Article 1. The basic concepts used in this Law of the Law on Industrial Policy

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The following basic concepts are used in this Law:

1) territorial cluster is a geographically concentrated group of interrelated and complementary organizations, which includes manufacturers, suppliers, scientific and research organizations, organizations of higher and (or) postgraduate education, organizations of technical and vocational education and other organizations with a specific industry specialization.;

2) domestic value – the percentage of goods produced and services performed on the domestic market in the total volume of goods produced, work performed or services provided;

3) Industry 4.0 is an organization of production that involves the integration of physical objects, processes, and information and communication technologies, in which physical processes are monitored in real time, operational decisions are made, and technologies interact with each other and people.;

4) innovation – the end result of innovation activity introduced into use, which has been implemented in the form of some new or significantly improved product (product, work or service), technology or process, a new marketing method or a new organizational method in business practice, workplace organization or external relations, ensuring a competitive advantage;

5) innovation activity – an activity (including intellectual, creative, scientific, scientific-technical, technological, industrial-innovative, infocommunication, organizational, financial and (or) commercial activities) aimed at creating innovations;

6) the authorized body in the field of state support for innovation activities is the central executive body responsible for leadership in the field of innovation and technological development, as well as, within the limits provided for by the legislation of the Republic of Kazakhstan, intersectoral coordination and participation in the implementation of state support for innovation activities.;

6-1) individual entities of the quasi-public sector – national management holdings, national holdings, national companies and organizations, fifty or more percent of the voting shares (shares in the authorized capital) of which are directly or indirectly owned by national management holdings, national holdings, national companies, as well as socio-entrepreneurial corporations, with the exception of legal entities, fifty or more percent of the voting shares (shares participation in the authorized capital) which are directly or indirectly owned by the national management holding company, national holding company, national companies, transferred to the trust management of individuals or non-governmental legal entities with the right of subsequent redemption;

7) a product of Kazakhstani origin is a product fully produced in the Republic of Kazakhstan, or a processed product that meets the production conditions, during the production of which the minimum threshold of production and technological operations is met, information about which is contained in the register of Kazakhstani producers.;

7-1) Kazakhstani commodity producer – a business entity that is a resident of the Republic of Kazakhstan, included in the register of Kazakhstani commodity producers;

7-2) counter obligations – mutual obligations of the subject of industrial and innovative activity and the state, taken when providing measures of state stimulation of industry in accordance with this Law;

8) market capacity is a quantitative indicator that determines the maximum possible volume of the domestic market, production, import and export of industrial products;

8-1) the register of offtake contracts is an electronic database containing information about offtake contracts, their executors and manufactured goods of the manufacturing industry, obtained from state and non-state information systems;

9) industry is a branch of the economy that is a set of economic activities related to mining, manufacturing, providing electric energy, gas and steam, air conditioning, water supply, sanitation, waste collection and disposal, as well as pollution control;

10) subjects of activity in the field of industry – individuals and (or) legal entities engaged in activities in the field of industry, as well as subjects of industrial and innovative activities;

11) industrial and innovative project – a set of measures implemented over a certain period of time aimed at technology transfer, creation of new (improvement of existing) industries and (or) implementation of innovative activities;

12) industrial and innovation system – a set of subjects of the industrial and innovation system involved in state stimulation of industrial and innovation activities, infrastructure and tools aimed at stimulating industry and supporting innovation in the Republic of Kazakhstan;

13) industrial and innovative activities – activities related to the implementation of industrial and innovative projects, taking into account environmental safety, in order to increase labor productivity, and the promotion of goods, works and services of Kazakhstani origin in the manufacturing industry to domestic and (or) foreign markets.;

14) subjects of industrial and innovative activity - individuals and (or) legal entities, simple partnerships that implement industrial and innovative projects or carry out activities to promote goods, works and services of Kazakhstani origin in the manufacturing industry to domestic and (or) foreign markets;

15) subjects of the industrial and innovation system involved in state stimulation of industrial and innovation activities - a national managing holding company established as part of measures to optimize the management system of development institutions, financial organizations and the development of the national economy, national development institutions, as well as the industrial development fund, authorized to implement measures of state stimulation of industry;

16) industrial products – goods produced as a result of activities in the field of industry;

17) industrial policy is a system of economic, organizational and legal measures implemented by the state and aimed at stimulating and developing industry;

18) the Interdepartmental Commission on Industrial Policy is an advisory body under the Government of the Republic of Kazakhstan, headed by the Deputy Prime Minister of the Republic of Kazakhstan, established for the purpose of interdepartmental coordination on the formation and implementation of industrial policy.;

19) the authorized body in the field of state stimulation of industry is the central executive body responsible for industrial management, as well as, within the limits provided for by the legislation of the Republic of Kazakhstan, intersectoral coordination and participation in the implementation of state stimulation of industry.;

20) measures of state stimulation of industry – incentive measures applied by the state for the development of the manufacturing industry and industrial innovation activities carried out in accordance with this Law;

21) digital transformation of industry – the introduction of digital technologies into the business processes of enterprises, entailing significant changes in the business model of the enterprise;

22) manufacturing industry – a set of industries that are associated with the processing of raw materials, materials, substances, components for a new product (goods, including foodstuffs);

23) technology transfer is the process of introducing new or improved technologies by subjects of industrial and innovative activity, the rights of ownership, possession and (or) use of which are obtained by methods not prohibited by the laws of the Republic of Kazakhstan.;

23-1) digital verification is an automatic process of evaluating an applicant, carried out through an object of the information and communication infrastructure of the "electronic government

24) non–primary exports - exports of manufacturing goods and services;

25) large customers – subsurface users who have the right to extract solid minerals, with the exception of common minerals; individual subjects of the quasi-public sector; subjects of natural monopolies, with the exception of subjects of low-capacity natural monopolies; backbone enterprises.

This Law establishes the fundamental principles of industrial policy and regulates public relations that arise during the formation and implementation of industrial policy.

President

Republic of Kazakhstan

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