EAST-HORIZON Fostering Dialogue and Cooperation between the … · 2016-09-23 · 4.4 The Case of KAZAKHSTAN 22 4.4.1 Selection based on current importance of industry to the nation

EAST-HORIZON WP3 D3.2 – Report on Prioritise Industrial challenges of EECA countries 1

EAST-HORIZON

Fostering Dialogue and Cooperation between the EU and EECA in the HORIZON 2020 perspective

Grant agreement 611063

D3.2 Report on Prioritise Industrial challenges of EECA countries


DOCUMENT CHANGE LOG

Change Control Procedures Each change or set of changes made to this document will result in an increment to the version number of the document. Minor changes will increment the decimal point of the version number. The change log will record this process and will identify for each version number of the document any modification(s), which caused the version number to be raised.

Version

Date Partner Reason for Change

0.1 May 2014 ATC Questionnaires formulation

0.2 July 2014 ATC, BELISA ToC and questionnaires received

0.3 October 2014

ATC Analysis and modification of the economic data received and found

0.4 November 2014

ATC 1st completed version

0.5 November 2014

ATC Partners comments

1.0 03/12/2014 ATC Final version


Table of Contents

1. Executive Summary 5

2. Introduction 6

2.1 The R&D context in Eastern Europe and Central Asia region 6

2.2 Rationale 6

2.2.1 The origins of the East-West R&I divide 6

2.2.2 Bridging the Gap: 7

2.2.3 Working towards creating paradigm 7

2.2.4 How we will proceed 8

3. EECA Industrial Priorities identification: methodological issues 9

4. The Industrial Priorities per EECA country 11

4.1 The Case of RUSSIA 11

4.1.1 Selection based on current importance of industry to the nation (GDP / Employment) 11

4.1.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities 13

4.2 The Case of MOLDOVA 14



4.3 The Case of BELARUS 18



4.4 The Case of KAZAKHSTAN 22



4.5 The case of GEORGIA 26



4.6 The Case of ARMENIA 30



4.7 The case of AZERBAIJAN 34



4.8 The Case of UZBEKISTAN 38



4.9 The Case of UKRAINE 40



5. Consolidation of Key Sectors for All Countries and interrelation with LEIT 43

5.1 Relationship between Key Industrial Sectors and H2020 Priorities with respect to

imminent sectorial needs for innovation- driven modernization 44

5.2 Matching H2020 with Key Industries per country 54

5.2.1 Russia 54

5.2.2 Moldova 55


5.2.3 Belarus 56

5.2.4 Kazakhstan 57

5.2.5 Georgia 57

5.2.6 Armenia 58

5.2.7 Azerbaijan 58

5.2.8 Uzbekistan 59

5.2.9 Ukraine (*) 60

6. Conclusions - Recommendations 61

7. Annex 1 Questionnaire 63

8. Annex 2 Completed Questionnaires 65

8.1 Russia 65

8.2 Georgia 70

8.3 Belarus 76

8.4 Kazakhstan 83

8.5 Azerbaijan 90

8.6 Armenia 96

8.7 Ukraine 102

9.1 Uzbekistan 106

9.2 Moldova 112


1. Executive Summary Workpackage 2 deliverables provided an update of the findings of previous relevant projects and proceeded to create some form of hot list of R&D topics per country and per H2020 priority domain. This is based on the accumulated expertise of all contributors, including EAST HORIZON partners and invited experts.

The development of Research and Innovation in EECA countries is heavily influenced by the legacy of the common past of these countries and the – completely different than Western standards – perception of what the role is and who the contributors in Innovation are. This diversion is further discussed in this document.

The approach taken in this document acknowledges two fundamental approaches that can ensure that Research and Innovation progress solidly:

• Either it is adequately funded for whatever time is needed and by unconditional amounts and then offered on a non-commercial basis to the society

Or

• It is taken up very soon by the users who participate in its design and implementation and soon reap the rewards of its application and return them to further promote it

It has been assumed that –at the least - current macroeconomic conditions render the first path obsolete and hence concentrate on providing hindsight of the direction and priorities that Research and Innovation should take to be best taken up in the EECA region.

To this end, an effort is made to systematically analyse the industrial landscape, to define industrial priorities and to match them to the H2020 one.

The locus of interception should be then given increased attention in forthcoming awareness events in order to reach a goal which appears not be as distant: create nuclei of EECA groups which are interdisciplinary and possess the know-how AND the drive to participate on equal terms in European Research and Innovation Consortia.

The creation of such nuclei following our work in Industrial Objectives and Societal Challenges Priorities, will be considered by EAST-HORIZON enough proof of success and of correctness of the VISION declared in the Proposal and DOW


2. Introduction 2.1 The R&D context in Eastern Europe and Central Asia region In its willingness for close cooperation, the European Union tried and still tries to strengthen scientific and technological co-operation with the Eastern Europe and Central Asia countries (EECA), through:

� determining the forces in the EECA that can help the EU increase its ICT excellence, � restoring and reinforcing research capacity in the EECA, and � Integrating the EECA countries into the European Research Area.

EU and EECA RTD Cooperation is a relatively new theme, however, there are already several examples of good cooperation in the ICT domain between scientists in the EECA and in EU/AS. However, this cooperation is still limited for reasons which include:

1. The historical East-West divide in the production of scientific knowledge. 2. Language barriers and cultural differences. 3. National traditions of conducting research, i.e., different methodological approaches in

experimentation, analysing of data sets and conceptualisation. 4. Different styles and formats for publishing and communicating/disseminating research results.

Until now a series of FP7 funded projects tried to support EECA countries to clearly define national level priorities in the field of S&T, as a prerequisite for successful international cooperation and to create the national scientific capacity that is attractive to international partners. The overall experience is positive. On the level of research organisations, the proven scientific excellence of EECA organisations played a key role in attracting the interest of EU/AS research institutes to start collaborations. The enhanced networking capacity of institutions helped in establishing links. The research communities in the EECA countries are, to some extent, aware of the funding and collaboration opportunities in Europe and have acquired the necessary formal knowledge to participate.

2.2 Rationale The Eastern European and Central Asian countries (EECA) are in very close geographical proximity with the EU; they share many common societal and economic characteristics with several EU countries and have important economic interactions. Therefore the political cooperation, the stability and the economic development of the Region is highly in the political agenda of the European Union.

2.2.1 The origins of the East-West R&I divide However, despite proximity and heavy scientific, commercial, social and societal interactions, the perception of Western Union and EECA countries with respect to Research and Innovation stem from completely different starting points and are still further apart

In Western Europe (as also in the US) R&I has been always closely associated with industrial and economic growth. R&I have always been considered a means for sustainable growth and profitability. Inventors, innovators and researchers were invited to own or share in the ownership of their developments and participate thus in economic growth and prosperity. This held true for all industries and disciplines, including Medicine and Defence. Planning of R&I has never been central, on the contrary Governments only reached the level of providing some focusing, guidelines and funding, interfering as little in the process as possible. Private initiative largely drove Research and Innovation and all those involved in it, usually benefited financially from it. Thus, it is not surprising to see European Research and Innovation being fairly split between Academia and Research Institutes, Private Companies (including SMEs) and even individuals. R&I results belonged to the Researchers or their financial sponsors or both.

On the contrary EECA countries share an almost one-century long tradition of planned and State-driven Research and Innovation activities. This started in the early Soviet era, but even the transformation of the Region in 1990 did too little (and if at all, too late) to change this profile.

In the mainstream Soviet era, R&I was state-planned, associated with 5-year plans and guidelines issued by


the Governments. (Central and/or local). Results belonged to the nation or the Union thereof and the society was stated as the ultimate beneficiary of them. Consequently, the contribution of industrial, usually state-owned industries to R&I was minimal, if any, and R&I was practically restricted to Universities and Scientific Institutes which were abundant across the Union.

Even today, many EECA countries operate on similar 5-year plans. Contribution to Research and Innovation from private sector nowhere appears to be of a significant portion of total Research and Innovation activities, which are still practically restricted within the same or new Institutes.

The lack of private initiatives in R&I has often been stated as the reason that apart key societal and political priorities (Medicine, Defence, Export Industries, Space Technology), the region lagged behind Western Europe in dynamism and growth, let alone contribution to sustainable growth and profitability/GDP increase.

Low labour costs and a highly skilled but little motivated personnel also turned many countries with vibrant key industries (including ICT) to become a vast pool of outsourcing services to Western counterparts. This further suppressed the need of Research and Innovation as all of it was directed and owned by the insources, the outsourcers being limited to implementation duties.

2.2.2 Bridging the Gap: Given this R&I Profile, focused worked must be conducted in order to start bridging the gap between East – West perception towards Research, Innovation and their exploitation. The work must primarily focus in widening the audiences in EECA for the H2020 activities. So far, these are almost exclusively limited to EECA Universities, Research Centres and relevant Governmental Association.

Industrial participation in R&I activities, in Programs that were completed before H2020 took some time to build. Early ESPRIT featured low Industrial participation, still higher than the old EECA industry participation recorded in later Programmes. The European Industry now participates in European Collaborative Research in all roles: Concept initiator, project leader, host of testing activities, actively participating in dissemination and exploitation. Focused R&I units exist in many industrial participants and this is widespread among a wide range of industrial sectors. Of course the lion’s share lies with the ICT industries, but all types of industries (manufacturing, media, Financial Services, Transport, Energy, etc.) are present in relevant sub-categories of FP& and H2020.

EAST HORIZON is a support action in International Co-operation targeting EECA countries and builds upon successive previous support actions in the EECA region, whereas EECA countries have prioritised societal and industrial challenges, drafted ICT Research Priorities and Agendas and launched National Research Programs. EAST HORIZON links ICT R&D with Innovation aspects and also examines collaboration potential in European e-Infrastructures.

EAST HORIZON wants to be a pioneer in making the need of industrial participation clear to all sides involved and to work towards realizing this participation.

Thus, by matching Industrial Priorities and ICT Research Agendas in each of these countries to those of HORIZON 2020, EAST HORIZON will prepare concrete ideas and arguments to be brought forward at the dialogue organized by the European Commission and the EECA Countries in the perspective of a coherent R&D policy and economic development agenda.

2.2.3 Working towards creating paradigm It is often stated that in R&I the doctrine “follow the leaders” weighs heavily in facilitating the growth of research activities and the take-up of its results. This has been the case in Western Europe and the US. Early adopters of innovation were SMEs, but when large players entered the R&I scene, the general industrial eyebrow was raised.

Thus EAST- HORIZON wants to depict the key industries in each EECA country and to find the immediate and obvious relation of specific H2020 topics with key needs of these industries. Having achieved that, EAST HORIZON will work in the following directions:

Ask EECA partners to widen their target groups to specifically include such industries as well as SMEs and


Researchers in general, that are particularly active on the supply side.

Work towards formulating Groups consisting of Researchers, SMEs in relevant topics and key industrial players in these industries and invite European Consortia to add them as an integrated Group

Disseminate any such consortium formation to act as paradigm for those seeing themselves better fit to the roles of “late adopters”

2.2.4 How we will proceed The East Horizon methodology is analysed in the Next Section. Very briefly, the main aim of this work is to define the list of Industrial Priorities and Challenges in each EECA country, then perhaps in Groups of countries with similar priorities.. Industrial Priority Lists will be matched with the H2020 priority list for industrial leadership. Should a similar matching of H2020 objectives and EECA country industrial priority be repeated over several countries, such match will be given a top priority in EAST-HORIZON work and a locus of countries vs. industrial priorities/ research challenges will be defined. This will be the locus where EAST HORIZON will try to create the first consortia with multidisciplinary EECA participation


3. EECA Industrial Priorities identification: methodological issues The scope of this document is to determine the relevance of Horizon 2020 Industrial Objectives with the Industrial Priorities per EECA country. The challenge to identify and analyse the Industrial Priorities per EECA country is really critical and of particular importance since it differentiates from existing or completed support actions of the region as the latter have not taken into consideration such activities.

In this context, and in order to identify the Industrial Priorities per EECA country and to compose a matrix consisting of a weighed priority list for all EECA countries and Individual priority lists for each country, separately, the following approach has been adopted.

The EAST-HORIZON methodology follows a simple approach based on the following steps:

� Identification of the key factors based on which relevant templates have been designed � Distribution of the template to relevant EECA partners � Collection and import of data in a specific Data Repository � Processing of data collected by the partners � Consolidation of the results

First Step: Identification of the key factors and distribution of the template to EECA countries

During the first step we identify which industrial sectors are dominant per EECA country. In order to implement this step it was necessary to record the following key factors:

a) The contribution in terms of Gross Domestic Product (GDP) for the top-ten industrial sectors per EECA country;

b) The contribution in terms of employment absorption for the top-ten industrial sectors per EECA country;

c) The main industries per EECA country to which Foreign Direct Investment (FDI), or direct Government Investment is directed;

d) Officially announced Government Priorities for sectorial development and growth; e) The major leading export industrial sectors per EECA country;

In this context, a questionnaire has been created and completed by each EECA country (see Annex I).

Second Step: Collection and import of data in a specific Data Repository and processing of data collected by the partners

The collected information was imported in a repository for allowing an easy handling and analysis of data by the EAST-HORIZON Team. The analysis of the key factors identify the industrial priorities per country

Third Step: Consolidation of the Results and Matrix of inter-relation between Industrial Priorities per EECA country and H2020 LEIT objectives

A short list of important industries that attract attention per EECA country has been derived from the completion and analysis of the second step. Following, a matrix of inter-relation between Industrial Priorities per EECA country and Horizon 2020 LEIT objectives has been created with the help of experts from the


region.

In parallel, the EAST-HORIZON team recorded the Horizon 2020 Objectives for the Industrial Leadership pillar and more specifically for Leadership in Enabling and Industrial Technologies (LEIT) as these are differentiated for:

• Information and Communication Technologies (ICT) Six main topics have been identified in the ICT-LEIT part of the Work Programme:

o A new generation of components and systems o Advanced Computing o Future Internet o Content technologies and information management o Robotics o Micro- and nano-electronic technologies, Photonics

• Nanotechnologies, Advanced Materials, Advanced Manufacturing and Processing, and Biotechnology

• Space


4. The Industrial Priorities per EECA country 4.1 The Case of RUSSIA The following Figure 1 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Russia

Figure 1: percentage of the production sections

4.1.1 Selection based on current importance of industry to the nation (GDP / Employment) Table 1 shows in normalized form the contribution of key sectors to GDP and employment combined (data in 8.1)

GDP

Transport and Telco 12%

Trade of all sort 25%

Real Estate 11%

Construction 7%

Societal 12%

Financial 0%

Total Tertiary 67% Agriculture 0%

Resources-fuel 11%

Resources-nonfuel 1%

Total Resources 12% Total Primary 12% Manufacturing 21%

Table 1: importance of industry to the nation (GDP / Employment)


The following Figure 2 shows the Manufacturing sectors in terms of contribution to GDP (data in 8.1)


Table 2 analyzes the constituents of Secondary Production in terms of contribution to GDP (data in 8.1)

Manufacturing 21%

manufacture of food products, beverages and tobacco 13%

textile and clothing industry 1%

production of leather, leather products and footwear 0%

processing of wood and of products of wood 1%

Pulp and paper industry; publishing and printing 2%

manufacture of coke and refined petroleum 18%

chemical industry 7%

manufacture of rubber and plastic products 2%

manufacture of other non-metallic mineral products 3%

metallurgical manufacture and fabricated metal products 15%

machinery production 4%

production electrical, electronics etc. 5%

transport units and equipment production 9%

others, not specified 4%

Production and distribution of electricity, gas and water 16%

Table 2: Secondary Production in terms of contribution to GDP


4.1.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for RUSSIA

� Energy related manufacturing (petroleum, coke…) � Electricity and Gas Production and Distribution � Food Production � Metallurgy

The following primary production sectors stand clearly ahead of the rest for RUSSIA

� Fuel Resources

From the Tertiary Sector, importance should also focus on:

� Transportation and Telecoms � Societal Needs Provision (However, societal Needs in General will be dealt with in the context of

Deliverable 3.1 “Report on Prioritize Societal Challenges of EECA countries” and will not be included in this analysis.)

