The World Bank Report No: ISR12463 Implementation Status & Results Kazakhstan TECHNOLOGY COMMERCIALIZATION PROJECT (P090695) Public Disclosure Copy Operation Name: TECHNOLOGY COMMERCIALIZATION PROJECT Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 09-Jan-2014 (P090695) Country: Kazakhstan Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 15-Jan-2008 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 04-Nov-2013 Last Archived ISR Date 02-Sep-2013 Effectiveness Date 15-Dec-2008 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 27-Oct-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of this Project is to demonstrate significantly improved scientific performance and commercial relevance of research performed by inter- disciplinary teams of scientists selected through transparent competitive process. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost STRENGTHENING SCIENCE BASE OF KAZAKHSTAN 37.52 LINKING KAZAKH SCIENCE TO MARKETS 18.16 PROJECT MANAGEMENT UNIT 8.63 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Implementation Status Overview The Technology Commercialization Project (TCP) remains relevant and continues providing major support to the development of Kazakhstani National Innovation System, as well as bears significant potential to influence future policy decisions. By successfully adopting international best practice in local context, TCP is setting best practice examples to achieve tangible results in rejuvenating high quality R&D, introducing international Good Laboratory Practices (GLP) standards, enhancing international networking of Kazakhstani science both in R&D and technology commercialization area, etc. Page 1 of 8 The World Bank Report No: ISR12463 The project implementation has continued show visible results. The Senior Scientist and Junior Researcher Grant Program has proven to be the most dynamic in terms of identifying and adequately supporting high quality research with best commercialization potential. The 17 research groups have published 13 international publications in peer reviewed journals; established 35 partnerships with the academia and 28 partnerships with the private sector; 28 graduate students are involved in the groups; three groups already have commercial Public Disclosure Copy contracts for their end product with total value of about US$80 000; and several stand out as excellent examples of Kazakhstan innovation and commercialization of research. Many of the projects have manuscripts, started publication in peer reviewed journals, and most projects have students as an integral part of the efforts. Thanks to these results and availability of savings in the project, the Government has allocated additional funds for the grant program under the project. After long delays, the International Material Science Center (IMSC) is operational. Karaganda State Technical University won the competitive selection to find the laboratory to house the IMSC. The terms of reference of the IMSC was expanded from being (only) a center of excellence that sets a benchmark for Kazakhstani laboratories and promotes international best practice to a hub that also improves access to information on research equipment in national and engineering laboratories through an IMSC managed information portal. This portal shall serve as a central hub of information exchange and resource sharing for the Kazakhstani scientific research community, including the ability to share, exchange, lease, and purchase laboratory equipment. Therefore, the project will increase its impact on the sector by improving access to research equipment in national and engineering laboratories through the information platform. The Technology Commercialization Office (TCO) has been set up, international technology commercialization contractor CRDF Global was contracted and started deployment of key staff in Astana since September 2013. Initial assessment of scientific groups is completed and discussions regarding scope of support of their commercialization effort have been initiated with MOES. First technology commercialization workshops and knowledge dissemination activities have commenced in December 2013. Draft Program of Technology Commercialization Grants was developed and submitted to MOES for review and approval. The work on technology audit and legal framework review is planned for the first quarter of 2014. The Bank team in close collaboration with the Government counterparts organized a high-level workshop on November 11, 2013. The event brought together key stakeholders of the national innovation system, including government authorities, business associations, academia, and members of Parliament. The workshop consisted of two main sessions. In the first session stakeholders of the TCP reported on their achievements. The second session discussed the issue of transforming emerging successes of the TCP to accepted role models to be followed and emulated by both the enterprise sector of Kazakhstan and its research community. This session on the way forward was a sounding board with all key stakeholders of Kazakhstan on the “how to” of transition of their country to innovation-based economy. In particular, the discussion focused on establishing the institution of collaboration to overcome fragmentation of Kazakhstan’s' innovation system to leverage considerable talent accumulated in the country. There should be a mechanism to allow revealing the best scientists in the country, bring them together into a new organization, and then fund these teams. From the long-term perspective, the project starts to put in place commercialization cycle which is a system of institutions and capabilities to deal with early and later stage venture capital, various types of grant programs to allow a technology entrepreneur to develop a project, etc. This is a strategic long-term challenge which, as other countries’ experience suggests, demands systematic efforts and targeted interventions and support programs. Locations No Location data has been entered Public Disclosure Copy Results Project Development Objective Indicators Page 2 of 8 The World Bank Report No: ISR12463 Indicator Name Core Unit of Measure Baseline Current End Target Number of international publications in peer Text Value 0 13 11-17 reviewed journals from SS and JR program Date 15-Jan-2008 02-Dec-2013 31-Dec-2012 Public Disclosure Copy Comments Country-level data: 1 This is the original target and publication per 100 will be updated/ revised/ researchers a year dropped, as applicable, in the upcoming level 2 restructuring. Number of patent applications registered Text Value 0 0 6-12 through the Technology Commercialization Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Office (TCO) (cumulative) Comments Although the scientific groups This is the original target and are at the very beginning of will be updated/ revised/ their research, there are dropped, as applicable, in the already notable early results upcoming level 2 in the area of restructuring. commercialization. Three groups already have commercial contracts for their end product with total value of about US$80 000. Share of private sector financing of SS and JR Text Value To be taken after the results 5-20% program (%) of the competition Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments This indicator is not being This is the original target for monitored. It will be replaced the last year and will be by a new indicator. updated/revised/dropped, if applicable, in the upcoming level 2 restructuring. Intermediate Results Indicators Public Disclosure Copy Page 3 of 8 The World Bank Report No: ISR12463 Indicator Name Core Unit of Measure Baseline Current End Target Number of Senior Scientist Groups (SSG) and Text Value 0 17 20 Junior Researcher Groups (JRG) established Date 15-Jan-2008 21-Jun-2013 31-Dec-2012 Public Disclosure Copy (cumulative) Comments 20 established and 17 This is the original target for currently operational. the last year and will be updated/revised/dropped, if applicable, in the upcoming level 2 restructuring. The PAD had annual targets. 