The Ministry of Education and Science of the Republic of Kazakhstan
JSC "National Center of State Scientific and Technical Expertise"
Report
of optimistic scenario of directions
"Biotechnology"
in Kazakhstan up to 2030,
developed as part of the system analysis and
forecasting in science and technology
Contributors to
the report:
The coordinator of the expert group in the direction "Biotechnology",
First Vice-Rector - Vice Rector for Innovative Development of
Innovative Eurasian University, Doctor of Veterinary, professor
E.B. Nikitin
Chairman of the expert group on the direction "Biotechnology", the
representative of Ministry of Education and Science of the Republic of
Kazakhstan Science Committee for the construction of an international
reference laboratory in Almaty, Doctor of Veterinary, professor
S.M. Mamadaliev
The group expert on the direction "Biotechnology", Deputy General
Director of Ministry of Education and Science of the Republic of
Kazakhstan National center of Biotecnology, Ph.D, Doctor of
Veterinary, Professor
The group expert on the direction "Biotechnology", Head of
department of the Institute of Microbiology and Virology of
of Education and Science of the Republic of Kazakhstan
Committee, Ph.D., professor, corresponding member of
Academy of Sciences of the Republic of Kazakhstan
Virology
Ministry
Science
National
The group expert on the direction "Biotechnology", Head of the
Laboratory of the Institute of Plant Biotechnology of Ministry of
Education and Science of the Republic of Kazakhstan Science
Committee, Ph.D., Professor
The group expert on the direction "Biotechnology", Doctor of
Veterinary, Ph.D., Professor of Microbiology and Biotechnology
Department of the Kazakh Agro-Technical University S.Seifullin.
К.К. Mukanov
V.E. Berezin
L.K. Mamonov
А.К. Bulashev
The group expert on the direction "Biotechnology", Head of
R.T. Omarov
Department "Biotechnology" ENU. Gumilev Department, Ph.D., professor
Astana, 2013
The present study aims to show the options for the development of biotechnology in
Kazakhstan for the period up to 2030, and is not an attempt to anticipate the future. It is aimed
at providing the foundations for strategic understanding of options for future development based
on identifying key trends, opportunities and risks of the future. In the basis for constructing future
scenarios key mega-trends, factors that have a significant impact on the development and
implementation of scenarios and variables in the trajectory of development, which have a high
uncertainty in the future, are put.
A brief summary contains the basic provisions and the conclusions reached in the
development of scenarios biotechnological directions in Kazakhstan for the period up to 2030
(hereinafter - the Scenario). When developing scenarios the following points were covered:
1. GLOBAL CHALLENGES, TRENDS AND FACTORS OF DEVELOPMENT
2. KAZAKH TRENDS AND FACTORS
3. THE KEY TRENDS AND FACTORS FOR THE DEVELOPMENT OF
BIOTECHNOLOGY
4. THE CROSS-IMPACT ANALYSIS
5. ANALYSIS OF THE FUTURE MARKET IN THE WORLD AND IN KAZAKHSTAN
6. ANALYSIS OF DEVELOPMENT STRATEGIES AND PROGRAMS OF
BIOTECHNOLOGY SECTOR IN THE WORLD
7. ANALYSIS OF STRATEGIES AND PROGRAMS FOR DEVELOPMENT OF THE
BIOTECHNOLOGY SECTOR IN KAZAKHSTAN
8. ANALYSIS OF R & D IN THE WORLD, IDENTIFICATION OF LEADING
COUNTRIES
9. ANALYSIS OF THE COMPETENCE OF R & D IN KAZAKHSTAN
10. A STRATEGY ON THE SCENARIO
11. "WILD CARDS"
12. THE SCENARIO RISKS AND THREATS
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IMAGING THE FUTURE
The President of Kazakhstan, N.A. Nazarbayev in his Address to the Nation "Strategy"
Kazakhstan-2050" has set a goal of transition to the society of universal labour, based on
knowledge - a healthy and prosperous nation, ensuring the prudent use of the environment and
natural resources with the use of advanced, environmentally friendly technologies for the
extraction and processing of minerals and raw materials, with sustainable development of the
agricultural sector, ensuring availability and food security, with the introduction of safe and clean
energy breakthrough projects in the field of new materials, bio and nanotechnologies, based on
the rapid development of modern information and communication technologies.
2030: the best for the future of Kazakhstan in the field of biotechnology:
Agrobiotechnology:
• A significant proportion of diagnostic products and vaccines for veterinary medicine is
produced by the bio enterprises of Kazakhstan;
• On the basis of modern biotechnology drought- and salt-resistant crop varieties are
developed;
• Deep processing Biotechnology of agricultural products and agricultural waste will
enable reception of high value added products;
• Modern biotechnological methods of water and land resources provide higher yields of
agricultural plants and animal productivity.
Biomedical:
• On the basis of cell and DNA technologies personalized medicine will be developed;
• Highly effective medicines from natural sources of Kazakhstan origin were developed
and implemented;
• With the use of biotechnological methods ways of early diagnosis and treatment of
socially significant diseases in humans and animals were improved
• On the basis of DNA technology, cellular and nanotechnologies and monoclonal
antibodies medicinal, preventive and diagnostic preparations of new generation were produced;
• Food production of therapeutic and prophylactic and functional purposes will increase
Bioecology:
• The method of bioremediation is carried out in the short term recovery in output due to
contamination by oil products and other non-natural pollutants from the turnover of productive
land;
• Bioconversion based on biotechnological processes allows to eliminate pollution by
organic waste and to generate more energy.
The main objective of biotechnology in Kazakhstan is the creation and implementation
of high technologies and competitive biotechnological products for health and agriculture,
environmental protection, food and processing industries.
In the future, the development of biotechnology, we can assume the appearance of three
interrelated sub-packets, based on recombinant DNA technology, embryonic stem cells and
cloning, and developing the medical sciences, agriculture, environmental management and hightech engineering:
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1. Bioengineering (biocatalysis, biosynthesis, biosensors, cell markers, in the long term living construction materials and living systems);
2. Management of the genome (the production of GM plants, GM animals, of GM microorganisms, including genetically modified antibiotics, genetically modified enzymes, yeast GM
crops, biopesticides, etc.);
3. Artificial ecosystems (production of extinct organisms, the creation of new species, the
creation of ecosystems).
On the development of environmental technology in this scenario, the key impact will be
probable Biological Diversity Act, postulating the need to maximize the genetic stock of the
Earth. This will lead to significant changes in wildlife management from the creation /
destruction of natural ecosystems, Mankind will go to the construction of artificial ecosystems for
specific user tasks. If we manage to overcome the social tensions and resolve a large group of
complex philosophical, theological and cultural issues, next stage of development: the artificial
elevation of a number of species to the mind will be implemented.
I.
GLOBAL CHALLENGES, TRENDS AND FACTORS OF DEVELOPMENT
The main challenges:
Among the key challenges that determine the development of the sector in question
science and technology in the world, some of the most important, affecting the social, economic,
scientific and technological development of the world community can be selected. These include:
Socio-economic. Population growth, particularly in developing countries; an aging
population and, as a consequence, reduction of the people proportion of working age;
malnutrition and hunger on a global scale; urbanization and reduction of agricultural lands;
globalization in almost all areas, including trade, manufacturing and services, extraction of
natural resources; income growth in developing countries, changing the world leaders in the
industry in question, increased global trade and tourist flows; rising fuel prices and a decrease of
mineral reserves.
Environmental. Soil and water pollution as a result of human activities; increase the
amount of carbon dioxide and other greenhouse gases in the atmosphere; the growth of global
climate change; reduction of arable land due to urbanization, needs of conservation, unsustainable
agricultural production and soil degradation.
Science and technology. The increase in the number of breakthrough scientific advances
in biotechnology, molecular biology, genetics, medicine and ecology; increasing the share of hightech industries and high-tech products, development of new areas by human, polar regions, mineral
resources, deep sea and space. Science and technology are seen as an integral part of economic
growth by developing country governments. They are taking steps to develop their own scientific
and technical infrastructure, promotion of research, expansion of the higher education system. The
new global "Technological wave" could lead to a fundamental transformation of the markets of
high-tech products and services, a fundamental impact on competitive advantage as the national
economy and the competitiveness of its individual sectors.
The factors and trends that will have a significant impact on the development of
biotechnology in the world for the period up to 2030 are as follows:
1. Biopharmaceuticals
2. Biomedical
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2.1 Molecular Diagnostics
2.2 Diagnostic tools to personalize therapy
2.3 Cell and tissue engineering for therapeutic purposes
2.4 Biocompatible materials
3. Industrial Biotechnology
3.1 Biopolymers
3.2 Biological products for industrial use
4. Bioenergy
5. Agricultural Biotechnology
5.1 Biotechnology for recycling
5.2 Food Industry
Analyzing the world's major challenges and trends shaping the fields of science,
technology and production in the field of biotechnology, the following factors affecting the
development of biotechnology in the world are:
Social
Political
Economic
Environmental
Population growth, particularly in developing countries
The aging population
Malnutrition and hunger on a global scale
Continue to develop urbanization trends
Ongoing globalization trends
Growth of incomes in developing countries
Change of the world market producers of biotechnology products
Increased global trade and tourist flows
Pollution of soil and water as a result of economic human activity
The amount of carbon dioxide and other greenhouse gases in the
atmosphere increases. A continuous increase in global climate
change
Technological
In the world shrinking arable land due process urbanization,
conservation needs, unsustainable agricultural production and soil
degradation are being reduced. Rising fuel prices and a decrease in
reserves of fossil fuels
Population growth, particularly in developing countries, causes growth of demand for
food and feed. This leads to the need to improve the productivity of agricultural land and nonagricultural land is plowed. Although population growth in the past decade has slowed down,
however, in absolute terms the population has increased significantly, mainly due to developing
countries.
Malnutrition and hunger on a global scale remains a major problem of global agricultural
production. Although enough food in the world, malnutrition, hunger and insecurity of some food
products continues to persist, not only in underdeveloped countries, but also among the poor in
industrialized countries.
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North America
Europe
Central and South
America
The Asia-Pacific
region
South Africa
Poor
Middle
class
Rich
Middle East
and North
Africa
World
Picture 1 - Change the size of the middle class and the predicted distribution of population by
social classes (the forecast of the World Bank)
The population of western countries continues to age, and European countries face a
growing demand for medical support. The most important medical problem of the near future the prevention and treatment of chronic diseases. To maintain the health of the population will be
tested and implemented many biotechnological products, medical and social costs would amount
to a significant portion of the national budget, reducing the investment in other sectors of the
economy.
The growing anxiety of the public in relation to preventive health care and nutrition, and
the requirements of the meticulous quality control of products as well will lead to changes in the
food industry. Faced with an abundance and variety of food products, consumers in developed
countries are very demanding with regard to the products they are buying. More and more
increasing consumer interest in food technology.
The trends of urbanization and more technological equipment of agriculture continue to
