Digital Transformation Enablers and Barriers in the Economy of Kazakhstan

Abstract

This study aims to analyze the digital performance of Kazakhstan through dynamic analysis of national statistics and international indices as Global Innovation Index and ICT Development Index. The research combines three stages: analysis of digital transformation policies performance, review of ICT industry development, and comparative analysis of the positions of Kazakhstan, Turkey and South Korea as a benchmark in the international indices. This research findings show that despite great efforts of Kazakhstan in digitalization, the ICT industry contribution does not increase, it even falls. The international indices demonstrate that the reason is the weakness of the country in skills, venture capital, and innovation linkages. This leads to low knowledge, technology outputs, and creative outputs. The enablers of digital and overall innovation advancement of economy are identified. According to the international rankings the country has been doing its best in Access and Use areas. Another enablers are good business environment, ease of starting a business, protecting minority investors, and FDI inflows. The findings help to draw recommendations for strategic directions in order to improve the digital performance in Kazakhstan. The main limitation of this study is a lack of dynamic information on positions of Kazakhstan in other international indices related to digitalization.

Диджиталізація Як Інструмент Підтримки Інновацій: Європейська Перспектива

“…Despite common strengths in innovation performance lying in employment impacts and innovation-friendly environment, these are outweighed by weak SME innovators and linkages. Similar findings were shown by Alibekova et al [15] in the case of Kazakhstan, where despite great efforts in digitalization, weaknesses of the country in skills, venture capital, and innovation linkages are detected.…”

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The Role of Digital Economy and Development Trends in Armenia

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“…Heads of national companies understand that digital technologies help them compete in the domestic or foreign markets. However, companies are very pragmatic 1 .…”

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