Country Readiness Assessment Report – Kyrgyzstan . 5. National innovation capacities and capabilities and their effectiveness In the modern world science is the driving force of public progress and it requires a welleducated population to track innovations and understand their impact. In current times, progress depends not only on the level of scientific development in a country, but also on how deeply it penetrates into society. These observations are important for Kyrgyzstan where there have been rapid changes in the economy and society due to globalisation, and where the prestige of science has fallen to a worrying degree both at state level and in society According to the law “About Science and about Bases of State Scientific and Technical Policy” the central body responsible for carrying out state scientific and technical policy is the Government of the Kyrgyz Republic. The State Agency on Science and Intellectual Property under the Government of the Kyrgyz Republic is responsible for the realisation of state scientific and technical policy. All activities in the field of science and technology are regulated by the following normative acts: • • • • • • • • • Law of the Kyrgyz Republic “About Science and about Bases of State Scientific and Technical Policy” Law of the Kyrgyz Republic “About Innovative Activity” Regulations of the State Agency on Science and Intellectual Property under the Government of the Kyrgyz Republic Regulations of Formation and Realisation of the State Scientific and Technical Programs Regulations of Financing Scientific, Technical and Innovative Activity at the Expense of the Republican Budget Regulations of Organisation and Realisation of State (Independent) Scientific and Technical Examination of the Projects on Research and Design Concept on Reforming Science in the Kyrgyz Republic for the years1999 – 2005” Regulations of Elections of the Chiefs of the Research Institutions Regulations of Research Institutions The role of the state in this field is the creation of favourable conditions for the implementation of scientific projects, development of research, and utilisation of state-of-the-art technologies. To achieve these goals the following methods can be used: • • • • • attraction of investments; favorable tax policy; legal support for innovative solutions; provision of state financial support; and development of the banking system and financial market for high-tech industry. Priority directions for science and technology are determined by the economic situation in the country; global tendencies in science and technology; availability of raw materials; and market demand. Currently major priority directions are: • • • • health and environment; agriculture and consumer products; electric power production; development of mountainous regions; 36