]. Typically, data in Multi-Criteria Decision Making (MCDM) problems are imprecise and changeable. Sensitivity analysis can be helpful in model verification. Model verification is a process of making sure that the model is doing what it is intended to do [183]. Sensitivity analysis approach determines the smallest change in the current weights of the criteria, which can alter the actual ranking of the alternatives. The decision maker can make better decisions if he or she can determine how critical each criterion is or how sensitive the actual ranking of the other options is to changes on the current weights of the decision criteria [184]. Govindan et al. suggested that small changes in relative weights would provide major changes in the final ranking of variables [185]. These relative weights are usually based on highly individual judgments and, therefore, ranking stability under varying barrier category or dimension weights should be tested. Data analysis and results. Based on the ratings obtained through the questionnaire by experts during workshop, matrices are formed, and the priorities are synthesized using the methodology of AHP.AHP framework of barriers to commercialize green technologies in the Kazakhstani context ranking problem is structured as a hierarchy that includes four levels as discussed in methodology section. Goal (level 1) of this research is to analyze barriers to commercialize green technologies in the Kazakhstani context.Six categorized dimensions (Financial & Economic, Infrastructure & Technical, Legislative, Personnel & Staff, Socio-cultural, Personal) have been checked for hierarchy. Table 35 shows the weights given by experts to these dimensions and priority matrix.

100

Table 33 - Ranking of dimensions to commercialize green technologies

Barrier Global dimension priority category FE IT LE PS SC PL weighting Rank FE 1,0000 3,0000 5,0000 4,0000 6,0000 9,0000 0,432145768 1st IT 0,3333 1,0000 4,0000 3,0000 5,0000 7,0000 0,255992614 2nd LE 0,2000 0,2500 1,0000 0,3333 3,0000 4,0000 0,08591014 4th PS 0,2500 0,3333 3,0000 1,0000 4,0000 5,0000 0,146904274 3rd SC 0,1667 0,2000 0,3333 0,2500 1,0000 3,0000 0,05058354 5th PL 0,1111 0,1429 0,2500 0,2000 0,3333 1,0000 0,028463663 6th

Maximum Eigen Value =6.40269 C.I.=0.0805377 CR=CI/RI=0.0805377/1.24 = 0.0649*100%=6.49% <10% acceptable From the analytical results shown in Table 35, ‘Financial & Economic’ (0.432) has been reported as the most important dimension of barriers to commercialize green technologies, followed by ‘Infrastructure & Technical’ (0.256); ‘Personnel & Staff’ (0.147), ‘Socio-cultural’ (0.05), ‘Personal’ (0.028).In the 3rd level, barriers in each dimension have been rated by experts and checked for hierarchy. The maximum eigenvalues, C.I. and pair-wise comparison matrix of each barrier are also shown below.

Table 34- Ranking of barriers in “Dimension 1: Financial & Economic”

Barrier dimension Local priority Rank category FE1 FE2 FE3 FE4 weighting FE1 1,0000 0,2000 0,3333 3,0000 0,112689843 3rd FE2 5,0000 1,0000 5,0000 7,0000 0,612896003 1st FE3 3,0000 0,2000 1,0000 5,0000 0,221772448 2nd FE4 0,3333 0,1429 0,2000 1,0000 0,052641706 4th

Maximum Eigen Value =4.24039 C.I.=0.0801284 CR=CI/RI=0.0801284/0.9= 0.089*100%=8.9% <10% acceptable

Table 36 shows that ‘Lack of funding for R&D phase’ (0.613) has been found as the most important barrier in “Financial & Economic” dimension of barriers to commercialize green technologies, followed by ‘Low wages of scientists’ (0.221); ‘High costs of necessary technologies’ (0.112); ‘High initial costs for own production’ (0.053). Similarly, dimension 2 to dimension 6 of barriers to commercialize green technologies (tables 35-39) have been ranked, respectively.

101

Table 35 - Ranking of barriers in “Dimension 2: Infrastructure & Technical”

Barrier dimension Local priority Rank category IT1 IT2 IT3 IT4 weighting IT1 1,0000 0,3333 6,0000 3,0000 0,268350007 2nd IT2 3,0000 1,0000 8,0000 5,0000 0,567491172 1st IT3 0,1667 0,1250 1,0000 0,3333 0,04949635 4th IT4 0,3333 0,2000 3,0000 1,0000 0,114662471 3rd

Maximum Eigen Value =4.09862 C.I.=0.0328722 CR=CI/RI=0.0328722/0.9= 0.0365*100%=3.7% <10% acceptable

Table 36 shows that ‘Lack of national infrastructure’ (0.567) and ‘Insufficient material base’ (0.268) have been found as the most important barriers in “Infrastructure & Technical” dimension of barriers to commercialize green technologies, followed by ‘Priority for foreign ready-made technologies’ (0.115) and ‘Poor communication’ (0.05).

Table 36 - Ranking of barriers in “Dimension 3: Legislative”

Barrier dimension Local priority Rank category LE1 LE2 LE3 weighting LE1 1,0000 0,1111 0,2500 0,103510968 3rd LE2 9,0000 1,0000 5,0000 0,65669714 1st LE3 4,0000 0,2000 1,0000 0,239791891 2nd

Maximum Eigen Value =3.07127 C.I.=0.0356327 CR=CI/RI= 0.0356327/0.58= 0.0614*100%=6.14% <10% acceptable

‘Lack of incentives for industry’ (0.656) has been reported as the most important barrier in “Legislative” dimension of barriers to commercialize green technologies, followed by ‘Drawbacks in commercialisation law (0.239)’ and ‘‘Lack of intellectual property protection’ (0.104)’ as shown in Table 37.

102

Table 37 - Ranking of barriers in “Dimension 4: Personnel & Staff”

Rank Local Barrier dimension priority category PS1 PS2 PS3 PS4 weighting PS1 1,0000 0,2000 0,1429 0,3333 0,055022492 4th PS2 5,0000 1,0000 0,3333 3,0000 0,263378357 2nd PS3 7,0000 3,0000 1,0000 5,0000 0,563812769 1st PS4 3,0000 0,3333 0,2000 1,0000 0,117786382 3rd

Maximum Eigen Value =4.11698 C.I.=0.0389941 CR=CI/RI= 0.0389941/0.9= 0.043*100%=4.3% <10% acceptable

From the analytical results shown in Table 39, ‘Isolation of consulting specialists from industry’ (0.564) has been reported as the most important barrier in “Personnel & Staff” dimension followed by ‘Lack of experience’ (0.263); ‘Lack of understanding among officials’ (0.118); ‘Lack of trained people in innovation management’ (0.055).

Table 38 - Ranking of barriers in “Dimension 5: Socio-cultural”

Rank Barrier dimension Local priority category SC1 SC2 SC3 weighting SC1 1,0000 7,0000 3,0000 0,586494078 1st SC2 0,1429 1,0000 0,2500 0,119102067 3rd SC3 0,3333 4,0000 1,0000 0,294403855 2nd

Maximum Eigen Value =3.03237 C.I.=0.0161833 CR=CI/RI= 0.0161833/0.58= 0.0279*100%=2.79% <10% acceptable

‘Low demand in domestic market’ (0.586) has been reported as the most important barrier in “Socio-cultural” dimension of followed by ‘Lack of awareness’ (0.294) and ‘Low purchasing ability of population’ (0.119) as shown in Table 39.

103

Table 39 - Ranking of barriers in “Dimension 6: Personal”

Barrier dimension Local priority Rank category SC1 SC2 SC3 weighting SC1 1,0000 7,0000 3,0000 0,308081491 2nd SC2 0,1429 1,0000 0,2500 0,580441217 1st SC3 0,3333 4,0000 1,0000 0,111477292 3rd

Maximum Eigen Value =3.06489 C.I.=0.0324438 CR=CI/RI= 0.0324438/0.58= 0.0559*100%=5.59% <10% acceptable

From the analytical results shown in Table 41, ‘Overlooking proper market research’ (0.58) has been reported as the most important barrier in “Personal” dimension of barriers to adopt renewable/sustainable energy technologies followed by ‘Reluctance of a scientist to engage in commercial process’ (0.308) and ‘Faith & Beliefs’ (0.111).Consistency ratio (C.R.) values are well in the acceptable range for matrices shown in Tables 35-41, which ensures the decision maker’s reliability. Overall weights of barriers have been obtained by multiplying the global weight of dimension of barriers values with the local weights of each specific barrier. Based upon overall weights of barriers, ranking of barriers to commercialize green technologies have been made. The priority weighting and ranking have been summarized in Table 40.

Table 40 - The priority weighting and ranking of barriers to commercialize green technologies

Local Global weight Overall Dimensions weight of of weight of of barriers dimensions Rank Barriers barriers barriers Rank 1 2 3 4 5 6 7 Financial & Economic High costs of necessary (FE) 0,432 1 technologies (FE1) 0,113 0,0487 6 Lack of funding for R&D phase (FE2) 0,613 0,2648 1 Low wages of scientists (FE3) 0,222 0,0958 2 High initial costs for own production (FE4) 0,053 0,0227 10 Infrastructure & Technical Insufficient material base (IT) 0,256 2 (IT1) 0,268 0,0687 4 104

Continuation of table 40

1 2 3 4 5 6 7 Lack of national infrastructure (IT2) 0,567 0,0127 15 Poor communication (IT3) 0,049 0,0127 16 Priority for foreign ready- made technologies (IT4) 0,115 0,0294 8 Legislative Lack of intellectual (LE) 0,086 4 property protection (LE1) 0,104 0,0089 17 Lack of incentives for industry (LE2) 0,657 0,0565 5 Drawbacks in commercialisation law (LE3) 0,240 0,0206 11 Lack of trained people in Personnel & innovation management Staff (PS) 0,147 3 (PS1) 0,055 0,0081 19 Lack of experience (PS2) 0,263 0,0387 7 Isolation of consulting specialists from industry (PS3) 0,564 0,0829 3 Lack of understanding among officials (PS4) 0,118 0,0173 12 Socio- Low demand in domestic cultural (SC) 0,05 5 market (SC1) 0,586 0,0293 9 Low purchasing ability of population (SC2) 0,119 0,0060 20 Lack of awareness (SC3) 0,294 0,0147 14 Reluctance of a scientist Personal to engage in commercial (PL) 0,028 6 process (PL1) 0,308 0,0086 18 Overlooking proper market research (PL2) 0,580 0,0163 13 Faith & Beliefs (PL3) 0,111 0,0031 21 Note – Compiled by author based on own research

This analysis may play an important role in understanding various barriers, and ranking of these will help in their removal to commercialize green technologies in Kazakhstan more effectively and efficiently. This analysis has presented a benchmarking framework to make complicated decisions towards the removal of these barriers. Understanding barriers in technology diffusion leads to important lessons in designing policy instruments and institutions for diffusing green 105

technologies in developing countries like Kazakhstan. The proposed framework permits managers/practitioners to make decisions in the most effective and efficient way. As a result of the analysis of projects and expert interviews, the following conclusions can be drawn: 1. University scientists actively receive patents and other protection documents, but there are difficulties with the commercialization of the invention. In general, the problems concern the conduct of R & D, the search for investors, the conclusion of a license agreement, participation in grant contests, the foundation of a start-up company. The scientific and technological park and the management of the university maximally help scientists overcome these barriers. 2. Some scientists do not want to independently commercialize the invention. As scientists, they prefer to engage in science and research and do not seek additional profit. They are ready to share their developments with competent people who will be engaged in promotion to the market. 3. According to the interviewer's observations, young scientists are more optimistic and believe in the successful commercialization of their developments. To do this, they are ready to learn new skills, make economic calculations and personally engage in the search for investors. Scientists of middle age are somewhat skeptical because they have a negative experience in promoting their ideas. 4. Analyzing interviews, both scientists and businesspeople, we concluded that for successful cooperation, dialogue platforms and qualified intermediaries / managers are needed. 5. The university has created conditions for conducting high-quality research work, as a result of which scientists receive patents and protection documents. However, it must be borne in mind that many external factors influence the successful commercialization of inventions, that's why an integrated approach is needed in solving these problems. It is important to build an effective relationship between science, production and business. This applies to all fields of science. Commercialization of new green technologies significantly contributes to sustainable development. Necessary measures have been taken for this purpose, but some problems and challenges need to be solved. From a development perspective, a green economy might benefit both developed and developing countries. Kazakhstan cannot remain aside from the sustainable development through green technologies; in fact, it can be a new impetus for the future development of the country.

