Impact of Scientific Activity and Innovation on Economic Competitiveness: An Analysis of Kazakhstan

Abstract

This study is aimed to evaluate the influence of scientific activity and innovation on the economic performance of a country, measured by Gross Domestic Product (GDP), using Kazakhstan as a case study. Employing Partial Least Squares Path Modeling (PLS-PM), a variance-based Structural Equation Modeling (SEM) approach, the research analyzed secondary data to explore the structural relationships between scientific investment, activity, and their subsequent impact on GDP and innovative organizational activity. The methodology was centered on assessing the measurement model for reliability and validity, and the structural model for the strength and significance of the relationships using path coefficients and R-squared values. Hypotheses were formulated to test the expected positive influences of scientific activity and internal R&D costs on GDP, and the role of scientific activity in driving innovative activity within organizations. The results indicated a positive relationship between scientific activity and GDP, confirming the hypothesis that science contributes significantly to economic development. Internal R&D costs were found to have a strong positive impact on scientific activity, highlighting the importance of R&D investment. However, innovative activity within organizations showed a negative association with GDP, suggesting a more complex relationship that may not lead to immediate economic gains. Scientific activity was also seen to positively influence organizational innovation. The study’s findings emphasize the need for strategic planning and investment in scientific research and education to bolster economic development.