develop. This area is controlled by the commercial sector of agriculture and stimulate the process
of standardization and consolidation. The system of agricultural production involves fewer
people.
Life sciences continues to grow rapidly both in fundamental and in applied field. The
exponential growth of biological information contained in databases of genes and proteins, will
continue, although in the next decade, growth of new products use on the basis of these
databases unlikely is to be as rapid.
In medicine, genomics information will allow to develop new strategies for the treatment
of diseases and identify new drugs. In agriculture, this technology will lead to the emergence of
new products and technological means, including biosensors and diagnostic tools in order to
increase agricultural productivity.
US and European countries are leaders in the field of biotechnology, including the
medical and agricultural. At the same time, there is a rapid growth of biotechnology in some
developing countries, primarily in China, India and Brazil. It does not exclude a change of "key
players" in the near future.
Acute water problems will come not only regionally, but also internationally. Obviously,
the supply of fresh water will be used primarily for drinking and to a lesser extent for agriculture.
The quality of fresh water in the world will decline. The world community will put the problem
of water conservation, the use of new agricultural technologies and technology of zero tillage.
The amount of carbon dioxide and other greenhouse gases in the atmosphere increases.
Global climate changes continue to increase. International
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efforts are focused on slowing down and mitigate such effects. Rising levels of carbon dioxide in
the atmosphere will increase because of rapid industrialization in many developing countries,
especially in China. The response to global warming can only be a change in agricultural
production schemes and energy policies.
CO2 emissions - the developing countries (UN data, million. t.)
CO2 emissions - developed countries (UN data, million. t.)
14 000
12 000
10 000
2005
8 000
6 000
4 000
2 000
2000
1995
1990
0
Picture 2 - Dynamics of carbon dioxide emissions into the atmosphere
Rising fuel prices and a decrease in reserves of fossil fuels will be one of the most
important problems for US agriculture. Concerns over the depletion of fossil fuels, coupled with
the costs of technological progress have led to the need for biofuels. High energy prices are
forcing the United States to use synthetic fertilizers that provokes prolonged decline in the
viability of new agricultural lands, which are dependent on huge amounts of fertilizer.
In the world arable lands are reduced due to urbanization, conservation needs,
unsustainable agricultural production and soil degradation. This will undoubtedly affect the
volume of agricultural production, leads to plowing new arable land, poorly adapted for use, and
the extinction of species in these areas, especially in developing countries.
Picture 3 - The scale and degree of degradation of arable land in the world
Increased global trade and travel flows significantly increase the risk of new diseases and
causes more rapid spread of diseases in plants, animals and people. The modified agricultural
systems, reduction of areas for agricultural production, global warming creates new conditions
for the emergence of new agricultural diseases. The treatment of human infectious diseases,
including AIDS, malaria, tuberculosis and influenza is one of the major problems of the new
century. According to FAO (WHO), as a result of an unprecedented increase in average
temperatures in Europe due to global warming, Europe is the rapid spread of
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"exotic" diseases that were previously typical only for tropical countries of the tropical belt. It is
found that the disease is now transferred primarily mosquitoes, which in large quantities
penetrate Europe in airplanes, commercial vessels and with a load of goods as well.
II. KAZAKH TRENDS AND FACTORS
In Kazakhstan the most important are the following factors:
 The aging population
 Environmental pollution
 The increasing demand for food
 Increasing probability of the emergence of new diseases
 Problems of water and natural resources
 The ongoing globalization trend
 The growth of global climate change, including by increasing the amount of carbon
dioxide and other greenhouse gases in the atmosphere increases.
 The loss of arable land due to urbanization, conservation needs, unsustainable
agricultural production and land degradation
 Decrease in inventories of fossil fuels, the continuing upward trend in world prices for
oil and gas.
In addition, the specific Kazakh factors can be selected:
 Rising incidence of socially significant diseases of humans and animals
 The growing number of genetic diseases in humans
 Problems associated with the use of water resources
 Withdrawal of rotation of arable land due to the influence of anthropogenic factors.
In many respects, the major trends existing in the Republic of Kazakhstan, correspond to
the world trends, although there is a certain specifics related to the geographical location of the
country, geopolitical features, state of the economy and social system.
There is a growing population while increasing the proportion of older people in the
general age structure of society - according to the Kazakh Statistics Agency, Kazakhstan's
population could reach 24 million. Inhabitants over 65 in 2050 will be 9%. At the same time there
is an increase in the incidence of cardiovascular, cancer and chronic diseases, which requires
improving the health care system and meet the demand of pharmaceuticals. Kazakhstan has rich
plant resources that can be a source for drugs of natural origin. In this regard, promising is the
development of biotechnology, aimed at generating and manufacturing pharmabioceuticals from
natural sources.
There is an increase in demand for food and in general the products of agriculture. While
the upward trend in imports of food products in the food market of the country will continue until
2015, Kazakhstan, with its vast land resources, has great opportunities for increasing agricultural
production and agricultural exports. The development of the domestic sector Agro biotechnology
can not only help to reduce food imports and overall agricultural production in the republic, but
will dramatically increase the share of agricultural exports, leading to a substantial strengthening
of the economy.
By virtue of the neighborhood with the countries of disadvantaged epidemic and epizootic
situation in Kazakhstan the danger of the penetration and spread of dangerous infectious diseases,
that requires not only
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the improvement of the system of epidemic and epizootic control, but also the creation and
production of domestic vaccine, diagnostic and prophylactic drugs to combat infectious diseases
of humans and animals. The development of this area of biotechnology is also very promising,
both in terms of increasing biosafety of the country and due to the possibility of development of
domestic sector pharmabioceuticals and output them to other markets, especially neighboring
countries.
A significant problem for many regions of Kazakhstan is environmental degradation. This
phenomenon is due not only to global climate change and the state of water and air as well, but
with significantly increased human activities, including the extraction of minerals and the active
use of land in agricultural production. Ecological problems in Kazakhstan are among the most
acute and require timely solutions. The development of bio-ecology, including the creation and
implementation of biological products for the treatment environment, environment restoration of
damaged ecosystems, improve soil fertility, etc. is a very promising trend for the country.
Development of alternative sources of energy is one of the leading trends. A significant role
in this regard plays a biofuel made from renewable raw materials, including agricultural waste and
food industries. The development of biotechnology direction in Kazakhstan will help to reduce
dependence on petroleum production, and will help to improve the environmental situation in
general.
Therefore the most promising directions of biotechnology for the development of
Kazakhstan are the following:
- Agrobiotechnology
- Biomedical
- Bioecology
- Bioenergy.
III. KEY DIRECTIONS FOR DEVELOPMENT OF "BIOTECHNOLOGY"
IN KAZAKHSTAN. TRENDS AND FACTORS
The main global and Kazakhstan factors, that have a significant influence on the
development of biotechnology in Kazakhstan, were classified as follows:
Social
1. Population growth, particularly in developing countries
2. Population aging
3. Increasing demand for food
4. The possibility of the development of new and "forgotten" Diseases
5. Increase the incidence of socially significant diseases of humans and
animals
6. Increase in the number of genetic diseases in humans
7. Continue to develop the trend of urbanization
Political
Economic
8. Ongoing globalization trends
9. Growth of income in developing countries
10. Change the world market producers of biotechnology products
11. Increased global trade and tourist flows
Environmental
12. Contamination of soil and water as a result of human activities
13. The lack of water resources
14. The amount of carbon dioxide and other greenhouse gases in the
9
Technological
atmosphere is increasing - global climate change
Process
15. The loss of arable land due to urbanization, conservation needs,
unsustainable agricultural production and soil degradation
16. Rising fuel prices and a decrease in reserves of fossil fuels
Future directions of
"Biotechnology" in Kazakhstan
Society
Economy
Technology
•Population growth,
particularly in developing
countries
•The aging population
•The increasing
demand for food
•The possibility of the
development of new and
"forgotten" diseases
•Increased incidence of
socially significant diseases of
humans and animals
•The growing number
of genetic diseases in
humans
•Continue to
develop the
trend of
urbanization
• Reduction of arable land
due to urbanization,
conservation needs,
unsustainable agricultural
production and soil
degradation
• Rising fuel prices and a
decrease in reserves of fossil
fuels
Politics
Environment
• income growth in
developing countries
• change of the world
market producers of
biotechnology products
• increased global
trade and tourist
flows
• Availability of unique flora
- source of natural medicinal
compounds
• Soil and water
pollution as a result of
human activities
• Lack of water
resources
• The amount of
carbon dioxide and
other greenhouse
gases in the
atmosphere is
increasing - global
climate change
• The ongoing
globalization trends
Picture 4 - Trends and factors of biotechnology development in Kazakhstan
IV. Cross-impact analysis
The key factors for the development of biotechnology in Kazakhstan are the following
factors:
 Global climate change;
 Soil and water pollution as a result of human activities;
 The increasing demand for food;
 The aging of the population;
 The loss of arable agricultural land and soil degradation;
 Population growth, particularly in developing countries.
Below is a ranking of the factors influencing the development of biotechnology in
Kazakhstan, according to the degree of uncertainty and importance.
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Contamination of soil and
Population growth,
water as a result of human
particularly in developing
activities
countries
The amount of carbon dioxide
Increasing demand for food
and other greenhouse gases in
the atmosphere is increasing -
Rising fuel prices and a
decrease in reserves of
fossil fuels
global climate change
The loss of arable land due to
urbanization, conservation needs,
unsustainable agricultural
production and soil degradation
The possibility of the
development of new and
"forgotten" Diseases
Population aging
Increase the incidence of socially
Lack of water resources
Growth of number of genetic
diseases of people
Change the world market producers
of biotechnology products
significant diseases of humans and
animals
Availability of unique flora -
The degree
of influence
Growth of income in
developing countries
source of natural medicinal
Increased global trade and
tourist flows
compounds
Continue to develop the
Ongoing globalization
trend of urbanization
trends
The level of uncertainty
Picture 5 - Ranking the factors that will have a decisive impact on the future
development of biotechnology
The mutual influence of factors on the direction development of "Biotechnology"
is shown in Picture 6.
On the basis of analysis of world and Kazakhstan trends and factors influencing the
development of biotechnology, the following basic requirements of the development of
biotechnology in the Republic of Kazakhstan can be determined:
AGROBIOTECHNOLOGY:
 Import substitution of diagnostic products and vaccines for veterinary use;