106

3 IMPROVEMENT OF THE COMMERCIALIZATION MANAGEMENT OF GREEN TECHNOLOGIES IN KAZAKHSTAN

3.1 Organizational and economic mechanism for the commercialization of green technologies Development of proposals for the development and improvement of the commercialization system requires an integrated approach. The study of organizational and economic mechanisms is an object of scientific interest for many modern scientists conducting research both in the field of commercialization of innovations and in other spheres of the economy. At the same time, the authors in their works either do not define the organizational and economic mechanism even in cases when the title of the article is directly implied it, or offer a narrow interpretation depending about the research. Another definition is given by Udaltsova N.L. According to her, the organizational and economic mechanism is an important part of the entire economic mechanism and can be defined as a set of organizational and economic structures and levels of governance, including legislative, financial, economic and organizational- administrative methods of impact, providing continuous development of the facility on the basis of the principles of the goal-oriented, systematic, integrated realization of the potential, adaptability, coherence of interests of interacting subjects, innovativeness [186]. Agaeva L.K. defines it “as an aggregate of organizational and economic forms and methods, instruments and levers of influence on the object, linked in a single mechanism that allows achieving the maximum beneficial effect and stable financial and economic activity in the immediate and further perspective” [187]. We share the position of researchers who view the organizational-economic mechanism as a hierarchical system when private mechanisms function at lower levels, each of which performs its functions and affects the efficiency of the system as a whole, and their unification creates a new category - a complex organizational and economic mechanism [188-189]. The definition of Ilina S.A. [190] is best suitable for this study: the organizational and economic mechanism of commercialization of innovations is a complex of interrelated and interacting elements that form a single whole, acting to effectively commercialize innovation, as well as subsystems of a lower level (private mechanisms). Before proposing an organizational and economic mechanism, it is necessary to consider the existing system of commercialization of scientific developments in Kazakhstan. Figure 25 shows two basic parts of this system: first, legal, strategic and program framework that is responsible for creating necessary legislative base, setting goals and priorities in development; second, actors, who are responsible for implementing of goals set. As it can be seen in this figure, government plays a key role in innovation and research policy in Kazakhstan.

107

1. Legal framework 1. Law “on State Support for Industrial and Innovative Activities” (2012, repealed in 2016), Law “on Commercialisation of Results of Scientific and/or Technical Activities” (2015), Law “about the Innovative Cluster ‘Park of Innovative Technologies’” (2014), Entrepreneurial Code of the Republic of Kazakhstan (2015) 2. National Strategy for Industrial Innovation Development (NSIID) for 2003-2015, Kazakhstan- 2. Strategies 2050 (2012), Kazakhstan 2030 (1997), The Path to the Future (2014), The 100 concrete steps (2015), Concept of Innovation Development of the Republic of Kazakhstan to 2020 (2012), Specific innovation strategies Kazakhstan 2010 (2001), Annual address of the President to the people of Kazakhstan, Kazakhstan 2020 (2010) 3. State Programme for Industrial and Innovative Development of Kazakhstan 2015-19 (SPIID),

Setting base, goals and priorities and goals base, Setting 3. State programs Productivity 2020, Investor 2020, Business Roadmap 2020, Export 2020, Programme for the Development of Innovation and Support for Technological Modernisation for 2010-14

Market Idea Commercialization process of research results

1. Strategic governing bodies 1. Higher Scientific Technical Committee, The national research councils, National Center of Science and Technology Evaluation, Council for Technology Policy, National Agency for

Technological Development 2. The National Center for Scientific and Technological Information, National Center of Science 2. Research policy and Technology Evaluation, The National Academy of Sciences 3. Ministry of Investment and Development, JSC “Baiterek National Management Holding”, JSC Implementers Entrepreneurship Development Fund (DAMU), JSC National Agency for Development of Local 3. Industrialization Content, JSC “National Agricultural Research and Education Center” and innovation policy

Figure 25 – The system of policy framework and actors influencing the commercialization in Kazakhstan

Note – Compiled by author based on [191]

108

In general, almost all definitions of the organizational and economic mechanism are characterized by the prevalence of the system approach. Elements of such a system are: - objects - a managed element; - the center is the control element that acts on the object; - subjects - the carriers of substantive and practical activities involved in the work of the "mechanism"; - economic and organizational methods, levers and instruments of influence; - algorithm for implementing the mechanism. In this case, the subject of this type of mechanism can coincide with the center. The state bodies, various companies, and public organizations can be a center of the management mechanism [192]. Approaches to the formation of economic mechanisms as a tool of interaction and impact differ mainly in the degree of influence of the center on the process of implementing the mechanism. The application of each of them is expedient for solving various tasks, depending on the degree of necessity of participation of the center. To apply this approach in our study, there was a need to analyze all identified barriers and identify responsible bodies for their solution. As a result of analysis in section 2.2 and 2.3, twenty-one barriers were identified in six general categories (table 42). We placed them according to two questions: 1. Who is responsible for solving or eliminating this barrier? 2. How long will it take to improve the current situation? By answering to these questions, we distinguished three levels of authority – macro, meso and micro levels; three periods of time for changing the situation – short-term (up to 2 years), medium-term (3-5 years) and long-term (6 years and more). The results are presented in Figure 26. As results show, most of Financial & Economic barriers (FE1, FE2, FE4) are strictly related to policy of financing at the state level and implies at least medium- term period to increase current figures. Similarly, legislative framework is also regulated by state and requires a time to be adjusted. For example, scientists pointed at inefficiency of new Commercialization law, however, state bodies need a time to evaluate the influence of current edition. Therefore, LE3 and LE1 are situated for macro-level and at least medium range of time. LE2 is a complicated step in forming a necessary legal base for encouraging industry to implement domestic scientific research results in green technology field. Barriers related to human resources issues could be solved at meso level by providing proper training and education (PS1, PS2). These two barriers are related to IT3, that is poor communication.PS3 and PS4 are substantial drawbacks, however, ensuring proper training and discussing the problem with officials would lead to the quick improvement on this matter. PL2 is conditioned by lack of pre-research and ignoring of “market-pull” principles, therefore, universities or research institutes are directly responsible for ensuring proper choice of research topics. FE3 is also could be solved by wage policy at micro level, even though it is dependent on macro policy sets.

109

FE1, FE2, FE4 SC1, SC2, SC3 Macro level LE1, LE2, LE3 IT4, IT2

PS1, PS2 PS3 Meso level IT3 PS4

PL1, PL3 PL2 Micro level FE3 IT1

Short-term

Medium-term

Long-term

Figure 26 - Positioning of barriers according to period and decision-making level

Note – Compiled by author based on own research

110

Socio-cultural factors like SC1, SC2 and SC3 are essential in transition to green economy. “Green” thinking leads to forming a domestic market, demand for environmental-friendly products, high commitment to sustainable growth principles. However, change in these factors could take years to occur, and strong government support is vital. IT4 barrier could not be eliminated before there will be competitive domestic alternatives, so it is applied for long-term period and requires support at macro level. Same can be said to IT2. Regarding PL1, PL3, there is a positive anticipation that active promoting of commercialization of science will lead to higher involvement of scientists to commercialization process. IT1 barrier are dependent on macro policy of funding, however it is more responsibility of universities, research institutes and laboratories to organize a proper work opportunity. Regarding the organizational and economic mechanism for introducing green technologies, the degree of influence of the center (the state bodies and structures) at various stages can be different, and it seems possible to form an integrated approach to the formation of such a mechanism. Taking into account the proposed approach, we have formed an integral approach to the development of to the management of commercialization of green technologies system. Proposed organizational and economic mechanism is presented in Figure 27. According to this system: 1. Object of the mechanism is organizational-economic relations arising in the process of introduction of green technologies. 2. Subject of the mechanism is existing and created entities planning the introduction of green technologies. 3. Core is an element that creates the rules for the most effective implementation of the mechanism. Based on of generalization of existing approaches, following basic principles can be distinguished: - the principle of purposefulness: the main goal of this system is ensuring achievement of the country's sustainable development goals; - the principle of profitability: the choice of tools should ensure the achievement of goals with the efficient use of resources; - the principle of adaptability: rapid response to various changes in the external environment, including the possibility of transformation from the mechanism. The implementation of the proposed mechanism should be provided by appropriate organizational and economic instruments. The necessary tools for are: - regulatory and legal support for the functioning and strategic development of the system; - measures of indirect state support of innovative development; - financial security - improving and increasing the availability of financial instruments.

111

- make green growth principles a top priority at a national level; Objective 1. Improve the system - put a strong emphasize on the urgency of transition to green economy; of state support policy - avoid statements that are not substantiated. ______- invest in long-term strategies of environmental educating of young generation; - provide motivation for scientific research in this field by increasing Objective 2. Provide environmental education attractiveness of the science; - increase awareness of population by all possible means of information channels;

for a green growth green a for - organize training courses on environmental challenges at higher

Objective 3. Create incentives for education institutes. ______industries - tax incentives for implementing green technologies favorable 1. Creating conditions Goal - gradually increase the level of institutional funding for research at universities; Objective 1. Provide financial

- increase the share of GDP for R&D in general, resulting in support improvement of overall system; - increase the amount of money for applied research and field research. ______- modernize research laboratories at universities and scientific institute; Objective 2. Provide sufficient - encourage and support scientists in finding new sources of funding; technologies technical base - avoid unrealistic expectations on short-term period after providing new equipment. ______- remove red tape and bureaucratic hinders; new green

of sustainablegoals achievement Ensuring country's the development Objective 3. Strengthening of - revise law on commercialization by considering opinions of scientists; legislative framework - improving the legal support of green technology commercialization Goal 2. Ensuring the emergence of emergence the 2. Ensuring Goal activities.

Figure 27 – Organizational and economic mechanism for commercialization of green technologies; sheet 1

Note – Compiled by author based on own research

112

Objective 1. Create strong - small and medium enterprisers are introducers of innovations, entrepreneurial culture therefore strong entrepreneurial culture will provide a necessary environment for green technologies ______- encourage SMEs to upgrade their production technologies and introduce eco-friendly standards; Objective 2. Provide state support - proved financial and non-financial support for entrepreneurs willing to greening of diffusion introduce green innovations; ______technologies

romot - intensify knowledge transfer in research-performing organizations; Objective 3. Improve diffusion - increasing the diversity of knowledge transfer channels by R&D channels collaboration and contract research for an industry Goal 3 . P

- expanding the scope of competencies from basic research to development and test with industry; -support interactions and promote actual research and innovation partnerships between these institutions;

Objective 1. Enhance research - provide more autonomy for scientists. potential of universities ______- increase the number of students in the field of innovative management and revise curricula to add joint lessons with nature sciences representatives; Objective 2. Provide specialists - retraining consulting specialists from people with technical human resources human in innovation management background; - introduce the discipline “Commercialization of green technologies” to

of sustainablegoals achievement Ensuring country's the development master students as an elective course; - involve experts with experience in technology based

Goal of necessary 4. Development companies and venture capital investment

Figure 27, sheet 2

113

Four goals are set to ensure the achievement of the main goal: 1. Creating favorable conditions for a green growth. 2. Ensuring the emergence of new green technologies. 3. Promoting diffusion of green technologies. 4. Development of necessary human resources. 11 objectives in total are dedicated to attainment of goals set in a mechanism. By analysing current situation in Kazakhstan regarding green economy, we propose next measures to develop this process of moving toward sustainable development: 1. Support attracting private investment for R&D and the commercialization of green innovations. Proper policy development should ensure competitive selection processes, focus on productivity, rather than on specific technologies, avoid favoring existing officials or create opportunities for lobbying, provide a rigorous impact assessment policy and contain costs. 2. Combine support for green and general-purpose technologies. Creating efficient infrastructure will be beneficial for any technologies. 3. Assistance to the growth of new entrepreneurial firms. New entrepreneurial firms play an essential role in providing green innovations that challenge existing firms and business models. The policy should create space for such new firms, allowing them to enter, exit and grow, ensure fair competition and improve access to finance, which remains the main obstacle to entry and growth of young firms. 4. Diffusion enhancement to promote the wide dissemination of "green innovation" within and between countries. It is necessary to explore new approaches to the dissemination of knowledge and technology. 5. Strengthen markets for green innovation and changing consumer behaviour. The policy also needs to consider the timeframe and the potential benefits and risks of implemented policies. Some developments are already available in the market; some may be still under development, or in a demonstration or pre- demonstration phase. Others will only emerge over a much longer time and will require further research and development. Political efforts will differ during this timeframe, from basic research to pre-competitive research and demonstration efforts, to policies aimed at developing or shaping the market. Let us consider Objective 3 of Goal 11 in more details. Most of the industrially developed states initiated their programs to support alternative energy and improve energy efficiency and actively included various mechanisms of tax stimulation for the development of "green technologies". It should be noted that one of the main measures of tax incentives for producers of alternative energy in the US is an investment tax credit. Its distinctive feature is that, it is a form of changing the deadline for the fulfilment of a tax liability with subsequent repayment of the loan amount and interest, this measure of tax incentives reduces the taxable base for part of investments in land purchase, equipment and installation of facilities for Production of electricity from alternative sources, that is, in fact is an investment tax benefit. There are different tax systems of European countries, such measures to encourage investment in alternative energy take several different shapes and sizes but

114

are intended to achieve the same effect is to make high-risk and have an extended payback period of investment in energy facilities more profitable (table 41).

