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To ensure the effective operation of its enterprises and its economy as a whole, Kazakhstan needs innovations. Galvanizing innovation-driven development through tax incentives requires active input on the part of the state. However, creating favorable conditions for innovation-driven development in the country through tax incentives may require exploring the actual advisability of employing them, as making ill-reasoned decisions about the issue may result in undesirable consequences. This paper analyzes some of the key indicators of innovation activity in enterprises in Kazakhstan and examines the experience of stimulating R&D via tax incentives in the US and the countries of Europe. The work puts forward a set of recommendations on using tax incentives to drive innovation activity in Kazakhstan.

An Investigation into the Advisability of Using Concessional Taxation to Galvanize Innovation-Driven Economic Development