Withdrawal drought- and salt-tolerant crop varieties, based on the techniques of
modern biotechnology;
 Improving Biotechnology deep processing of agricultural products and agricultural
waste;
 The introduction of modern biotechnological methods of water and land resources;
BIOMEDICINE:
 Development and introduction of personalized medicine;
 Development and introduction of drugs from natural sources;

Improved methods of early diagnosis and treatment of socially significant diseases
in humans and animals;

Development of medical, preventive and diagnostic preparations of new generation
on the basis of DNA technology, cellular and nanotechnologies and monoclonal antibodies;
 Expansion of biotech industries in the field of healthy nutrition
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Population growth, particularly in
Contamination of soil and
water as a result of human
activities
developing countries
Population aging
Lack of water resources
Malnutrition and hunger on a global scale
The amount of carbon dioxide
and other greenhouse gases in
the atmosphere is increasing global climate change
The possibility of the development of new
and "forgotten" Diseases
Increase the incidence of
socially significant diseases of
humans and animals
Increase in the number of genetic diseases in humans
Continue to develop the
trend of urbanization
The loss of arable land due to urbanization,
conservation needs, unsustainable
Growth of income in
developing countries
agricultural production and soil degradation
Rising fuel prices and a decrease in
reserves of fossil fuels
Availability of unique flora source of natural medicinal
compounds
Change the world market
producers of biotechnology
products
Global trade and
economic policy
Increased global trade
and tourist flows
Picture 6 - Network sociogram of factor relationship for the future direction of
"Biotechnology"
Note: The strength of the relationship (line) among all factors (node) is represented by the
line type (solid - the most durable connection; interrupted - average interconnection; point - little
correlation).
BIOECOLOGY:
 Restore bioremediation method of retiring productive land due to contamination by oil
products and other non-natural pollutants;
 Bioconversion of organic waste on the basis of biotechnological processes.
V. ANALYSIS OF EXISTING AND FUTURE MARKETS IN THE WORLD AND
IN KAZAKHSTAN IN BIOTECHNOLOGY DIRECTION
On the market of biotechnology, at least two segments of the market operate today - lowcost and high-cost biotechnology. The first of these are the markets of developed countries in
Western and Eastern Europe and markets in the US, Canada and Japan as well. The second are
the markets of the developing world, i.e. Asia, Latin America and Africa.
By type of marketed product to the high costs of biotechnology segment of the market are
the most expensive, rare and high-end their types. Primarily, these are some subsections of
medical and industrial biotechnology, environmental biotechnology, biocatalysis,
biogeotechnology, biosafety and bioethics, biotechnical Instrumentation and biocriminology and
military biotechnology.
For low-cost segment of the biotech market the most primitive, effective and relatively
cheap their species (compared to the cost of expensive biotech) should be included. To them, first
of all, we can include some subsections of agricultural and food biotechnology, biotechnology in
forest products, environmental biotechnology, biogeotechnology of energy and
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new materials, in some way - Industrial and medical biotechnology, biocatalysis and
biogeotechnology (the last two segments - least of all)
Today the global market for biotechnology products is estimated at nearly 163 billion
dollars. The main market segments are the products for the food industry and agriculture - 45
billion. USD., Pharmaceutical products - 26.8 billion. USD., Enzymes and preparations for the
manufacture of detergents - 21 billion dollars, partly pharmaceutical cosmetics made from natural
vegetable or animal raw materials, the market volume of which is 40 billion dollars.
Table 1 - Market segmentation of biotechnology
bln. USD
Category
Pharmaceutical preparations
Biotechnology
Bioindustry
in total
2011
%
797,7
289,1
20,3
1 107,1
13
72,1
26,1
1,8
100%
Production of pharmaceuticals is 72.1% of the total market share. The share of
biotechnology, in turn, is 26.1% of the market. The remaining 1.8% of the market apply to the
bioindustry.
The global market for pharmaceuticals, biotechnology and bioindustry has shown a
relatively high level of growth in the period from 2007 to 2011. It is expected that the market will
continue to grow with approximately the same performance during the study period until 2016.
The total market revenue of global pharmaceuticals, biotechnology and bioindustry in
2011 was a US $ 1 107 billion., The average annual rate (CAGR) is 6.7% between 2007 and
2011. Segment of pharmaceutical production in 2011 is the most profitable of US $ 797.7 billion.,
I.e. 72.1% of all revenues in the industry. Biotechnology segment in 2011 amounted to US $ 289,1
bln., i.e. 26.1% of the total industry.
It is expected that the market for pharmaceuticals, biotechnology and bioindustry
accelerates average annual rate (CAGR) of 6.8% for the five-year period from 2011 to 2016, that
will lead to a turnover of US $ 1 535,7 billion by end of 2016.
Regionally, the main actors of the market of pharmaceuticals, biotechnology & Bio
industry are the countries of American continent (44%) and Europe (27.4%).
America
Europe
Asia and the Pacific
Rest of the world
Source: MARKETLINE
Picture 7 - The regional market segmentation of biotechnology
US lead in the development of biotechnology, and by a considerable margin from other
countries. About 70% of global sales and volume of R & D in biotechnology accounts for the
country. United States is the world's largest producer and exporter of Agro-biotech products.
Currently sale of seeds of genetically modified plants, such as corn, soybeans, cotton, canola,
potatoes, rice and sugar beet is implemented.
The US market of pharmaceuticals, biotechnology and bioindustry has around 3 500
companies. The list of the largest companies include: Abbott, Bristol-Myers Squibb, Eli Lilly,
Johnson & Johnson and Pfizer. It is worth noting that the market in the US is highly
concentrated: the largest 50 companies account for more than 80 percent of income.
Among the major pharmaceutical manufacturers, which are located outside the United
States can be noted: Bayer (Germany), GlaxoSmithKline (UK), Novartis and Roche Holding
(Switzerland) and Sanofi (France).
Pfizer Inc. is a leading player in the global pharmaceutical, biotechnology and
bioindustry, the company's share is 5.2% of the total market turnover. Johnson & Johnson with a
share of 4.5% is on the second place.
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The rest
Source: MARKETLINE
Picture 8 - The main actors in the world biotechnology market
Companies engaged in biotechnology, occupy a little less than 1/10 of the list of 500
largest companies in the world (45 of 500). The main mass (24 of 45) accounted for the most
profitable and most advanced to date trend of biotechnology - Biopharmaceuticals. The vast
majority of companies - giants falls into this area (positions 12 - 21 on the list) and is owned by
the United States. It should be noted that the list of 45 companies involved in biotechnology, the
US owns 29, Japan - 3, Switzerland - 3, France - 3 UK - 2, Germany - 2, Netherlands - 1,
Denmark - 1, Israel - 1.
Russia's share in world production of biotechnological products is less than 1%, or about
20-25 bln. rubles, of which about 70% comes from the production of pharmaceuticals.
Kazakhstan market of biotechnological products is part of the world market. Consumer
goods, manufactured from the products of biotechnology are present in Kazakhstan, however, the
domestic production base is quite weak and does not allow for large-scale release of competitive
products on the world market. Industrial production of biotechnological products in Kazakhstan
is presented in the form of production of certain types of test systems, vaccines, biological dairy
products, feed additives, crop protection products and alcohol. To date, production of genetically
engineered drugs is not virtually established, while there are original domestic developments past
or passing phase of preclinical and clinical studies.
15
Kazakhstan's share in the market of biotechnology today is practically zero. Industrial
production of biotechnological products in Kazakhstan presented in the form of production of
certain types of test systems, vaccines, biological dairy products, feed additives, crop protection
products and alcohol. Manufacturers of these products are in the Scientific Research Institute for
Biological Safety Problems of Ministry of Education and Science of the Republic of Kazakhstan,
Kazakh Scientific Center for Quarantine and Zoonotic Diseases named after M.Aykimbaeva of
Ministry of Health of Kazakhstan, small biotech companies of Stepnogorsk, LLP"Biocom", Ltd.
Research and Production Enterprise "Antigen" and other enterprises. However, it should be noted
that the production of biological products in the above organizations do not meet the standards of
GMP. So now topical for Kazakhstan is to organize the production of biotechnological products,
in accordance with the standards of GMP.
Currently, its own production of medicines in Kazakhstan is 11% (including vaccines 1.1%), veterinary drugs 78% (mainly the production of drugs from imported substances), while
the remaining products are imported into the country. The country carried out the organization of
production of generic drugs and the modernization of existing and new facilities in accordance
with international standards GMP as well. Currently, the market share of generic drugs is the
main consumer of drugs in Kazakhstan - about 85%, and market innovative drugs - no more than
15%.
Analysts expect 2030 global market for pharmaceuticals, biotechnology and bioindustry
will grow to more than $ 2 billion and, accordingly, will increase by 65% compared to the latest
data from 2011. Average annual growth rate in the period from 2012 to 2030 will be
approximately 6.8%.
According to analysts, the financial indicators published by the largest players in the
pharmaceutical market for Q1-Q3 2012 indicate further growth of the industry as a whole.
Growth is noticed on the main markets of pharmaceuticals industry and in emerging
markets as well.
$
billion
of grouth
% of
grouth
Year
Picture 9 - Market Forecast: 2012-2016
Expert estimates of biotechnology development forecast in the next 15-20 years, the allow
to make following conclusions on the implementation of the investment policy in biotechnology
today. Particularly at this stage of the organization of production only highly profitable products,
which has developed a stable purchasing power is relevant. Taking this into consideration the
priority projects for investment are producing of:
- Amylolytic enzyme preparations for the brewing of liquor and food industries,
production of proteolytic enzymes used in the production of detergents of «Bio» and other
purposes;
16
- Complex processing of microbial biomass to produce products of protein and nucleotide
nature for medicine, food industry, etc.;