Table 41 - Measures of tax incentives for investments in green technology in European countries, Korea and the USA

A country Loan or reduction of tax Rate Technologies covered by credit / amount discounts

Belgium Reduction of the amount 13.5 All

Netherlands Reduction in amount 13 All

Spain Reduction of the amount 10 Solar energy, biomass

Ireland Reduction of the amount 18 Wind, solar, hydro, biomass energy

Czech Republic Reduction of the amount 100 All (hydroelectric power plants up to 1 MW Korea Credit 5 Energy-efficient technologies

USA Reduction of the amount 30% Solar, wind, fuel cells

10% Geothermal, micro-turbines, cogeneration plants Note – Compiled by the author based on research [193-194]

Tax credits for producers (production tax credit - PTC) of electricity from alternative sources are also quite popular abroad as a measure of tax incentives. According to estimates by Oak Ridge National Laboratory (USA), a federal 10-year production tax credit of 1.5 cents per kWh can reduce the average life-cycle cost of wind energy by about 25%. This type of incentive has received broader support from experts in the field of large-scale renewable energy facilities, as it stimulates the more efficient production of renewable energy, rather than significant capital investments. Investment tax incentives are also often applied to small, client-oriented or service companies that are not producers but consumers of energy and energy-saving technologies. Such incentives, as a rule, are aimed at stimulating the installation of certain types of generation or cogeneration equipment for heating, lighting, and ventilation of residential and commercial buildings. Tax deductions apply not only to the sum of the cost of the equipment itself but also to the cost of its installation since the cost of installing a cogeneration system can in some cases be commensurate with the cost of the equipment. Such measures encourage individual housing owners and companies to purchase cogeneration equipment. Tax benefits for consumers of energy-efficient and green technologies used in Europe are shown in Table 42. 115

Table 42 - Tax benefits for consumers in green technology

A country Scope Loan or Rate Technologies covered by reduction of tax credit / discounts amount Austria Residential Tax cuts Up to 25% Solar energy, biomass Greece Residential, Credit Up to 75% Solar energy, biomass commercial Spain Residential, Credit 10% Solar energy, biomass commercial Portugal Residential Up to 30% All Credit France Residential Credit 15% All Czech Republic Residential, Tax cuts Up to 100% All commercial Note – Compiled by the author based on research [193-194]

At first, these measures aroused much controversy because of fears that an increase in the tax burden would negatively affect the competitiveness of EU member countries in world markets. As a result of the integrated use of tax incentives for alternative energy, tax discouragement of energy-intensive and dirty industries, and a number of other government support measures such as guaranteed tariffs for the supply of power to the grid, European countries have achieved very impressive results in the development of wind power, solar energy, technology Generation of energy from biomass and energy-efficient technologies [195]. Nevertheless, tax and other measures to stimulate alternative energy do not exclude the requirements for achieving technological and commercial efficiency of the "green" technologies themselves. For example, in the field of introducing new generation biofuels, state support is used for profile research and development than the business of bioethanol companies themselves, since technological safety and commercial effectiveness of the technology itself have not been proven yet. Conversely, the production of hybrid cars, wind, and solar power, thanks to production tax credits, solve many technological problems, increasing their commercial efficiency, increasing production capacity and gradually gaining energy. If we talk about the amount of investment in profile research and development (R & D), then, unfortunately, it is impossible to unequivocally evaluate the extent to which tax regulation measures affect corporate R & D, because of the lack of necessary statistical data. However, it can be unequivocally asserted that the stimulation of consumer or corporate demand for high-tech products and services naturally leads to an increase in the relevance of investments in R & D for suppliers of relevant goods and services. Also, it is necessary to consider the specifics of the effect of various instruments of tax incentives for different sectors. Thus, tax incentives for the acquisition of hybrid vehicles and other energy efficient cars directly affect the growth of corporate R & D in this area (figure 28). The same is true to produce energy-efficient appliances, building materials, and other sectors. 116

Demand for Tax Manufact Demand for the final incentives urer technologies product R&D

Figure 28 - Scheme of tax incentives to produce “green” goods

Further, using the results of the analysis of tax incentives for alternative energy and energy efficiency applied in various countries conducted in the previous section, we present a list of possible measures of tax incentives and compare to each measure the effects to which it is directed (table 43), combining effects that are close On the content or on the indicators used for quantitative assessment (for example, increasing the share of renewable energy sources (RES) in the country's energy balance and reducing the dependency ratio Fossil fuels). In this case, if the measure directly produces the desired effect, we denote this in the table with the sign "++" at the intersection of the corresponding row and column, and, if only indirectly affects the achievement of the desired effect - we denote by the sign "+".

Table 43 - Tax incentive measures and their potential effects for Kazakhstan

Effects of tax incentives Measure The Increas Reducti Increasi Increas Reducti Moderniza Increa Increas s of tax intensifica ed costs on of ng e in the on of tion of se in e in the incentive tion of the for R & greenho energy share energy energy the share s ID in the D use gas efficien of shortag supply numb of field of energy emissio cy in renewa es er of highly energy compan ns the ble jobs paid ies industri energy speciali al, in the sts housing energy and balance non- profit sectors

1 2 3 4 5 6 7 8 9 10 Investme ++ ++ ++ ++ + ++ + nt tax credit for producer s of GT

117

Continuation of table 43

1 2 3 4 5 6 7 8 9 10 Industria ++ ++ + ++ l tax credit for energy producer s from RES Tax ++ ++ + ++ privilege s on property VAT ++ ++ + ++ exemptio ns Tax + ++ ++ + + ++ + incentive s for buyers (reductio n of excise duties) Accelera + + ++ ++ + ++ + ted depreciat ion Taxes on + + ++ + + ++ fossil energy sources Tax + + ++ ++ + + ++ + + benefits for consume rs of energy- efficient equipme nt Note – Compiled by author based on own research

Proposals for improving the system of commercialization of green technologies are given in Table 44.

118

Table 44 - Proposals on increasing the effectiveness of the commercialization of green technologies

Capabilities Tasks for implementation 1 2 Preservation of Development and development of key technologies for state needs; the country's The growth of spending on science, commensurate with the expenditures of international the world leaders; Support of companies with a potential international brand; competitive Increasing the role of the Academy of Sciences and branch academies in the advantages state regulation of the scientific sphere technology Creation of The increase in the number of educational scientific organizations in conditions for the comparison with Academy and branch research institutes; Preservation of merging of policy scientific schools and prevention of outflow of personnel abroad; in the field of Development of a system of centers for the transfer of and technology parks; science and Balanced development of social and humanitarian branches in relation to technology with engineering industrial policy Creating Involvement of a large investment reserve in the country in the form of conditions for the income from кaw export to innovative business; Attraction of extrabudgetar merger of sources of financing; Encourage private investment in R & D; Increasing the innovation and efficiency of public spending on R & D; Development of venture investment investment policies Harmonization of Decentralization of patent-licensing activities; Development of patent legislation in the Legislation using best international practices and development field of green Academic patenting; Improvement of tax procedures, state growth and Support of international patenting and commercialization of new innovation technologies at home and abroad; Amending the special legislation of the Republic of Kazakhstan Regulation of Development of international innovation cooperation programs in the field commodity of Standardization, international trade in IP and technology transfer; markets and Formation of a segment of the securities market of high-tech firms and related standards Institutions; Growth in public procurement of innovative activities on the external Market; Implementation of innovative results in the market, Owned state; Providing access to sales markets (intracorporate sales market, state order); Integration with international technological sales markets and potential consumers of innovative products

Increased Realization of measures of state support of scientists and young scientists, motivation for training in the commercialization of technology, the development of the innovation institute Innovative intermediaries; Permission to state research institutes to organize incubators and branches, venture funds; Development of small and medium-sized innovative entrepreneurship; Elimination of bureaucratic barriers; Providing access to long-term and cheap money for research and development Formation of Development of the market of marketing and industrial-technological technology expertise; Implementation of PPP programs; Support start-ups and spin-off

119

Continuation of table 44

1 2 commercialization companies; Implementation of the co-financing mechanism; infrastructure Implementation of the financial mechanism on a return basis; Development of a system of grant (gratuitous) financing; Expansion of authorities' powers to finance innovative programs; The development of the system of "business angels"; Development of a system of technology transfer agencies Increase of state Facilitating access to information resources for economic market participation in participants; Providing legal support on copyright issues; Growth of the management investments in related industries; Effective tariff, currency, budgetary, tax of national policy; Stimulation of activities to preserve and improve the skills of innovation scientific personnel; Targeted support of leaders (business, research activities institutes, etc.), generating new innovative projects; Maintaining the image of a country with strong scientific potential Note – compiled by author based on own research

The listed proposals for the creation of innovative infrastructure and the development of technologies as the basis for the adoption of standardized and certified solutions require the reform of the sectoral science. The development of university science requires the development and implementation of an IP management system. This presupposes the establishment and optimization of the processes of distribution of IP rights and the stimulation of university staff. Based on the statutory minimum levels of remuneration for authors for the creation and commercialization of the green technologies, it is necessary to create an internal reward system for authors. Without an effective system of intellectual property management in universities and scientific organizations it is impossible to establish an effective partnership with industry and to ensure the practical implementation of scientific developments and technologies. Improvement of commercialization system of green technologies requires an integrated effort and complex set of policy.

3.2 Recommendations on the implementation of pilot projects in universities on the transition to green development Universities are always considered as a change – catalysts for social and political action as well as centres of learning. Universities educate most of the world's leaders, decision-makers, and teachers and advance the boundaries of knowledge. Also, they play a vital economic role nationally and globally. Given the role of universities in society, and the current environmental and sustainability challenges, universities are coming under increasing pressure to engage with and respond to climate change and other sustainable development issues and the associated risks and opportunities. Universities are expected to be the drivers and innovation centres for sustainable development through teaching and learning, research and knowledge transfer. Critically, universities' educational role does not end with undergraduate and postgraduate education; it extends to the plethora of activities which support and 120

continue the teaching and research core: campus management and operations; campus planning, design, construction and renovation; purchasing; transport; and engagement with the broader community. There is growing awareness that universities can teach and demonstrate the theory and practice of sustainable development through taking action to understand and reduce the unsustainable impacts of their activities. Linkage of curricula and campus operations under the aegis of sustainability can create a robust "shadow curriculum" which emphasizes the nexus between theory and practice [196-199]. However, the evidence shows that many universities are struggling with the concept and agenda of "greening" the university; achievements to date have been scattered and unsystematic. Completion of a green display case is not the same as assuming the university's commitment to ensuring that all future buildings are built green - the first is the success of the project, the last is a system transformation [200], which is more desirable for sustainability. However, sustainability should not be considered only from universities, but also from more fundamental aspects. They should encourage universities to adopt sustainable and green university strategies that must demonstrate the principles of sustainable development. There are 125 universities in Kazakhstan according to official statistics for 2016-2017 academic year. As it is shown in Figure 29, the considerable part of them is situated in cities Astana and Almaty.

45 40 40 35 30 25 20 14 15 12 9 10 6 7 7 5 5 4 5 3 3 3 3 2 2 0

Figure 29 - Number of universities in Kazakhstan

Note – Compiled by author based on [201]

Universities in Kazakhstan could be the bridge between science and industry providing a testing site for researchers. The strong aspiration to move to a stable or green campus includes four aspects of the university community - administration, academic departments (students and teachers), research work at the university and the 121

local community (table 45). First, a committee or council is needed to share information, understand questions and concepts, and develop plans for future initiatives. Almost every department of the campus plays a role. Some universities have established the Office for Sustainable Development to coordinate many efforts, projects, networks and monitor the progress of the program in achieving its goals.

