The World Bank Implementation Status & Results Report Kazakhstan: Fostering Productive Innovation Project (P150402) Kazakhstan: Fostering Productive Innovation Project (P150402) EUROPE AND CENTRAL ASIA | Kazakhstan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 10 | ARCHIVED on 03-Oct-2019 | ISR38427 | Implementing Agencies: REPUBLIC OF KAZAKHSTAN, Ministry of Education and Science Key Dates Key Project Dates Bank Approval Date: 22-Dec-2014 Effectiveness Date: 01-Mar-2016 Planned Mid Term Review Date: 14-May-2018 Actual Mid-Term Review Date: 21-May-2018 Original Closing Date: 31-Dec-2020 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to promote high-quality, nationally relevant research and commercialization oftechnologies. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Development of the Knowledge Base for Innovation:(Cost $25.90 M) Innovation Consortia:(Cost $25.10 M) Consolidation of the Technology Commercialization Cycle:(Cost $13.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Satisfactory Overall Implementation Progress (IP) ►Moderately Satisfactory ►Moderately Satisfactory Overall Risk Rating ►Moderate ►Moderate Implementation Status and Key Decisions Project implementation status to date by component is as follows: Component 1 (Development of the Knowledge Base for Innovations): Two selection rounds of Senior Scientist Junior Researcher Grant Program were completed resulting in selection of 43 sub-projects currently being implemented. 27sub-projects have already registered commercial sales of nearly USD 1.4 mln. 2 Patent Cooperation Treaty 10/3/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Kazakhstan: Fostering Productive Innovation Project (P150402) (PCT) applications were filed by the beneficiaries of SSG-JRG grant program. PhD Research Grant Program was launched in the beginning of August 2018, two selection rounds were completed and 11 grant agreements were signed. Component 2 (Technology Consortia for Inclusive Innovation): three Industry-led Productive Sector Consortia are being implemented since November 2017, two industry led and one university led PSC were launched in October 2018 and eight Inclusive Innovation Consortia are being implemented since June 2019. Component 3 (Consolidation of the Technology Commercialization Cycle): Technology Brokerage activity has been completed in July 2019. Technology brokerage team demonstrated significant results by helping 27 research groups reach a stage of commercial sales amounting to about USD 1.4 mln and concluding 15 intellectual property (IP) rights transfer and licensing deals. The selection process for an international consulting company to complement subcomponent 3.4 activity by building the capacity of university TTOs and establishing technology transfer linkages with technology markets is ongoing and is expected to be completed in the beginning of October 2019.On September 6, 2019 Technical Evaluation Report was submitted by PMU for the Bank's review. WB team is following up closely with the client on the process to avoid delays. The design of the ESVC Fund has been completed and the MoES is currently working out the implementation arrangements including possible transfer of the subcomponent implementation to QazTech Ventures Joint Stock Company (JSC), a state-owned development institution and the national operator of venture capital activities. Component 4 (Strengthening Coordination of the National Innovation System; Enhancing the Capacity of the Existing Institutional Structures): The design of Innovation Observatory has been completed and the pilot version of the “Aggregator” – register of international grant programs - was launched. PMU launched initial activities of the Innovation Observatory, such us national innovation system review and plans to publish it in September 2019. However, the Ministry of Education needs to speed up implementation of other activities, such as establishment of stakeholder engagement platform to see full benefits of the Innovation Observatory as per Project design. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- ►Substantial ►Substantial Macroeconomic -- ►Moderate ►Moderate Sector Strategies and Policies -- ►Moderate ►Moderate Technical Design of Project or Program -- ►Moderate ►Moderate Institutional Capacity for Implementation and Sustainability -- ►Moderate ►Moderate Fiduciary -- ►Low ►Low Environment and Social -- ►Moderate ►Moderate Stakeholders -- ►Moderate ►Moderate Other -- ►Moderate ►Moderate Overall -- ►Moderate ►Moderate Results PDO Indicators by Objectives / Outcomes 10/3/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Kazakhstan: Fostering Productive Innovation Project (P150402) Improve Quality and Commercial Relevance of R&D in Kazakhstan IN00740024 ►International publications from Senior and Junior Research Groups in peer reviewed journals (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 28.00 42.00 14.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 IN00740025 ►Share of enterprise sector financing of R&D in Senior & Junior Scientist Research Grant Program (annual) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.50 7.00 8.00 8.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 IN00740026 ►The number of innovation consortia that graduated from innovation consortia grant program (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 The number of technology consortia applications during the second round increased threefold in comparison with the first round even with minimum 30% co-financing requirement. The team expects significant increase of disbursements by Comments: December 2018. If the client decides to extend the project, then additional third selection round is likely to absorb the allocated funds. If the project is not extended, the target will decrease by 20 mln. IN00740027 ►Technology- based start-ups created under the project and making commercial sales (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 18.00 27.00 12.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 IN00740028 ►Patent Cooperation Treaty agreements approved for project beneficiaries (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 3.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 Patent Cooperation Treaty agreement take very long time to obtain, so the first results are expected only in 2019. Comments: Intermediate Results Indicators by Components 10/3/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Kazakhstan: Fostering Productive Innovation Project (P150402) Developement of the Knowledge Base for Innovation IN00740030 ►Grants approved for Senior and Junior Research Groups (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 33.00 75.00 74.00 63.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 IN00740034 ►Ph. D. holders and students trained abroad (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 11.00 100.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 The PhD Grant Program is expected to be approved and launched in the beginning of August, so this indicator will start Comments: changing in 2019 and the target is still achievable. Innovation Consortia IN00740031 ►Completed projects with social impact (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 9.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 IN00740035 ►Applications for financing consortia created based on a cooperation agreement (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95.00 95.00 50.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 IN00740038 ►The number of innovation consortia established (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 14.00 10.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 Technology Commercialization Cycle Consolidation IN00740032 ►License agreements signed (annual) (Number, Custom) 10/3/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Kazakhstan: Fostering Productive Innovation Project (P150402) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 3.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 IN00740036 ►Total value of the venture capital fund created (cumulative) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 16,000,000.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 Achievement of the indicator will depend on the ultimate design of the Fund as there are several possible options. For example, if the Fund will be registered in a foreign jurisdiction, the target is achievable. In case of KZ registration there might be constraints but specific details are yet to be identified and assessed. A qualified consultant has been hired to advise Comments: on the design options and depending on the client’s choice of the Fund's design it will be possible to judge whether the indicator will be achievable. The design is expected to be completed by December 2018. Strengthening Coordination of the National Innovation System IN00740033 ►The Innovation Observatory established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 Support Project Implementation IN00740029 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 302.00 502.00 1,798.00 627.00 Date 31-Dec-2015 20-Feb-2019 06-Sep-2019 31-Dec-2020 The number of direct project beneficiaries has grew since last mission (from 502 in February 2019 to 1798 as of September 2019) due to large number of beneficiaries in frame of subcomponent 3.3 - researchers trained in Academic writing in Comments: English. IN00740037 ►Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 12.00 63.60 18.00 10/3/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Kazakhstan: Fostering Productive Innovation Project (P150402) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150402 IBRD-84630 Effective USD 88.00 64.00 24.00 27.80 36.20 43% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150402 IBRD-84630 Effective 22-Dec-2014 09-Jun-2015 01-Mar-2016 31-Dec-2020 31-Dec-2020 Cumulative Disbursements 10/3/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Kazakhstan: Fostering Productive Innovation Project (P150402) Restructuring History Level 2 Approved on 28-Dec-2018 Related Project(s) There are no related projects. 10/3/2019 Page 7 of 7