20 is the highest number of groups established. In the last year, PAD envisioned 10 groups to beoperational. Number of graduate students involved in the Number Value 0.00 28.00 20.00 SSG and JRG research projects Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments This is the original target for the last year and will be updated/revised/dropped, if applicable, in the upcoming level 2 restructuring. The PAD had annual targets. 20 is the highest number of students involved. In the last year, PAD envisioned 10 students to be engaged. Rate of equipment use Percentage Value 0.00 0.00 80.00 Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments The IMSC contract was This is the original target for signed in September and it the last year and will be became operational. updated/revised/dropped, if Public Disclosure Copy applicable, in the upcoming level 2 restructuring. Number of technology audits Text Value 0 0 5 Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments The work on technology audit This is the original target for and legal framework review is the last year and will be planned for the first quarter of updated/revised/dropped, if 2014. applicable, in the upcoming level 2 restructuring. Page 4 of 8 The World Bank Report No: ISR12463 Establishment of the Technology Text Value Not established. The Technology TCO established and Commercialization Office (TCO) Commercialization Office operating. (TCO) has been set up, international technology Public Disclosure Copy commercialization contractor CRDF Global was contracted and started deployment of key staff in Astana since September 2013. Date 15-Jan-2008 30-Sep-2013 31-Dec-2012 Comments This is the original target for the last year and will be updated/revised/dropped, if applicable, in the upcoming level 2 restructuring. Number of scientists and entrepreneurs trained Number Value 0.00 0.00 240.00 at the TCO Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments First technology This is the original target for commercialization workshops the last year and will be and knowledge dissemination updated/revised/dropped, if activities have commenced in applicable, in the upcoming December 2013. level 2 restructuring. Number of reviewed laws, rules and Number Value 0.00 0.00 15.00 regulations and revision of recommendations Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments The work on technology audit 15-21 and legal framework review is planned for the first quarter of This is the original target for 2014. the last year and will be updated/revised/dropped, if applicable, in the upcoming level 2 restructuring. Number of partnerships between SSGs, JRGs, Number Value 0.00 63.00 70.00 Public Disclosure Copy research institutions and private sector Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments 35 partnerships with the 70-80 academia and 28 partnerships with the private This is the original target for sector the last year and will be updated/revised/dropped, if applicable, in the upcoming level 2 restructuring. Page 5 of 8 The World Bank Report No: ISR12463 Number of licenses sold with the help of the Number Value 0.00 0.00 16.00 TCO Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments Although the scientific groups 16-23 Public Disclosure Copy are at the very beginning of their research, there are already notable early results This is the original target for in the area of the last year and will be commercialization. Three updated/revised/dropped, if groups already have applicable, in the upcoming commercial contracts for their level 2 restructuring. end product with total value of about US$80 000. Number of grants awarded by the TCO for Text Value 0 0 55-60 technology commercialization (cumulative) Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments Draft Program of Technology This is the original target for Commercialization Grants the last year and will be was developed and submitted updated/revised/dropped, if to MOES for review and applicable, in the upcoming approval. level 2 restructuring. Establishment of an international peer- Yes/No Value No No Yes reviewed journal Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments Number of international co-authored articles Number Value 0.00 6.00 per researchers in SSGs and JRGs Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments This indicator was in the supplemental letter, but there was no target. Establishment of the International Materials Text Value Not established. The IMSC established and The IMSC established and Science Center (IMSC) operating. operating. Date 15-Jan-2008 03-Dec-2013 31-Dec-2015 Public Disclosure Copy Comments Number of partnerships established between Number Value 0.00 35.00 researchers and academia Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments 35 partnerships with the This indicator was in the academia supplemental letter, but there was no target. Number of patents registered with the help of Number Value 0.00 0.00 the TCO Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Page 6 of 8 The World Bank Report No: ISR12463 Comments Although the scientific groups This indicator was in the are at the very beginning of supplemental letter, but there their research, there are was no target. already notable early results Public Disclosure Copy in the area of commercialization. Three groups already have commercial contracts for their end product with total value of about US$80 000. Number of timely submission of scientific Number Value 0.00 reports, financial statements, and audit reports Date 15-Jan-2008 03-Dec-2013 31-Dec-2012 Comments This indicator is not being This indicator was in the monitored. supplemental letter, but there was no target. Data on Financial Performance (as of 18-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P090695 IBRD-48840 Effective 15-Jan-2008 02-Feb-2008 15-Dec-2008 31-Dec-2012 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090695 IBRD-48840 Effective USD 13.40 13.40 0.00 6.54 6.86 49.00 Disbursement Graph Public Disclosure Copy Page 7 of 8 The World Bank Report No: ISR12463 Public Disclosure Copy Key Decisions Regarding Implementation Based on the discussions between the Bank team and Ministry of Education and Science, the Ministry of Finance will send a formal request for revising the result framework of the project, including some revised project performance indicators and updated targets until the extended closing date. Restructuring History Level two Approved on 26-Jul-2012 Related Projects There are no related projects. Public Disclosure Copy Page 8 of 8