FDI investment and Internal Investment (data in 8.1) appears to be directed mainly to:

� Energy related sectors � Transport and Telecommunication

The following sectors should not be ignored due to the contribution to Exports (data in 8.1)

� Energy related sectors

Finally, Government Guidelines focus on (data in 8.1):

� Information and telecommunication technologies � Energy and Energy Efficiency � Science and Technology � Electronic industry � Scientific and technological complex � Public health care � Education

Thus, a shortlist for the RUSSIA should include, at least:

� Energy related sectors (primary or secondary production) � Electricity and Gas Production and Distribution � Food Production � Metallurgy � Transport and Telecommunications

As per table below

Sector selected for: GDP/Employment Contribution

Investment Absorption

Exports contribution

Government Guidelines

Energy related sectors (primary or secondary production)

+ + + +

Electricity and Gas Production and Distribution

+ +

Food Production + Metallurgy + Transport and Telecommunications + + +


4.2 The Case of MOLDOVA The following Figure 3 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Moldova



GDP



Real Estate 7%

Construction 8%

Societal 24%

Financial 0%

Total Tertiary 65%

Agriculture 10%

Resources-fuel 0%


Total Resources 0%

Total Primary 10%

Manufacturing 25%

Table 3: contribution of key sectors to GDP and employment combined



Figure 4: Manufacturing sectors in terms of contribution to GDP


Manufacturing 25%


















4.2.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for Moldova:

� manufacture of food products, beverages and tobacco � textile and clothing industry � manufacture of other non-metallic mineral products � Production and distribution of electricity, gas and water

The following primary production sectors stand clearly ahead of the rest for Moldova

� Agriculture


� Societal Needs Provision (However, societal Needs in General will be dealt with in the context of Deliverable 3.1 “Report on Prioritize Societal Challenges of EECA countries” and will not be included in this analysis)




� Transport and communication � Information and communication technologies, Aerospace technologies � Medicine and pharmacy

Thus a shortlist for Moldova should include, at least:

� manufacture of food products, beverages and tobacco � textile and clothing industry � manufacture of other non-metallic mineral products � Production and distribution of electricity, gas and water � Agriculture � Transport and Communication

As summarized in the table below


Sector selected

for: GDP/Employment

Contribution Investment Absorption



manufacture of food products, beverages and tobacco

+

textile and clothing industry

+

manufacture of other non-metallic mineral products

+

Production and distribution of electricity, gas and water

+

Agriculture + Transport and Communication (including ICT)

+ +


4.3 The Case of BELARUS The following Figure 5 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Belarus



GDP



Real Estate 6%

Construction 8%

Societal 24%

Financial 0%

Total Tertiary 64%

Agriculture 10%

Resources-fuel 0%


Total Resources 10%

Total Primary 10%

Manufacturing 25%






Manufacturing 25%
















Table 6: constituents of Secondary Production in terms of contribution to GDP


4.3.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for Belarus:

� manufacture of food products, beverages and tobacco � manufacture of coke and refined petroleum � machinery production

The following primary production sectors stand clearly ahead of the rest for Belarus:

� Agriculture




� Transport and Telco � Real Estate


� Energy and energy efficiency � Information and communication technologies, Aerospace technologies � Medicine and pharmacy � Production of machines and equipment, electric equipment, electronic and optical equipment,

vehicles � Microbiology and biotechnologies � Nanotechnology industry

Thus a shortlist for Belarus should include, at least:

� manufacture of food products, beverages and tobacco � manufacture of coke and refined petroleum � machinery production � Agriculture � Transport and Telco � Real Estate



Sector selected

for: GDP/Employment

Contribution Investment Absorption




+


+ +

machinery production

+ +

Agriculture + Transport and Telco

+ +

Construction and Real Estate

+ + +


4.4 The Case of KAZAKHSTAN The following Figure 7 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Kazakhstan



GDP



Real Estate 10%

Construction 7%

Societal 12%

Financial 4%

Total Tertiary 63%

Agriculture 5%

Resources-fuel 18%


Total Resources 20%

Total Primary 25%

Manufacturing 13%





Table 8 analyzes the constituents of Secondary Production in terms of contribution to GDP (data 8.4)

Manufacturing 13%


















4.4.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for Kazakhstan:

� Manufacture of food products, beverages and tobacco � metallurgical manufacture and fabricated metal products � Production and distribution of electricity, gas and water

The following primary production sectors stand clearly ahead of the rest for Kazakhstan:

� Fuel Resources


� Transport and Telco � Societal Needs Provision (However, societal Needs in General will be dealt with in the context of

Deliverable 3.1 “Report on Prioritize Societal Challenges of EECA countries” and will not be included in this analysis)


� Transport & Telco � Construction � Financial Issues


� Oil and Gas Sector � Petroleum chemistry � Ore mining and smelting � Chemical industry � Atomic industry � Machinery � Pharmaceutical industry � Construction engineering and constructional materials production � Agro-industrial complex � Light industry � Information and Communication Technologies � Biotechnologies � Space activities � Alternative energetics � Atomic energetics, Energy and energy efficiency

Thus a shortlist for Kazakhstan should include, at least:

� Manufacture of food products, beverages and tobacco � metallurgical manufacture and fabricated metal products � Production and distribution of electricity, gas and water � Fuel Resources � Transport & Telco � Construction � Financial Issues



Sector selected for:

GDP/Employment Contribution




Manufacture of food products, beverages and tobacco

+ +

metallurgical manufacture and fabricated metal products

+ +


+ +


+ + + +

Transport & Telco + + + Construction and Real Estate

+ + +

Financial Issues + -


4.5 The case of GEORGIA The following Figure 9 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Georgia



GDP



Real Estate 5%

Construction 10%

Societal 10%

Financial 6%

Total Tertiary 63%

Agriculture 14%

Resources-fuel 7%


Total Resources 18%

Total Primary 32%

Manufacturing 5%






Manufacturing 5%


















4.5.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for Georgia:

� manufacture of food products, beverages and tobacco � metallurgical manufacture and fabricated metal products � Production and distribution of electricity, gas and water

The following primary production sectors stand clearly ahead of the rest for Georgia:

� Agriculture


� Transport and Telco � Construction


� Transport and Telco � Construction � Financial Issues


� Agro industry � Tourism and infrastructure � Energy sector � Health care

Thus a shortlist for Georgia should include, at least:

� manufacture of food products, beverages and tobacco � metallurgical manufacture and fabricated metal products � Production and distribution of electricity, gas and water � Transport and Telco � Construction � Financial Issues � Agriculture

As summarized in the table below:








+ +


+


+

Transport and Telco

+ +

Construction + + + Agriculture +


4.6 The Case of ARMENIA The following Figure 11 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Armenia


4.6.1 Selection based on current importance of industry to the nation (GDP / Employment) Table 11 shows in normalized form the contribution of key sectors to GDP and employment combined ((data in 8.6)

GDP



Real Estate 20%

Construction 0%

Societal 19%

Financial 4%

Total Tertiary 65%

Agriculture 22%

Resources-fuel 0%


Total Resources 3%

Total Primary 25%

Manufacturing 9%



The following Figure 12: shows the Manufacturing sectors in terms of contribution to GDP (data in 8.6)



Manufacturing 9%


















4.6.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for Armenia:


The following primary production sectors stand clearly ahead of the rest for Armenia:

� Agriculture


� Real Estate � Societal Needs Provision (However, societal Needs in General will be dealt with in the context of



� Transport & Telco

The following sectors should not be ignored due to the contribution to Exports (data in 8.6)

� Manufacturing


� Industry and export promotion � Tourism development � Information technologies’ sector development � Agriculture and rural development � SME creation and ensuring their adequate activities

Thus a shortlist for Armenia should include, at least:

� manufacture of food products, beverages and tobacco � metallurgical manufacture and fabricated metal products � Production and distribution of electricity, gas and water � Real Estate � Agriculture








+ + +


+ +


+

Real Estate + Agriculture +


4.7 The case of AZERBAIJAN The following Figure 13 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Azerbaijan



GDP



Real Estate 0%

Construction 13%

Societal 13%

Financial 0%

Total Tertiary 42%

Agriculture 6%

Resources-fuel 45%


Total Resources 47%

Total Primary 53%

Manufacturing 5%






Manufacturing 5%


















4.7.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for Azerbaijan:

� manufacture of food products, beverages and tobacco � manufacture of coke and refined petroleum � Production and distribution of electricity, gas and water

The following primary production sectors stand clearly ahead of the rest for Azerbaijan:

� Fuel Resources


� Construction � Societal Needs Provision (However, societal Needs in General will be dealt with in the context of


The following sectors should not be ignored due to the contribution to Exports (data in 8.5):

� Transport & Telco � Real Estate


� Oil and gas sector � Alternative and renewable energy sources � Aluminum industry � Further development of districts � Tourism � Agrarian sector � Science � Transport � ICT

Thus a shortlist for the Azerbaijan should include, at least:

� manufacture of food products, beverages and tobacco � manufacture of coke and refined petroleum � Production and distribution of electricity, gas and water � Fuel Resources � Construction � Transport & Telco � Real Estate









+ +


+ + +


+

Transport & Telco + + Construction and Real Estate

+ + +


4.8 The Case of UZBEKISTAN 4.8.1 Selection based on current importance of industry to the nation (GDP / Employment) Table 15 shows in normalized form the contribution of key sectors to GDP and employment combined (data in 9.1)

GDP



Real Estate 0%

Construction 0%

Societal 21%

Financial 0%

Total Tertiary 57%

Agriculture 18%

Resources-fuel 0%


Total Resources 0%

Total Primary 18%

Manufacturing 25%



Manufacturing 25%

manufacture of food products, beverages and tobacco Not available

textile and clothing industry Not available

production of leather, leather products and footwear Not available

processing of wood and of products of wood Not available

Pulp and paper industry; publishing and printing Not available

manufacture of coke and refined petroleum Not available

chemical industry Not available

manufacture of rubber and plastic products Not available

manufacture of other non-metallic mineral products Not available

metallurgical manufacture and fabricated metal products Not available

machinery production Not available

production electrical, electronics etc. Not available

transport units and equipment production Not available

others, not specified Not available

Production and distribution of electricity, gas and water Not available


4.8.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following primary production sectors stand clearly ahead of the rest for Uzbekistan:

� Agriculture






� Transport and Telco � Construction

Thus a shortlist for the Uzbekistan should include, at least:

� Agriculture � Transport and Telco � Construction







Agriculture + + Transport and Telco

+ +

Construction + +


4.9 The Case of UKRAINE The following Figure 15 shows the percentage of the production sections (Primary, Secondary and Tertiary) of Ukraine



GDP



Real Estate 5%

Construction 0%

Societal 11%

Financial 9%

Total Tertiary 67%

Agriculture 18%

Resources-fuel 5%


Total Resources 8%

Total Primary 26%

Manufacturing 7%





Table 18 analyzes the constituents of Secondary Production in terms of contribution to GDP (data in 8.7

Manufacturing 7%


















4.9.2 Selection of Key Sectors for matching Industrial Needs to ICT Research Priorities The following industrial sectors stand clearly ahead of the rest for Ukraine:


The following primary production sectors stand clearly ahead of the rest for Ukraine:

� Agriculture





� Financial


� Public administration � Information technologies’ sector development � Agriculture and rural development � SME creation and ensuring their adequate activities � Energy

Thus a shortlist for Ukraine should include, at least:

� manufacture of food products, beverages and tobacco � metallurgical manufacture and fabricated metal products � Production and distribution of electricity, gas and water � Agriculture � Transport and Telco � Financial







+


+


+ +

Agriculture + + Transport and Telco + + Financial + +


5. Consolidation of Key Sectors for All Countries and interrelation with LEIT The Table below depicts the key sectors for each country based on the analysis of the data in Sections above. Sectors with no “appearance” in the individual country checklists have been omitted for brevity)

The following table summarizes the leading industrial sectors, the reason(s) they have been selected and the occurrence of selection of a sector per criterion of selection





Occurrences (number of countries) Energy related sectors (primary or secondary production)

4 3 4 2

Electricity and Gas Production and Distribution

7 2

Food Production 8 2 Metallurgy 5 1 1 Transport and Telecommunications

7 6 1 3

Textile and clothing industry 2 Agriculture 4 1 3 machinery production 2 2 Construction and Real Estate 6 5 1 3 Financial Services Electrical, Electronics (including ICT)

9

Social Services (Health, Public and Education)

9 9

Table 19: Selection of Key Industries

The following trends appear very clear:

• Traditional Sectors remain significant employers (textile, metallurgy, food, construction, machinery etc.) unlike in Western Europe where they have already shrunk since the 80’s Thus technology and innovation dissipation in these sectors should be prioritized, along with per capita income increase, or the sectors may face problems already encountered in south eastern (mainly) Europe.

• Investment appears to be directed mainly to infrastructure (transport, telecoms, real estate and construction) as well in energy related fields in the three major energy producers in the region

• Governmental guidelines towards innovation (as in EE’s) are not followed by direct investment yet. Hence technology and innovation is very much dependent on state-generated guidelines and less on market demand.

• It is noted that despite it is known for at least 2 or 3 countries that the Defense Industry, Aerospace Industry are important, statistics do not mention these sectors, whereas their inclusion in the nearest to their nature (machinery?) should not be considered as it is not justified by numbers. Given that the reporting formats are very similar for most countries (probably originating from a common past format) these industries are not reported.

• Although, not directly an Industry in technical terms, it should be noted that Public Services (including social Services) remain high in terms of priorities and employment contribution in all countries, in most cases at level far higher than Western Europe.

In the following sections, a matching of these key industries vis-à-vis the H2020 topics and priorities is presented.


5.1 Relationship between Key Industrial Sectors and H2020 Priorities with respect to imminent sectorial needs for innovation- driven modernization In the next step, the key Priorities of relevant H2020 Technological Areas were matched versus specific needs of Key Industries in the course of a workshop among Innovation Experts of relevant technology EU partners of H2020. Topics were limited to those in 2014-2015 calls. An update to include 2016+ calls topics will be performed when those are finalized and made public, in the course of a wider forum of experts in a future East Horizon Awareness Event.

