PERCEPTION OF INNOVATIONS BY PUBLIC ENTERPRISES IN KAZAKHSTAN.

Author:Mukhtarova, Karlygash
Position:Report
 
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INTRODUCTION

A lot of works dedicated to innovations explain them as derivers that can establish a competitive edge and generate economic growth (Cooke & Leydesdorff, 2006; Pancholi et al., 2014). The importance of appliance, introduction and generation of innovations in the modern world is unconditional. This can be evidenced through data from a survey conducted by PwC among 246 CEOs working around the world. According to this survey 64% of CEO claim that innovation and operational efficiency are equally important for the success of the company and 11% agree that innovation has a greater impact on the successful operation of the company telecommunications (Jaruzelski et al., 2015). Such focus on innovation is motivated by the increasing competition in both domestic and global markets, generated by rapidly changing technologies, which in turn may swiftly erode the valuation in the market place of current products and associated services (Bower & Christensen, 1995; Karlsson & Tavassoli, 2016). According to Pradhan et al. (2016) long-term economic growth for Eurozone economies' scale helps to remain globally competitive.

In Global Innovation Economy Survey conducted in Cornell University, INSEAD and WIPO (2017) were mentioned that main areas where innovation is generated in the world are healthcare and information technology. Switzerland, whose main innovation sphere is pharmaceuticals, holds the first place for 7 consecutive years among other countries. Kazakhstan stands on 78th position and the most innovative area, according to the official statistics, is manufacturing industry. At present, the solution to the problem of achieving economic growth in Kazakhstan is closely connected with development of the innovation sphere.

The perception of innovation in Kazakhstan over a longer period of time differed from the European one, which caused a backlog in innovative development of the country. In the XVIII on the west, took place industrial revolution, which served as an impetus to the development of science and production while Kazakhstan during same period undergo the process of formation of Kazakh khanate.

Nowadays among the republics of Central Asia, Kazakhstan represents a distinct geographical, geopolitical, cultural and historical entity (Sultangalieva & Werth, 2015). By the end of the twentieth century Kazakhstan gained its independence and still innovations were not taken seriously as in foreign countries. For example, during 1991 the first web site was created at CERN labs, HP introduced first color image scanner and in April Intel launched the Intel i486SX chip, bringing a lower-cost processor to the PC market. At the same time Kazakhstan only began its formation as a state with developing industry for the production and primary processing of mineral resources. Therefore economy was resource-oriented. Government of Republic of Kazakhstan started to promote innovative development from introduction of "Strategy of industrial-innovative development" in 2003. The result of this strategy was the formation of the institutional framework and the main elements of the national innovation system. After this document more programs, lows and strategies involving innovation development were released. For example with establishment of > in 2006 was launched the process of transformation form resource-oriented to sustainable economy. Thus, such programs demonstrate that driver of innovations in Kazakhstan is government, but implementers are enterprises. This raises a question: how enterprises perceive innovations, as perception is a key process that determines the interpretation and implementation of innovation. From this question originates following area for investigation: what they consider novelty, how important innovations to enterprises and process of implementation.

The main purpose of my research is study of structural changes in the public enterprises of Kazakhstan during the process of introduction of innovations. This aim puts forward the following problems of study: determination of general trends for all innovation processes in the studied public enterprises of Kazakhstan, identification of correlations between elements of innovative activity and reveal the impact of government policy on development of innovations at the enterprises towards the perception of innovation processes among these organizations.

In the theory there is an understanding of the need to develop innovative climate since institutions are oriented on innovative development of Kazakhstan, implementation of the restructuring of the economic system on the basis of increasing the share of industries with high added value, raising the level of innovativeness of traditional sectors of the economy, helping to improve the competitiveness of Kazakhstan's economy as a whole. Whereas on practice is essential to establish mechanism of economic stimulation of enterprises, improve the market for innovative products enterprises by placing them in a state procurement order.

Solution of these problems is represented in a phenomenological study carried out on the basis of official documents of the considered enterprises that helped to identify trends of special features of innovative activity on enterprises, use systematic method to determine the interaction of elements of a correlation analysis of innovation activity of public enterprises.

LITERATURE OVERVIEW

Austrian economist Joseph Schumpeter can be named as one of the founders of the formation of theoretical foundations on the study of innovations (Schumpeter, 1982). Nowadays description of this term can be found in the works of different scientists, though is no common approach to its definition. Researchers refer to "innovation" as the process of creating a new product or method; introduction of researched results; factor of transformation; application of new knowledge; modification of certain production processes (Rios, McConnell & Brue, 2013; Samuelson, 1951; Kianto, Saenz & Aramburu, 2017; Kondratiev, 1989; Twiss, 1986). Nevertheless the main feature of these research works understands of innovations through the prism of perception by individual scholars. However in this article it is important to turn our attention to perception of innovation by enterprises. (Efron, 1969) defined perception as a "man's primary form of cognitive contact with the world around him". Whereas the process of perception of innovations by organizations is mediator between changes, needed transformations and the result.

Importance of innovative development on enterprises is investigated by a lot of scholars (Bhuiyan, 2011; Daniel & Prajogo, 2016; Herrmann et al., 2007; Maidique et al., 1984), but question of interest for this article is how enterprises perceive innovations. This subject is rarely studied, but interesting are the works of (Andersson et al., 2011; Aslan et al., 2016; Depeige & Sindakis, 2015; Doran & Ryan, 2012; Iorgulescu & Ravar, 2013; Kelly et al., 2017; Yigitcanlar et al., 2017). In our study we investigated perception of innovations by national enterprises owed by government that by definition of (Dube & Danescu, 2011) refers to public enterprises "agencies that deliver public programs, goods or services, but operate independently of government and often have their own sources of revenue in addition to direct public funding. They also may compete in private markets and may make profits. However, in most cases the government is the major shareholder and these enterprises partly follow the acts and regulations that govern the core government".

Problems of management on public enterprises operating in the innovation-based economy were reflected in the works (Amosov, 2012; Arundel & Huber, 2013; Caceres et al., 2011; Lendel et al., 2015; Smith et al., 2011).

Issues related to the development of national innovation systems, formation of innovative economy are considered widely in the works of (Abalkin et al., 2007; Egbetokun et al., 2017; Jang et al., 2016)...

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