Table 45 - Constituencies of university [202-203]

Administration The administration has a very significant impact on their business decisions regarding new construction projects, repairs and renovations, construction and maintenance, procurement practices, landscaping, processing at various levels, waste management, storage services, energy management, transportation, food service and canteens, as well as domestic operations. Academic The educational aspect is also significant but in different ways. Departments Investments in the education of students in these subjects have a long-term benefit. Ultimately, they will become leaders in their community and bring with them significant concepts of sustainability. Service training is an important learning method that allows students to study the required curriculum by applying what they are learning to real problems. This learning model is very suitable for the university environment and is a way of integrating the knowledge base with local requirements and applications. This can have an immediate benefit, depending on the nature of the service requirement. There are additional educational opportunities with the development of courses on sustainable development, informal seminars, and training, as well as distance learning. Research The university's research sector plays a significant role regarding its near and long-term impact. There are already ongoing projects with ecological habitats and other environmental problems. Research areas may also include large-scale composting, procurement practices, production methods, alternative energy sources and any number of construction, operation and maintenance projects. Local The local community can also provide different levels of resources to Community promote sustainability efforts and includes graduates, business, utilities, transport providers, suppliers, community organizations and local chapters of professional associations.

Any sustainable development program that aims at achieving broad participation must take into account the different roles, experiences, and expectations of these individual subcultures as a starting point. The evidence suggests that the most significant impact on achieving institutional change occurs when all three groups share a vision and perception that they work for the same purpose. Besides, once an idea has been accepted and incorporated into the culture of the system and day by day, it is difficult to bring down, even with a change in senior management. Many universities recognize these requirements and invest in more environmentally friendly buildings, more environmentally friendly methods and products, as well as ways to attract staff and students. Below are some examples of green university initiatives: 122

- Sustainable building design - Renewable energy - Water bottle re-use - Locally produced food - Waste disposal - Green transport - Awareness-raising events The greening of the campus negates wasteful inefficiencies and promotes positive changes. Many of these changes relate to the daily practical aspects of the campus's livelihood, the proper disposal, handling and storage of chemicals and materials associated with laboratories and auto services; purchase of environmentally friendly supplies; effective recycling programs. Other changes may require significant, substantial investments. In addition to training centers, university and university campuses are independent communities that are supported by extensive systems of institutional and operational functions. According to the definition of the US Environmental Protection Agency, the green campus can be defined as follows: - A campus that performs these functions by a system-wide culture of environmental sustainability, balancing service and design with existing and expected resources. - a place where environmentally responsible practices and education go hand in hand and exemplified by environmentally responsible principles. - The institution is a laboratory of self-monitoring, experimentation and application. At best, it is a model environmental friendly community where operational functions, business practices, academic programs and people are interrelated, providing educational and practical value for the institution, region and the world [204]. Greening initiatives are complex and require determination and long-term commitment on the part of the entire campus community. However, these efforts can give a significant return in Kazakhstan. Such paybacks include: 1. Ecological and economic sustainability. A great culture of sustainability helps to preserve and improve what you value as an institution today and for the future. 2. Reputation as a leader through example. Many colleges and universities lag far behind environmental leaders because they cannot practice on campus what they preach in the classroom. Although colleges and universities offer courses on environmental management, technology, laws and regulations, and evaluation, many of them do not comply with environmental requirements or are not involved in pollution prevention activities. 3. Economic benefits. A curriculum-based subprogram, an environmental audit program that identifies the shortcomings and inefficiencies associated with campus

123

activities, coupled with the identification of environmentally sound alternatives, can provide significant savings to the institution. Without paying external contractors, the university can detect steps - often simple steps that an organization can take to solve environmental problems on the campus. Acting by the recommendations resulting from these audits, colleges, and universities can realize cost savings by reducing energy and water consumption, minimizing the flow of campus waste, improving system reliability and improving the efficiency of the heating/air conditioning systems to name a few. Also, it will improve compliance with environmental requirements and, thus, minimize the potential for liability, fines, and cleaning costs. 4. "Real-life" work experience for students. Environmental audits and pollution prevention assessments can be integrated into the curriculum, providing students with practical skills for investigating and solving problems that they can take with them when they join the workforce. This experience not only makes students more accessible but also provides them with broad skills that allow them to succeed and prosper after their use. 5. Improved quality of life on the campus of the university. A Green Campus would be a cleaner, safer, and healthier place to live and work. Virtually any administrative or operational function on the campus affects to some extent the use of resources and the production of waste. There is an opportunity to improve the environment in almost any activity, for example, compliance with regulatory requirements, procurement, transportation, fleet management, physical operation of the plant, maintenance of territories, food services, waste management, social programs, laboratory practices, material management and communication services and work. The implementation of the pilot project in the tasks of a thriving green campus in Kazakhstan should start from the top and proceed throughout the rest of the campus. Without a strong declaration of commitment and participation by both the president and the administration, good intentions may be too fragmented to allow the involvement of the campus and too easily undermine its supporters and other obstacles. As soon as the decision is made, the real work begins. While there are no two campuses, and approaches to launching and maintaining the Green campus will differ from region to region, there are some necessary recommendations that will help ensure success: - the creation of an environmental campaign for environmental ethics on the campus. - setting out the mission of the Green Campus and the adoption of principles. - the creation of an organizational structure and a group of organizers in the Green Town to facilitate and coordinate the initiative and develop a strategic plan. - development of a strategic plan according to the mission and vision of the green campus. - the creation of student teams to perform specific tasks of the strategic plan. - establishment of partnerships between the public and private sectors with 124

personnel of state and local environmental agencies, utilities and business. - Assessment of daily operations concerning pollution prevention, waste stream management and energy efficiency - reduction, reuse, recycling, repair where possible. - implementation of business practices that are environmentally responsible, effective and in harmony with the goals of the green university. - the introduction and implementation of an environmental management system that is similar to that adopted by progressive enterprises and industries. - identification and documentation of short-term and long-term economic benefits. - commitment to a long-term program for system-wide environmental re- education and re-equipment. Pilot projects on the transition to the green development could be supported by promotional activities like: 1. Green campus day. To maximize participation, these efforts should be combined with the annual school picnic held by the student's government. 2. Brochure. Designed to convey information about the project and create interest in the campus. 3. Posters and signs. Information on the Green Campus initiative, mission statement and some proposals for participation. 4. Processing centers. Containers for glass, plastic, newspaper and white paper should be ordered for the cafeteria. 5. Environmental education in all programs. In order to include environmental education in all training courses, the group initiated a project to encourage staff and teachers to add at least one-semester task about the environment. Four areas of environmental interest are recommended: new technologies, pollution prevention, general environmental information and environmental awareness. The Green campus pilot projects are very worthwhile both from the perspective of the students and of the college. Students gain real-world experience and provide a professional presentation on the results of their investigations. Researchers test their research and developments by university, giving benefit both for the project and university. This ensures smooth commercialization process in universities of Kazakhstan. The green university concept requires not only the inclusion of a spirit of sustainability in university operations, curriculum planning and everyday life on campus; it also means helping the university itself, the community, the society at large, the country and the entire human race in a sustainable future through training, research, innovation and campus activities.

125

CONCLUSION

The doctoral research allowed to make the following conclusion: 1. The commercialization of technology presents significant challenges, and the likelihood of success is often overestimated by those engaged in research with little commercial experience. In Kazakhstan and other countries with economies in transition, this is a particularly serious problem, given the share of research carried out in public institutions. Increasing awareness of pitfalls and the involvement of partners with a commercial understanding in research decisions is essential to assess and respond to market needs. 2. The existing terminological apparatus on commercialization and its objects are analyzed. Commercialization is an attempt to profit from innovation by incorporating new technologies into products, processes, and services and selling them in the marketplace. For many new technologies, commercialization means the way from prototype to volume manufacturing and committing more significant resources to marketing and sales activities. 3. Technology and innovation management requires the integration of R&D management, production, and operations management, marketing management, product development, and organizational development. Management of innovation is not easy because the history of product and process innovations shows examples of good ideas that failed in commercialization. Technology commercialization is concerned with the process of converting scientific R&D into useful products or services. A comprehensive look at all the literature and industry-based commercialization models offers differing processes for taking a product to market. 4. Although major engineering disciplines already dedicate studies to commercialization problems of green technologies, there is not much research ongoing in the management disciplines. This is despite the growing importance of green technologies in the modern world. Very few scholars conduct researches dedicated to commercialization problems of green technologies, particularly from the managerial and economical approach. To address this gap, we concluded a study into a literature review asking a question of what is the state of the art in academic research on commercialization of green technologies. The total number of articles in “general” category is 2133, and by analyzing the chronological development of publications, we can conclude that this topic became widespread only in the 2000s. However, the number of publications dedicated to the managerial and economic approach of the topic is still low, with only 188 in total. Substantial progress is observed only after 2008s. Moreover, the vast majority of publications are the focus on particular technology and industry; research dedicated to key variables of successful commercialization of green technologies, profitability and competitiveness of green technology and so on are scarce. Novelty of research topic, lack of theoretical and practical background in commercialization of green technologies became a basis for proposing the author’s concept and methodology for empirical 126

research. 5. We should consider “commercialisation of green technologies” as activities related to the practical application of research results in the green technology field, with the aim of bringing new or improved products, processes and services to the market aimed both at receiving profit and ensuring sustainable growth with the benefit to the environment. A distinctive feature of this definition is the allocation distinguishing the purpose and scope of implementation. Purpose of commercializing green technologies, despite its obvious need to make a profit, is facilitating green growth, foster eco-friendly innovations and ensuring that the environment remains protected. As economy is usually opposed to ecology, formation of new term and new concept of green technology commercialization would serve for greater purposes of humankind. 6. Fostering green innovations has become a key priority for national and international environmental policy. Green growth is considered not only as an essential means to tackle environmental issues and transit to sustainable development but also as a driver of economic growth, especially in a time of economic downturn. By analyzing experience of foreign countries like Germany and South Korea in the commercialization of green technologies, valuable lessons for Kazakhstan has been concluded. Analysis of national policies and overview of modern support tools in a number of states like USA, UK, Korea, China, Canada, Denmark, Israel, Japan, Brazil and others listed in Global Cleantech Innovation Index allows classifying distinctive similarities in national support policies in groups. 7. The analysis of the environment for the commercialization of technologies in Kazakhstan shows that the national system for the commercialization of scientific developments is at the development stage. The national system for the commercialization of green technologies originates based on a national innovation system, which, is characterized by an initial stage in the development of a network model of innovation. As a result, the effectiveness of the system of commercialization of scientific developments suffers, which is manifested in relatively low scientific potential, weak information propaganda of domestic scientific developments, the lack of direct and indirect stimulation of industry to introduce local scientific developments, uneven development of innovation infrastructure. 8. During the study, we analyzed more than 50 sources of information including laws, conventions, concepts, programs, reviews, and reports of international organizations, as well as the sites of government agencies and nongovernmental organizations. Due to lack of the scientific works about stages of development and establishment of a green economy, we draw up our vision of the evolution of green technologies in Kazakhstan. Key moments in the history of independent Kazakhstan regarding the green technologies based on the following aspects: the adoption of laws, ratification of conventions, the establishment of competent authorities and companies, major events and other factors. Author gave descriptions and key features of each stage for following periods: 1992-2002, 2003-2012, 2013-2019, 2020-2030, 127