A first-level match at topic level is presented in Tables 20-32 below:

The topics of relatively high importance for a number of Sectors exceeding 3 is shown in red, bold fonts

Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production and

Distribution;

Gas

Distribution

Food

Production

Metallur

gy

Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Constructio

n of

Buildings,

Roads,

Ports, etc.

Trans

port

and

Telco

Agriculture Financial

Services

E&E (incl. ICT

related)

A new

generation of

components

& systems

ICT 1 – 2014:

Smart Cyber-

Physical

Systems

x x x x x x x x x x x

ICT 2 – 2014:

Smart System

Integration

x x x x x x x

ICT 3– 2014:

Advanced Thin,

Organic and

Large Area

Electronics

x x x

Table 20: Matching of Industry needs with 2014 – 2015 Topics within the “A new generation of components & systems” domain


Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production

and

Distribution;

Gas

Distribution

Food

Production

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Construction

of Buildings,

Roads,

Ports, etc.

Transport

and Telco


Services

E&E (incl. ICT

related)

Advanced

Computing

ICT4-2015:

Customized &

low power

Computing

x

Table 21: Matching of Industry needs with 2014 – 2015 Topics within the “Advanced Computing” domain

Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production

and

Distribution

; Gas

Distribution

Food

Productio

n

Metallur

gy

Textile

and

Clothin

g

Machine

manufactur

e;

automobile

manufactur

e

Constructio

n of

Buildings,

Roads,

Ports, etc.

Transport

and Telco


Services

E&E (incl. ICT

related)

Future

Internet

ICT 5 - 2015: Smart

Networks & novel Internet

Architectures

x x

ICT 6 - 2014: Smart Optical

& wireless network

technologies

x x

ICT 7- 2014: Advanced

Cloud Infrastructures &

Services

x x x

ICT 8- 2015: Boosting

public sector productivity

& innovation through cloud

computing services

x

ICT 9- 2014: Tools &

methods for Software

development

x

ICT 10- 2014: Collective

Awareness Platforms for

Sustainability & Social

Innovation

x x x

ICT 11- 2014: FIRE +

(Future Internet Research

& Experimentation)

x


ICT 12- 2015: More

experimentation for Future

Internet

x

ICT 13- 2014: Web

Entrepreneurship

x

ICT 14- 2014: Advanced 5G

Network Infrastructure for

the Future Internet

x x

Table 22: Matching of Industry needs with 2014 – 2015 Topics within the “Future Internet” domain

Topics Ener

gy

Extra

ction

Energy

Material

Processing

Electricity

Production and

Distribution;

Gas

Distribution

Food

Produc

tion

Metallu

rgy

Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Construction of

Buildings,

Roads, Ports,

etc.

Transport

and Telco


Services

E&E (incl. ICT

related)

Content

Technolo

gies &

Informati

on

Manage

ment

ICT 15-2014: Big

data Innovation

and take-up


ICT 16-2015: Big

data Research


ICT 17-2014:

Cracking the

language barrier

x x

ICT 18-2014:

Support the growth

of ICT Innovative

Creative Industries

x x

ICT 19-2015:

Technologies for

Creative Industries,

social media and

convergence

x x

ICT 20-2015:

Technologies for

better human

learning and

teaching

x

ICT 21-2014:

Advanced digital

gaming/gamificatio

x


n technologies

ICT 22-2014:

Multimodal and

Natural Computer

Interaction

x

Table 23: Matching of Industry needs with 2014 – 2015 Topics within the “Content Technologies & Information Management” domain

Topics Energy

Extracti

on

Energy

Material

Processin

g

Electricity

Production

and

Distribution;

Gas

Distribution

Food

Producti

on

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Construction of

Buildings,

Roads, Ports,

etc.

Transport

and Telco


Services

E&E (incl. ICT

related)

Robotics ICT 23-2014:

Robotics

x x x x x x x

Table 24: Matching of Industry needs with 2014 – 2015 Topics within the “Robotics” domain

Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production

and

Distribution;

Gas

Distribution

Food

Producti

on

Metallurgy Textile and

Clothing

Machine

manufactur

e;

automobile

manufactur

e

Construction

of Buildings,

Roads, Ports,

etc.

Transpor

t and

Telco

Agricul

ture

Financial

Services

E&E (incl.

ICT related)

Micro and

Nano

electronic

technologies

- Photonics

ICT25-

2015:Generic

micro and nano

electronic

technologies

x x x x

ICT26-

2014:Photonics

KET

X x

ICT27-

2014:Photonics

KET

X x

ICT28-2015:Cross

cutting ICT KETs

x

Table 25: Matching of Industry needs with 2014 – 2015 Topics within the “Micro and Nano electronic technologies - Photonics” domain


Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production

and

Distribution;

Gas

Distribution

Food

Production

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Constructi

on of

Buildings,

Roads,

Ports, etc.

Transpor

t and

Telco

Agricul

ture

Financial

Services

E&E (incl. ICT

related)

Nanotechnologies

Programme

Nanotechnolo

gy

applications

x x x

Safety of

health and

environment

x

Table 26: Matching of Industry needs with 2014 – 2015 Topics within the “Nanotechnologies” domain

Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production and

Distribution;

Gas

Distribution

Food

Production

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Construction

of Buildings,

Roads, Ports,

etc.

Transport

and Telco


Services

E&E

(incl. ICT

related)

Advanced

Materials

Materials

research can

be presented

starting from

the materials

themselves

(e.g.

biomaterials,

metals,

polymers)

x x x

or the

industrial

sector (e.g.

metallurgy,

chemistry)

x x


or their

applications

(e.g. energy,

health,

transport)

x x x

Table 27: Matching of Industry needs with 2014 – 2015 Topics within the “Advanced Materials” domain

Table 28: Matching of Industry needs with 2014 – 2015 Topics within the “Advanced Manufacturing & processing” domain

Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production

and

Distribution;

Gas

Distribution

Food

Producti

on

Metallur

gy

Textile

and

Clothin

g

Machine

manufactu

re;

automobil

e

manufactu

re

Constructi

on of

Buildings,

Roads,

Ports, etc.

Transpor

t and

Telco

Agricultu

re

Financial

Services

E&E (incl. ICT

related)

Biotechnology New

bioinformatics

approaches in

service of

biotechnology

x

Metagenomics

as innovation

driver

x

Table 29: Matching of Industry needs with 2014 – 2015 Topics within the “Biotechnology” domain

Topics Energy

Extraction

Energy Material

Processing

Electricity

Production

and

Distribution;

Gas

Distribution

Food

Production

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Construction

of Buildings,

Roads, Ports,

etc.

Transport

and Telco

Agricult

ure

Financial

Services

E&E

(incl.

ICT

relat

ed)

Advanced

Manufacturing &

processing

Innovation

in

Manufactu

ring

x x x x x x x x

Innovation

in

Constructi

on

x


Topics Energy

Extraction

Energy

Material

Processing

Electricity

Production and

Distribution;

Gas

Distribution

Food

Production

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Constructio

n of

Buildings,

Roads,

Ports, etc.

Transp

ort and

Telco

Agricul

ture

Financi

al

Service

s

E&E (incl. ICT

related)

NMP-14-2015 ERA-NET on

Materials

(including

Materials for

Energy)

x x

NMP-PILOTS-

2015

NMP-02-2015:

Integration of

novel nano

materials into

existing

production

lines

x x x x x x

NMP-03-2015:

Manufacturing

and control of

nanoporous

materials

x

NMP-06-2015:

Novel

nanomatrices

and

nanocapsules

x

NMP-07-2015:

Additive

manufacturing

for tabletop

nanofactories

x

Table 30: Matching of Industry needs with 2014 – 2015 Topics within the “NMP” priorities


Thus, the Locus of H2020 priorities for the Key EECA Industries is summarised below

Domain Topics Energy

Extract

ion

Energy

Material

Processin

g

Electricity

Production and

Distribution; Gas

Distribution

Food

Productio

n

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Constructio

n of

Buildings,

Roads,

Ports, etc.

Transp

ort and

Telco

Agricul

ture

Financi

al

Service

s

E&E (incl. ICT

related)

A new

generation

of

components

& systems

ICT 1 – 2014: Smart Cyber-

Physical Systems


ICT 2 – 2014: Smart System

Integration

x x x x x x x

Future

Internet

ICT 7- 2014: Advanced Cloud

Infrastructures & Services

x x x

ICT 10- 2014: Collective

Awareness Platforms for


Innovation

x x x

Content

Technologies

&

Information

Managemen

t

ICT 15-2014: Big data

Innovation and take-up


ICT 16-2015: Big data

Research


Robotics ICT 23-2014: Robotics x x x x x x


Domain Topics Energy

Extract

ion

Energy

Material

Processin

g

Electricity

Production and

Distribution; Gas

Distribution

Food

Productio

n

Metallurgy Textile

and

Clothing

Machine

manufacture;

automobile

manufacture

Constructio

n of

Buildings,

Roads,

Ports, etc.

Transp

ort and

Telco

Agricul

ture

Financi

al

Service

s

E&E (incl. ICT

related)

Micro and

Nano

electronic

technologies

- Photonics

Nanotechnology

applications

x x x

Advanced

Materials

Materials research can be

presented starting from the

materials themselves (e.g.

biomaterials, metals,

polymers)

x x x

or the industrial sector (e.g.

metallurgy, chemistry)

x x

or their applications (e.g.

energy, health, transport)

x x x

Advanced

Manufacturi

ng &

processing

Innovation in Manufacturing x x x x x x x x

NMP-PILOTS-

2015

NMP-02-2015: Integration

of novel nano materials into

existing production lines

x x x x x x

Table 31: Final Locus of Key Industries and R&D Domains of Critical Importance for them


It is also important to note some very tight matching of H2020 Topics with one specific key industry, which are not included in the matrix above as they are specific probably to this key industry:

Topics E&E

(incl. ICT

related)

Topics E&E (incl. ICT related)

Future

Internet

ICT 5 - 2015: Smart

Networks & novel

Internet Architectures

x Content

Technologies

&

Information

Management

ICT 15-2014: Big

data Innovation

and take-up

x

ICT 6 - 2014: Smart

Optical & wireless

network technologies

x ICT 16-2015: Big

data Research

x

ICT 7- 2014: Advanced

Cloud Infrastructures

& Services

x ICT 17-2014:

Cracking the

language barrier

x

ICT 8- 2015: Boosting

public sector

productivity &

innovation through

cloud computing

services

x ICT 18-2014:

Support the

growth of ICT

Innovative

Creative

Industries

x

ICT 9- 2014: Tools &

methods for Software

development

x ICT 19-2015:

Technologies for

Creative

Industries, social

media and

convergence

x

ICT 10- 2014:

Collective Awareness

Platforms for


Innovation

x ICT 20-2015:

Technologies for

better human

learning and

teaching

x

ICT 11- 2014: FIRE +

(Future Internet

Research &

Experimentation)

x ICT 21-2014:

Advanced digital

gaming/gamificati

on technologies

x

ICT 12- 2015: More

experimentation for

Future Internet

x ICT 22-2014:

Multimodal and

Natural Computer

Interaction

x

ICT 13- 2014: Web

Enterpreneurship

x

Table 32: Domains critical for the E&E (incl. ICT) Industry


5.2 Matching H2020 with Key Industries per country In the sequel, a matching of Critical H2020 Topics and Domains with respect to each particular EECA country is given in the following sections.

5.2.1 Russia


5.2.2 Moldova


5.2.3 Belarus


5.2.4 Kazakhstan

5.2.5 Georgia


5.2.6 Armenia

5.2.7 Azerbaijan


5.2.8 Uzbekistan


5.2.9 Ukraine


6. Conclusions - Recommendations

� Although strong in only 3-4 countries the energy sector is particularly important for the overall region, especially if a weighted average is considered. It would not be an exaggeration to state the neglecting its needs will greatly diminish the prospects of take-up of Research and Innovation by the Industry. This is applicable to the maximum extent among all countries in the case of Azerbaijan and Kazakhstan.

� Investment is mainly directed to infrastructure and obviously still focuses in creating an environment favourable for business and trade, as most of these countries lag behind Western Infrastructure standards. In the editors’ opinion take up of innovation in infrastructure related sectors will be slow. However, one should closely examine the least developed countries of Central Asia, where the leapfrog effect is not to be ruled out, especially due to the relative size of investment as compared to the cost of innovation adaptation. To this end, H2020 domains relevant to telecoms and transport should not be ignored

� Food production is important across the region and will become more important if we are entering an era of IS policies. The relation between contribution to GDP and employment is the sector makes one assume reasonably that there is a lot of room for improvement in local food manufacturing technology and ICT technologies work to improve that.

� Take-up of R&D and Innovation results by the local ICT Industry remain a “to be sought” case. Nowhere ICT appears to rank high under any criterion examined with the exception of Governmental Guidelines. In qualitative terms, the outsourcing orientation of the Industry is an obstacle. However, its role in take up of innovation by the other sectors is critical. A lot of effort needs be spent in this direction. ICT SMEs MUST become key players in R&D along with Institutions. To this end, H2020 actors should leverage on local Governmental Guidelines, whereas local ICT actors should increase the participation of SMEs in Awareness activities, and in certain cases open up the R&D space to private SMEs.

� Particular promotion and dissemination should be given to those domains of H2020 who are relevant to the productivity increase of traditional sectors (textile, metallurgy, machine manufacture, etc.) Normally such topics were more often encountered in previous programmes in Western Europe, although some few traces still exist. The investment in these industries is not big, so a leapfrog effect is not imminent. More close cooperation with Local Programmes should be also examined.

The above list can never be conclusive, but gives a signal on how to move forward. Attempting a “превышение” (hypervasis) one could reach some concrete proposals

a) Create local, transnational groups of technology developers, industrial users and innovation exploiters in domains related to energy and get assign them a leading role in H2020 consortia. The reason is ahead of any EU country and able to fund Research and Innovation once the ball starts rolling and concepts are absorbed.

b) Regional Telecoms and Transport Industries are attracting huge investments. A planned participation of key players as users in European Consortia could be easily justified and promote a leapfrog approach. A few successful paradigms could act as a big-time accelerator for adapting innovation in infrastructure, while the latter is still in the make and heavily funded.

c) Include Users in traditional industries in H2020 consortia, especially in NMP and similar programs. The possibility of a leapfrog move should be examined before abandoned

d) Break the mentality that “Institutes do the Research” by pushing for the involvement of local SMEs along with Institutes in Innovation projects. The region has good know-how and potential but the combination of an outsourcing character of the private sector with the huge dominance of Institutes in Research and Development constitute obstacles to the adoption of Innovation principles, at least in the way these are envisaged and understood in the EU.

It should be noted at this stage that:


Although the matching of Critical H2020 Topics and Domains with respect to each particular EECA country can produce very specific proposals on what type of consortia could be formed, this is beyond the purpose of this report, as local actors should get to this conclusion themselves

It is made clear that although Societal Services appear as a very important “industry” the matching of H2020 objectives with this Industry should pass through the filter of the priorities of the “societal challenges” priorities – as depicted in H2020 literature. Hence this industry is not further analysed in this deliverable as it will form the key focus of Deliverable 3.1 “Societal Challenges” as well as that of Deliverable 3.4 where the findings of industrial objectives, societal challenges, local programmes and priorities set by experts in the countries converge to give an overall picture of needs vs. offer.