- Enzymatic preparations for recycling food industry, production of meat, milk, alcohol,
etc.;
- Medical and veterinary drugs, including diagnosis and treatment of a number of heavy
and infectious diseases;
- Probiotic preparations of bifidumbacterin and laktobakterina type;
- Feed additives for livestock, biological plant protection;
- Bacterial fertilizers, vermiculture;
- Preparations for cleaning and bioremediation of contaminated soils, water, and oilproducing companies for the petroleum sector.
In the coming years it is projected to expand significantly the use of biotechnology in
important areas of the economy, as the fine chemistry (biocatalysts, organic synthesis products),
mining (biogeotechnology, bioremediation of soils), semiconductors (new material), information
technology (microelectronic systems, bioinformatics tools , devices based on biological principles
biocomputers). The most promising, and due to the economically attractive, collecting a fair
amount of investment in the various countries of the world are the biotechnological production of
new energy, new materials, ecobiotechnology, biocatalysis, Biogeotechnology, biotechnology
instrumentation, biotechnology criminalistics.
VI. ANALYSIS OF STRATEGIES OF BIOTECHNOLOGY IN THE WORLD
Because biotechnology is used in various industries and affects many spheres of
human life, in the world the following "color" classification of biotechnology was adopted:
Red biotechnology is biotechnology associated with providing health and potential
correction of its genome, and production of biopharmaceuticals (recombinant proteins,
enzymes, antibodies) as well;
Green biotechnology is aimed at the development and creation of genetically
modified (GM) plants resistant to biotic and abiotic stresses, defines modern methods of
agriculture and forestry;
White Biotechnology is industrial biotechnology that combines the production of
biofuels, biotechnology, and food, chemical and petrochemical industry;
Grey Biotechnology is related to the environmental management, bioremediation;
Blue Biotechnology is associated with the use of marine resources and raw materials.
"Red" biotechnology. The total volume of the biopharmaceutical market in 2030 is
estimated at 350 billion dollars. The fastest dynamics of the growth in sales is expected for the
preparations of monoclonal antibodies, their sales are expected to grow to 37 billion dollars in
2010 to 90 billion dollars in 2015.
"White" biotechnology. The modern world market of food ingredients is estimated at
24 billion dollars in 2030, its volume will increase to 48 billion dollars.
17
Chemical
Industry
Food
industry
Medicine
Agriculture
Biotechnology
Environment
protection
Power Industry
Picture 10 - Biotechnology in the modern world
"Green" biotechnology. The most priority is the production of biological products for the
crop, feed additives for farm animals, veterinary biologics and the development of new varieties
of useful plants and animals, using modern genetic and biotechnological method as well. The
main types of biological products for agriculture are enzymes for feed, biological plant protection
and plant growth stimulants, silos ferment and veterinary medicines for livestock as well.
"Grey" biotechnology. The most promising methods to protect the environment of the
new generation are biological treatment methods. The global market for biological treatment
methods of hydrocarbon-contaminated areas by the end of 2012 amounted to about 6.3 billion
dollars. The global market leader in terms of biological remediation technology use of biological
remediation of oil waste and oil products is the United States.
"Blue Biotechnology". The global market of marine biotechnology in 2010 amounted to
3.7 billion US dollars; by 2030 6.8 billion US dollars are projected. (http://regionalliance.com/biotehnologia.html)
The patents relate to the unrealized shape of biotech market object. In Picture 33 the share
and the growth of international patents in biotechnology in countries-leaders in the field of
economy are reflected.
Share and growth in the number of international patents in
biotechnology in the countries
Share
Growth: 19952005
Japan
USA
Germany
United
Kingdom
Canada
China
South
Korea
Sigapore
India
Brazil
Picture 11 - Percentage growth in the number of international patents in the field of biotechnology
Analysis of the number of patents in different branches of bioindustry in the period from
1982 to 2011 shows that the largest number of patents fall on enzymes (78 940), transgenic plants
(4658), transgenic animals (3061), cytokines: interferons and interleukins (1677), and methods
for cleaning the environment (1368).
The Japanese government announced biotechnology as a "strategic industry" and a
18
national priority. First, major Japanese corporations
did not have their own personnel, and the
first studies were carried out in collaboration with US universities and companies. Currently,
these corporations have acquired the necessary experience and conduct their own molecular
biotechnology development, creating genetically engineered foods. Of great importance for the
development of biotechnology in Japan is close cooperation between the public and private
sector; in the implementation of certain biotechnological programs a number of ministries is
involved.
Along with the US and Japan, biotechnology is developing rapidly in Western Europe.
Consideration of the biotechnology development in the EU has shown that this direction is their
strategic priority. Biotech medicines of major US companies and purchased feed for animals and
food for humans derived from genetically modified plants were admitted to the EU market.
Biotechnology Development Programs financed by the governments of Western European
countries, are focused on the implementation of targeted programs or achievement of specific
business goals, unlike the United States, where government efforts are directed mainly at
supporting basic research and enterprise and private sector organizations are developing with
little or no financial support from the state.
VII. ANALYSIS OF THE STRATEGY OF BIOTECHNOLOGY IN
KAZAKHSTAN
In Kazakhstan, the research and development and production of biotechnology products
are not well developed.
Currently, in the Republic of Kazakhstan 10 research programs in biotechnology,
biomedicine, bio-safety and environmental protection are being implemented. About 30 scientific
institutions subordinated to the Ministry of Education and Science, the Ministry of Health and the
Ministry of Agriculture are engaged in the Research on various aspects of biotechnology in
Kazakhstan.
The program FIID biotechnology is marked as one of five "sectors of the economy of the
future" and the task of increasing the share of biotechnology industry in total exports to 1% by
2015 is set. Currently, a "Concept of development of biotechnology in the Republic of
Kazakhstan till 2025"is being developed, the aim of which is the creation of the Republic of
Kazakhstan innovative bio-industry, based on the large-scale introduction of modern
biotechnology in the key sectors of the economy.
As part of a number of scientific and technical programs of scientific organizations of
Kazakhstan 30 test systems for the diagnosis of infectious animal diseases were created 25
vaccines were developed. Domestic test systems for diagnosing infectious diseases based on
PCR, recombinant antigens, and monoclonal antibodies were developed. Technology of lactic
ferments, enzyme preparations, ferments for silage feed, feed additives for farm animals were
created. Biologics to protect plants from disease and pest control of crops were developed.
Efficient biological products for the purification of oil-contaminated soil and increase crop yields
were created.
19
Review of strategic plans of individual line ministries for the period up to 2015 showed
that a situation where the domestic market of biotechnological products is already occupied by
foreign multinationals, creating a total dependence on imports, it is particularly observed in the
pharmaceutical industry. A similar situation is predicted in agriculture, bio-energy, food and
processing industries.
In the Strategic Plan of the Ministry of Industry and New Technologies of the Republic of
Kazakhstan for 2011-2015, approved by the Government of the Republic of Kazakhstan from
February 8, 2011 № 102 it is stated that the problems in the pharmaceutical industry, mainly
related to the "narrow" range of products, non-conformity with international standards of GMP
and the imperfection of the legal framework governing the development of the industry.
In the Strategic Plan of the Ministry of Health of the Republic of Kazakhstan for 20112015, approved by the Government of the Republic of Kazakhstan on February 25, 2011 #183
low level of manufacturing base for production of medical immunobiological preparations,
particularly diagnostics, test systems, and others is marked.
Currently, sectorial programs, indirectly affecting the biotechnology issues are
implemented by individual ministries, among them:
The program for development of agriculture of the Republic of Kazakhstan for 2013-2020
"Agribusiness - 2020", which aims to create conditions for improving the competitiveness of
agribusiness entities of the Republic of Kazakhstan;
State Program for Development of Health of the Republic of Kazakhstan "Salamatty
Kazakhstan" for 2011-2015, approved by the Government of The Republic of Kazakhstan dated
August 4, 2010 № 791;
The program for the development of the pharmaceutical industry of the Republic of
Kazakhstan for 2010-2014, approved by the Government of the Republic of Kazakhstan dated
November 29, 2010 № 1113. In 2010, the share of domestic production of pharmaceutical
products according to the Kazakh Statistics Agency in terms of value is 13.7% . According to the
Customs Control Committee of Ministry of Finance of Kazakhstan for 11 months of 2010,
exports of pharmaceutical products amounted to 2.2 billion tenge or 15.4 million US dollars,
imports of pharmaceutical products amounted to 118.5 billion tenge or 806,5 million US dollars.
A major obstacle to the rapid development of biotechnology in the Republic of
Kazakhstan is the lack of a state strategy for the development of biotechnology and bioeconomy,
proper coordination and management of this important area of activity at the state level. The work
carried out within individual departments, is not enough to force an interdisciplinary and intersectoral nature of the area. This interdisciplinary and, therefore, from a management perspective Interdepartmental - creates certain difficulties in the planning and coordination, and most
importantly - leads to an underestimation of the importance of biotechnology.
Based on the above, the main problems for the development of biotechnology in
Kazakhstan are:
- The lack of public policies;
- Imperfection of the legislative framework;
- Lack of government support measures of bioindustry;
- Lack of a clear inter-agency coordination;
- The lack of mechanisms to ensure the demand for biotechnology products and its
implementation.
Thus, the solution of the above problems requires the adoption of comprehensive
measures
of
state
regulation
of
the
biotechnology
industry,
including
20
the improvement of the regulatory framework, the development of inter-state programs, the
creation of economic incentives to encourage investment and innovation in the field of
biotechnology.
