What is innovation? Where to go to the innovator? What is the significance of innovation for the city? These seemingly typical questions conceal very interesting answers that were given in our conversation by Nurlan Zhaylaubay, director of the Center for Innovation Development at the Development Center of Almaty.
- Nurlan, tell us, what does the Innovation Development Center do?
- The Head of State was tasked with making Almaty an innovative hub. As part of the implementation of this order, the mayor of Almaty city was given the authority to develop innovation and commercialization of technology at the Almaty Development Centre. In April 2016, the Almaty Innovations Centre was established as part of the Almaty City Development Centre.
- What does an innovative hub mean?
- The innovation hub is a kind of center of attraction, as well as young minds, and international venders, large organizations. All conditions should be created there where they could open their own businesses. Moreover, Almaty, with its great potential, young people, its infrastructure is already one of the most innovative cities in Central Asia.
- When will we be able to see the innovative hub that has been formed in the near future?
- In strategic programs, the first phase of the formation of the innovation hub is planned to be completed by 2025. In its development, in addition to us, such organizations as: The Autonomous Cluster Fund, the «Information Technology Park«, the mayor of Almaty and universities.
- What can we see at the end of this phase?
- The difference between current and future performance. Number of innovative enterprises, venture capital funds, business angels.
- We're talking about innovation, but it's probably hard for readers to understand what innovation is. If someone creates an internal combustion engine with an unprecedentedly high efficiency - will it be considered an innovation or an improvement of existing technologies?
- Innovation has a somewhat blurry interpretation of the term. But the bottom line is this: innovation is an introduced innovation that provides a qualitative increase in the efficiency of processes or products, demanded by the market. For example, for the Kazakhstan market, some projects and solutions may be innovative, and in the Central Asian or CIS markets they will no longer be.
I would like to emphasize that the main criterion of innovation is the demand of the market. We often have to meet with product developers who are confident in the innovative content of their product. And yes, indeed, it often happens. But despite the fact that the project is interesting, it may not have demand in the market. The question arises: should it be financed and developed?
- But should the inventor think about the business model? Indeed, according to the logic of things, the question of commercialization is a task for the same hub, which is thinking where to apply this or that invention?
- Yes, I fully agree with you. An innovator, a developer should be engaged in its development, and financiers should build financial models, write business plans and already commercialize these projects. That is why every university and research institute has its own business incubators, techno parks with its staff and people who are responsible for these issues. Kazakhstan also has several innovation development institutes, such as the National Agency for Technological Development, the Kazakhstan Institute for Innovation Development, and the Autonomous Cluster Foundation for Information Technology Park. These organizations just can address with their idea, with their plans, there they will help in further development. And within the city of Almaty, our Center was created just to consider this idea, prompt and direct the innovator or developer on the right track and send to the address of the same national agencies or Kazakhstan Institute for Innovation Development.
- Take a hypothetical case where a person actually found an idea and brought it to life as a prototype. What should he do next? Where should he go?
- In this case, they can contact us at the Innovation Development Centre for consultation. Here we will tell them how to further commercialize the project, how to implement their idea, how to finance, what support tools exist, what types of grants are available for innovative support. We will be able to answer these questions and think we can be useful for these innovators.
- In preparation for the interview, we learned that there is a program to encourage innovation. Tell us more about it.
- As part of the 2020 Business Roadmap, the Almaty Mayor's Office provides grants for a certain pool of projects on an annual basis. The grant can reach up to 3 million tenge. This is a form of support. Also, together with the DAMU Foundation, a new program for the development of innovations «Almaty Innovations» has been launched. The program provides for the allocation of 1 billion tenge for lending to innovative entities operating within the city of Almaty at a subsidized interest rate of about 8.5%. This is enough «cheap» money to implement your idea. This support tool is implemented through second-tier banks. In this case, the requirements for projects are put by the banks themselves.
- Where can I see these requirements?
- The program itself starts this year, and you can read the requirements on the DAMU website. We also have the tools of state support under the aforementioned National Agency for Technological Development. The agency provides three types of grants for the development of industries and the development of existing enterprises. As for the latter, I will also note that the aforementioned Kazakhstan Institute for Innovation Development also allocates funds for the development of staff skills and the start-up of certain equipment. Also in Almaty is the autonomous-cluster fund «Park of Innovative Technologies» which is engaged in accelerating start-up projects and implementing them in the stage of commercialization.
- How many projects have passed through you?
- To date, we have processed about 400 projects since April. More than 130 projects have been selected for further implementation within the city of Almaty. This pool of projects is now available in each structural unit of the mayor's office and they are considering what projects will be interesting for them.
- What project do you remember the most?
- Our center held talks with Yandex International Service. Taxis, during which their program was planned to be implemented in the city of Almaty. In the summer of 2016 between the CRA and Yandex. A memorandum of cooperation was signed.
We also work closely with Uber, an international service. Since Almaty people prefer to keep up with the times, such innovative projects have been adopted very positively.
There is also a very promising project «Sheberhana.» Young initiative guys who graduated from KBTU have developed an energy-efficient innovative eco Socket console, which by incorporating the power grid into an outlet or installation in the power shield regulates the amount of voltage and turns on or disables power through a mobile app installed in a smartphone. The guys have already won several international nominations, and also plan to perform at the Expo. The project was supported by the mayor of Almaty after our presentation and now it is planned to install Eco Socket at one of the city's enterprises in the metal processing shop in the near future. Eco Socket at one of the city’s enterprises in the metal processing workshop.
Continuing the theme of the young and promising I want to tell about the student program. A memorandum of cooperation was signed between MIT and ALMAU as part of the innovation forum, which took place on July 7. It will be a student exchange program, which will be implemented in 2017, in the summer.
- Who do you most often get innovative solutions from?
- Most of the time, they are young people with startup ideas who have recently graduated from university. Which can't help but delight. We are ready to provide all possible support within our competences and capabilities.
Also, the mayor of Almaty is tasked with the ADC - to popularize innovation and raise awareness among the population on innovation. As part of this assignment, we conducted five seminars on the basis of four large universities. These are KazSU, KazNTU, AUES and Narhoz University. That is, where potential innovators can sit. Our main task is to establish close cooperation with the city of Almaty.
- What will we see in the coming 2017?
- In 2017, we expect the implementation of the Almaty Innovation Lending Program, increased activity among the population and innovation actors, and the implementation of a pool of 130 projects. Of these, we set a goal to implement at least 30 projects in 2017. In addition, Almaty is a kind of forge of personnel, which is located about 35 universities. We hope that our close cooperation with them will bear results.