7. Annex 1 Questionnaire 1. Could you please justifiably list the top-ten industries in your country in terms of

contribution to the economy (GDP)

Note: Please proceed to a medium- grain description of sector: Manufacturing Industries is too Coarse-grain and not helpful, Food Processing is Medium and acceptable; and so is Dairy Production if it is important to distinguish it from food in general; Milk Pasteurization is too fine and not necessary to reach.

You may use the following format for consistency:

Sector % Contribution to GDP Reference Number Note (if any)

(*)

(*) Please state references in the format XX01yy: Title or url

XX: use two letters (preferably the ending of url addresses to describe the country (e.g. UA for Ukraine, BY for Belarus and so on)

01: indicates it refers to question 1

yy: 01, 02, 03 ….

2. Could you please justifiably list the top-ten industries in your country in terms of contribution to employment

Note: Please proceed to a medium- grain description of sector: Manufacturing Industries is too Coarse-grain and not helpful, Food Processing is Medium and acceptable; and so is Dairy Production if it is important to distinguish it from food in general; Milk Pasteurization is too fine and not necessary to reach.



In the form XX02yy as above

3. Could you please list the KEY industries in your country to which Foreign Direct Investment, or direct Government Investment is directed

Note:

In the absence of FDI data, a list of major corporate activities (buyouts, new companies formed) could provide indirect source of information


Sector Activity or FDI cumulative amount

Reference Notes


Very important Note:

It might prove a bit tricky to get these data in some countries. If you feel that, please let us know beforehand and send us urls or docs with relevant information


4. Could you please justifiably list the Government Priorities for sectorial development?

This may take the form of Government Degrees, specific programmes for strengthening or modernizing specific sectors or similar initiatives. This information will help find small key sectors that despite ranking low in GDP contribution or FDI, still attract above average attention.


Sector Activity to promote the industry

Reference Notes


5. Could you please justifiably list the major leading export industries in your country?

Note: Please proceed to this description based on either Governmental or Private Sources (Ministry of Economy or Reports on country by leading Consulting Firms, etc.).


Sector % of Exports or Direct figure

Reference Number Note (if any)


6. Could you please provide any other relevant information that should be considered in defining the industrial priorities of your country? This may be answered in free format. Interesting information may include among others Transnational Agendas, Bilateral Agreements etc. applied for your country.

VERY IMPORTANT NOTE: In the case where you refer to materials for the final editors to consider, should these be very large documents, please provide references of relevant chapters or cut the relevant material and paste it in a new document, if possible.


8. Annex 2 Completed Questionnaires 8.1 Russia

• Can you please list the top – seven industries in your country in terms of contribution to GDP?

• Important Notes Note 1: A listing like: Manufacturing will not help as it is too generalistic; On the contrary, an entry like “Milk production” is too narrow. Optimum entry would be “Food Processing”

Note 2: Please Provide the references for replies to each of the questions in a table in the form: XX01yy: Title or url

• XX: use two letters (preferably the ending of url addresses to describe the country (e.g. UA for Ukraine, RU for Belarus and so on)

• 01…. 06: Refers to Questions 1-6 above

• yy: 01, 02,03,04… to be used if different lists are available in different sources

• RU – Federal Statistics Service, http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/accounts/#


Wholesale and retail trade; vehicle and household appliances repairs

20.72 RU0101

Manufacturing 17 RU0102

Real estate, rent and services

12.03 RU0103

Mining 9.76 RU0104

Transportation and telecommunication

9.44 RU0105

Financial activities 5.75 RU0106

Construction 5.75 RU0107

Question 2:

• Can you please list the top – seven industries in your country in terms of contribution to employment?

• Important Notes Notes 1 and 2 apply here, too

• RU – Federal Statistics Service, http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/wages/labour_force/#

Sector % Contribution to employment


Wholesale and retail trade; vehicle and household appliances 18.4

RU0201


repairs

Manufacturing 14.8 RU0202

Transportation and telecommunication 9.5

RU0203

Education 9.2 RU0204

Financial activities, Real estate, rent and services 9.0

RU0205

Healthcare and social services 7.9

RU0206

Construction 7.6 RU0207

Question 3:

• Can you please list the top – seven industries in your country in terms of Foreign Direct Investment, or Government - led Investment (any of the two would do, if both available even better)


• RU – Federal Statistics Service, http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/enterprise/investment/foreign/#

• Answer 1: FDI


Reference Notes

Altogether 26.1 billion USD RU0301

Answer 2: Internal Investment

• RU – Federal Statistics Service, http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/enterprise/investment/nonfinancial/#

Sector Share of investment RU sector in total amount of investment

Reference Notes

Transportation and telecommunication

25.5 RU0301

Real estate, rent and services 16.4 RU0302

Mining 15.1 RU0303

Manufacturing 14.1 RU0304


9.0 RU0305

Wholesale and retail trade; vehicle and household appliances repairs

3.9 RU0306


Agriculture, hunting and forestry

3.7 RU0307

Question 4:

• Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc.)

Sector Activity to promote the industry Reference

1. Information and telecommunication technologies

- Improving the quality of life of citizens and improving conditions for business development in the information society

- Construction of e-government and public administration more efficient

- Development of the Russian market of information technologies, the transition to an economy performed with the aid of information technology

- Overcoming the high-level differences in the use of information technology in the regions, in different sectors of society. Creation the basic infrastructure of the information society

- Security in the Information Society

- The development of digital content and the preservation of cultural heritage

State Program of the Russian Federation "Information Society (2011-2020 years)" approved by the Russian Federation Government Order on October 20, 2010 N-p 1815 (new edition 2012 approved by Order of the Government of the Russian Federation 15.08.2012 № 1472-p)

2. Energy and Energy Efficiency

- Reliable supply the country with fuel and energy resources and increase their effectiveness.

- Decrease due to the implementation of the Program of energy intensity in gross domestic product of the Russian Federation by 13.5 per cent

State Program "Energy efficiency and energy development" for 2013-2020, approved by the Decree of the Government of the Russian Federation of November 11, 2010 № 1950-p

3. Science and Technology

- development of basic scientific research;

- creation of advanced scientific and technological reserve in the priority areas of scientific and technological development;

- institutional development of the research and development sector, improve its structure, management and financing, integration of science and education.

- formation of modern hardware base for the research and development sector;

Decree of the Government of the Russian Federation of April 15, 2014 № 301 On approval of the state program of the Russian Federation "Development of science and technology" for 2013 - 2020 years


- ensuring the integration of the Russian sector of research and development in the international scientific and technological space.

4. Electronic industry

- creation of scientific and technological potential in promising electronic and avionics technologies relevant to the modern level of development of electronics (Task 1);

- creation of modern science, industrial and technological base for competitive electronic products (objective 2);

- providing the required production volumes of electronic products for priority samples of weapons, military and special equipment, identifying promising appearance of the Armed Forces of the Russian Federation (objective 3).

State Program of the Russian Federation, "The development of electronic and electronic industry in the years 2013-2025". Approved by the RF Government Decree 15.12.2012 No 2396-p

5. Scientific and technological complex

- formation of advanced scientific and technological reserve with interdisciplinary focus on priority areas of scientific and technological sphere, in demand sectors of the economy;

- ensuring the planning and coordination of research and development based on the priorities of scientific and technological sphere, based on a system of technological forecasting and responsive to the priorities of development sectors;

- ensuring the integration of the Russian sector of research and development in the global international innovation system through a balanced development of international scientific and technical relations of the Russian Federation;

- improve the effectiveness of research and development sector by ensuring the unity of its infrastructure, as well as coordination in infrastructure development with the priority areas of scientific and technological sphere

Decree of the Government of the Russian Federation, May 21 2013 № 426, on the Federal Target Program "Research and development on priority directions of scientific-technological complex of Russia for 2014-2020"


6. Public health care

- reduction in mortality from all causes

- reducing maternal mortality

- decline in infant mortality

- increasing number of doctors in respect to population

- increase in average wages of doctors and medical organizations

- increase in life expectancy

State Program of the Russian Federation "Development of health care" approved by Decree of the Government of the Russian Federation of December 24, 2012 № 2511-p

7. Education - ensuring high quality of Russian education to meet the changing demands of the population and the future tasks of the Russian economy and society;

- improving the efficiency of the implementation of youth policy for innovative socially oriented development

RF Government Order of April 15, 2014 N 295 on the State Program of the Russian Federation "Development of Education" on 2013-2020

Question 5:

• Could you please list the leading seven export industries in your country?


• RU - http://newsruss.ru/doc/index.php/%D0%AD%D0%BA%D1%81% D0%BF%D0%BE%D1%80%D1%82_%D0%B8%D0%B7_%D0%A0%D0%BE%D1%81%D1%81%D0%B8%D0%B8



Oil 33.0% RU0501

Petroleum products 20.7% RU0502

Gas 12.8% RU0503

Iron and steel products 7.8% RU0504

Chemical products 5.8% RU0505

Engineering products 5.4% RU0506

Food products 3.1% RU0507


8.2 Georgia

Question 1:

Can you please list the top – seven industries in your country in terms of contribution to GDP?

Important Notes

Note 1: A listing like: Manufacturing will not help as it is too generalistic; On the contrary, an entry like “Milk production” is too narrow. Optimum entry would be “Food Processing”



01…. 06: Refers to Questions 1-6 above

yy: 01, 02,03,04… to be used if different lists are available in different sources


Trade; repairs of cars, household goods and articles for personal use

15 GE 0101

Manufacturing 13.1 GE 0101

Transport 10.2 GE 0102


10 GE 0103

Construction 7 GE 0104

communication 5.7 GE 0105

Financial intermediation 4.3 GE 0106

Health and social work 4.1 GE 0107

Real estate, renting and business services

3.9 GE 0108

Processing of products by households

3.6 GE 0109

Hotels and restaurants 3.5 GE 0110

Question 2:

Can you please list the top – seven industries in your country in terms of contribution to employment?

Important Notes

Notes 1 and 2 apply here, too



Industry 22 GE0201


21.5 GE0202

Health and social work 11.2 GE0203

Transport and 10 GE0204


communication


9.7 GE0205

Construction 9.4 GE0206

Hotels and restaurants 4.8 GE0207


2 GE0208

Question 3:

Can you please list the top – seven industries in your country in terms of Foreign Direct Investment, or Government - led Investment (any of the two would do, if both available even better)

Important Notes


Answer 1: FDI


thousand dollars

Reference Notes


Energy sector 19.7987 GE0312

Financial intermediation 1.69905 GE0303

Transport and communication

13.8402 GE0304

manufacturing 12.3879 GE0305

Mining 35.481 GE0306


31.882 GE0307


26.775 GE0308


total 1.262.651


Sector Share of investment by sector in total amount of investment

Reference Notes


34.3 GE0301

Mining and manufacturing industry

19.5 GE0302




9.0 GE0304


7.2 GE0305



5.1 GE0307

Hotels and restaurants 1.5 GE0308

Question 4:

Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc.?)


Agro industry Agro service centres, water canals

New modern agro-industrial complex opened in Georgia. The complex includes a dairy plant producing different varieties of cheese, the Ministry of Agriculture of Georgia reported on Friday. The agro-industrial complex also has a modern refrigeration system that is capable of taking 250 tons of fruit and vegetables, as well as a machinery section opened under the agricultural programme. The equipment mobilised by the section has processed 500 hectares of land. The complex also has a shop where you can buy the cheese produced at the venture.

Water resources are one of the most important natural resources of Georgia. There are 26060

Rivers with total length 58987 km. A base of hydrographic network are small rivers with

Length less than 25km and total length 50480 km.

Modern scientific achievements allow assess quantitatively state of different ecological

Systems and objects basing on theory of reliability and risk. These methods permit establish

allowable level of ecological risk and solve the tasks of cost optimization required for water

System security and reliability.

Food safety measures etc.

The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations

State budget for 2014-2017

http://en.trend.az/regions/scaucasus/georgia/2148943.html

http://www.gwp.org/Global/GWP-CACENA_Files/en


(FAO), with the support of the Ministry of Agriculture of Georgia, organised this successful forum, which brought together private companies, government and other stakeholders to discuss forthcoming legislation to improve food safety and its potential impact on local agribusiness companies and farmers.

Top managers from over 60 local agricultural companies, leaders of farmers’ associations, and key policy-makers in government and the private sector examined changes currently under way in the country’s food safety and quality legislation, and the need to upgrade Georgia’s food safety and monitoring systems. The most significant changes include the Code of Food Safety, Veterinary and Plant Protection, which will take effect in spring 2014, and other major updates that will result from the Deep and Comprehensive Free Trade Agreement (DCFTA) between Georgia and the European Union (EU).

/pdf/georgia.pdf

http://www.ebrd.com/pages/news/press/2014/140123.shtml

Tourism and infrastructure

Tourism

Tourism is one of the fastest growing sectors in Georgia. It is remarkable that the number of international travelers increased by 39% in 2011. The mission of Georgian National Tourism Administration, as of a state policy unit is:

To increase awareness of international markets about Georgia;

To ensure the flow of foreign tourists to Georgia as well as development of domestic tourism;

To promote creation of opportune environment for the development of tourism related businesses;

To increase the competitiveness of the country on the international tourism market;

To ensure popularization of the secure image of our country and establish a powerful brand.

roads repair, construction

Construction of headways

Construction of other infrastructure (water, sanitary etc.)

http://www.economy.ge/en/economic-review/tourism

Energy sector

Energy policy

The Ministry of Energy has elaborated "Main Directions of State Policy in Georgian Power Sector" on the basis of the Resolution of the Parliament of Georgia. Parliament of Georgia approved the document prepared in the Ministry of Energy on 7 June of 2006 and determined main directions of energy policy. The main goal of the "Main Directions of State Policy in Georgian Power Sector" is the full satisfaction of the demand of industrial and domestic-communal sector on energy resources on the basis of full utilization of energy resources existing in the country and diversification of imported energy carriers. As well as, achievement of economic independence and sustainability of the sector, provision of energy security (technical, economic and political factors). It is determined under the "Main Directions of State Policy in the Power Sector of Georgia" that great attention in the utilization of local energy resources shall be

http://www.energy.gov.ge/ministry.php?id_pages=12&lang=eng


attributed to the application of main natural resources of the country. At the same time the long term goal of energy policy is to satisfy demand on electric energy by the power generated at local hydro power plants.

hydro energy stations

Improvement of gas supply

Health care Health system

Georgia has made a significant effort to adapt health policy and health system to the new environment. The way of implementing quality and patient-focused health care system is essential:

a) Improve the quality of health infrastructure;

b) Improve access to PHC services;

c) Improve the quality of monitoring systems;

d) Develop the quality assurance systems for outpatient and laboratory service providers;

e) Accreditation of health care facilities and institutions and development of external quality control systems;

f) Implementation of the electronic health care;

g) To improve the quality of medical services through the prevention, promotion of healthy lifestyle, protection of the patient rights, advocacy, etc.

State budget for 2014-2017

http://www.epmajournal.com/content/4/1/8

Question 5:

Could you please list the leading seven export industries in your country?