VIII. ANALYSIS OF R & D IN BIOTECHNOLOGY, IDENTIFICATION OF
WORLD LEADERS
Save US world leadership in terms of investment in R & D is accompanied in the first
decade of the XXI century by strengthening the scientific and technological strength of
competitors, especially China, Japan, South Korea and other countries. The most dramatic jump
in R & D financial support to strengthen positions in the sphere of high technologies is marked in
China, occupied in 2009 the second place in the world in terms of R & D funding (1.7% of GDP)
and the first place in terms of exports of high-tech products.
Increasing investment in R & D, including from the budget, continued in the context of
the global crisis of 2008-2009, when the United States and other countries have been forced to
freeze or cut public funding for a number of budget lines in the fight against an unprecedented
budget deficits. In the period of 2007-2010 public expenditure on R & D increased in almost all
OECD countries, and many of them have increased not only in absolute terms but also relative to
GDP. In the years of crisis in terms of government spending relative to GDP, several countries,
including the United States, overcame significant bar of 1%.
Thus, by the beginning of the second decade of the XXI century, the United States
continued to outpace other countries in terms of total R & D scale financial support, as well as
public spending on R & D relative to GDP.
However, it should be noted that the share of total expenditure in GDP (2.7%) of the
United States is much smaller than countries such as Sweden (3.6%), Korea (3.4%), Japan (3.3%)
and Denmark (3.0%). The trend towards the loss of the United States position in terms of total
spending on research and development relative to GDP is observed in the last century. In 1996,
the United States on this indicator occupied the 5th place, in 2006 - the eighth after Israel,
Sweden, Finland, Japan, Korea, Switzerland and Iceland, and in 2009 gave way to Germany,
Austria and Denmark.
At the same time to stimulate research activity business measures were strengthened by
the use of the tax mechanism. In addition to the increase in direct budget financing, the strategic
direction of the state policy of the United States and other developed countries in the field of R &
D activity is to promote innovative private companies that encourage the development of research
centers and educational institutions. Tax and other incentives for R & D are used in many
countries around the world. According to the OECD, they are widely used in South Korea, Japan,
Canada, as well as in a number of countries, non-OECD countries, such as Brazil, China,
Singapore and others.
High capital- and knowledge-intensive biotechnology industry defines key factors for
sustainable US leadership in the global development of biotechnology: the high volume of
industry funding; a large number of specialized educational and research institutions; significant
resources of skilled personnel; a long history of entrepreneurship in the country. US
biotechnology sector currently includes 2370 of specialized R & D companies and the general
thrust of 6213 companies, including 386 public companies with a market capitalization of about
360 billion USA dollars. Revenues of public biotechnology companies in the United States
between 1998 and 2007 increased from 20 to 65 billion United States dollars, spending on
research and development - from 10 to 26 billion USA dollars.
21
Table
expenditures
- Key Indicators of funding "dozens" of leading countries in terms of total R & D
Countries
Total R & D costs,
million dollars (2000)
PPP *
Total R & D
spending,%
of GDP *
Government
expenditure
on R & D, %
of GDP **
United States
311 210,1
2,7
27,7
China
125 747,6
1,7
24,6
Japan
113 151,6
3,3
15,6
Germany
62 372,8
2,8
27,8
Korea
38 272,8
3,4
24,8
France
36 828,4
2,1
38,4
Great Britain
32 308,8
1,9
29,3
Canada
19 564,1
1,9
31,3
Italy
18 710,4
1,3
48,3
Australia
15 390,2
2,2
38,4
* – 2009 ; ** – 2008 Source: OECD estimates based on Research and
Development Database, August 2011.
Наиболее часто встречаемые объекты исследований, результаты которых
публикуются в мировой печати, представлены на рисунке 12:
The United States is a leader in research and development in biotechnology. Almost all
US universities and large biotech companies develop cutting-edge developments in the field of
biotechnology.
In recent years, Russia is making great efforts for the development of biotechnology. In
2012 a comprehensive program of development of biotechnology in the Russian Federation for
the period up to 2020 was adopted. Indicators of the program are the volume of production of
biotechnological products in 2020 800 billion rubles; the share of imports in consumption by
2020 will be 40%; the share of exports in the production of less than 25% and the yield on the
level of production of biotechnological products in Russia in the amount of approximately 1% of
GDP by 2020 and the creation of conditions for the sector to achieve volumes of at least 3% of
GDP by 2030.
The most frequent objects of research, the results of which are published in the world
press, are shown in Figure 12:
Microbial cells of nutrients
Gold nanoparticles
Tissue engineering
The search for new medicines
Biofuel
Biodiesel
Biosensor
Escherichia coli
Pharmaceutical Research
Human Genome
Renewable biomass
Proteins
Analysis of the genome
Stem cells
Picture 12 - The most frequent objects of research in the field of biotechnology
22
As can be seen from the picture, the most researched subjects are stem cells. Genomic
analysis and research in the field of proteins are the most common phrases field. Production of
biomass, biofuels also has a significant biotechnology research.
The following picture (13) shows the distribution of biotechnology research within
countries.
Picture 13 - The activity of the countries in biotechnological research
As can be seen from these drawings, the US, UK and Germany are the countries most
involved in research in the field of biotechnology in the world.
IX. ANALYSIS OF COMPETENCE OF R & D IN KAZAKHSTAN
In Kazakhstan, the volume of development and production of biotechnology products
is not well developed. The country has almost no biotechnological production of pharmaceutical
substances, ingredients for the food industry, raw materials for the chemical industry, biofuels.
There is poor use of modern biotechnology in agriculture, mining, energy. Industrial production
of biotechnological products in Kazakhstan is presented in the form of production of certain types
of test systems, vaccines, biological products dairy, feed additives, crop protection products and
alcohol. To date, production of genetically engineered drugs is not virtually established, while
there are past or passing phases of preclinical and clinical studies, original domestic
developments (recombinant erythropoietin).
Kazakhstan imports most sought-after drugs and biopharmaceuticals. The market of
biological products is increasing every year, for example, in 2016 the projected demand for
antituberculous drugs in Kazakhstan will be at 1 948 million tenge, and insulin - 1 423 million
tenge. Vaccine market in Kazakhstan is relatively capacious, such as annual vaccination against
hepatitis B covers 3.7 million people.
The scientific organizations of Kazakhstan created a collection of cultures of
microorganisms, which is bio resource base for the production of microbiological preparations
and biologically active substances, was created by the scientific organizations of Kazakhstan. A
number of vaccines and diagnostic test systems for veterinary was created. The technologies of
lactic ferments, enzymes, starter cultures for silage fodder and fodder additives, biological
products to improve crop
23
yields and protect plants from disease, biologics for the treatment of oil-contaminated soil were
developed.
In Kazakhstan in the period from 2006 to 2012 the dynamic growth of the number of
research programs in the field of biotechnology, financed from the state budget totaling more
than $ 3.5 billion tenge was marked. In 2009-2011 5 research programs with total funding over
three years to 3.2 billion tenge were implemented.
Currently, the Ministry of Education and Science of the Republic of Kazakhstan is the
coordinator of 9 research programs in biology and biotechnology for 2012-2014, approved by the
Government of the Republic of Kazakhstan dated March 12, 2012 # 318:
1) Bioremediation of disturbed ecosystems during oil production in Kyzylorda region;
2) The use of biotechnological methods of reproduction of fertility of saline soils in the
Aral Sea region;
3) Development of technology and organization of pilot production of microbial
preparations for agriculture and the environment;
4) Brucellosis in cattle: monitoring the epidemiological situation, the development of
diagnostics and prevention;
5) Epizootological monitoring the circulation of infectious diseases in the saiga population
inhabiting the territory of the Republic of Kazakhstan, and the development of prevention
methods;
6) Creation of genetic passport for certain groups of the population of Kazakhstan, based
on the use of DNA technology;
7) Create, save, keeping and use of microbial resources in the Republic of Kazakhstan;
8) Establishment of Biotechnology drugs, dietary supplements and specific foods and
other materials on the basis of cultural, introduced and wild species of flora of Kazakhstan;
9) Development of domestic genome-proteome and cell technologies for medicine,
agriculture and environmental protection in Kazakhstan.
Table - Scientific and technical programs in biotechnology of 2009-2011
№№
1.
2.
Name of programs
Total funding
volume
(thousand tenge)
The development and use of genetic engineering and cell technologies in medicine,
1 602 600,0
agriculture, environmental protection, food and processing industries for 2009-2011
Scientific and technical support of state regulation of turnover
GM facilities in the Republic of Kazakhstan for 2009-2011
853 000,0
3.
Updating, studying and maintaining collections of plants, animals,
microorganisms and unique genetic banks for the conservation of biodiversity of
Kazakhstan » 2009-2011
224 625,0
4.
Environmental assessment and bioremediation of disrupted ecosystems in oil areas
2009-2011
268 496,0
5.
"Development and implementation in selective practice the molecular breeding
genetic and bioengineering methods for rapid creation of new high-yielding crop
varieties to further strengthen the country's food security” for 2009-2011
333 326,0
24
The fourth chromosome
Biosensor bacteria
Cellulolytic
Res earch
The strains of Bacillus
Thurigiensis
The nuclear genome
Biomass
Proteins
Picture 14 - The most commonly used objects of Kazakhstan biotechnology researchers, published
abroad
EurAsEC interstate target program "Innovative Biotechnology" in 2012-2014 is in
progress, in which 26 research projects are implemented.
Review of strategic plans of individual line ministries for the period up to 2015 has
shown that today there is a situation when the domestic market of biotechnological products is
already occupied by foreign multinationals, creating a total dependence on imports, it is
particularly observed in the pharmaceutical industry. A similar scenario is predicted in agriculture,
bio-energy, forestry and the food industry.
In Kazakhstan, there is a number of promising developments in biotechnology.
Biomedicine.

