The Role of Human Capital and Innovation in Economic Growth: Evidence from Kazakhstan

This article investigates the role of human capital and innovation in economic development of the country. Aim of the research is to investigate theoretical and methodological basis of the role of human capital and innovation in economic growth, evaluate current state of human capital and innovation activities, and develop scientific and applied recommendations to strengthen capacity and improve competitiveness of human capital in the developing countries. This paper contributes to the literature by fulfilling a theory of human capital development in the knowledge economy, revealing the relational mechanism between human capital development, innovation, and economic boundary of these relationship. It also contributes to the further understanding of the role of human development and innovation in economic development. This study result implies to strengthen capacity and improve the competitiveness of human capital, draft human capital development policy. We used statistical data analysis, index calculation method, method of UNDP, and method of correlation and regression analysis. The sample mean method is used in the calculation of average national test results. The analysis of the existing researches and debates is made. We defined the current state of human capital and innovations in Kazakhstan. According to analysis of the coverage of pre-school education half of children don’t have access to education. Moreover, Preschool enrollment in Almaty, Zhambyl, Mangystau, Atyrau regions, and Almaty, Nur-Sultan, Shymkent cities are below the republic average line. In the most of regions the rate has increase for about 0,1 indicator, while in Aktobe, Atyrau, Kostanay regions, and Nur-Sultan city the difference of base period and 2019 is negative. The quality of secondary education became worse year by year. Youth from the regions are migrating within the country to get higher education especially in the nearby regions as Almaty, Akmola, Zhambyl, Turkistan regions. Analysis of current state of innovative activity showed that Kazakhstan had the low productivity in patents, creations, and publicity activity.