Important Notes




Export of motor cars 24.2 GE0501

Ferro-alloys 7.9 GE0502

Nuts 5.7 GE0503

Copper ores and concentrates 5.6 GE0504

Mineral or chemical fertilizers 4.5 GE0505

Wine of fresh grapes 4.4 GE0506

Waters, natural or artificial mineral and acrated waters

3.7 GE0507

Question 6:

Could you please provide any other relevant information that should be considered in defining the industrial priorities of your country?

During the last two years in Georgia Country Government created large scale financial structures for the support industry and agriculture, such as:


Partnership Fund (PF) (6 billion USD)

PF’s main objective is to promote investment in Georgia by providing co-financing in projects at their initial stage of development. PF is split in two separate business units: 1. Asset management – PF has assets under management with combined annual turnover of over USD 750 million in 2012. PF’s portfolio is comprised of Georgia’s strategically important assets: Georgian Railway - 100% of shares Georgian Oil and Gas Corporation (GOGC) - 100% of shares Georgian State Electro system - 100% of shares Electricity System Commercial Operator - 100% of shares JSC Telasi - 24.5% of shares Georgian Railway and GOGC are the main source of JSC Partnership Fund (PF) is a state owned investment fund.

Enterprise Development Agency

According to the decision taken on 13 of February 2014 Enterprise Development Agency was established in order to promote and support start-up, small- and medium-sized businesses and the export potential of the country. The Enterprise Development Agency will be integrated in the system of Ministry of Economy and Sustainable Development of Georgia as legal entity of public law. The Enterprise Development Agency will significantly promote enterprise and export development in terms of both financial and enterprise skills.

The Enterprise Development Agency will offer consultation, educational and technical assistance to entrepreneurs both legal and physical persons, prepare industry and export related surveys, provide information to export oriented legal and physical persons and cooperate with international and donor organizations. The Enterprise Development Agency will prepare strategy for entering into the new markets, promote business and export development and ensure other functions for promotion export potential of the country.

Technology and Innovation Agency

On 13 of February 2014, at the Government meeting the decision to establish Technology and Innovation Agency of Georgia was made. The aim of the agency is to create innovative ecosystem, promote the use of innovation and technologies in various field in Georgia and promote commercialization of innovative research and development, Caspian Energy News (www.caspianenergy.net) reports with reference to the press service of the Ministry of Economy and Sustainable Development of Georgia.

The Technology and Innovation Agency of Georgia will implement the specific projects and programs in order to support the innovation and technology adoption in the country. It will also promote the commercialization of the research and development, IT business, distance employment and creation and implementation of Georgian program software. The Agency will develop technological infrastructure. A special attention will be paid to the formation of the export oriented IT industry, as well as innovative start-ups and creation of technology companies and the increase of the effective use of innovation and technology.

Both financial and non-financial institutions are being created in order to achieve the agency goals. The Technology and Innovation Agency of Georgia will form the infrastructure for the innovation and technology commercialization, including technology parks, innovation centres, accelerators and innovation laboratories.

Tech Park in ICT (at the Ministry of Economy and Sustainable Development).

Cooperation Agreement between the HTP and Georgia`s Innovation and Technology Agency regarding the development of business relations in the IT sphere, joint development of information technologies, improvement of professional education and training for IT specialists was signed on April 16 2014 during the visit of a delegation from Georgia to Minsk.

Agricultural Development fund (at the Ministry of Agriculture), for the support of small farmers in the regions;

New Program - “Produce in Georgia”

The coordinators of the program are the Ministry of Economy and Sustainable Development of Georgia and the Ministry of Agriculture of Georgia.

According to the Minister, the state program - Produce in Georgia is starting in Georgia with the goal of supporting enterprise development in Georgia, promoting local production especially in economically less developed regions; creating new enterprises and new jobs; increasing export potential.

The program budget is 46 million GEL, 30 million will be used for production and processing of agricultural products, and 16 million for production of industrial products.


8.3 Belarus

Could you please justifiably list the top-ten industries in your country in terms of contribution to the economy (GDP) Note: Please proceed to a medium- grain description of sector: Manufacturing Industries is too Coarse-grain and not helpful, Food Processing is Medium and acceptable; and so is Dairy Production if it is important to distinguish it from food in general; Milk Pasteurization is too fine and not necessary to reach.


Sector % Contribution to GDP Reference Number Note (if any) Trade; repairs of cars, household goods and articles for personal use

14.3 BY0101


8.4 BY0102

Transport and communications

7.1 BY0103

Construction 6.9 BY0104 Manufacture of coke, refined petroleum products and nuclear fuel

6.5 BY0105

Food products, including beverages and tobacco

5.8 BY0106


5.4 BY0107

Chemical industry 3.7 BY0108 Manufacture of machinery and equipment

3.0 BY0109


2.2 BY0110

Better to include an example to make it clear

(*) Please state references in the format XX01yy: Title or url


01: indicates it refers to question 1

yy: 01, 02, 03 ….


Source: National Statistical Committee of the Republic of Belarus, Statistical Yearbook of the Republic of Belarus 2013, http://belstat.gov.by/homep/en/publications/year/2013/about.php (data for 2012); National Statistical Committee of the Republic of Belarus, Industry of the Republic of Belarus 2013, http://belstat.gov.by/homep/ru/publications/prom/2013/Industry_2013.rar (data for 2012)

7. Could you please justifiably list the top-ten industries in your country in terms of contribution to employment Note: Please proceed to a medium- grain description of sector: Manufacturing Industries is too Coarse-grain and not helpful, Food Processing is Medium and acceptable; and so is Dairy Production if it is important to distinguish it from food in general; Milk Pasteurization is too fine and not necessary to reach.

Very complicate English, it’s necessary to make it simpler




Trade, repair of motor vehicles and household and personal goods

13.9 BY0201


10.0 BY0202

Education 10.0 BY0203 Construction 7.7 BY0204 Transport and communications

7.4 BY0205


7.0 BY0206

Health and social work

7.0 BY0207

Food products, including beverages and tobacco

3.6 BY0208

Manufacture of machinery and equipment

3.6 BY0209

Public administration

3.6 BY0210

Source: National Statistical Committee of the Republic of Belarus, Statistical Yearbook of the Republic of Belarus 2013, http://belstat.gov.by/homep/en/publications/year/2013/about.php (data for 2012); National Statistical Committee of the Republic of Belarus, Industry of the Republic of Belarus 2013, http://belstat.gov.by/homep/ru/publications/prom/2013/Industry_2013.rar (data for 2012)


8. Could you please list the KEY industries in your country to which Foreign Direct Investment, or direct Government Investment is directed

Note: In the absence of FDI data, a list of major corporate activities (buyouts, new companies formed) could provide indirect source of information



Reference Notes


5.62 billion USD BY0301



Chemical industry 1.17 billion USD BY0303 Manufacture of coke, refined petroleum products and nuclear fuel




Manufacture of basic metals and fabricated metal products




Manufacture of wood and products of wood


Financial activities 0.15 billion USD BY0309

Food products, including beverages, and tobacco


Source: National Statistical Committee of the Republic of Belarus, Statistical Yearbook of the Republic of Belarus 2013, http://belstat.gov.by/homep/en/publications/year/2013/yearbook_2013.rar (data for 2012)

Sector Share of investment by

Reference Notes


sector in total amount of investment


20.4% BY0301


16.1% BY0302

Transport and communication 12.6% BY0303


5.3% BY0304


5.0% BY0305

Chemical industry 4.9% BY0306 Food products, including beverages, and tobacco

4.6% BY0307

Manufacture of non-metallic mineral products

3.9% BY0308

Manufacture of wood and products of wood

3.0% BY0309

Community and other services 2.7% BY0310

Source: National Statistical Committee of the Republic of Belarus, Statistical Yearbook of the Republic of Belarus 2013, http://belstat.gov.by/homep/en/publications/year/2013/yearbook_2013.rar (data for 2012)

Note: In 2012, total amount of investment had reached 154.4 trillion BUR (18.5 billion USD).

Very important Note:

It might prove a bit tricky to get these data in some countries. If you feel that, please let us know beforehand and send us urls or docs with relevant information

9. Could you please justifiably list the Government Priorities for sectorial development?

This may take the form of Government Degrees, specific programmes for strengthening or modernizing specific sectors or similar initiatives. This information will help find small key sectors that despite ranking low in GDP contribution or FDI, still attract above average attention.

Some examples are needed to make more clear and easy to understand.


Sector Activity to promote the industry Reference Notes


Energy and energy efficiency

− construction and launch of the Belarusian NPP with the total capacity of up to 2,400 MW by 2018;

− 50% reduction in the energy intensity of GDP (from the 2005 level) by 2015 and 60% by 2020;

− up to 28–30% increase in the share of domestic energy resources in the boiler and furnace fuel mix in 2015 and up to 32–34% in 2020;

− overall increase in fuel and energy saving of at least 4.9 Mtoe in 2011–2015 and of at least 3.6 Mtoe in 2016–2020;

− construction of HPPs (total capacity of 250 MW by 2020), biogas plants (total capacity of 34.71 MW up to 2105), wind farms (total capacity of 162 MW by 2016)

Concept of Energy Security of the Republic of Belarus (for official use only) Strategy of Energy Potential Development in the Republic of Belarus, http://pravo.levonevsky.org/bazaby11/republic05/text183.htm National Energy Saving Programme for 2011–2015, http://www.pravo.by/main.aspx?guid=3871&p0=C21001882&p2=%7BNRPA%7D The State Program “Scientific support of development of nuclear power in the Republic of Belarus for 2009-2010 and for the period up to 2020”, http://www.pravo.by/main.aspx?guid=3871&p0=c20901116&p2={NRPA}

Information and communication technologies, Aerospace technologies

− construction of networks to render a complex of multimedia services;

− modernization and development of data transfer networks with a change to the Ethernet technology;

− development of digital TV and radio broadcasting;

− introduction of networks of mobile electric communication of the 4th generation;

− development of the services of data transfer (WiMAX, WCDMA, LTE);

− introduction of xPON technology; − launch of telecommunication and

navigation satellite;

National Programme accelerated development of services in information and communication technologies on the 2011 - 2015 years, http://www.mpt.gov.by/en/national-programme-24-05-2011/ State Program of Innovative Development of the Republic of Belarus for 2011-2015, http://pravo.by/main.aspx?guid=3871&p0=C21100669&p2={NRPA}

Medicine and pharmacy

− Development of new technologies for interventional and surgical treatments;

− Production of efficient medicines pursuant to the GMP requirements;

− Reconstruction and development of main domestic pharmaceutical enterprises (JSC “Borisov Pharmaceutical Factory”, RUE “Belmedpreparaty”, OJSC “EKZON”, etc.)

State Program of Innovative Development of the Republic of Belarus for 2011-2015, http://pravo.by/main.aspx?guid=3871&p0=C21100669&p2={NRPA} The State Program on development of import-substituting production of pharmaceutical substances, drug products and diagnostic tools in the


Republic of Belarus for 2010-2014 and for the period up to 2020, http://www.pravo.by/main.aspx?guid=3871&p0=C20901566&p2={NRPA}

Production of machines and equipment, electric equipment, electronic and optical equipment, vehicles

Creation of production of:

− trucks; − electromechanical and hybrid power

plants; − diesel motors; − modern vehicle components and on-

board electronics; − quarry and road equipment, − spherical bearings with the modern

level of technologies and equipment.

State Program of Innovative Development of the Republic of Belarus for 2011-2015, http://pravo.by/main.aspx?guid=3871&p0=C21100669&p2={NRPA}

Microbiology and biotechnologies

− development of the legal framework for researches in biotechnologies;

− creation of specialized S&T parks (e.g. Republican Center for Genetic Marking and Certification of Plants, Animals, Microorganisms and Human );

− creation of International center for cell technologies;

− Development of biotechnologies related to further study of functioning of the cell genetic apparatus (genomics, proteomics, cell engineering, etc.);

− share of import substitutes of medical biotechnologies is 20.6% of total imports for 2010–2013

State Program of Innovative Development of the Republic of Belarus for 2011-2015, http://pravo.by/main.aspx?guid=3871&p0=C21100669&p2={NRPA} State Program “Innovative Biotechnology” for 2010–2012 and for the period up to 2015, http://pravo.by/main.aspx?guid=3871&p0=C20901386&p2=%7BNRPA%7D

Nanotechnology industry

Development and introduction of nanotechnologies and technologies of creating nanomaterials in the production of:

− the equipment of the process level to 65 nanomicrons for industrial application in the new-generation microelectronic production;

− nanoscale structures and coatings, including on semiconductor wafers;

− magnet, ferroelectric, semiconductor, superconductive, radiation-resistant, quantum-scale, nonlinear optical, and superhard materials etc.

State Program of Innovative Development of the Republic of Belarus for 2011-2015, http://pravo.by/main.aspx?guid=3871&p0=C21100669&p2={NRPA}


10. Could you please justifiably list the major leading export industries in your country? Note: Please proceed to this description based on either Governmental or Private Sources (Ministry of Economy or Reports on country by leading Consulting Firms, etc.).



Reference Number

Note (if any)

Mineral fuels, oil and petroleum products

36.0% BY0501

Chemical industry 16.5% BY0502 Manufacture of vehicles, aircraft, vessels and associated transport equipment

10.4% BY0503


6.7% BY0504

Animal husbandry and products of animal origin

6.4% BY0505


5.4% BY0506

Plastics and rubber 3.9% BY0507 Food industry including alcohol and tabaco

3.3% BY0508

Manufacture of textiles and textiles products

3.1% BY0509

Source: National Statistical Committee of the Republic of Belarus, Foreign Trade of the Republic of Belarus 2013, http://belstat.gov.by/homep/en/publications/ftrade/2013/about.php (data for 2012)

11. Could you please provide any other relevant information that should be considered in defining the industrial priorities of your country? This may be answered in free format. Interesting information may include among others Transnational Agendas, Bilateral Agreements etc. applied for your country. Belarus is participating in the EurAsEC interstate targeted program “Innovative Biotechnology” for 2011-2015 (total funding of the program for 2011-2015 will make up RUB926.6 million)

There were four programmes of Union State of Belarus and Russia:

• Two programmes to create a supercomputer: Union State of Belarus and Russia Programme “SKIF” for 2000-2004 and Union State of Belarus and Russia Program “SKIF-GRID” for 2000–2005;

• Union State of Belarus and Russia Program “Space-NT”for 2008–2011 (development of basic elements and technologies of multifunctional space system);

• Union State of Belarus and Russia Program “Stem Cells” for 2011–2013 (development of new methods and technologies of therapy of pathologic tissues and organs using stem cells


8.4 Kazakhstan

Question 1:


Important Notes

Note 1: A listing like: Manufacturing will not help as it is too generalistic; On the contrary, an entry like “Milk production” is too narrow. Optimum entry would be “Food Processing”


XX: use two letters (preferably the ending of url addresses to describe the country



KAZAKHSTAN


Mining and quarrying 16.5 KZ 0101

Wholesale and retail trade, repair of motor vehicles and motorcycles

15.6 KZ 0102

Processing industry 10.8 KZ 0103


8.6 KZ 0104

Transportation and warehousing

7.4 KZ 0105

Construction 5.9 KZ 0106

Professional, scientific and technical activities

4.8 KZ 0107


4.5 KZ 0108

Financial and insurance activities

3.0 KZ 0109

Information and Communication

2.5 KZ 0110

Source: Agency of statistics of the Republic of Kazakhstan http://www.stat.gov.kz/

Question 2:


Important Notes




Agriculture, hunting and forestry 24.2 KZ0201

Trade, repair of motor vehicles and 14.6 KZ0202


household and personal goods

Education 10.8 KZ0203

Construction 7.7 KZ0204

Transportation and warehousing 6.6 KZ0205

Processing industry 6.4 KZ0206

Health and social services 5.0 KZ0207

Public administration and defense; compulsory social security

4,7 KZ0208

Mining and quarrying 2.9 KZ0209


2.1 KZ0210


Question 3:


Important Notes


Answer 1: FDI


Reference Notes

Trade, repair of motor vehicles and household and personal goods

307,4 million USD KZ0301

Financial activities 167.0 million USD KZ0302

Construction 148,7 million USD KZ0303

Information and communication


Electricity, gas, steam and air conditioning






Food products, including beverages, and tobacco






KAZAKHSTAN

Sector Share of investment by Reference Notes


sector in total amount of investment

Mining and quarrying 34.6% KZ0301


15.6% KZ0302


12.3% KZ0303

Manufacturing industry 11.7% KZ0304

Electricity, gas, steam and air conditioning

6.3% KZ0305

Education 3.2% KZ0306

Water supply; sewerage system, control over the collection and distribution of waste

2.7% KZ0307


2.4% KZ0308

Wholesale and retail trade; repair of motor vehicles and motorcycles

1.9% KZ0309

Construction 1.3% KZ0310


Question 4:

Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc?)


