Financing innovation in the Republic of Kazakhstan: reloading approaches and mechanisms

  • N. Kuchukova Gumilyov Eurasian National University
  • D. Kalmakova Al-Farabi Kazakh National University
  • A. Mukusheva Gumilyov Eurasian National University
  • F. Omarova Gumilyov Eurasian National University


One of the main factors limiting innovative development is the lack of funding for research activities,accompanied by low efficiency in the use of financial resources in the scientific sector. Innovativecompanies in the early phase of their development, for the most part, do not attract the interest of professionalinvestors. Without proper financial support, they stagnate or close at the initial stage of formation.These companies have very limited opportunities to choose financial instruments and attract the requiredamount of investment, as they are usually characterized by low financial stability and limited creditworthiness,as well as a high risk of bankruptcy and lack of assets necessary for collateral (Sagiyeva, 2019:4).The high financing risks inherent in innovative entrepreneurship can be minimized by using alternativefinancing methods used in foreign practice. The purpose of this article is to identify factors that affectthe effectiveness of the innovations financing system in Kazakhstan and develop recommendations forimproving the effectiveness of such system. In the course of the research, methods of statistical dataanalysis and SWOT analysis of the innovations financing system in the Republic of Kazakhstan were applied.As a result of the conducted research, such key factors that affect the effectiveness of innovationsfinancing system were identified as: weak connection between science and production, bureaucracy andinflexibility of administrative and state structures, insufficient effectiveness of the research grant fundingmechanism. Recommendations were made to improve the efficiency of innovations financing.
How to Cite
KUCHUKOVA, N. et al. Financing innovation in the Republic of Kazakhstan: reloading approaches and mechanisms. The Journal of Economic Research & Business Administration, [S.l.], v. 132, n. 2, p. 34-44, june 2020. ISSN 2617-7161. Available at: <>. Date accessed: 20 oct. 2020. doi:
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