Recombinant human erythropoietin in tablet form used inside, is currently under II
Phase of clinical research.

Molecular genetic tests for drug-resistant of Mycobacterium tuberculosis.

Genetic tests for the diagnosis and prognosis of breast cancer, colorectal cancer,
stomach cancer.

Diagnostic tests for determining the individual doses of drugs that reduce the risk
of thrombosis.

PCR test for the quantitative determination of hepatitis B and C, polyoma,
cytomegalovirus, Epstein-Barr virus;

The cell counter drug burn "Fibrosprey" for treatment of burns.
Agricultural biotechnology.

New high-yielding varieties of spring wheat Severyanka, Alem, Steppnaya-15/,
Shygys, Golden, Ak-Orda, Kazakhstan-20, resistant to drought and diseases.

New varieties of rice "Bakanassky" and "Madina" zoned in Almaty and
Kyzylorda regions.

New high-yielding potato variety "Capital", resistant to fusarium.

Insecticidal biologics "Bioturin" and "Bitoksiturin" for the control of insect pests
of agricultural and forest crops.

Vaccines against 25 infectious diseases of animals.

30 diagnostic test systems for veterinary medicine.

Leaven ‘Lac Forces' silage feed
25
Food Biotechnology.

Lactic starter for yoghurt-based consortium of cultures Streptococcus thermophilus
and Lactobacillus lgaricus

Sour cream yeast culture based on Lactococcus cremoris.
Environmental biotechnology.

Biologicals Ekobak, Bakoyl and Terraklin, past production testing on the territory
of oil fields in the purification of oil-contaminated soils.
Biogeotechnology.

A consortium of microorganisms for heap leaching of gold from refractory ores
that are resistant to higher content of toxic substances (copper, arsenic), technology allows the
year round heap leaching under harsh continental climate, increases gold recovery by 40-50%,
compared with traditional technologies, reduces sulfuric acid consumption by 20-30%;

A consortium of microorganisms for in-situ leaching of uranium, the technology
eliminates the need for expensive chemical oxidants and intensifies uranium mining by 30-40%,
compared with the standard technology weak acid leaching.
About 30 organizations subordinate to the Ministry of Education and Science of the
Republic of Kazakhstan, the Ministry of Health and the Ministry of Agriculture, are currently
engaged in research on various aspects of biotechnology in Kazakhstan. 10 research programs in
biotechnology, biomedicine, bio-safety and environmental protection are Implemented. In this
sector more than 2.8 thousand people are employed. Training in the country on a specialty
"Biotechnology" is performed in 19 high schools.
Thus, in Kazakhstan, certain aspects of fundamental and industrial biotechnology are
being developed through a number of programs and research projects financed from the national
budget. However, the measures implemented is not enough, it is necessary to develop a publicprivate partnership for the implementation of promising biotechnology projects. It is necessary to
make decisions on a wide range of issues in a very short time. An active state policy in the field
of biotechnology will solve the following problems:

providing high quality medical care to the population and reducing dependence on
imports of essential medicines;

providing the population with quality food products of domestic production;

the successful solution of environmental problems and the development of alternative
energy from renewable resources;

significant progress throughout the economy on an innovative way of development;