Oil and Gas Sector

Stimulation of development of productions with higher added value, formation of auxiliary, servicing and processing blocks of small and medium-sized enterprises by means of outsourcing and strengthening of local content in big projects and also formation of clusters around big strategic companies by means of consolidation of efforts of servicing and auxiliary enterprises.

Reconstruction of vacuum block of ELLOW-AVT-3 assembly and deferred carbonization assembly of Atyrau OPF (Atyrau oblast) with vacuum block power - 1,8 million tons/year and deferred carbonization assembly power - 1,0 million tons/year.

Modernization and reconstruction of Shymkent OPF (South-Kazakhstan oblast) with oil processing power - 6,0 million tons/year. Modernization and reconstruction of Pavlodar Oil and Gas Plant (Pavlodar oblast) with oil primary processing power - 6,0 million tons/year.

State Programme for Accelerated Industrial Innovative Development (SPAIID) 2010-2014

http://mtc.gov.kz/index.php/ru/gpfiir-na-2010-2014 http://www.mint.gov.kz/index.php?id=198&lang=ru

Program for the development of the mineral resources sector in the Republic of Kazakhstan for 2010 - 2014 years

http://geology.gov.kz/en/activity/sectoral-program

Petroleum Creation of oil and gas production on deep processing of State Programme for Accelerated


chemistry raw hydrocarbons for output of basic oil and gas products with high added value using technological interaction products of deep processing, primary processing products with OPF, GPP. For these purposes there shall be realization of the following investment projects: Integrated gas chemical complex of basic oil and gas products manufacturing with capacity of 1,3 million tons products per year, considering hydrocarbon gas processing of Tengizского occurrence (Atyrau oblast). Terms of realization of the project: 2009 - 2014.

Bituminic Plant on the basis of Aktau Plant of plastic mass (processing of heavy Karazhanbass oil) with capacity of 500 thousand tons of paving bitumen appropriate for Kazakhstan climatic conditions (Mangistau oblast). Terms of realization of the project: 2010 - 2011. Construction of the complex on Atyrau OPF on aromatic hydrocarbons production, benzol - 133 thousand tons/year, paraxylene - 496 thousand tons/year

Construction of enterprises of small and medium-sized businesses in the sphere of auxiliary processing of basic oil and gas products and output of innovative products of industrial and consumer designation with high added value (pipes, membranes, dishes, package, other details of manufacturing and household designation).

Industrial Innovative Development (SPAIID) 2010-2014


Ore mining and smelting

-Organization of manufactures of the main (basic) metals by big enterprises; organization of final products manufactures of high processing on the basis of main metals by enterprises of small and medium-sized businesses.

-Implementation of complex of measures on stimulation of ore and concentrates export share reduction for complex processing of mineral raw materials. The subjects for production development aimed at new processing and oriented on export are: in iron industry – realization of a big project on increase of steel production capacity up to 6 million tons per year and construction of accessory plant with capacity of up to 4 million tons of steel per year (Karaganda oblast). in nonferrous-metals industry - production of primary aluminium will be increased to 125 thousand tons.

-Construction of a new plant of primary aluminium manufacture with capacity of 250 thousand tons per year (Pavlodar oblast).



Chemical industry

Production of sodium hydrate of membranous method - 30 thousand tons/year and other products - chlorine, sodium hypochlorite (Pavlodar oblast);

dipping acid production (Akmolinsk oblast); nitrogen-phosphate fertilizer production - no less than 1 million tons/year (Ushbas and Geres occurrences in South-Kazakhstan oblast); construction of mining and concentrating factory and sulfuric plant with capacity of 650 thousand tons/year (Zhambyl oblast).




Atomic industry

1. Exploration work in Shu-Sarysuy and Syrdarya uranium - mining provinces for the purpose of uranium mineral resources base production and development and extraction of new mines with massive construction of a new APS proclaimed by many countries. 2. Conducting geological exploration to increase explored reserves of uranium;

3. Continuation of work on capacity expansion of existing mines;



Machinery

Modernization of operating enterprises in order to create flexible manufactures of widening of output assortment and develop new types of mechanic engineering products. Organization of big assembling manufactures with increase of localization level by development of details and assemblies production. Creation of new modern enterprises of mechanic engineering production with high added value. Assembling production of automobiles and assemblies with localization level up to 30 % will be organized in transport mechanic engineering to 2015.

In agricultural mechanic engineering: increasing of combine’s production up to 650 units per year, assembling production of tractors and attached equipment in volume of 1 thousand units per year. In oil and gas mechanic engineering: in 2015 the production of valves, liquid pumps and drilling machines will be increased. In mining mechanic engineering: increasing of the production of equipment for the mining industry in 2015. In electro technical mechanic engineering: Increasing of the production of accumulators, transformers and insulated cables , developing of the production of transformers with pressure of 220 kV and more



Pharmaceutical industry

- Modernization of operating manufactures and construction of new pharmaceutical enterprises within the framework of the field development. - Creation of new manufactures of solid dosage forms (tablets, gel caps, pills)



Construction engineering and constructional materials production

By 2014 the output of cement in the cement production will be brought to 13.5 million tons/year on 5 operating enterprises and 4 new enterprises (in Akmola oblast, Zhambyl oblast, East-Kazakhstan oblast and Mangistau oblast), 5 clinker-cement terminals will be built in Mangistau, Aktubinsk, West-Kazakhstan, Pavlodar oblasts and in Almaty city with total capacity 2.1 million tons/year, technical retooling of operating cement factories will carried out and the degree of depreciation of basic investments will be decreased to 30 %. By 2014 the output of ceramic tiles in the ceramics manufacture will be brought up to 13 million m2/year, the production of sanitary-engineering ceramics up to 1 million items/year will be provided in Aktobe, Almaty and




South Kazakhstan oblasts, the processing combine for processing clay with capacity of 200 thousand tons/year will be built.

Agro-industrial complex

Increase the volume of production in the agricultural units through transfer of the branch on an industrial basis, the development of the brood base, improvement of the genetic potential of livestock.

Establishment of facilities for semi-fabrication, processing and storage through cooperation of agricultural commodity producers



Program for agricultural development in the Republic of Kazakhstan for 2013-2020

http://mgov.kz/mery-gosudarstvennoj-podderzhki/

Light industry

In the forthcoming period, major industry development trends related to the creation of incentives for modernization and diversification of productions on processing of local raw materials (cotton, wool, leather) in the textile, garment, leather and footwear industry.



Information and Communication Technologies

Establishment of target architecture of “electronic government”;

Creation of info-communications infrastructure for information exchange within the Customs Union;

Elaboration of new electronic services including services in the sectors of social protection, health, transport and communications and agriculture; Introduction of information systems of electronic licensing, electronic notaries and electronic procurement.

Creation of electronic commercial platform for business;

Creation of national Internet-resources, including news, multimedia, social networks

Establishment of enterprises for assembly and maintenance of equipment of international companies that are major suppliers of public sector, based on the FEZ “Information Technology Park “Alatau” in Almaty city



Program for Information and Communication Technology Development in the Republic of Kazakhstan, 2010 - 2014.

http://www.mpt.gov.by/ru/new_page_5_3_15098/

http://www.detrix.kz/documents/programma-po-razvitiyu-iks-v-rk-na-2010-2014-gg/

State Programme "Information Kazakhstan - 2020".

http://strategy2050.kz/en/page/gosprog4/

Biotechnologies Creation of new domestic test systems based on the use of genomic technologies for the diagnostics of socially

State Programme for Accelerated Industrial Innovative


significant diseases;

Development of technology and pilot production of original medicinal drugs based on genetically engineered recombinant substances;

Creation of a center for developments in the field of transplantation of organs, stem cells, medicine of longevity and elaboration of a methodological basis for their use in regenerative medicine and cell therapy;

Creation of production on output of diagnostics and vaccines that meet international standards of good manufacturing practice (GMP);

Creation of collection of microorganisms and biotechnological productions on output of starter cultures, food protein, amino acids, enzymes and bio-conserving agents;

Nurture of highly productive, competitive varieties of plants for agricultural purposes;

Development of ecologically clean biological methods of protecting plants from pests and diseases;

Creation of consortiums of microbial strain to use for the purpose of bioremediation of oil-contaminated soil and water ecosystems;

Development of methods for phyto-remediation of soils contaminated with heavy metals and pesticides through the use of plants-hyper-accumulators;

Nurture of highly productive breeds of animals.

Development (SPAIID) 2010-2014


Space activities

Creation and development of target space systems and their use involve:

- systems of the satellite communication and broadcasting “KazSat” for provision of services of space communication systems in the domestic market with a phased exit to foreign markets;

- the space system ERS for delivery of services for data reporting ERS in domestic and foreign markets;

- Space system with scientific purpose for solution of tasks of development of the space science and technology, research of earthquake precursors.

Provision is made for the development of the National Space Monitoring System (NSMS) to meet demand in the domestic and foreign markets in the ERS data with a high level of processing and value added.



Alternative energetics

- Building of the first wind power

-Construction of wind turbines with installed capacity of 125 MW with generation of electric power 400 million kWh.

- Commissioning of new small hydropower stations with total installed capacity of over 100 MW with planned production of electric energy - 300 million kWh.



Atomic energetics, Energy and

- Construction of new electric power facilities,

- expansion and renovation of existing ones,

State Programme for Accelerated Industrial Innovative Development (SPAIID) 2010-


energy efficiency

- upgrading the national electrical network,

- the effective use of available energy resources on the basis of development of forecast balances.

2014


The Programme “Productive efficiency 2020”

http://www.mint.gov.kz/index.php?id=130

Question 5:


Important Notes


KAZAKHSTAN

Sector % of Exports or Direct figure Reference Number Note (if any)

Mineral fuels, oil and petroleum products

81,6% KZ0501


7,1% KZ0502

Animal husbandry and products of animal origin

3,2% KZ0503

Chemical industry 2,6% KZ0504


1,1% KZ0505

Manufacture of textiles and textiles products

0,2% KZ0506


Question 6:


The main programmatic document is the State Programme for Accelerated Industrial Innovative Development (SPAIID) 2010-2014, part of the Development Strategy 2020 that was approved in 2010 and covers the period 2010-2020. In addition to the SPAIID, the Development Strategy 2020 includes a Health Programme, Education Programme, Language Programme and others. SPAIID has 13 Sectoral programmes and ten functional programmes. It builds on earlier measures and includes regional development plans and sector plans.

SPAIID is a logical continuation of the policy of economic diversification, and included basic approaches of Strategy of Industrial and Innovation Development for 2003-2015, «30 Corporate Leaders of Kazakhstan», as well as other policy documents in the field of industrialization.

8.5 Azerbaijan

Question 1:



Important Notes

The manufacturing industry in Azerbaijan is primarily comprised except the oil and gas sector engineering, metallurgy, electro-energy, food processing. Light industrial manufactures include cotton and woollen textiles, knitwear, traditional household items and souvenirs, footwear, and other consumer goods. Contribution of Manufacturing to GDP, to employment and share in investments are not large. So statistics is given for Manufacturing as a whole.


Mining and quarrying 40,1 AZ0101

Construction (building) 11,8 AZ0102

Trade: repair of transport means

7,1 AZ0103

Agriculture, forestry and fishing

5,3 AZ0104

Transportation and storage

4,8 AZ0105

Manufacturing 4,2 AZ0106

Electricity, gas, stream production, distribution and supply

1,9 AZ0107


1,8 AZ0108

Question 2:


Important Notes





37,1 AZ0201

Trade; repair of transport means

14,7 AZ0202

Education 8,1 AZ0203

Construction (building) 7,2 AZ0204

Public administration and defense; social security

6,2 AZ0205

Manufacturing 5,0 AZ0206


4,1 AZ0207

Information and 1,3 AZ0208


communication

Question 3: Can you please list the top – seven industries in your country in terms of Foreign Direct Investment, or Government - led Investment (any of the two would do, if both available even better)

Important Notes


Answer 1: FDI


Reference Notes

Extraction of crude petroleum and natural gas, provision with services in this field

3,20 billion USD AZ0301

Transport 0,45 billion USD AZ0302

Construction (building)


Electric power generation, transmission and distribution


Water treatment and distribution




Administrative and support service activities





Sector Share of investment by sector in total amount of investment %

Reference Notes

Transportation and storage 18,7 AZ0309

Transport

18,6 AZ0310

Real estate activities 11.4 AZ0311

Extraction of crude 10,9 AZ0312


petroleum and natural gas, provision with services in this field

Manufacturing 7.1 AZ0314

Water supply; waste treatment and disposal

5.6 AZ0315

Trade; repair of transport means

4.4 AZ0316

Question 4:

Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc?)


Oil and gas sector

Modernization of the oil and gas sector and the Petrochemical industry:

to build, reconstruct and modernize systems for the extraction, transportation and refining of oil and gas

to build a complex consisting of oil and gas refineries and petrochemical factories

establish a production chain up to the manufacture of the end product, increase the competitiveness of finished products

Expand export and the range in this field.

