INFLUENCE OF INNOVATIVE ACTIVITY, HUMAN CAPITAL, KNOWLEDGE SPILLOVERS ON REGIONS’S ECONOMIC GROWTH

Abstract

The aim of the work is to identify the relationship between regional economic growth, innovation, the level of human capital development and the knowledge spillovers.The methodology is based on a quantitative assessment of the impact of knowledge spillovers and technological innovations on the economic growth of regions. Spatial econometrics tools are used as a method of modeling the relationships between these parameters. The sampling of time series was carried out using panel analysis, which allowed to take into account the individual characteristics of the regions correlating with the variables in the model inherent in each of them separately. Based on the provision on the effectiveness of economic development, depending on the accumulated and realized human capital, along withthe economic conditions ofthe region, a social filter indicator was calculated. Using this indicator allowed us to identify key factors of innovative development that contribute to the knowledge spillovers. Based on statistics on innovation in Kazakhstan for the period 1990-2018 the relationship between R&D, innovation and economic growth is assessed taking into account the specifics of human capital in the regions of Kazakhstan. The calculations, in accordance with the proposed models, confirmed the hypothesis about the positive impact of costs on the development of technological innovations on the regional economic growth rates. Accordingly, it is concluded that R&D can be borrowed and introduced by other territories and spread further in this direction along the production chain.

Keywords

• innovative processes
• regional development
• human capital
• knowledge spillovers
• r&d
• econometric models