2030 and further. 9. Analysis of inventive activity is traditionally held with the study of statistical data on the availability of patents and other protective documents. However, the existence of a patent does not guarantee its use. Unfortunately, the low level of commercialization of domestic developments proves this theory. Therefore, it is essential to understand the commercialization process from the inside, to find out the reasons for the low level of implementation of university research, to take into account the opinion of scientists and immediately take the necessary measures. In this research, 14 projects were selected out of 43 potentially successful projects and 9 experts were invited from this field. 23 interviews with experts in green technology were conducted and analyzed. Conducted expert interviews have allowed revealing some factors that were noted during the preliminary literature review. As a result, we have selected the most significant factors and important barriers that affect the successful commercialization of green technologies in Kazakhstan. 10. To validate the identified barriers to commercialize green technologies have been carried out the experts from academia and industry. A workshop was conducted in which experts (four from academia, two from management and two from industry) were invited for a brainstorming session to seek their opinion on how important a role the barriers play in hindering the implementation of green technologies in the Kazakhstani context. Barriers identified through extensive literature review and semi- structured expert interviews were validated through discussions with experts (academia and senior/middle-level engineers/managers) and twenty-one barriers have been categorized into six dimensions based upon their nature in adoption of green technologies, i.e. Financial & Economic, Infrastructure & Technical, Legislative, Personnel & Staff, Socio-cultural, Personal. Based upon overall weights of barriers, the ranking of barriers to commercializing green technologies has been made. 11. University scientists actively receive patents and other protection documents, but there are difficulties with the commercialization of the invention. In general, the problems concern the conduct of R & D, the search for investors, the conclusion of a license agreement, participation in grant contests, the foundation of a start-up company. The scientific and technological park and the management of the university maximally help scientists overcome these barriers. Some scientists do not want to commercialize the invention independently. As scientists, they prefer to engage in science and research and do not seek additional profit. They are ready to share their developments with competent people who will be involved in promotion to the market. According to the interviewer's observations, young scientists are more optimistic and believe in the successful commercialization of their developments. To do this, they are ready to learn new skills, make economic calculations and personally engage in the search for investors. Scientists of middle age are somewhat skeptical because they have a negative experience in promoting their ideas. 12. Analyzing interviews, both scientists and businesspeople, we concluded that for successful cooperation, dialogue platforms and qualified intermediaries/managers are needed. The universities have created conditions for conducting high-quality 128

research work, as a result of which scientists receive patents and protection documents. However, it must be borne in mind that many external factors influence the successful commercialization of inventions, that's why an integrated approach is needed in solving these problems. 13. It is important to build an effective relationship between science, production and business. This applies to all fields of science. Commercialization of new green technologies significantly contributes to sustainable development. Necessary measures have been taken for this purpose, but there are problems and challenges that need to be solved. The green economy is much more than just environmental scope; it is also about development and the economy. A green economy might benefit both developed and developing countries from a development perspective. Kazakhstan cannot remain aside from the sustainable development through green technologies; in fact, it can be a new impetus for the future development of the country. 14. Successful commercialization of green technologies will require substantial government policy action. Promoting ideas of sustainable development and active participation in this process means their adjustment to the specifics of each country will undoubtedly keep changing further on. It is necessary to assess achievements and challenges on the way to green growth at the national level to choose relevant policy tools. According to six identified group of barriers, the complex of organizational and economic measures has been developed for enhancing commercialization management system of green technologies in Kazakhstan. Following principles should be taken into account: strengthening of general innovation infrastructure, encouraging private investments in innovation and R&D in green field, setting clear strategic goals in transition to sustainable development in the country, creating favorable conditions for new entrepreneurial firms, facilitating the transition to green growth in small and medium-sized enterprises, exploring new approaches to the diffusion of knowledge and technologies, support creating a market for green technologies, and changing the behavior of population by raising an awareness of environmental issues. 15. Universities are core and drivers for innovations. Therefore, we should use the of research university in creating and sustaining green growth in the country. Because of substantial environmental and sustainability challenges, universities and research institutes are under severe pressure to respond to climate changes and other sustainable development problems. They are expected to be the motive power in creating and implementing green technologies. Apart from organizational and economic measures, The Green campus pilot projects are useful and can give remarkable paybacks. Scientists can test their research and developments on the basis of university, providing benefit both for the project and university. Students will be involved in the real-life experience and testing of green innovation. This will be beneficial in enhancing commercialization process in universities of Kazakhstan.

129

REFERENCES

1 Decree of the President of the Republic of Kazakhstan. On the Strategy of Industrial and Innovation Development of the Republic of Kazakhstan for 2003-2015. – 2003, may 17. - №1096. 2 Nazarbayev N.A. Address of the President of the Republic of Kazakhstan to the nation "The Kazakhstan way – 2050: common goal, common interests, common future". - Astana, 2014. 3 Concept for transition of the Republic of Kazakhstan to Green Economy. Approved by Decree of the President of the Republic of Kazakhstan on May 30 2013, №557. 4 Almaty Declaration. Summit of the heads of the Central Asian states. - Almaty, 1997, february 28. 5 The Code of the Republic of Kazakhstan dated January 9, 2007, № 212-III "Ecological Code of the Republic of Kazakhstan" 6 About the Council for Sustainable Development of the Republic of Kazakhstan. Resolution of the Government of the Republic of Kazakhstan dated March 19 2004, №345. 7 Description and achievement of initiative of "Green Bridge" Partnership Programme. The official website of “The Partnerships for SDGs online platform // https://sustainabledevelopment.un.org/partnership/?p=2237 8 The official website of the Scientific and educational center “Green Academy” //http://www.green-academy.kz/ru/ob-akademii.html 9 The EXPO-2017 Exhibition hosted in Astana will become a turning moment in consciousness of the Kazakhstani citizens. Media center news. https://expo2017astana.com/en/page_id=2086&news_id=1871 10 Law of the Republic of Kazakhstan “On the commercialization of the results of scientific and (or) scientific and technical activities” from October 31 2015, № 381-V 11 Методическая поддержка центров коммерциализации технологий. Практические руководства. - М.: ЦИПРАН РАН, 2006. - Ч.1. – 392 с. 12 Frascati Manual 2015. Guidelines for collecting and reporting data on research and development. - OECD publications, 2015, october – 08. 13 Frascati Manual 2002. Proposed standard practice for surveys on research and experimental development. - OECD publications, 2002, december - 11. 14 Wonglimpiyarat J. Technology Financing and Commercialization. – London: Palgrave Macmillan, 2015. 15 Tidd J., Bessant J. Managing Innovation: Integrating Technological, Market and Organizational Change. - 4th edn. – Chichester: John Wiley & Sons, 2009. 16 Schumpeter J.A. Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process. - New York: McGraw-Hill, 1939. - Vol. 2.

130

17 Schmookler J. Economic Sources of Inventive Activity. In: N. Rosenberg (ed.). The Economics of Technological Change. – Harmondsworth: Penguin Books, 1962. 18 Klingebiel R., Rammer C. Resource Allocation Strategy for Innovation Portfolio Management // Strategic Management Journal. – 2014. - Vol. 35, №2. - P. 246–268. 19 Novelli E., Rao R. Complementary Assets and Market for Technology: An Empirical Study of Innovative SMEs // Proceedings of the DRUID-DIME Winter Conference. - 2007, january 25–27. 20 Conceiгo O., Fontes M., Calapez T. The Commercialization Decisions of Research-Based Spin-Off: Targeting the Market for Technologies // Technovation. - 2012. - Vol. 32, №1. - P. 43–56. 21 Pellikka J.T., Malinen P. Business Models in the Commercialization Processes of Innovation among Small High-Technology Firms // International Journal of Innovation and Technology Management. – 2014. - Vol. 11, №2. - P. 1– 20. 22 Myers D., Sumpter C., Walsh S., Kirchoff B. A Practitioner’s View: Evolutionary Stages of Disruptive Technologies // IEEE Transactions on Engineering Management. – 2002. - Vol. 49, №4. - P. 322–327. 23 Isabelle Diane A. S&T Commercialization of Federal Research Laboratories and University Research: Comprehensive Exam Submission. Eric Sprott School of Business: Carleton University. - 2004, december 3. 24 Casto Jane. Concept Definition: A New Model. World Class Design to Manufacture. - 1994. - Vol. 1, №4. 25 Shaw Elizabeth et al. Corporate entrepreneurship and innovation part 2: a role-and process- based approach // European Journal of Innovation Management. - 2005. - Vol. 8, №4. - P. 393-408. 26 Rourke D. L. a. M. From Invention to Innovation. US Department of Energy. - 1999. 27 Andrew Patton McCoy. Establishing a Commercialization Model for Innovative Products in the Residential Construction Industry. – Virginia: USA, 2007. 28 Goldsmith R. Model of Commercialization. – 2003, october 14 //http://asbdc.ualr.edu/technology/commercialization/the_model.asp. 29 Julio Rosa and Antoine Rose.Report on Interviews on the Commercialization of Innovation. Science. – Canada: Innovation and Electronic Information Division (SIEID). 30 Earl L., Gault F., Bordt M., “Summary: Meeting on Commercialization Measurement, Indicators, Gaps and Frameworks”. Statistics Canada // Working paper. Catalogue. – Ottawa, 2005. - №7. 31 Andrew J., Sirkin H. Payback: Reaping the Rewards of Innovation. - Harvard Business School Press, 2007. 32 Rothwell R., Zegveld W. Reindustrialization and Technology. – Londons: Longman, 1985.

131

33 Chiasa V. R&D Strategy and organization, managing technical change in dynamic contexts”. Series on technology management. - London Imperial College Press, 2005. - Vol. 5. 34 Gully B. Commercialization of Innovation. Auckland. - New Zealand: The Hi-Growth Project, 2004, may. 35 Christensen C.M. The innovator’s dilemma: When new technologies cause great firms to fail. - Boston: Harvard Business School Press, 1997. 36 Anne W., Fuller Marie C. Thursby. Technology commercialization: Cooperative versus competitive strategies, in Gary D. Libecap, Marie C. Thursby (ed.) Technological Innovation: Generating Economic Results (Advances in the Study of Entrepreneurship, Innovation & Economic Growth. - Emerald Group Publishing Limited, 2008. – Vol.18, chapter 8. - P.227 – 250. 37 Gans J. S., Stern S. The product market and the market for ‘‘Ideas’’: Commercialization strategies for technology entrepreneurs // Research Policy. - 2003. - №32. – Р. 333–350. 38 Brett M. Frischmann. Commercializing University Research Systems in Economic Perspective: A View from the Demand Side. - In University Entrepreneurship and Technology Transfer, 2015. 39 Mukhtarova K.S., Zhidebekkyzy A. Foreign experience of the commercialization of innovations and their applicability in Kazakhstan // KazNU Bulletin. Economy series. – 2015. - Vol. 4. 40 Datta A., Reed R., Jessup L. Commercialization of Innovations: An Overarching Framework and Research Agenda // American Journal of Business. – 2013. - №28(2). - P. 147-191. 41 Congress U.S. Office of Technology Assessment, Innovation and Commercialization of Emerging Technology, OTA-BP-ITC-165. - Washington: U.S. Government Printing Office, 1995, september. 42 Carson R. Silent Spring. – Greenwich; CO: Fawcett, 1962. 43 Hahn R., Nell R. Designing a market for tradable emission permits. / In W. Megat (ed.). Reform of Environmental Regulations. - Cambridge: Ballinger, 1982. 44 Lee D., Misiolek W.S. Substituting pollution taxation for general taxation: Some implications for efficiency in pollution taxation // Journal of Environmental Economics and Management. – 1986. 45 Baumol W. J., Oates W. The Theory of Environmental Policy. - Cambridge University Press, 1988. 46 Atkinson S., Tietenberg T.H. 1991. Market failures in incentive-based regulations: The case of emission trading // Journal of Environmental Economics. Tietenberg T. H. Environmental and Natural Resource Economics. - New York: Harper Collins, 1992. – Vol. 47. 48 Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication - A Synthesis for Policy Makers. – UNEP, 2011. 49 Towards green growth: A summary for policy makers. OECD Meeting of the Council at Ministerial Level. – Paris, 2011, may. 132

50 Leopold A. A sand county Almanac: and sketches here and there. – Oxford University Press, 1949. – 240 p. 51 Ehrlich P.L. The population bomb. – Sierra Club/Ballantine books, 1968. – 201 p. 52 Buckminster F.R. Operating manual for Spaceship Earth. – Carbondale: Southern Illinois University Press, 1969. – 151 p. 53 Meadows D.H., Meadows D.L., Randers J., Behrens W.W. The limits to Growth. – Universe Books, 1972. – 205 p. 54 World Comission on Environment and Development. Our common future (“The Brundtland Report”). – Oxford Paperbacks, 1987. – 400 p. 55 Mukhtarova K.S., Zhidebekkyzy A. Commercialization of green technology projects: key factors and barriers // Bulletin of KazNU, Economy series. – 2016. - №6. 56 The Top 50 Sustainability Books. Wayne Vasser. Greenleaf Publishing Ltd. - Sheffield, 2009. - 255 p. 57 Peter Braithwaite. Book review: The Top 50 Sustainability Books. Proceedings of the Institution of Civil Engineers Engineering Sustainability. - 2013, june. – Vol. 166, issue 3. - P.161 // http://dx.doi.org/10.1680/ensu.11.00025 58 Leo Hickman. What are your top green books? The Guardian / Environment. 2010 // https://www.theguardian.com/environment/blog/2010/jan/27/top-50-green- books 59 Book reviews. Social and Environmental // Accountability Journal. – 2010. - Vol. 30, issue 1. 60 Markandya Anil, Barbier. Edward B. Blueprint for a Green Economy. David Pearce. - Earthscan Publications, 1989. 61 Janine M. Benyus. Biomimicry. - William Morow, 1997. 62 Paul Hawken, Amory B. Lovins and L. Hunter Lovins. Natural Capitalism. - Earthscan Publications, 1999. 63 William McDonough and Michael Braungart. Cradle to Cradle. - North Point Press, 2002. 64 Heat: how to stop the planet burning. George Monbiot. - Allen Lane, 2006. 65 The Economics of Climate Change: the Stern Review. - Nicholas Stern: Cambridge University Press, 2007. 66 Hu A., Wang Y. National conditions and development. - Tsinghua University Publishing House, 2005. 67 Hu A et al. China’s natural disasters and economic development. – Wuhan: Hubei Science and Tech-nology Press, 1997. 68 Zhang P. Guidance book of the people’s republic of China 12th five-year plan on national economic and social development. - People’s Publishing House. – Beijing, 201. 69 Hu A. China: Innovative Green Development. - Springer-Verlag Berlin Heidelberg, 2014.