Development Concept “Azerbaijan 2020: A Look into the Future”, http://www.president.az/files/future_en.pdf

The decree of the President of Azerbaijan Republic Ilham Aliyev on approving Development Concept “Azerbaijan 2020: A Look into the Future”, 29 December, 2012

Alternative and renewable energy sources

to carry out stimulating measures to speed up the use of alternative (renewable) energy sources

develop the institutional environment

strengthen the scientific-technical potential

continue training specialists and enlighten energy consumers

promote involvement of the private sector in this process along with projects carried out by the state in this field

regulation of alternative energy tariffs



Aluminium industrie

increase the production of first aluminium

establish a technological chain up to the production of the end product with the involvement of the private sector

expand the potential of export in this

sphere

Development Concept “Azerbaijan 2020: A Look into the Future”



Further development of districts

formation of the industrial estate infrastructure and creation a special economic zones in economic districts taking into account economic potential including:

- industrial estates for the processing of petrochemical products in Sumgayit

- processing of domestic waste in Balakhani

- production of metal (aluminium) products in Ganja



Tourism improve legislation and standards regarding this sphere

full use of the tourism potential of the Caspian Sea

Agrarian sector

Encourage farmers to join farming traditions on a voluntary basis

strengthen melioration and irrigation measures to prevent soil erosion, the salination of irrigated sowing areas and to increase fertility

to take purposeful measures to protect genetic reserves and biodiversity and to improve the production of saplings and seedlings, and breeding work

improve scientific support and staff training

strengthening of food security



Science improve the scientific infrastructure

modernize the material-technical basis of science

digitalization of information support systems in this sphere will be ensure

strengthen the link between science and production

increase innovative activity, make effective use of innovative potential and ensure development

to strengthen measures to transfer and use advanced technologies and to create industrial parks and innovative zones to develop and apply science intensive products and technologies



Transport to develop transit and transport services and form logistical centres in the regions of the country

to bring the country’s road and transport


The decree of the President of Azerbaijan


infrastructure in line with international standards

complete the construction of the International Sea Trade Port in Alat

to build a transport-logistical centre

restore and modernize the Baku-Boyuk Kasik and Baku-Yalama railways

put into operation the Baku-Tbilisi-Kars railway

Republic Ilham Aliyev on approving Development Concept “Azerbaijan 2020: A Look into the Future”, 29 December, 2012

ICT Implementation of the project “Fiber to homes”. The Ministry of Communications and Information Technologies and the State Oil Fund (SOFAR) have worked out a project to establish optical network. The main goal is to provide access to broadband Internet at speeds of 10-100 Mbps, including remote villages, to increase the number of users to 85 percent, which will allow Azerbaijan to reach the level of developed countries in the world in 2017.

Laying the Trans-Eurasian Information Super Highway (TASIM). Backed by two special resolutions from the UN General Assembly, TASIM project envisages laying of fiber-optic backbone that will connect Hong Kong with Frankfurt and thus provide vast Eurasian space with high-speed Internet.

Complete launching of network terminals of ASAN (Azerbaijan Service and Assessment Network) being a part of Single portal “Electronic Government”. Currently the portal is operating on the principle of “single window”: provides the population with 219 (out of 417) e-services from 41 state agencies

Launching of low-orbit optical satellite in 2015, the second telecommunications satellite in 2016 the development of electronic services

development of the activities of the National Centre for Electronic Security

keeping the annual growth of ICT at about 18-20 percent in the next eight years to bring the income of the sector to $8-9 billion

strengthening of competitive and export-oriented ICT potential

to optimize Telephone and Internet tariffs

Interview of the Minister of Communications and High Technologies to Rossiyskaya Gazeta, 29.03.2013; to The Report Company, October 2013

The decree of the President of Azerbaijan Republic Ilham Aliyev, 16January, 2013 declared the “Year of information communication technologies in Azerbaijan”.

The decree of the President of Azerbaijan Republic Ilham Aliyev “On creation of the High-Tech Park”, 05 November, 2012




replace TDM telephone exchanges with IP telephone exchanges,

to expand use of Wi-Fi technology

to complete the establishment of 4G CDMA stations and the organization of universal telecommunications and post services

set up a State Fund for the Development of Information Technologies

Question 5:


Important Notes


Sector % of Exports Reference Number Note (if any)

Crude oil 84,63 AZ0501

Petroleum products 5,53 AZ0502

Natural gas 2,71 AZ0503

Vegetables and fruit 1,11 AZ0504

Vegetable and animal oils 0,93 AZ0505

Chemicals 0,73 AZ0506

Ferrous metals 0,47 AZ0507

Alcoholic and non-alcoholic beverages

0,09 AZ0508

Question 6:


2014 was declared The Year of Industry in Azerbaijan and special Action Plan in connection with declaration of 2014 the Year of Industry has been approved. In action Plan particularly, formation of Innovation Promotion Group consisting of representatives of scientific organizations, government agencies and enterprises for promotion of innovative proposals in industry is envisaged.

8.6 Armenia

Question 1:


Answer from ARMENIA


Agriculture 19.9 AM0101

Food Processing 8.5 AM0102


Mining and Quarrying 2.9 AM0103

Energy 3.4 AM0104

Construction and Real Estate

18 AM0105

IT, Telecom and Engineering

2.0, 4.2, 0.3 AM0106

Financial Services 4.0 AM0107

Retail and Trade 13.4 AM0108

Health Care 3.8 AM0109

Tourism 4.5 AM0110

Question 2:


Answer from ARMENIA



Agriculture, forestry and fishing 38.9 AM0201

Wholesale and retail trade, repairof motor vehicles and motorcycles

9.45 AM0202

Manufacturing 6.74 AM0203

Public administration and defense; compulsory social security

6.6 AM0204

Transportation and storage 4.14 AM0205

Electricity, gas, steam and airconditioning supply

2.19 AM0206


1.68 AM0207

Information and communication 1.45 AM0208

Mining and Quarrying 1.32 AM0209

Accommodation and food service activities

1.1 AM0210

Question 3:


Answers from ARMENIA

FDI

Sector Activity or FDI Reference Notes


cumulative amount

Mining

9% AM0301

Processing Industry 30% AM0302

Electricity and Gas 13% AM0303

Telecommunication 28% AM0304

Real estate

8% AM0305

Other 12% AM0306

Question 4:

Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc.)

Answer from ARMENIA


Industry and export promotion

- Special tax and customs regimes: a) Special tax and customs regimes for exporting companies, b) Deferred VAT for goods imported under investment goods and programs, c) A number of free trade zones with use of PPT toolkit (particularly on the area of Zvartnots airport and Mars company) with application of relevant tax and customs regimes.

- Financial support and ensuring access to financing:a) Loans at special terms (e.g. for investments aimed at implementation of qualityassurance system, export expansion, creation of jobs),b) Provision of export guarantees,c) Provision of credit guarantees,d) Own capital funding,e) Participation in investment funds.

- Access to markets:a) Identification of goods with export potential and potential partners,b) Presentation and protection of interests of exporters through traderepresentations,c) Support to participation in exhibitions,

- Organization of incoming and outgoing business visits and conferences,e) Branding of countries and specific sectors in target markets,f) Support to involvement of trade representatives in target markets.

- Capacity building/increase of competitiveness:a) Co-funding of human resources training programs,b) Provision of technical and financial assistance to companies in implementation ofinternationally recognized quality assurance systems,c) Support to sharing technologies and knowledge, including using potential andcontacts of the Diaspora.

Armenia Development Strategy

for 2014-2025,AnnexTo RA Government Decree # 442 – NOn 27th of March, 2014


- Promoting research studies and developments:a) Foundation of technoparks and industrial parks,b) Provision of grants for joint researches and developments by companies and highereducational institutions,c) Creation of venture funds.

Tourism development

- The main sector policy directions ensuring the abovementioned high development rates inthe sector of tourism will be the improvement of relevant infrastructures through PPP toolsets,particularly the policies of reduction of high transport costs related to entry to and exit fromArmenia.

- Diligent implementation of already initiated strategies on touristic centers’ development(Jermuk, Tsakhkadzor, Dilijan and others) will play an important role. Implementation of suchprojects is important from the viewpoint ofbalanced development of the regions.

- The latter policy includes implementation of 'open sky' approach with involvement of lowcostairline companies, demonopolization of railway market, and ensuring competitiveness, creation and upgrading of tourism infrastructures out of Yerevan, as well as promotion of involvement of international hotel operators.



Information technologies’ sector development

- Continuation of establishment of techno parks, incubators and other IT infrastructures being implemented through PPP toolsets,

- Support to universities in implementation of modern curricula and acquisition of necessary laboratories, through promotion of their cooperation with private sector,

- Implementation of favorable tax policy promoting export potential in the sector,

- Implementation of state-support programs for SMEs and start‐ups involved in the IT sector, including access to markets, professional trainings and ensuring access to information,

- Direct support to IT companies offering innovative products or services.



Agriculture and rural development

- Development of commercial agricultural organizations, cooperatives and family farms integrated with market infrastructures through application of intensive technologies;

- Stable food security of the population and meeting demands of agriculture processing raw materials through realistic combination of food security interests and comparative advantage of external trade of agriculture and food products;

- Increase of gross product in agriculture due to increase of labor productivity, comparative reduction of the number of people employed in agriculture and use of part




of surplus workforce in nonagricultural sphere through agriculture service and trainings.

- Processing of produced agriculture raw materials at SME production units;

- Domination of production of agriculture products with high added value in the plant cultivation and animal husbandry intra-branch structure;

- High level of food security of the country population, ensuring self-sustainability for basic foodstuffs, reduction of rural poverty and migration.

SME creation and ensuring their adequate activities

- Continue and expand loan state guarantee practices for acting and start-up SMEs that have potential in export, import substitution or knowledge production, giving priority to businesses acting in Marzes.

- Support to development of beginner businesses including measures directed at capacity building and skills development, business planning, and ensuring access to finance for beginners. Particular programs will be targeted at promoting business among women and young people.

- Provide access to finance, through elimination of obstacles and application of adequate management tools in situations with inadequate or illiquid collateral and high risks.

- Educational and counseling support, especially if acting market mechanisms fail providing them or involve big transaction costs. Specific state programs will be aimed at capacity development of companies rendering business services.

- Direct support to acting and beginner SMEs to ensure access to markets and to provide information related assistance. Enterprises will receive support for developing websites, advertising billboards, product packaging, and branding.

- Ensuring access to state procurement system for SMEs. Procurement procedures which create unjustified obstacles for relevant sector SMEs will be revised.



Question 5: Could you please list the leading seven export industries in your country? Answer from ARMENIA



Agricultural products 4.9% AM0501

Processed food 18.5% AM0502

Mining products 29.2% AM0503

Construction materials 1.3% AM0504

Chemical products, plastics, rubber

1.8% AM0505


Precious and semiprecious stones and metals

12.5% AM0506

Non precious metals and products made of them

24.8% AM0507

Machinery, equipment and mechanisms

3.0% AM0508

Question 6: Could you please provide any other relevant information that should be considered in defining the industrial priorities of your country?

Example Answer from BELARUS

Belarus is participating in the EurAsEC interstate targeted program “Innovative Biotechnology” for 2011-2015 (total funding of the program for 2011-2015 will make up RUB926.6 million)

There were four programmes of Union State of Belarus and Russia:

Two programmes to create a supercomputer: Union State of Belarus and Russia Programme “SKIF” for 2000-2004 and Union State of Belarus and Russia Program “SKIF-GRID” for 2000–2005;

Union State of Belarus and Russia Program “Space-NT”for 2008–2011 (development of basic elements and technologies of multifunctional space system);

Union State of Belarus and Russia Program “Stem Cells” for 2011–2013 (development of new methods and technologies of therapy of pathologic tissues and organs using stem cells)


8.7 Ukraine

Question 1: Can you please list the top – seven industries in your country in terms of contribution to GDP?

Answer from UKRAINE*


Wholesale and retail trade; repair of motor vehicles

26.88 UA0101


19.92 UA0102

Financing and insurance activities

9.58 UA0103

Mining and quarrying 8.76 UA0104


8.13 UA0105

Manufacturing 7.84 UA0106

Real estate activities 5.16 UA0107

*http://www.ukrstat.gov.ua/

Question 2: Can you please list the top – seven industries in your country in terms of contribution to employment?




Trade and repair of motor vehicles and items of everyday use

19.99 UA0202


19.92 UA0201

Manufacturing 19.87 UA0203

Health care and social support

5.51 UA0204

Public administration 5.21 UA0205

Transportation and communication

5.19 UA0206

Education 5.09 UA0207



Answers from UKRAINE*


Reference Notes

Financing and insurance activities 29.71% UA0301

Manufacturing 25.28% UA0302


Wholesale and retail trade; repair of motor vehicles

11.10% UA0304

Metallurgical production 11.08% UA0303

Real estate activities 7.23% UA0305

Food, drinks and tobacco manufacturing

5.55% UA0306

Professional, scientific and technological activities

5.21% UA0307


Question 4: Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc.)


Public administration

The Concept of e-Government in Ukraine until 2015: According to the State Agency for Science, Innovations and Information of Ukraine, a common information and telecommunications infrastructure of central and local government agencies will be established until 2015 as part of the third stage of electronic government development. The concept of electronic government was approved by the Cabinet of Ministers of Ukraine. Under the concept, the first stage (until 2012) foresees the development of legal and regulatory framework required for the provision of administrative services electronically, the creation of common standards for interaction between the subjects of e-government and a common national system of electronic document circulation, as well as the provision by central and local government agencies of services to citizens electronically. The second stage (until 2014) foresees that services will be provided in electronic form in all spheres of public life.

Edict of the Cabinet of Ministers of 13 December 2010


Information technologies’ sector development

- The National Programme of Informatization was developed by the State Agency for Science, Innovations and Information following the Law of Ukraine “On the National Program of Informatization” and the Regulations on forming and implementing the National Program if Informatization.

The National Program of Informatization is a complex of correlated separate tasks (projects) of informatization, which aim to realize the government policy and priority vectors of building a modern information policy.

The main results of the implemented tasks of the program will be: hardware-software complex of managing the National system of indicators (indexes) of knowledge society development; a new version of the hardware-software complex of the National register of electronic information resources, register model of software used by the governmental institutions; findings revealing the compliance of the Program tasks to the priority vectors of the state

policy in the field of informatization and to the high-end level and trends of informatization development in the world.

- Open World Project provides creation of a national information and communication network based on technology 4G, which will be used primarily for the purpose of school education. Implementation of this project will serve as an example that Ukraine can be in the forefront of world innovations. Today only a small part of Europe covered by this technology, which allows carry out electronic certification, voting, singular cadastral system, electronic tax administration, coordination of traffic system, rescue system and so on. And the most important is that, this system radically will improve the quality of education in the country and ensure effective integration of the Ukrainian education into European educational system. In the framework of the project 1.5 million schoolchildren will receive net books, Ukrainian educational software and Internet access. The project significantly enhances the general competitiveness of Ukrainian society and provides the conditions for future technological and innovative breakthrough.

Law of Ukraine of 04 February 1998

http://www.ukrproject.gov.ua/sites/default/files/upload/info_sheet_04_4_0.pdf

Agriculture and rural development

The State Target Programme of the Ukrainian Village Development up to 2015

Edict of the Cabinet of Ministers of Ukraine of 19


September 2007

SME creation and ensuring their adequate activities

The National Programme of Promotion of SMEs Development

The Law of Ukraine of 21 December 2000

Energy The State Target Programme of Energy Efficiency for 2010-2015

Edict of the Cabinet of Minister of 01 March 2010

Question 5: Could you please list the leading seven export industries in your country?



