ASSESSING THE COMPETITIVENESS OF KAZAKH ECONOMY: DOES INDUSTRIAL-INNOVATIVE STRATEGY IMPROVE THE COMPETITIVENESS?

Abstract

This article assesses the competitiveness of the national economy of the Republic of Kazakhstan (by region) for the period of implementation of the industrial-innovative development strategy. Assessment method uses the index method to construct an aggregate index of competitiveness of the region by the aggregation of a number of different social and economic indicators. Calculations were carried out similarly to the methodology of the ratings of countries. The main feature of this method is to bring the different indicators (percent, absolute value, etc.) to one dimension in the range [0; 1]. Research results show that the level of the competitiveness in the Republic of Kazakhstan in general remains very low except in the capital city Astana and the former capital Almaty where competitiveness relatively higher but still it is in the middle of the range [0; 1]. Findings show that although Astana and Almaty are not industrial areas, but these areas have a relatively higher level of innovation and research. As a result, the combination of the existing infrastructure and industrial resources with innovation increases productivity in the region, which finally improves the quality of the life in the region. This means that the industrial-innovation factors are the basis for improving competitiveness. But, compared to the industrial and infrastructural indicators, innovation factors are more related to competitiveness. Overall, the industrial-innovative development affects the competitiveness of the region, which later forms the country's competitiveness.