Abstract:

The study of the impact of innovation and diffusion of knowledge on the economic growth of European regions and other developed countries is increasingly attracting the attention of scientists. Meanwhile, this important issue has been little studied in relation to countries with economies in transition. This paper presents the results of its research for the regions of Kazakhstan. The model of catching up development is constructed according to data for 2005-2016. It includes costs of R&D and technological innovation, costs of education, socio-economic conditions and their spillovers between regions, as well as costs of healthcare and investment in fixed assets. Calculations based on panel data with fixed effects, in particular, showed that costs of R&D and technological innovation, cost of education, and their spillovers, had a positive effect on economic growth in regions. The results of the study confirm that innovation, expressed through costs of R&D and technological innovation and cost of education, as well as knowledge spillovers, are factors of endogenous growth in the regions of Kazakhstan.