Understanding Imbalanced Transmission from R&D Inputs into Innovation Outputs and Impacts: Evidence from Kazakhstan

Stefka Slavova, Luis Rubalcaba () and José Nicanor Franco-Riquelme
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Stefka Slavova: Finance, Competitiveness and Investment Global Practice, Europe and Central Asia Region, The World Bank, Washington, DC 20037, USA
Luis Rubalcaba: Department of Economics and Business Administration, University of Alcala, 28801 Alcalá de Henares, Madrid, Spain
José Nicanor Franco-Riquelme: Department of Organization Engineering, Business Administration and Statistics, Universidad Politécnica de Madrid, 28006 Madrid, Spain

Economies, 2025, vol. 13, issue 2, 1-26

Abstract: Innovation ecosystems use R&D inputs to generate innovation outputs first and innovation impacts later. But some countries show a relatively low transmission, such as in the case of Kazakhstan, the largest economy in Central Asia. This article analyzes the transmission from R&D into innovation outputs and impacts through a framework for which different factors matter, such as the company size, education and skills, competition, exports, and foreign ownership. Transmission is conceptually understood in two steps: from R&D into innovation outputs, and from innovation output into innovation impacts. The main hypothesis is that the high endowments of these company factors should lead to the better transmission of results and improved performance in terms of outputs and impacts. We test this using new evidence from Kazakhstan and the ECA region (Europe and Central as defined by the World Bank) as benchmarking, and data are from the Global Innovation Index (descriptive section) and the World Bank Enterprise Surveys (analytical section). The econometrics are a Crépon–Duguet–Mairesse (CDM) model in three steps: factors for propensity to invest in R&D, then to innovate, and, finally, innovation impacts on productivity. Results confirm the positive roles of factors, such as exports and education, in positive transmissions and uneven or insignificant results on productivity impacts from characteristics, such as age, size, and foreign ownership. The specifics for Kazakhstan suggest a potential for business innovation growth in the country. The paper concludes by suggesting key policy measures to unlock the potential for business innovation at a country level.

Keywords: R&D; innovation; CDM model; linear regression; Kazakhstan (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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