Reference Number

Note (if any)

Base metals and preparations thereof

27.7 UA0501

Mineral products 11.8 UA0502

Machines, equipment and mechanisms, electric and technical equipment

11.0 UA0503

Products of chemical and allied industries

6.8 UA0504

Finished food industry products 5.6 UA0505

Animal or plant fats and oils 5.5 UA0506

Ground, air and water transport facilities

5.3 UA0507



9.1 Uzbekistan

Question 1:


Important Notes

Note 1: A listing like: Manufacturing will not help as it is too generalist; On the contrary, an entry like “Milk production” is too narrow. Optimum entry would be “Food Processing”


XX: use two letters (preferably the ending of url addresses to describe the country



UZBEKISTAN : In 2013 GDP grew by 8%. High economic growth rates were supported by macroeconomic stability characterized by low inflation rate, state budget surplus and positive foreign trade balance. Main branches of Uz industry: electric power, fuel, metallurgy, chemical and petrochemical, machinery and metal-working, logging, woodworking, pulp and paper, building materials, light and food industries.

Source: http://www.economywatch.com/economic-statistics/Uzbekistan/

Sector % Contribution to GDP [2013]

Reference Number

Industrial output (in bil of UZS)

Industry 24.2 UZ 0101

Machine building and electrical industry

N/A 12,079.5

Chemical and petrochemical

N/A 3,311.7

Fuel N/A 9,629.8

Light industry N/A 7,955.5

Food industry N/A 8,059.6

Energy N/A 4,575.1

Ferrous metallurgy N/A 1,438.4

Non-ferrous metallurgy N/A 5,775.8

Woodworking, pulp and paper

N/A 763,6

Construction materials N/A 3,940.7

Flour milling N/A 1,844.5

Microbiology N/A 7,7

Printing N/A 602,0

Agriculture 17.6 UZ 0102

Construction 6.0 UZ 0103

Transport &Communication

11.9 UZ 0104

Services in communication and informatization

N/A Sector grew by 21.9% against the 2012 level, while computer programming services grew by 30.4%.


Within 2013 the number of broad-band high-quality access to Internet (xDSL, FTTx,

WiMAX, Wi-Fi) grew from 378,000 units to 575,100, while the number of users grew

from 202,700 to 289,000.

As of January 1, 2014 the number of entities providing access to the Internet accounted

for over 900. The number of agencies engaged in computer programming accounted

for 270. They elaborated 77,000 education resources, placed at electronic portal ZiyoNET. In frame of gradual transfer to digital television, the coverage of the population by digital television reached 45%.

Trade and public catering 8.5 UZ 0105 High growth in trade and public catering services was predominantly achieved by the growth in aggregate incomes of the population, expanded production of consumer goods, establishment of about 3,800

New entities of retail trade and 800 enterprises of public catering.

Others 23.8 UZ 0106

Net taxes 8.0 UZ 0107

Total : 100 Total GDP= $51.1 bil

Source: State Committee of statistics of the Republic of Uzbekistan http://www.stat.uz/

Question 2:


Important Notes


UZBEKISTAN : As of January 1, 2014 the number of people employed in the economy grew by 299,500 people or by 2.5% and accounted for 12,52 million people. Some positive changes were achieved in the structure of employment. In 2012 the public sector employed 19.3% of total employed population, while in 2013 employment in this sector declined to 18.8%. The number of people employed in industry declined from 13.0% in 2012 to 12.9% in 2013. The number of people employed in education and culture sphere declined from 13.4% to 13.1%. At the same time, the share of people employed in trade and public catering grew by 0.1 percentage points, representing 11% of the total number of the employed.

Sector % Contribution to employment [2013]


Industry 12.9 UZ 0201

Agriculture 26.9 UZ 0202


Construction 9.3 UZ 0203

Transport &Communication 5.3 UZ 0204

Trade and public catering 11.0 UZ 0205

Housing and public services 3.6 UZ 0206

Healthcare and physical training

7.4 UZ 0207

Education and culture 13.1 UZ 0208

Finance and loans 0.5 UZ 0209

Source: : State Committee of statistics of the Republic of Uzbekistan http://www.stat.uz/

Question 3: Can you please list the top – seven industries in your country in terms of Foreign Direct Investment, or Government - led Investment (any of the two would do, if both available even better) Important Notes


Answer 1: FDI

UZBEKISTAN: Foreign investment and loans represented 20.3% in total utilized investment compared to 21.6% in 2012. The volume of direct foreign investment and loans accounted for USD 2090 million, growing by 8.1% compared to the previous year. The volume of foreign investment under the guarantee of the government grew by 11.4% and accounted for USD 580,6 million. The sector structure of foreign investment changed in 2013. The share of foreign investment into fuel and energy sector grew from 30.2% to 35.0%. The share of foreign investment attracted by machine building dropped from 2.6% in 2012 to 1.4% in 2013.

Sector Share of investment by sector in total amount of investment, as %

Reference Notes

Production construction 94.9 UZ0301

Fuel and energy 35.0 UZ0302

Metallurgy 0.8 UZ0303

Chemical and petrochemical 3.7 UZ0304

Machine building 1.4 UZ0305

Light 3.6 UZ0306

Food 1.9 UZ0307

Construction materials 1.0 UZ0308

Agriculture 3.0 UZ0309

Transport and communication 40.3 UZ0310

Others 4.1 UZ0311

Non-production construction 5.1 UZ0312

Total 100

Source: State Committee of statistics of the Republic of Uzbekistan http://www.stat.uz/ Answer 2: Internal Investment

UZBEKISTAN : In 2013 total investment into economy from all sources of funding amounted to UZS 27 trillion 557,3 billion or increased by 9.8% compared to the corresponding 2012 level. The share of non-centralized sources accounted for 80.0% against 79.4% in 2012, which is explained by a considerable increase in investment from own funds of enterprises and of the public.


Sector Cumulative amount (local currency, billion UZS)

Reference Notes

Production sector 18.420.6

Fuel and energy 4.966.2 UZ0301

Metallurgy 908.1 UZ0302

Chemical and petrochemical 618.9 UZ0303

Machine building 832.4 UZ0304

Light 651.5 UZ0305

Food 488.6 UZ0306

Construction materials 519.8 UZ0307

Agriculture 1.173.7 UZ0308

Transport and communication 4.790.1 UZ0309

Others 3.471.3 UZ0310

Non-production sector 9.136.7

Housing construction 5.766.7 UZ0311

Education 742.1 UZ0312

Culture and art 167.1 UZ0313

Public healthcare 782.3 UZ0314

Communal facilities 626.7 UZ0315

Others 1.052.8 UZ0316

Source: State Committee of statistics of the Republic of Uzbekistan http://www.stat.uz/ Question 4: Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc.)

UZBEKISTAN : With President Decree of 15 December 2010 are defined the priorities of the industrial development of the Republic of Uzbekistan for the period 2011-2015. The decree emphasises on necessity of the development of a more detailed programme. Among the priority industries are the following: energy, oil, chemicals, textiles, automobiles


and pharmaceuticals, agriculture as well construction materials. The technical modernisation of the country is also announced as a priority. http://www.globaltradealert.org/measure/uzbekistan-priorities-industrial-policy-2011-2015 Decree of the President of the Republic of Uzbekistan dated December 15, 2010 N PP-1442 "On the priorities of industrial development of Uzbekistan in 2011 - 2015".

Targets of industrial development of diversification and its structure at 2011 - 2015 years, according to the Applications number 1, 1a *;

* Application number 1, 1are omitted.

It means that these data are Not Available.

Source: http://www.lex.uz/pages/GetAct.aspx?lact_id=1712436

Uzbekistan continues to reform public finances. In 2014 commenced the transition to medium-term budgeting, results-oriented. It relies on the process of financial programming for three upcoming periods, so the five-year priorities are not possible. Sectoral priorities of Uzbekistan based not so much on the branches, but rather on what should be done in each of the industries. For example, the modernization program implemented in all sectors of the economy, and the priority is to achieve high competitiveness.

Economic Forecasts | 2014-2030 Outlook, Source: http://www.tradingeconomics.com/uzbekistan/forecast

Sector 2020 2030

GDP 144 250

Unemployment persons 507 507

Trade

Export 5444 7825

Import 5421 7792

Business

Industrial Production 6 6


N/A N/A


Important Notes


UZBEKISTAN: As a producer of oil, natural gas, and gold and as the second largest exporter of cotton, natural resources dominate the country’s exports. Uzbekistan’s other exports include machines and equipment, and food. Uzbekistan’s main export partners are Russia, Turkey, China, Kazakhstan and Bangladesh.



Exports 100

Cotton fiber 7.7 UZ0501

Food products 9.8 UZ0503

Chemical products 4.0 UZ0504


Energy and oil products 31.1 UZ0505

Ferrous and non- Ferrous metals 6.3 UZ0506

Machinery and equipment 5.5 UZ0507

Services 16.2 UZ0508

Others 19.4 UZ0509

Source: State Committee of statistics of the Republic of Uzbekistan http://www.stat.uz/

EU Trade flows with Uzbekistan, annual data 2013 Source Eurostat Comext; Statistical regime 4

S0 Food and live animals S5 Chemicals and related prod, n.e.s.

S1 Beverages and tobacco S6 Manufactured goods classified chiefly by material

S2 Crude materials, inedible, except fuels S7 Machinery and transport equipment

S3 Mineral fuels, lubricants and related materials S8 Miscellaneous manufactured articles

S4 Animal and vegetable oils, fats and waxes S9 Commodities and transactions n.c.e.

Question 6:


UZBEKISTAN: A lot of information we mined from proceedings of Center of Economic Research http://www.cer.uz, particularly, from Journal “Economics of Uzbekistan” . Ministry of Economy of Uzbekistan working to develop medium-term program of development of industries for the years 2015-2020, the implementation of which will increase the share of industry in GDP to 35% from 24.2% in 2013. Currently, the government of Uzbekistan is implementing a similar program covering the 2011-2015 total value of $ 30.1 billion According to some estimates, the new program development of the industry until 2021 can include projects with a total cost of about $ 50 billion. The work on preparation of structural reforms of Uzbekistan for the 2030 period "Vision-2030" started in the frames of joint initiative of World Bank and the Government of Uzbekistan, also with support from UNDP. CER has been selected as one of the main national partners to develop this concept.

As a conclusion we included info graphics of investment program in industry for 2014.


9.2 Moldova

Question 1:




13,7 MD0101

Processing industry 11,4 MD0102


11,2 MD0103

Transport and communications

10,7 MD0104

Education 6.6 MD0105


5.3 MD0106

Financial activities 4.7 MD0107

Health and social assistance

4.3 MD0108

Public administration 3.9 MD0109

Constructions 3.5 MD0110

Question 2:





28.7% MD0201


15.9% MD0202

Processing industry 9.7% MD0203

Education 8.9% MD0204

Transports and communication

6.2% MD0205

Health and social assistance

5,7% MD0206

Constructions 5.6% MD0207

Public administration 5,4% MD0208


4% MD0209


Other community, social and personal service activities

3.2% MD0210


Answer 1: FDI (cumulative equity capital at 31.12.2012)


Reference Notes

Processing industry 584 mil. USD (25.2%) MD0301

Financial activities 563.2 mil. USD (24.3%) MD0302


394 mil. USD (17%) MD0303


243.3 mil. USD (10.5%) MD0304

Electricity, gas and water 194.7 mil. USD (8.4%) MD0305

Transport and communication 173.8 mil. USD (7.5%) MD0306

Health and social assistance 39.4 mil. USD (1.7%) MD0307


39.4 mil. USD (1.7%) MD0308

Answer 2: Investments in long term tangible assets by industrial activities (2012)

Sector Share of investment by sector in total amount of investment

Reference Notes

Electricity, gas and water 37.7% MD0301

Food and beverage industry 33.7% MD0302

Manufacture other of non-metallic mineral products

5.6% MD0303

Furniture industry 3.8% MD0304

Chemical industry 2.7% MD0305

Manufacture of machinery and electrical apparatus

2.4% MD0306

Manufacture of articles of clothing

1.8% MD0307

Question 4: Could you please list any specific Government Priorities for sectorial development in your country (as e.g. in five year plan or budget, etc.)


Transport Identification and implementation of projects to Transport and Logistics Strategy - 2013-


and communication

improve the national road network

Increase of Road Fund for roads maintenance, rehabilitation and upgrading

2022

To be approved by the government in 2014

http://www.mtid.gov.md/img/proiecte/MoldovaTLS_romanian-final.pdf

Information and communication technologies, Aerospace technologies

Pillar I: Access and infrastructure

Connectivity and network access improvement

Pillar II: Digital content and electronic services

Promoting digital content and services

generating;

Pillar II: Capacities and utilization

Strengthening literacy and digital

skills to enable innovation and usage

stimulation

National strategy for information society development “Digital Moldova 2020 ”

http://www.mtic.gov.md/img/d2011/proiecte/md2012/Digital_Moldova_2020_draft_Strategy_Eng-01.04.2013.pdf

Medicine and pharmacy

Concept of Integrated Medical Information System

Improving the efficiency and effectiveness of processes in the healthcare sector using ICT

National Health Policy 2007-2021

Health Care sector Strategy 2008-2017

http://lex.justice.md/md/326615/

National Strategy on building Information Society Digital Moldova contains a chapter dedicated exclusively for e-Health

http://www.mtic.gov.md/img/d2011/proiecte/md2012/Digital_Moldova_2020_draft_Strategy_Eng-01.04.2013.pdf

Agriculture Food safety reform

Restructuring and modernization of the wine industry

Support the development of a modern market infrastructure

Implementation of conservation agriculture

Sector Reform meat and milk production

Support the development of renewable energy production from agricultural waste

Reorganization of existing resources for education and research

Implementation of basic information to support the functioning of the food chain

National Strategy for Agricultural Development and Rural Environment in Moldova 2014 – 2020

http://www.maia.gov.md/public/files/Proiecte/ProiectStrategiaAgriculturaDezvRur.pdf

The strategic priorities for the activities of the Ministry of Agriculture and Food Industry of the Republic of Moldova during 2011 – 2015

http://www.maia.gov.md/doc.php?l=ro&idc=48&id=14664


Sector % of Exports or Direct figure Reference Number Note (if any)

Beverages, spirits and vinegar 10.4% MD0501

Electrical machinery and equipment and parts thereof

10.1% MD0502

Edible fruits and nuts 8.4% MD0503

Oilseeds 6.9% MD0504

Apparel and clothing accessories, not knitted or

5.9% MD0505


crocheted

Cereals 5.0% MD0506

Pharmaceutical products 4.7% MD0507

Articles of apparel and clothing accessories, knitted or crocheted

4.7% MD0508

Furniture 4.5% MD0509

Question 6: Could you please provide any other relevant information that should be considered in defining the industrial priorities of your country?

Example Answer from BELARUS

According to the Strategy for industry development for the period until 2015 year, point 71 (http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=317831), priority industrial sectors were set:

Food and beverages industry;

Industry of non-metallic mineral products;

Light industry;

ICT industry;

Machinery and equipment industry;

Chemical industry.

A more recent study conducted at national level “Moldovan economic sector analysis” (USAID, 2010), has focused on 6 sectors considered to be more competitive and a high development potential:

Textile and apparel sector;

Wine industry,

ICT industry;

Construction materials sector;

Furniture sector;

Footwear sector.

Documents

EAST-HORIZON Fostering Dialogue and Cooperation between the … · 2016-09-23 · 4.4 The Case of KAZAKHSTAN 22 4.4.1 Selection based on current importance of industry to the nation