The Analysis of the Relationship Between Innovation and the Development of the Agro-Industrial Complex in Kazakhstan

Abstract

This study investigates the relationship between innovation and the agro-industrial complex's (AIC) development in Kazakhstan. In the context of global shifts in technology, labor, and capital markets, the research examines the role of innovation in enhancing the AIC's competitiveness. The primary focus is on the dynamics of innovation in agriculture, particularly how it influences factors like human capital, innovation activity levels, and the role of science and scientists. The research employs a two-stage methodology involving descriptive analysis and hypothesis testing, using SMART-PLS software for data-driven analysis. Key indicators considered include employment in agriculture, innovation activity, and agricultural credit loans. The period from 2013 to 2019 is analyzed, testing hypotheses about the impact of agricultural credit loans on innovation, the influence of innovation on agriculture's share in GDP, and its effect on the number of farms. The results highlight the significant role of innovation and financial support in advancing Kazakhstan's agricultural sector. Agriculture Credit Loans and the increase in the Number of Farms substantially boost innovation in the AIC contributing to its growth and greater GDP share. While the Share of Agriculture in GDP also positively impacts innovation, its effect is less pronounced. The research underscores the necessity of collaboration between agricultural enterprises and research institutions and the vital role of financial support in driving sustainable growth and development.