Kazakhstan bets big on innovation with bold tax breaks and science cities

Kazakhstan is pushing ahead with plans to boost innovation and high-tech development. The government has rolled out new tax incentives and expanded science cities to drive growth in research and technology sectors. These moves aim to increase the share of innovative products in the country’s economy by 2035. A key part of the strategy involves tax breaks of up to 300% for research and development (R&D) activities. This financial support is designed to encourage businesses to invest in innovation. Oversight of these efforts has now shifted to the Ministry of Science and Higher Education, centralising control over the country’s technological progress.

The Concept for High-Tech Territories has already led to the creation of a science city in Kurchatov and two tech parks in Almaty and Astana. These hubs are intended to accelerate the commercialisation of new technologies. One success story is Asia Trafo, which developed a 500 kV high-voltage shunt reactor with a built-in monitoring system, reducing reliance on imported equipment. Another project, EcoSave, has shown measurable results by increasing crop yields by 15% while cutting pesticide use. Meanwhile, the Tumar Ventures fund, launched under the initiative, has provided financing to 90 startups. The Stimulating Productive Innovations project, implemented in 2025, reported a cumulative economic impact of 53 billion tenge. Currently, Kazakhstan holds the 81st position in the Global Innovation Index and ranks 55th in the Economic Complexity Index. Despite these rankings, the government’s long-term goal remains clear: to raise the contribution of innovative products to 3% of GDP by 2035.

The expansion of science cities and the introduction of tax incentives signal Kazakhstan’s commitment to technological advancement. With ongoing projects delivering economic benefits and reducing dependency on imports, the country is positioning itself for a more innovation-driven future. The next decade will determine whether these efforts translate into sustained growth in high-tech industries.