Framework conditions, innovation policies and instruments

The business environment in Tajikistan has made some progress in recent years, for instance, regarding procedures for starting a business or the introduction of an electronic system for filing and paying taxes, but on the whole innovation activities and technological development remain weak. The most recent Enterprise Surveys carried out by the World Bank and the International Finance Corporation shows that the country’s innovative capability31 is below the average of all Eastern European and Central Asian countries (used as a benchmark group. R&D expenditures are quite low, with R&D intensities since 2004 remaining under 0.1% of GDP, which is very low compared to Russia (1.1% in 2013), Ukraine (0.65% in 2011), Armenia (0.66% in 2011) or Belarus (0.8% in 2011)32. The share of industry on GDP is also quite low. Many companies are state-owned, particularly in the energy sector as well as the aluminum, cement, and cotton industries.

Related Subject(s): Economic and Social Development