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LAW OF TURKMENISTAN

of August 16, 2014 No. 106-V

About innovative activities

(as amended of the Law of Turkmenistan of 02.03.2019 No. 130-VI)

This Law determines legal, economic and organizational basis of innovative activities in Turkmenistan.

Chapter I. General provisions

Article 1. The basic concepts applied in this Law

1. For the purposes of this Law the following basic concepts are applied:

1) innovative activities – the activities providing creation of innovations (innovations) and obtaining on their basis of practical result – innovations (innovations);

2) innovation (innovation) – the result of intellectual activities (new knowledge, technical solution, experimental or prototype and another) which is object of the civil relations, having signs:

- novelty, that is new qualities, properties and other signs, distinctive from the existing analogs;

- practical applicability from the point of view of consumer usefulness and safety;

- competitiveness and cost efficiency;

3) innovation (innovation) – the innovative products introduced into civil circulation. Differentiate four types of innovations: product, process, marketing and organizational;

4) innovative products – the result of innovative activities which received practical realization in the form of introduction in civil circulation any new or considerably advanced product (goods or service) – product innovation, method of production (technology) or the product delivery – process innovation, new method of marketing – marketing innovation, new organizational method in business practice, the organization of workplaces or in external relations – organizational innovation.

The new or advanced product is introduced into civil circulation after such product appeared in the market. New production processes (technologies), methods of marketing or organizational methods are introduced into civil circulation (implemented) after they began to be used really in activities of the subject of innovative activities;

5) innovative potential – set of the intellectual, material, financial, organizational and other resources attracted to implementation of innovative activities;

6) innovative infrastructure – set of the subjects of innovative activities providing within their powers production and technology, personnel, consulting, information, financial and other services for implementation of innovative activities;

7) the innovative program – complex of the innovative projects approved on terms of their implementation, resources, contractors, amounts and financing sources, providing effective solution of tasks on creation, development and distribution of innovations;

8) the innovative project – the project determining the complex of works coordinated on terms and contractors, requirements to financing sources, methods of production organization, technical characteristics and consumer properties of the competitive innovative products developed and delivered on the internal and (or) external markets;

9) innovative process – set of consecutive actions (works) connected with the organization and implementation of innovative activities.

In general view innovative process includes the following stages of creation of innovative products:

- scientific research and project developments;

- implementation in production (technology development);

- production (operation);

- assistance in realization, application, servicing;

- utilization after use;

10) national innovative system – system of the organization-legal, social and economic and institutional relations establishing conditions of budget, fiscal, customs and scientific and technical regulation of innovative activities according to the legislation of Turkmenistan;

11) the state innovative policy – the component of social and economic policy of Turkmenistan representing complex of the legal, economic and organizational measures performed by the state directed to regulation of innovative activities;

12) the innovative company – the business entity performing the activities connected with creation and production of innovative products during the considered period of time;

13) innovative entrepreneurship – the business activity connected with creation, production and realization of innovative products;

14) the market of innovations – the sphere of forming of the demand and supply on results of intellectual activities, the necessary and offered for creation innovations, on innovative products for application in the corresponding industries of economy, on investment for implementation of the offered innovative projects. Component of the market of innovations are the innovative technologies and other innovations of foreign states answering to the priority directions of innovative development of industries of economy of Turkmenistan;

15) risk of innovative activities – probability of not goal achievement of innovative activities, including the purpose of the innovative project;

16) transfer of technologies – complex of the actions directed to transfer of innovations from the sphere of their obtaining (development) to the sphere of practical use.

2. Other concepts used in this Law are applied in those values in which they are determined in the legislation of Turkmenistan.

Article 2. Legislation of Turkmenistan on innovative activities

1. The legislation of Turkmenistan on innovative activities is based on the Constitution of Turkmenistan and consists of this Law and other regulatory legal acts of Turkmenistan governing the relations in the field of innovative activities.

2. If the international treaty of Turkmenistan establishes other rules than provided by this Law, then rules of the international treaty are applied.

Article 3. Coverage of this Law

1. Coverage of this Law are the legal, economic and organizational relations between subjects of innovative activities arising in case of its implementation including:

1) the relations arising in the course of creation and distribution of innovations;

2) the relations connected with transfer of results of scientific activities in production development;

3) the relations arising in the course of state regulation of innovative activities;

4) the relations when implementing foreign economic activity in the innovative sphere.

2. This Law is effective concerning all subjects of innovative activities irrespective of the purposes, objects and types of innovative activities.

Chapter II. Types, objects and subjects of innovative activities

Article 4. Types of innovative activities

1. The following types of activity belong to innovative activities:

1) development, production and distribution of innovative products;

2) implementation of the new ideas and scientific knowledge in the field of management of society promoting improvement of social conditions and qualities of life, to development of education, health protection and safety of citizens, conservation;

3) inventive and rationalization activities;

4) accomplishment of the project, prospecting, developmental and technology works connected with creation and development of innovative products;

5) engineering activities – complex of the works and services connected with implementation of innovative technology retrofitting of production, the organization of service maintenance and servicing of innovative process;

6) patent researches, estimative activities and examination, accomplishment of other works and services connected with commercialization of intellectual property and transfer of technologies;

7) information and consulting servicing for ensuring innovative activities;

8) determination of need for the modern technologies and the equipment acquired in foreign states, establishment of their compliance to the priority directions of innovative development of industries of economy of Turkmenistan and their binding to local conditions;

9) preparation, retraining and advanced training of personnel for ensuring innovative activities;

10) carrying out marketing researches and implementation of the actions connected with the organization of the markets of innovative products;

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