the rise of economically depressed regions, including through the emergence of
biotechnology clusters.
X. Strategy for Actions on the scenario
It should be stated that the Republic of Kazakhstan is far behind the leading countries in
the scale of the development of biotechnology, especially in the development of proper industrial
biotechnology. The contribution of Kazakhstan into the world of biotechnology today is a few
hundredths of a percent. The country has almost no biotechnological production of
pharmaceutical substances, ingredients for the food industry, raw materials for the chemical
industry, biofuels. Virtually there is no use of modern biotechnology in agriculture, mining,
energy.
In addition, in Kazakhstan biotechnology has not been identified as an industry. There are
no FEA and NACE codes, which would be related to biotechnology.
26
A major obstacle to the rapid development of biotechnology in the Republic of
Kazakhstan is the lack of a state strategy for the development of biotechnology and bioeconomy,
proper coordination and management of this important area of activity at the state level. The
work carried out within individual departments, is not enough to force an interdisciplinary and
inter-sectoral nature of most of the region.
The main problem is that biotechnology is cross-sectoral discipline. This interdisciplinary
and therefore from a management perspective - Interdepartmental - creates certain difficulties in
the planning and coordination, and most importantly - leads to an underestimation of the
importance of biotechnology by specialists and officials, both at the time it was with the
progressive computerization and other integrated disciplines.
Based on the above, the main problems for the development of biotechnology in
Kazakhstan are:
The lack of public policies;
The imperfection of the legislative framework;
Lack of clear inter-agency coordination.
The solution of the above problems requires the adoption of comprehensive measures of
state regulation of the biotechnology industry, including the improvement of the regulatory
framework, the development of inter-state programs, the creation of economic incentives to
encourage investment and innovation in the field of biotechnology.
Below is a SWOT state analysis of biotechnology in the Republic of Kazakhstan
indicating weighty relations of mutual influence at the moment.
SWSWOT-analysis of biotechnology development in Kazakhstan and the assessment of its elements
STRENGTHS
WEAKNESSES
1. Willingness to modernize the sector and
voiced public support (4);
2. The main priority areas of biotechnology in the
country are identified (3);
3. Intellectual and
material basis for the development of modern
biotechnology is developing (3);
4. The entry of the industry in the State program of
forced industrial-innovative development of
Kazakhstan (4);
5. The presence of the National Center for
Biotechnology Research Institute and several
research groups specializing in research in the
preparation of biological products, cellular,
molecular and genetic engineering (4);
6. The presence of a large corporate business
commodity - potential investors (2);
7. International cooperation with countries with
developed biotechnology industry is established (4);
8. There are domestic world class biotechnology
developments (3).
9. The presence and the possibility of a new
qualified specialists in the field of cell and genetic
engineering (4)
10. Involvement of leading scientists from foreign
countries to train masters and doctors of philosophy
in specialty "Biotechnology" (3)
11. The allocation of public grants under the
program "Bolashak" training for Biotechnology
(MS and Ph.D.) and training specialists in modern
methods of biotechnology (3)
27
1. Lack of qualified
training in the field of biotechnology (4);
2. obsolete material and technical basis of scientific
organizations (4);
3. Insufficient use of research and production of
modern biotechnological methods of cell and
genetic engineering (3);
4. The prevalence of public procurement in the
acquisition of foreign products to the detriment of
the original mass generics (3);
5. Inadequate funding of R & D (4);
6. Lack of a creative relationship with well-known
research centers in foreign countries (2);
7. Departmental fragmentation of research in the
field of biotechnology (4)
8. Lack of interest from enterprises, government
mechanisms of tax, tariff and fiscal incentives for
companies developing and implementing in
domestic production of scientific developments in
the field of biotechnology (5)
9. The low proportion of specialists of scientific and
industrial organizations-trained and advanced
training in the leading scientific centers of foreign
countries (3)
10. Weak competitiveness of Kazakhstan's biotech
products and their low range of the global market,
low export potential of the bio enterprises of
Kazakhstan due
to
non-compliance
with
international GMP standard (4);
11. Underdeveloped state
12. Availability of
completed domestic
biotechnological developments in the field of
medicine, veterinary medicine, agriculture and the
environment, corresponding to world standards (4)
13. Implementation of research programs in the
field of biotechnology, financed from the state
budget, including international participation (4)
14. Availability of all the necessary prerequisites
and capacities (availability of energy resources and
biological resources, fresh water, the beginning of
the development of scientific schools, training of
qualified personnel, etc.) to become one of the
world leaders in some areas of biotechnology (4);
15. The political stability of Kazakhstan and the
favorable geographic location (4);
16. Accelerating the pace of development of the
national
economy,
increasing
investment
attractiveness of the Republic of Kazakhstan at the
international level (4);
17. Availability of investment sites for the
implementation of innovative projects (2)
POSSIBILITIES
1. The ability to produce generic drugs for the
expiration of the patent, the production of
innovative drugs based on the technology transfer
(4);
2. Purchase of (transfer) technology (3);
3. The increase in world demand for biotechnology
products, steady growth in the global market
demand for eco-friendly food products (4);
4. A decision by means of biotechnological issues
such as the development of depressed areas,
employment of the use of renewable raw materials
and others. (4);
5. Attracting foreign investment (3);
6. The development of venture capital funds in
Kazakhstan (3);
7. The interest of foreign investors in establishing
enterprises on deep processing of agricultural
products in the Republic of Kazakhstan (3)
8. Use in the world of cellular technologies and
genetic engineering methods in the diagnosis,
treatment and prevention of human and animal
diseases (4)
9. The possibility of increasing crop yields through
the inclusion in the selection process of new forms
of plants with high quality products, resistant to
pests and diseases (4)
10. Production of innovative
products based on technology
transfer (3)
strategy of biotechnology and bioeconomy (5)
12. Biotechnology is not selected as an independent
branch (3)
14. The difficulty of access to credit oriented
biotech companies (4)
15. Dependence on imported raw materials and
packaging materials (3)
THREATs
1. Dominant position SУГРОЗ
of biotech companies in the
EU, India, Turkey on the
of Kazakhstan
Ы Republic
TH
market (5);
2. The low population density (3).
3. Dependence on imported biotechnology products
(5);
4. The increase in imports of biotech products (4);
5. The rapid development of the biotechnology
industry in India and China (5);
6. Loss of intellectual property for the benefit of
other countries (4);
7. Continued global trend to limit the consumption
of GMOs (4);
8. The threat of loss of export niches in the
environmentally friendly products (4);
9. The threat of drain of highly qualified specialists
in the field of biotechnology (4);
10. The stagnation of the development of
biotechnology in Kazakhstan without removing it in
a separate branch (5)
Based on the competencies of Kazakhstan for the period up to 2030, independent
development of scientific programs is possible for directions "Agrobiotechnology",
"Development and introduction of drugs from natural sources", "The development of new
medicines, preventive and diagnostic preparations of new generation on the basis of DNA
technology, cellular and nanotechnologies and monoclonal antibodies," "Bio-ecology".
Joint research with the world's leading research centers is desirable to carry out in the
directions "Bioenergy", "The expansion of biotech industries in the field of healthy nutrition."
Technology transfer (purchase) of advanced technologies and their adaptation with
respect to the Republic of Kazakhstan will be preferred for development and implementation of
methods for personalized medicine.
28
A possible
mechanism for
the development
High
Development of methods for the
implementation of personalized medicine
Bioenergy
Mostly self-development
The expansion of biotech industries in
the area of healthy eating
Medium
The strategic
significance
Low
Conducting joint research in
Agricultural
biotechnology
collaboration with leading
centers of the world
Development and implementation of
drugs from natural sources
Transfer of technology
Development and implementation of new drugs, preventive
and diagnostic drugs of the new generation of DNA-based
technologies, nanotechnology and cell monoclonal
antibodies
and knowledge
Bioecology
In the short term
In the medium
term
In the long
term
Picture 15 - Matrix of priority directions of innovation and technological development in
the field of biotechnology
Opportunities for Kazakhstan on the further development of biotechnology:
• Treatment for most known diseases
• A new paradigm in agriculture; providing a complete solution to the problems of food
and drinking water
• Decision of the existing environmental problems
• A new stage of spiritual development of mankind
. The solution with the implementation of water saving technologies.
In terms of the above:
• Biotechnology will improve the ecological situation of the environment and efficient use
of renewable resources, industrial raw materials.
• Industrial biotechnology will help to develop the various branches of production in an
economically and environmentally sustainable manner.
• The energy derived from biomass, would fill the shortage of electricity, especially in the
agricultural sector.
• Industry will be innovative and competitive in the sustainable cooperation between the
scientific community and the industrial area.
• Green biotechnology will contribute significantly to the efficient production of biomass
feedstocks.
• The development of the biopharmaceutical sector will ensure domestic demand in vital
medicines.
• Large-scale use of genetic tests will ensure the development of personalized medicine.
• Cell and tissue engineering technologies will be used in regenerative medicine and
transplantation.
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• Recombinant proteins, monoclonal antibodies, vaccines, and diagnostic tools will
provide a new generation of problem-solving early diagnosis and treatment of many infectious
and cancer, including social diseases.
Based on the conducted analysis a long list of key products and services in the
biotechnology sector in Kazakhstan until 2030 was compiled.
Agrobiotechnology
Product (service)
Technologies
Improved animal breeds that have increased productivity
and resistance to adverse environmental factors
Cell engineering technologies to create commercially
valuable species of animals that have increased
productivity and resistance to adverse environmental
factors
Recombinant DNA technology to create a
commercially valuable species of animals, with
increased productivity and resistance to adverse
environmental factors
Technology of animal cloning
Improved plant varieties that have increased productivity
and resistance to adverse environmental factors
Cell engineering technologies to create economically
valuable plant varieties with increased productivity and
resistance to adverse environmental factors
Recombinant DNA technology to create economically
valuable plant varieties with increased productivity and
resistance to adverse environmental factors
Technology of micropropagation plants
Insecticidal biologics for the control of insect pests
Technology of isolation and cultivation of
entomopathogenic microorganisms
Technology of design entomopathogenic preparations
Microbial and enzyme preparations for use in agriculture, Technology for production of microbial and enzyme
food and light industry
preparations
Cleaning technology of microbial and enzyme preparations
Technology of preservation of microbial and enzyme
preparations
Technology of biocatalysis
Supplements to improve the structure of the diet of farm Technology of cultivation of unicellular organisms animals, birds and fish
producers of protein and amino acids
Biotechnology of edible protein from unicellular
production
Biotechnologyof production of amino acids from singlecelled
Modern vaccines for the prevention of the most common, Technology of screening and selection of microorganism
particularly dangerous and exotic diseases in humans and strains
animals
Technology of modification of the genome of
microorganisms
Technology of creation of a whole-cell and whole virus
vaccines
Technologies of creation of subunit vaccines
Modern test systems for rapid diagnosis of the most
common, particularly dangerous and exotic diseases in
humans and animals
Technologies for producing highly purified antigens
Technologies for producing high affinity antibody
preparations
Technology
of diagnostic biochips
30
Genetically engineered diagnostic technology
Technologies of creation of associations of probiotic
microorganisms for food processing
New systems for food products of high nutritive value Technologies of creation of functionally active food
and functional probiotic food
supplements
Fermentation technology of food raw material of low value
Biomedicine
Product (service)
Technologies
Autologous and artificial organs and tissues that are based Technology of Cell and tissue engineering for use in
on cell and tissue engineering
regenerative medicine and transplantation
Highly effective treatment of socially significant diseases
(diabetes, myocardial infarction, cancer and others.)
Technology of selection of stromal stem cells
Technologies of creation and accumulation of cytokines
Technologies for producing anticancer antibodies
Effective medicines from natural sources
Biotechnology of obtaining drugs from natural raw
materials
Antagonists drugs, preventive and diagnostic preparations Technologies of genetic engineering vaccines
of new generation
Monoclonal Antibody Technology
Technology of immunoassay and immunochemical
analysis
Technology of immunoglobulin therapeutic drugs
DNA microchip diagnostics technology
Genetic passports for certain groups of the population of
Kazakhstan with a view to defining the role and the
importance of genetic factors in predisposition to the
development and multifactorial hereditary diseases.
Genetic diagnosis and multifactorial hereditary diseases;
Technology of genetic mapping
Technology of genetic sequencing
Technology of multifactorial and genetic diagnosis of
hereditary diseases
Bioecology
Product (service)
The strains of microorganisms for remiditatsii
environmental objects and restore soil fertility
Technologies
Biotechnological methods of rehabilitation of the
environment,
restoration
of
soil
fertility
Bioenergetics
Product (service)
Biofuels
Microbial fuel cells
Technologies
Technologies for energy production from renewable
bioengineered sources
For the scenario of the development of biotechnology it is expected to involve the
following participants:
1) Creating innovative and educational consortium "Biotechnology"
2) Public Association "Kazakh Society of Biotechnology" as a dialogue platform.
31
Biotechnology creating breeds that have
increased productivity and resistance to
adverse environmental factors
Genetic diagnosis and multifactorial hereditary diseases
Antagonists drugs, preventive and diagnostic
Technologies for producing food products of high
preparations of new generation
nutritive value and functional probiotic food
Insecticidal biologics for the control of
insect pests
Supplements to improve the structure of
Effective medicines
from natural sources
the diet of farm animals, birds and fish
Genetic passports for certain groups of the
population of Kazakhstan with a view to
defining the role and the importance of
genetic factors in predisposition to the
development and multifactorial hereditary
Biofuels
diseases.
The strains of microorganisms for
the rehabilitation of the
Modern vaccines for the prevention of the most
environment and restoration of soil
common, particularly dangerous and exotic
fertility
Autologous and artificial organs and
diseases in humans and animals
tissues that are based on cell and tissue
Highly effective treatment of socially significant diseases
engineering
Modern test systems for rapid diagnosis of
(diabetes, myocardial infarction, cancer and others.)
the most common, particularly dangerous
and exotic diseases in humans and animals
Picture 16 - The image of the future of biotechnology in Kazakhstan
3) Scientific institutions, universities - National Center for Biotechnology Research
Institute for Biological Safety Problems, Microbiology and Virology, Plant Biology and
Biotechnology, animalogii problems, problems of Biology and Biotechnology, Molecular
Biology and Biochemistry of M.A. Aitkhozhin, General Genetics and Cytology, Experimental
Biology of F. Muhamedgalieva, Kazakh Research Institute of processing of agricultural products,
RSE (Republican State Enterprise) "Republican Collection of Microorganisms", universities Kazakh National University. Al-Farabi, ENU of L.N. Gumilev, KazNAU, KazATU of
S.Seifullin, Nazarbayev University, the Medical University of Astana, Karaganda State Medical
University, Semey State University named by Shakarim, Innovative University of Eurasia, other
research organizations and universities;
4) The representatives of the competent authorities (Ministry of Agriculture, Ministry of
Industry and New Technology of the Republic of Kazakhstan, Ministry of Education and Science
of the Republic of Kazakhstan Ministry of Health, Ministry of Environmental Protection and
others.);
5) State-owned companies (JSC "KazAgroInnovation", JSC "KazMunaiGas", JSC
"Kazatomprom" and etc.);
6) Development Institutes (JSC "Samruk-Kazyna" Development Bank of Kazakhstan,
JSC "Investment Fund of Kazakhstan", JSC "National Agency for Technological Development"
JSC "Small Entrepreneurship Development Fund", National Center for Investment Promotion
"Kazinvest" Parasat JSC and others.).
7) Business structures (small, medium-sized biotech enterprises, National Union of
Entrepreneurs "Atameken", Association of Business Women of Kazakhstan, etc.).
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XI. "WILD CARDS" AND "WEAK SIGNALS" OF BIOTECHNOLOGY
The main characteristics of the wild cards are low probability (or high uncertainty if the
probability score cannot be obtained) and high impact. Nevertheless, the effects of the wild-card
should not be sharp over time. This means that the time of exposure (and breaking effect) can be
either long or short.
"Wild cards" in the field of biotechnology include:
Prevention of aging
Revolutionary results in biotechnology prevent mental and physical aging. The impact on
human society are enormous, individually and structurally, for example, people are faced with the
idea of the possibility of living forever, moreover, prolongation of life brings the transformation
of social systems.
Regenerative medicine: from the artificial skin to patches for the heart
First of all it is worth noting the establishment of various substituents skin sheets, which
are used in the clinic for the treatment of burns and chronic skin lesions. Advances in this area
will allow to use skin grafts containing genetically modified cells. This will eliminate genetic
defects, to improve their engraftment and even set up a system for the synthesis of hormones
necessary for the body.
Medicines from natural sources
Although more than 50 thousand secondary metabolites have been already characterized,
this represents only about ten percent of the biosynthetic capacity of plants. And except plants
biologically active substances are synthesized and accumulated in the bacteria, fungi, marine
organisms, insects and even amphibians. Modern drug discovery programs include simultaneous
automated testing for the presence of a plurality of extracts variety of biological activities.
Antibodies deliver the drug directly into the tumor
Delivery of medication directly into the tumor allows for enhanced drug effect and
minimize unwanted side effects on other tissues and organs.
Treatment of genetic diseases
Various media are used to deliver genetic material inside human cells and its integration
into the genome, for example, artificial liposome nanoparticles or cationic emulsion. For cancer
treatment vector systems based on the elements of the viral genome, allowing the murderer to
enter gene directly into the tumor, which is a result of the very beginning to produce cytotoxic
proteins, were developed.
Decoding the genome in one day
Advances in the understanding of how genes and their encoded proteins are responsible
of the disease will help to pick up a set of medicines, are much more effective to cope with a
specific ailment, rather than individual drugs
Treatment of severe disease - an attack on multiple targets
The strategy of the modern treatment of the most severe diseases include simultaneous
exposure to multiple targets - molecular stages of the pathological process. Advances in the
understanding of how genes and their encoded proteins are responsible for the disease will help to
pick up a set of medicines are much more effective to cope with a specific ailment, rather than
individual drugs.
A stem cell - a doctor within the patient
Scientists predict the broadest perspective to his method: patient with infarction or fracture
admits to the hospital, receives medication stimulating his
33
stem cells, after which they themselves "repair" damaged organs.
The synthesis of genes for pharmaceutical industry
Many biotech companies provide services of automatically synthesis of gene sequences
encoding pharmaceutical proteins, adapted for the biotechnological expression systems. The
average cost of synthesis is about 0.4 dollars per couple.
Proper medication - for each patient
Patients, according to their genetic and epigenetic (not determined by genes) features will
be grouped so that the physician could predict the characteristics of the disease and to apply the
appropriate treatment with minimal risk and side effects.
Proteomics - key to diagnosis
An important aspect is the development of complex panels of biomarkers allowing with
more certainty to detect the presence of disease. Besides malignancies, biomarkers for
cardiovascular, pulmonary, gastrointestinal and many other diseases are actively studied.
"Weak signals" of Biotechnology are imprecise and early signs of the important
developments in the external and internal factors. Weak signals tend to become stronger over
time and become strong.
"Weak signals" of biotechnology include:

Preparation of human organs grown in pigs;

Universal flu vaccine;

Viral therapy of several types of cancer;

Microrobots able to clear plaque in the vessels;

Biological artificial heart;

Transplant a human brain into a new body, grown synthetically;

Creation of biological civilization, where all the main commodities grown;

Creation of crops that can fix atmospheric nitrogen without the participation of
microorganisms.
XII. RISKS AND THREATS TO THE SUCCESSFUL IMPLEMENTATION OF
SCENARIO
Biotechnology, as it is known, has a pronounced interdisciplinary character. In this
regard, the pessimistic developments in the future may be in the case if the funding of
Kazakhstan science until 2015 will remain below 1% of GDP. Currently, the figure is 0.26%.
Departmental fragmentation of research in the field of biotechnology could also have a negative
role in the scenario.
Scientific and technological risks:
• The emergence of fundamentally new diseases
• A new class of environmental problems
• Bioterrorism and eco-terrorism
• Black markets of Technologies and Bioresources
• Conflicts between the subjects of biotech development and nation-states
. The acute problem of drinking, irrigation and industrial water
34
Socio-economic risks:
Absence Risks (lack of) funding of scientific research and business projects in the
field of biotechnology.
The scenario provides funding for business projects in the field of biotechnology through
budgetary and extra-budgetary funds. Insufficient revenue budget base and the bad conditions of
the capital market, which cannot be predicted with great accuracy, can lead to underfunding of
business projects. In this case, the actual results of the scenario will be worse than expected
results. Reduction of the absence risks (lack) of funding should be through the implementation of
the scheme of public-private partnerships for major projects.
Risks of the regulatory framework and infrastructure.
The risk is associated with the lack of study of the regulatory framework in biotechnology
and the lack of built system of cooperation between science and business that may impede the
achievement of the planned results.
Risks associated with inefficient management the scenario.
The risks are caused by the following probabilities of events: the inefficient use of
resources, disruption of the timing of activities, a manifestation of unaccounted factors in the
implementation phase of the scenario.
To reduce these risks will allow increased monitoring of the implementation of the
planned measures, the improvement of the mechanism of managing the implementation of the
scenario and, in the case of identifying factors that can adversely affect the course of the scenario,
timely adjustment of the planned activities.
The risks of a negative attitude to the scenario on the part of governments, the
public and the media.
To reduce these risks will allow carrying out clarification of the basic concepts, goals and
ideas of the activities, the structure of expenditure in order to achieve public understanding and
acceptance of the measures proposed.
Planned work in this direction should be conducted with the involvement of the scientific
environment and direct participants in the scenario.
Risks of poor quality of the competition to participate in the Scenario and examination of
the results of the competition.
To reduce the risks will enable the control of compliance stated policy to the real
situation in competitions and examinations, as well as the establishment of a monitoring system
involving other non-governmental organizations and the public. An additional way to reduce
risks should be maximum coverage and transparency of decision-making process regarding the
inclusion in the scenario of various participants.
In general, for the development of biotechnology in Kazakhstan a bright future is opened,
but to reach it, it is necessary to overcome serious obstacles.
1. In the area of investment. In recent decades, there is a gradual stabilization of the state
support of basic biotechnology research on the background of a lack of funding from the private
sector. The reasons hindering private investment, are well known, and the main reason is a major
uncertainty. The most important sources of uncertainty of investors are irrational public policy
and public distrust. The main purpose of the private sector is a new product market launch and
maximizing the firm's profits. It is necessary to create a State-level incentive mechanisms,
including financial and tax to attract private capital to the biotechnology industry research and
production.
35
2. In the field of public policy. The EU is pursuing a policy that hinders the development
of biotechnology and barriers to trade in food products, produced with the use of Agri. The
current European system of regulation severely restricts the use of GM plants seeds of crops that
affect the interests of European companies in the global market of agricultural chemistry.
3. In the field of public perception. Despite the favorable prospects, with the introduction
of new transgenic products, biotechnology companies will continue to face challenges. It is
necessary to change the current atmosphere of distrust, even opposition from consumers through
public advocacy.
One of the main risks of biotechnology development for Kazakhstan is the competition
from the countries of Central and South-East Asia and the countries of the Customs Union
against the backdrop of the backlog from the world level in the field of biotechnology.
Bioindustry in the world is developing rapidly, and in 10-15 years solutions and products
suitable for mass and widespread implementation will be found. If by this time in Kazakhstan
conditions for the development of the bioeconomy will be created, the country will be among
the beneficiaries and owners of new technologies. If the existing skepticism persists today,
Kazakhstan will be only consumer in the global technology market and will be forced to expend
enormous resources on the import of new industries. The scale of this technology imports can
be comparable with the import of industrial technologies in the 30s of the last century.
Lingering in the development and implementation of biotechnology for a variety of
industries and markets, Kazakhstan industry risks being below the modern technological
structure that develops in the world the past 15-20 years. In the medium term this could lead to
systemic degradation of a number of industrial sectors, as nor development in the world markets
nor reproduction of a competitive manufacturing base would be possible without the use of
biotechnology.
36