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Diffusion of innovation, knowledge flow and economic growth of Kazakhstan regions

The article assesses the relationship between research and development, innovation activity and regional economic growth on the basis of statistics on innovation activity in Kazakhstan for the period 1990-2017. Calculations on models confirmed the hypothesis of positive effects of expenditures for technological innovations on the rate of economic growth of the regions. Accordingly, the flows of technological innovations have intensified the creation of new products and technologies, contributed to the increase in the economic growth rate of the regions of Kazakhstan. It was found that the distribution and dynamics of expenditures on research and development (hereinafter referred to as R & D) have not contributed to the economic growth of the regions. The same is true for R & D flows between the regions (possibly as a consequence of irrational allocation of R & D expenditures). Diffusion of innovation and transfer of knowledge from innovation centers to peripheral regions takes place,in one way or another. In addition, the presence of statistically significant impact of socio-economic conditions in the region on the economic growth rate of other regions of Kazakhstan has not been revealed. In this paper the authors verified endogenous growth models for the Republic of Kazakhstan. Adjustments to the database were made, a new social filter was built, two specifications of the panel model with fixed effects were calculated and the possibility of building a GMM model for the regions of Kazakhstan was analyzed.