133

70 Zhang P. Agriculture and industrialization: exploration of the industrialization issues of an agricultural country. – Wuhan: Central China Institute of Technology Press, 1984. 71 Green technology: what is it? // http://www.green-technology.org/ 72 Mckinsey. Unlocking Energy Efficiency in the U.S. Economy. - 2009. 73 Allcott Hunt, a Michael Greenstone. Is There an Energy Efficiency Gap? - National Bureau of Economic Research, 2012. 74 Jaffe Adam B., Robert N. Stavins. The Energy-Efficiency Gap What Does It Mean? // Energy Policy. – 1994. - №22 (10). – Р. 804–810. 75 International Patent Classification “Green Inventory”. WIPO // http://www.wipo.int/classifications/ipc/en/est/ 76 Green Inventory. WIPO Publication. – Geneva: Switzerland - № L434/9(E). 77 Bundesministerium fuer Bildung und Forschung (BMBF) WiN - Wirtschaftswissenschaften für Nachhaltigkeit/economics for sustainability. – 2010 // http://www.fona.de/de/9886. 78 Bernat T. Green jobs in the USA and the EU – conclusions for Poland // Transformations in Business & Economics. – 2012. - №11(2). – Р. 315-332. 79 Bernat T., Bartkowiak P. Green jobs – a creative destruction case? // Actual Problems of Economics. – 2012. - №131. – Р. 109-116. 80 Andersen M.M. Eco-innovation–towards a taxonomy and a theory’. 25th Celebration DRUID Conference 2008 on Entrepreneurship and Innovation // Organizations, Institutions, Systems and Regions. – Copenhagen: Denmark, 2008. 81 Mukhtarova K.S., Trifilova A.A., Zhidebekkyzy A. Commercialization of Green Technologies – an Exploratory Literature Review // Journal of International Studies, Poland (indexed in SCOPUS). - 2016. - №3. 82 Harzing A. W., Wal R.V.D. Google Scholar as a new source for citation analysis // Ethics in Science and Environmental Politics. – 2007. – Vol. 8, №1. – Р. 1–13. 83 Li J., Burham F., Lemley T., Britton M. Citation Analysis: Comparison of Web of Science1, Scopus, SciFinder, and Google Scholar // Journal of Electronic Resources in Medical Libraries. – 2010. - №7. - P. 196–217. 84 Jacso P. As We May Search–Comparison of Major Features of the Web of Science, Scopus, and Google Scholar Citation-based and Citation-enhanced Databases // Current Science. - 2005. - Vol. 89, №11. - P. 1537–1547. 85 Falagas M.E., Pitsouni E.I., Malietzis G.A., Pappas G. Comparison of PubMed, Scopus, Web of Science, and Google Scholar: Strengths and Weaknesses // FASEB Journal. – 2008. - Vol. 22, №2. - Р. 338–342. 86 Bosman J.M., Rasch M., Sieverts E., Verhoeff H. Scopus reviewed and compared. The coverage and functionality of the citation database Scopus, including comparisons with Web of Science and Google Scholar’. - Utrecht: Utrecht University Library, 2006 // http://dspace.library.uu.nl/handle/1874/18247.

134

87 Schiederig T., Tietze F., Herstatt C. Green innovation in technology and innovation management – an exploratory literature review // R&D Management. – 2012. - Vol. 42,№2. - P. 180-192. 88 Todorov T.K., Reuter K.B., Mitzi D.B. High-efficiency solar cell with earth-abundant liquid-processed absorber. - Advanced Materials, 2010. 89 Singh J., Gu S. Commercialization potential of microalgae for biofuels production. - Renewable and Sustainable Energy Reviews, 2010. 90 Aslani A. Strategic variables of commercialization of renewable energy technologies // Journal of Renewable and Sustainable energy. – 2015. - Vol. 7, №2. 91 Днишев Ф., Альжанова Ф. Развитие инноваций и прогрессивных техноло-гических укладов в экономике Казахстана в условиях индустриальной модерниза-ции: институты, механизмы и приоритеты. – Вена; Австрия: Ассоциация перспективных исследований и высшего образования «Восток– Запад», 2015. – 532 с 92 Днишев Ф.М., Альжанова Ф.Г. Развитие финансовых механизмов, способствующих коммерциализации технологий.Совершенствование механизма трансферта технологий / под ред. О.С.Сабдена.- Алматы: ИЭ МОН РК, 2006.- С. 20-29 93 Днишев Ф.М. Совершенствование механизма коммерциализации технологий // Модернизация и рост конкурентоспособности экономики Казахстана / под ред. О.Сабдена.- Алматы: Қазақ энциклопедиясы, 2011. - С.165-177. 94 Днишев Ф.М., Альжанова Ф.Г. Формирование института посредников в системе коммерциализации технологий. Совершенствование механизма трансферта технологий / под ред. О.С.Сабдена.- Алматы: ИЭ МОН РК, 2006.- С.4-10. 95 Сабден О. Экономика // Избранные труды. Инновационная экономика. – Алматы, 2009. – Т. 1. – С. 83. 96 Сабден О. Коммерциализация результатов науки. Экономика // Избранные труды: в 10 т. - Алматы, 2011.- Т.2. - С.74-88. 97 Сабден О., Арменский А.Е., Кочубей С.Э., Наумов Е.А. Коммерциализация результатов науки Устойчивое инновацтионное развитие и мировые финансы в XXI веке.- Алматы, 2010.- С.274-287. 98 Альжанова Ф.Г. Рынок технологий в условиях глобализации: институты и механизмы развития в Казахстане – Алматы, 2007. - 183 с. 99 Кенжегузин М.Б., Днишев Ф.М., Альжанова Ф.Г. Наука и инновации в ры-ночной экономике: мировой опыт и Казахстан. – Алматы: Институт экономики Комитета науки МОН РК, 2005. – 256 с. 100 Жатканбаев Е.Б. Развитие коммерциализации научных технологий в Республике Казахстан // ПМУ хабаршысы. Экономикалық сер. Вестн. ПГУ Сер. экономическая.- 2009. - № 1. - С.129-136. 101 Алибекова Г. Коммерциализация научных разработок в Казахстане: быть или не быть? // Элемент.- 2011. - № 2. - С. 33-35 135

102 Зейнуллин А.А. Совершенствование законодательства в области коммерциализации технологий // Қазақстан Ұлттық Жаратылыстану ғылымдары академиясының хабаршысы. Вестник Казахстанской национальной академии Естественных наук.- 2014.- №1.- С. 19-21 103 Зарубина В.Р. Коммерциализация научных разработок в Казахстане: проблемы и перспективы // Парадигма современной науки глазами молодых: Материалы международной научной конференции, посвященной 20-летию независимости РК и 10-летию Костанайского филиала Челябинского государственного университета.- Костанай, 2011.- С.439-441. 104 Бишимбаева С.К. Государственная поддержка коммерциализации результатов научных исследований и инноваций в Казахстане // Еуразия гуманитарлық институтының хабаршысы = Вестник Евразийского гуманитарного института.- 2010. - №3. - С.129-133 105 Бишимбаева С.К.Опыт Германии в области коммерциализации интеллектуальной собственности // Оңтүстiк Қазақстан ғылымы мен бiлiмi. Педагогикалық ғылымдар. Гуманитарлық ғылымдар сериясы = Наука и образование Юж. Казахстана. Сер. Пед. науки. Гуманитарные науки.- 2010. - № 5(84). - С.8-12. 106 Бишимбаева С.К. Опыт Японии в области коммерциализации интеллектуальной собственности // Оңтүстiк Қазақстан ғылымы мен бiлiмi. Педагогикалық ғылымдар. Гуманитарлық ғылымдар сериясы = Наука и образование Юж. Казахстана. Сер. Пед. науки. Гуманитарные науки.- 2010. - № 5(84). - С.12-14 107 Кулембаева А.С. Формирование организационно-экономических отношений при коммерциализации объектов интеллектуальной собственности // Қарағанды экономикалық университетi жаршысы: экономика, философия, педагогика, юриспруденция.Вестник КЭУ: экономика, философия, педагогика, юриспруденция.- 2010. - № 3. - С.16-19. 108 Косолапов Г.В. Коммерциализация инноваций : вопросы методологии // Казахстан Спектр.- 2014.- № 1.- С. 65-83. 109 Сагиева Р.К., Галимкаир А.Г., Тагайбекова Н.П. Управление инновациями: работа над ошибками // Вестник КазНУ. Серия экономическая. - 2014. - №3 (103). 110 Каналин Ж.Д., Голикова Е.В. Диалоговые площадки между наукой и бизнесом – новый динамичный инструмент коммерциализации результатов интеллектуальной деятельности // Интеллектуальная собственность Казахстана. – 2016. - №4. – С. 23-27. 111 Сагиева Р.К., Жупарова А.С. Экономические стимулы развития «зеленой» экономики в Казахстане // Вестник КазНУ имени аль-Фараби (серия экологическая). – 2013. - № 2-3 (38). – С. 97-102. 112 Сагиева Р.К., Кадырханова Ж.М. Становление наукоемкой и устойчивой экономики в Казахстане: особенности современного этапа // Вестник КазНУ. Серия экономическая. – 2016. - №6 (118). 136

113 Сахариева А.С. Инновационная составляющая формирования «зеленой» экономики // Вестник КазНУ. Серия экологическая. – 2013. - №2/3 (38). 114 Каналин Ж.Д., Есимбекова Д.С. Интеллектуальная собственность и инновации в "Зеленой" энергетике // Научно-практический журнал «Интеллектуальная собственность Казахстана». – 2013. - №4. 115 Мухамедиев Б.М. "Зеленая экономика" как приоритетное направление развития Казахстана // ҚазҰУ хабаршысы. Экология сериясы = Вестник КазНУ. Сер. экологическая. - 2013. - № 2/3 (38).- С. 79-82. 116 Сансызбаева Г.Н., Сансызбаев С.Н. Концепция «зеленой» экономики как условие обеспечения устойчивого развития Республики Казахстан// Вестник КазНУ имени аль-Фараби (серия экологическая). – 2013. - № 2/3 (38). С. 103-107. 117 Есекина Б.К. Концепция "зеленной экономики" как приоритет посткризисного развития // Социально-экономическая и индустриально- инновационная модернизация Казахстана: проблемы и перспективы: Материалы междунар. науч-практ. конф. - Алматы, 2012. - Ч.1.- С. 77-81. 118 Есекина Б.К. Драйверы "зеленой" экономики // Казахстанская правда. - 2015, март - 17. - С. 5. 119 Рахимбекова С. Топ 10 "зеленых" шагов Казахстана в 2013 году // ҚазҚСҒЗИ АҚ Хабаршысы = Вестник АО КазНИИСА.- 2014.- №4.- С. 21-27. 120 Рахимбекова С. Приверженность казахстанцев к "зеленой" экономике // Казахстанская правда. – 2017, январь – 6. - № 3. - С. 4. 121 Is climate change real? The official web-site of Earth Eclipse // https://www.eartheclipse.com/climate-change/is-climate-change-real.html. 122 Paris Agreement. United Nations Framework Convention on Climate Change. – 2015, december 12. https://unfccc.int/files/essential_background/convention/application/pdf/english_paris _agreement.pdf 123 Cornell University, INSEAD, and WIPO. S. Dutta, B. Lanvin. S.Vincent. The Global Innovation Index 2014: The Human Factor In innovation // Fontainebleau. – Ithaca; Geneva, 2014. 124 National Science Board. Chapter 4. Research and Development: National Trends and International Comparisons // Science and Engineering Indicators. Arlington. – 2014. – P. 196-201. 125 The Global Cleantech Innovation Index – 2017. - 3rd edition. - CleanTech Group // https://wwf.fi/mediabank/9906.pdf. 126 Energy efficiency – Made in Germany. The official brochure of the Federal Ministry for Economic affairs and energy of Germany. - Berlin, 2010. 127 German Resource Efficiency Programme (ProgRess). Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). – Berlin, 2012, february 29.

137

128 Survey of resource efficiency policies in European Environment Agency member and cooperating countries. Country profile. – Germany. – 2011, may. - 26 p. 129. ASEM Eco-Innovation Index. – Germany, 2013 //http://www.aseic.org/center/asei/result/view2013/germany.do 130 Wacket M., Kirschbaum E. Germany breaks green energy record by generating 35% of power from renewables in first half of 2017. - The Independent, 2017, july 3. 131 Climate protection in figures: facts, trends and incentives for German climate policy. Federal Ministry for the Environment. – Berlin: Nature Conservation and Nuclear Safety (BMU), 2014, june. 132 Батырева Р.Д. Национальная инновационная система Германии: основные черты и тенденции развития // Экономика и менеджмент инновационных технологий. – 2016. - №4. 133 Гаврилова Н.М. Современный опыт инновационного развития Германии и возможности его использования в Германии // Вестник Финансового университета. – 2011. - №2. – С. 13-20. 134 Korea’s Green Growth based on OECD green growth indicators. - Report by Statictics Korea, 2012, march. 135 National Strategy for Green Growth. International Energy Agency. - Policies and Measures. South Korea, 2009 // https://www.iea.org/policiesandmeasures/pams/korea/name-39013-en.php 136 Korea’s Green Growth Experience: Process, Outcomes and Lessons Learned. – Seoul; Korea: Global Green Growth Institute, 2015. 137 Lane. Building the global green patent highway: a proposal for international harmonization of green technology fast track programs // Berkeley Technology Law Journal. 2012. 27:3 138 Fast-tracking “green” patent applications: an empirical analysis. Antoine Dechezleprêtre. Centre for Climate Change Economics and Policy, UK. February 2013 139 European Commission Knowledge Transfer Study 2010-2012, Final Report. Luxembourg. - Publications Office of the European Union, 2013. – 383 p. // http://ec.europa.eu/research/innovation-union/pdf/knowledge_transfer_2010- 2012_report.pdf. 140 Жидебекқызы А. Коммерцияландыру кеңсесі қызметін ұйымдастырудың шетелдік тәжірибесі // Вестник КазНУ (Серия экономическая). - 2016. - №2 (114). – Б. 284-289. 141 Komkov N.I., Bondarev N.N. Problems of research commercialization and the direction of their solution // Problems of Forecasting. - 2007. - №1. 142 Lybecker K.M., Lohse S. Global Challenges Report. Innovation and Diffusion of Green Technologies: The Role of Intellectual Property and Other Enabling Factors. – Geneva: Switzerland; WIPO, 2015.

138

143 Rai V., Schultz K., Funkhouser E. International Low Carbon Technology Transfer: Do Intellectual Property Regimes Matter? // Global Environmental Change. – 2014. - №24 144 Woodhouse E.J. The Obsolescing Bargain Redux: Foreign Direct Investment in the Electric Power Sector in Developing Countries // NYU Journal of International Law and Politics. – 2005. - №38. 145 Borenstein S. The Private and Public Economics of Renewable Electricity Generation // NBER Working Paper. – 2011. - №17695. 146 Мылтыкбаева А.Т. Анализ динамики основных показателей инновационного развития в регионах Республики Казахстан // Вестник университета «ТУРАН». – 2014. - №2 (62). – С. 147-154. 147 Cornell University, INSEAD, and WIPO The Global Innovation Index 2017: Innovation Feeding the World, Ithaca. – Fontainebleau; Geneva, 2017. 148 Daurenbekova A.N, Kunanbaeva D.A. Increase of innovative activity of enterprises of Kazakhstan in the conditions of globalization // Bulletin of KazNU. – 2013 // http://articlekz.com/article/8730 149 The official statistical information of Committee on statistics. Section “Science and innovation”. https://stat.gov.kz/faces/wcnav_externalId/homeNumbersScience?_afrLoop=438 207367171818#%40%3F_afrLoop%3D438207367171818%26_adf.ctrl- state%3Dd21rfutq1_50 150 Annual Report National Institute of Intellectual Property. - 2016. http://kazpatent.kz/ru/godovoy-otchet 151 Annual Reports of the NATD // http: //natd.gov.kz/en/ob-agentstve/#nineth 152 Жидебекқызы А. Ғылыми-зерттеу жұмыстарының нәтижелерін коммерцияландырудағы технопарктік құрылымдардың рөлі мен маңызы // Международная конференция студентов и молодых ученых «Фараби әлемі». - Алматы, 2015. 153 Consept for Transition of the Republic of Kazakhstan to Green Economy. Approved by Decree of the President of the Republic of Kazakhstan on May 30 2013, №557. 154 Ministry of Education and Science of Repubic of Kazakhstan Scenario development of direction of "safe, clean and efficient energy". - Astana: JSC "National Center for State scientific and technical expertise", 2013. 155 UNEP. Global Trends in Renewable Energy Investment. - Frankfurt am Main: Frankfurt School, 2013. 156 Nazarbayev N. Address of the President of the Republic of Kazakhstan N.Nazarbayev to the nation. Retrieved from. - 2014 // http://www.akorda.kz/kz/page/page_215751_kazakstan-respublikasynyn- prezidenti-n-a-nazarbaevtyn-kazakstan-khalkyna-zholdauy-2014-zhylhy-17-kantar 157 Tamanini J. The Global Green Economy Index GGEI 2014. Measuring National Performance in the Green Economy. - 4th ed). - Dual Citizen LLC, 2014.

139

158 Esekina B.K. "Green" economy: international experience and Kazakhstan. – Borovoe: Research and Education Center "Green Academy, 2014. 159 Жидебекқызы А. ҚР энергетика саласын «жасыл экономика» қағидаларына сәйкес инновациялық бағытта дамытудың маңызы мен мәселелері // «Тұрақты дамудың жаңа парадигмасы – «жасыл экономиканы» қамтамасыз етудегі қаржы ресурстары» атты халықаралық ғылыми-тәжірибелік конференция. - Алматы, 2014. 160 About the approval of the Concept of Industrial-Innovative Development of Kazakhstan for 2015 - 2019 years // Resolution of the Government of the Republic of Kazakhstan. - 2013. - №1497 // http://adilet.zan.kz/kaz/docs/P1300001497. 161. Mukhtarova K.S., Zhidebekkyzy A. Development of green economy via commercialization of green technologies: experience of Kazakhstan. International Conference on Business and Economics. – Seoul; South Korea, 2015. – Р. 171-177. 162 EXPOR. egister for selection of green innovations for EXPO-2017. Retrieved from Official Site of the Bureau International des Expositions. – 2015 //https://expo2017astana.com/ 163 Mukhtarova K.S., Zhidebekkyzy A. An analysis of green technologies’ development in Kazakhstan: problems and perspectives // Bulletin of KazNU. Economy series. – 2015. - №5. 164 Rifkin J. The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World. – Palgrave MacMillan, 2011. – 270 p. 165 Gall M.D., Borg, W.R., Gall J.P. Educational Research: An Introduction. White Plains. - 8th edn. – NY; USA: Longman Publishers, 2006.- 704 p. 166 Esimzhanova S.R. Formation and development of marketing at industrial enterprises of Kazakhstan (theory, methodology, practice): dis. … doc. Econ. Sciences: 08.00.05. - Almaty: Kazakh economy. Un-t them. T. Ryskulova, 2001. - 275 p. 167 Orlov A.I. Expert assessments: a training manual. – M.: IVSTE, 2002. - 31c. 168 Litvak BG Expert information. Methods of obtaining and analyzing. - M .: Radio and Communication, 1982. - 184 p. 169 Bryman A. Social Research Methods. - 4th edn. - Oxford: Oxford University Press, 2012.- 808 p. 170. Kvale S. Interviews: An Introduction to Qualitative Research Interviewing. -Thousand Oaks; CA: Sage Publications,1996. - 326 p. 171 Burns R.B. Introduction to Research Methods. - Prentice Hall; New Jersey:SAGE Publications Inc,2000.- 607 p. 172 Andrews R. Research questions. – MPG Books; Cornwall, 2003. – 89 p. 173 Denzin N.K., Lincoln Y.S. Handbook of Qualitative Research. – Sage; Thousand Oaks, 2005. 174 Patton M. Qualitative Evaluation Methods. Sage. - California, 1990.

140

175 Silverman D. Doing qualitative research. A practical handbook. - 2nd ed. - SAGE publications, 2005. 176 Saaty T.L. The analytic hierarchy process. - New York: McGraw-Hill Book Co, 1980. 177 Saaty T.L. Axiomatic foundation of the analytic hierarchy process // Manag Sci. – 1986. - №32. – Р. 841–855. 178 Saaty T.L. Fundamentals of decision making. - Pittsburgh: RWS Publications, 1994. 179 Saaty TL. How to make a decision: the analytic hierarchy process // Interfaces. – 1994. - №24. – Р.19–43. 180 Luthra S., Garg D., Haleem A. Identifying and ranking of strategies to implement green supply chain management in Indian manufacturing industry using analytical hierarchy process // J Ind Eng Manag. – 2013. - №6(4). – Р. 930–962. 181 Saaty TL. Fundamentals of decision making and priority theory. - 2nd ed. – Pittsburgh: RWS Publications, 2000. 182 Kumar S., Parashar N., Haleem A. Analytical hierarchy process applied to vendor selection problem: small scale, medium scale and large scale industries // Bus Intell J. – 2009.- №2(2). – Р. 355–362. 183 Christopher Frey H., Patil S.R. Identification and review of sensitivity analysis methods // Risk Anal. – 2002. - №22(3). – Р. 553–578. 184 Triantaphyllou E., Sánchez A. A sensitivity analysis approach for some deterministic multi criteria decision making methods // Decis Sci. – 1997. -№28. 185 Govindan K., Kaliyan M., Kannan D., Haq A.N. Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process // Int J Prod Econ. - 2014. - №147. – Р. 555–568. 186 Удальцова Н.Л. Организационно-экономический механизм функционирования отрасли национальной экономики // Экономические науки. – 2012. – №6(91). – С. 94-98. 187 Агаева, Л.К. Организационно-экономический механизм управления Инвестиционной деятельностью на предприятиях Городского хозяйства // Материалы конференций: сб. статей / под ред. д.т.н., д.э.н., профессора В.К. Семёнычева. - Самара: САГМУ, 2013. - Т. 2. – С. 138-142. 188 Федорович В.О. Состав и структура организационно-экономического механизма управления собственностью крупных промышленных корпоративных образований // Сибирская финансовая школа. - 2006. - № 2(35). - С. 45-54. 189 Новиков А.В. Современный взгляд на организационно-экономический механизм управления российским предприятием // Научный журнал НИУ ИТМО. Серия: Экономика и экологический менеджмент. - 2011. - №1. - С. 167-176. 190 Ильина С.А. Организационно-экономический механизм коммерциализации инноваций на малых и средних предприятиях и алгоритм

141

его оценки // Финансы и управление. - 2016. - № 4. - С.1-11. DOI: 10.7256/2409- 7802.2016.4.20750.URL: http://e-notabene.ru/flc/article_20750.html 191 OECD OECD Reviews of Innovation Policy: Kazakhstan 2017, OECD Publishing. – Paris, 2017 // http://dx.doi.org/10.1787/9789264270008-en 192 Бычкова А.Н. Экономический механизм: определение, классификация и применение // Вестник ОмГУ. Серия: Экономика. – 2010. – №4. – С.37-43. 193 Goodward J., Gonzale M. Renewable Energy Tax Credits // The Bottom Line on… Issue 18. 194 International Tax Incentives for Renewable Energy: Lessons for Public Policy. - San Francisco; California; Center for Resource Solutions, 2005. - 27 p. 195 Ratner S.V. Possibilities for adapting Germany's experience in creating framework conditions for the industrial use of innovative technologies in the field of energy // National interests: priorities and security. – 2011. - №43 (136). - P. 71-78. 196 Smith A., Campus Ecology: A Guide to Assessing Environmental Quality and Creating Strategies for Change. - Los Angeles: Living Planet Press, 1993. 197 Keniry J., Ecodemia: Campus Environmental Stewardship at the Turn of the 21st Century. - Washington: National Wildlife Federation, 1995. 198 Creighton S.H. Greening the Ivory Tower. - Cambridge; Massachusetts: MIT Press, 1998. 199 Leal Filho W. Sustainability and University Life. - 2nd ed. - Peter Lang: Frankfurt am Main, 2000. 200 Sharp L., Green campuses: the road from little victories to systemic transformation // International Journal of Sustainability in Higher Education. - 2002. - №3(2). - P. 128-145. 201 The official statistical information of Committee on statistics. - Section “Education” //https://stat.gov.kz/faces/wcnav_externalId/homeNumbersEducation?lang=ru&_afrL oop=271537265690625#%40%3F_afrLoop%3D271537265690625%26lang%3Dru% 26_adf.ctrl-state%3D7m1rt71xd_17 202 Colleges & Universities - Transitioning to a More Sustainable Campus. United Kingdom // http://www.sustainablecampus.org/universities.html. 203 The Greening Universities Toolkit has been developed by the UNEP Environmental Education and Training in collaboration with the University of New South Wales. – Australia, 2013, may 15. 204 Colaborative report by US Environmental Protection Agency and New England Interstate Water Pollution Control Commission and Environmental Training Center // Northeast Partnership for Environmental Technology Education. //www.epa.gov/region01/steward/univ/index.html.

142

APPENDIX A

143

APPENDIX B

144

145

APPENDIX C

Key characteristics of national policies in the commercialization of green technologies

№ Country Income level / Main features GII rank 1 Argentina Upper-middle - low level of funding of green technology related research; income / 76 - a very low R&D budget for green developments; - clear lack of emerging cleantech innovations; - low number of environment-related patents. 2 Australia High income / - considerable amount of inputs does not correspond with 23 outputs; - developed innovation infrastructure; - public funding of research in green technologies is relatively low; - investors support cleantech funds; - low level of patents in green technologies, resulting in poor commercialization. 3 Austria High income / - a large amount of financing of green R&D projects; 20 - a great support from the state; - attractiveness of green technology market for investors; - high level of international trade in eco innovations; - established market of renewable energy sector; - excellent performance for commercializing green technologies. 4 Belgium High income / - allocation of huge amount of money to R&D projects in 27 green field; - increasing participance of local companies in implementing green innovations and sustainable development principles; - low level of renewable energy consumption hinders commercialization; 5 Brazil Upper-middle - very limited eco-friendly policies in the country; income / 69 - low level of R&D funding in general; - country realizes its high potential for renewables which leads to relatively better indicators for commercialization of green technologies; - not ready to export eco-friendly innovations. 6 Bulgaria Upper-middle - low level of general innovation infrastructure development; income / 36 - lack of entrepreneurial activity; - lack of funding in green R&D sector; - attractiveness for investment to the development of renewables is lower than in other countries; - establishing of Cleantech Bulgaria could be a turning point in national policy. 7 Canada High income / - one of the best conditions for early entrepreneurship; 18 - highest amount of funding; - highest amount of venture capital investment; - active participation of local companies in implementing green developments; - only a few cleantech organizations and clusters. 146

8 China Upper-middle - good conditions for an early-stage entrepreneurship; income / 22 - established and attractive market for renewable energy investments; - relatively lower level of green tech patents; - average indicators for commercialized green tech. 9 Czech High income / - despite generally established entrepreneurial environment, Republic 24 entrepreneurial culture is weak; - low attractiveness for renewable energy investment; - low level of private sector participation in green innovation implementation; - underdeveloped early-stage venture investment; - high level of green tech import from developed neighbors with low commercialization rate simultaneously. 10 Denmark High income / - highest performance in commercialization of green 6 technologies; - excellent entrepreneurial opportunities and activity in general; - highest rate of funding in the world; - substantial increase in green tech patents; - well-developed support system in developing green tech. 11 Finland High income / - strong support system for developing of green innovations; 8 - effective use of R&D funds; - increasing number in renewable energy related jobs; - average attractiveness of cleantech investment market. 12 France High income / - high environmental commitment; 15 - issuing considerable amount of green bonds; - well-developed early-stage venture capital investment particularly to green projects; - relatively low green tech commodity import and export figures. 13 Germany High income / - strong in outputs of innovation; 9 - however, early-stage entrepreneurial activity is one of the lowest; - lack of private investment despite very attractive conditions; - growing number of green tech patents and job places; - highest performance in commercialization of green technologies. 14 Greece High income / - lack of support for start-up businesses; 44 - low attractiveness for cleantech investments; - R&D budget is on the average level; - low participation of local companies in introducing green tech; - generally underdeveloped investment environment and patent activity. 15 Hungary High income / - strong attempt of government in promoting green growth; 39 - increasing number of cleantech organizations; - despite good state policy, commercialization of green tech is low because of general innovation environment. 16 India Lower-middle - attractiveness as a renewable energy investment 147

income / 60 destination; - positive view of entrepreneurship; - positive state support in creating green tech drivers. 17 Indonesia Lower-middle - lowest performance in green tech commercialization; income / 87 - lowest support and funding in R&D in this field; - poor support in creating general conditions for green tech. 18 Ireland High income / - developed innovation infrastructure in general; 13 - medium support policy; - growing number of cleantech organizations with attracting more funds. 19 Israel High income / - the best performance in financing green innovations; 17 - involvement of local companies in commercializing new developments; - low renewable energy consumption. 20 Italy High income / - underdeveloped of early- stage entrepreneurship; 29 - providing many eco-friendly government policies; - low venture capital investment; - average performance in commercializing green tech. 21 Japan High income / - the best performance in effective use of clean technologies; 14 - relatively high cleantech R&D budget; - high renewable investment attractiveness; - best performance in green innovation related patent filing, indicating an active and successful cleantech research sphere; - high levels of cleantech imports and exports. 22 Mexico Upper-middle - low public cleantech R&D expenditure; income / 58 - lack of green tech organization and cluster establishments; - new state policy and market tools aimed at meeting the sustainable development goals. 23 Netherlands High income / - highly developed innovation ecosystem; 3 - strong national entrepreneurial culture; - the best early-stage venture capital investment; - increasing amount of successfully commercialized green technologies. 24 New High income / - well-adjusted national innovation ecosystem; Zealand 21 - strong support of entrepreneurial culture; - relatively weak green tech-supportive government policy; - low public R&D expenditure. 25 Norway High income / - excellent system of clean technology support drivers; 19 - good innovation support frameworks; - average entrepreneurial activity; - high share of renewable energy consumption. 26 Poland High income / - relatively underdeveloped innovation ecosystem; 38 - complete absence of early-stage venture capital investment into the green technology sector; - state support policy and attempts to attract more funds to R&D expenditure. 27 Portugal High income / - lack of entrepreneurial culture; 31 - medium level of innovation ecosystem development, resulting in a low output; 148

- lack of public R&D budget; - supporting government policy is above average with growing number of cleantech clusters and organizations. 28 Romania Upper-middle - low level of general innovation drivers; income / 42 - necessity of support structures, education and policy to build a strong entrepreneurial environment; - clear absence in green tech start-ups or funding; - emerging of renewable energy market. 29 Russia Upper-middle - well below of global-average performance in innovative income / 45 activity; - lack of strong entrepreneurial culture; - underdeveloped general national innovation ecosystem; - absence of cleantech specific industrial clusters; - however, there is an indication of strong cleantech research and intellectual property protection. 30 Saudi High income / - established innovation ecosystem; Arabia 55 - support and incentives to build a strong entrepreneurial culture; - lowest level in green tech support drivers; - lack of national policy emphasis on green technology implementation; - emerging signs of transition to green growth principles; 31 Singapore High income / - well-established general innovation infrastructure; 7 - lack of focus in the green technology sphere requiring improvement in supportive policy and access to cleantech focused funds; - relative weakness in the number of cleantech-related patents. 32 Slovenia High income / - innovation drivers, cleantech specific drivers, and emerging 32 cleantech are below the global-average in general; - total lack of start-up access to private finance; - low renewable energy investment attractiveness; - improvement of supportive government policy. 33 South Upper-middle - lack of established innovation diffusion channels; Africa income / 57 - lack of strong entrepreneurial culture; - good amount of eco-friendly government policy; - very low level of commercialized green technologies; - low renewable energy consumption and related employment. 34 South High income / - strong and effective outputs in environmental innovations. Korea 11 - high level of public R&D expenditure on this sector; - significant success in the commercialized green technologies; - substantial growth in shares of renewables in the national energy mix. 35 Spain High income / - limited start-up access to cleantech funds; 28 - lack of a supportive policy environment; - low R&D expenditure on this field. 36 Sweden High income / - strong entrepreneurial opportunities; 2 - developed eco-friendly policy; 149

- a large number of domestic private investors; - high level of patent applications; - excellent performance in commercializing green tech. 37 Switzerland High income / - established innovation infrastructure; 1 - national innovation system supported by policy, education, and finance; - medium level of entrepreneurial activity; - high government cleantech R&D expenditure and - supportive policy. 38 Turkey Upper-middle - high entrepreneurial culture; income / 43 - established general innovation drivers; - lowest level of supportive policy. 39 UK High income / - excellent performance in supportive policy; 5 - strength in start-up access to private finance; - medium effectiveness of government R&D expenditure; - high number of successful start-ups. 40 USA High income / - excellent national innovation system; 4 - high start-up access to private finance; - providing supportive policy; - high amount of R&D expenditure in this field; - successful performance in commercialization of green technologies.

150

APPENDIX D

List of questions for participants of green technology projects and other scientists № Questions and notes I. Introduction part 1. Please tell us about yourself and your project. 2. At what stage of implementation is your project? (Are there any negotiations/search for investors?) 3. How long have you been working in this field/project? 4. Do you have any patents? (General or under the project) II. Main part 5. What factors do (in your opinion / based on your experience) contribute to / hamper the commercialization of your developments? Please tell us your experience. Note – Analyze the answers and try to identify belonging of factors to the following groups: - economic and financial; - technological; - political; - legislative; - personnel; - infrastructure; - others. If the respondent does not refer to one of the above categories, ask his / her opinion on the reasons that were not mentioned. 6. How do you assess the material and technical base necessary for the work of your project? 7. Is the amount of funding sufficient for the research? 8. How do you assess the project's human potential? 9. Who is involved in calculating the economic efficiency of the project? 10. Do you cooperate with the university technological park? 11. How do you assess the assistance of the technological park in supporting the commercialization of your project? 12. What assistance do you have from the scientific and innovative departments of the university? 13. Did the recently adopted commercialization law affect your work/activities / project? 14. Do you attend thematic exhibitions? What can you say about their effectiveness? 15. What other barriers could you name that hinders the commercialization of technologies? 16. Are you going to participate in the EXPO-2017? III Final part 17. What steps do you think should be taken to solve the problems mentioned above? 18. Do you have any wishes for government officials or university management? The conclusion of the interview and expressing gratitude for the cooperation. 151

APPENDIX E

List of questions for representatives of the private sector and national companies

№ Questions and notes I. Introduction part 1. Please tell us about yourself and the type of activity of your company. 2. How many years have you been working in this field/company? II. Main part 3. Please tell us about the product/service of your company. (To whom does the technology of production belong?) 4. Do you cooperate with national universities and research institutes? (Are there joint projects?) 5. If not, could you name the reason? 6. How do you assess the demand for your product/services in the Kazakhstan market? How do you assess future growth prospects of your company? 7. Who is your main consumer? (Public sector / private sector / individual) 8. How do you assess the personnel potential in the country related to your field of activity? 9. Do you receive support from the state? 10. What factors (in your opinion / based on your experience) interfere the commercialization of the developments of our domestic scientists? Note – Analyze the answers and try to identify belonging of factors to the following groups: - economic and financial; - technological; - political; - legislative; - personnel; - infrastructure; - others. If the respondent does not refer to one of the above categories, ask his / her opinion on the reasons that were not mentioned. III Final part 11. What steps do you think should be taken so that domestic scientists can commercialize their developments in the sphere of green technologies? 12. What can you offer for the development of innovative activities in the country? 13. The conclusion of the interview and expressing gratitude for the cooperation.

152