Kazakhstan Shines in Global Innovation Index 2024: A Rising Star in Central and Southern Asia

Kazakhstan has made remarkable strides in the Global Innovation Index (GII) 2024, climbing from 81st to 78th among 133 economies worldwide, according to a recent report by The Astana Times. This achievement places Kazakhstan in the top three innovative economies in Central and Southern Asia, trailing only Iran and India.

Kazakhstan’s Innovation Leap in GII 2024

The Global Innovation Index, published annually by the World Intellectual Property Organization (WIPO), evaluates economies based on approximately 80 indicators, covering innovation inputs (e.g., infrastructure, institutions) and outputs (e.g., technology, creative outputs). Kazakhstan’s rise to 78th place reflects significant improvements in key areas such as government effectiveness, rule of law, education, and foreign direct investment (FDI) inflows. Notably, the country ranks 22nd among 34 upper-middle-income economies, showcasing its growing innovation ecosystem.

Kazakhstan’s standout performance includes:

• 8th globally in government online services.

• 10th globally in utility models per billion dollars of GDP (PPP).

• 15th globally in e-participation.

• 30th globally in labor productivity growth.

Hosting the GII 2024 Regional Ceremony

For the first time, Kazakhstan hosted the Regional Ceremony of Unveiling the Global Innovation Index 2024 Report for Asian countries on October 4, 2024. This event, supported by WIPO, brought together innovation ministers, patent office heads, and representatives from international organizations. The ceremony underscored Kazakhstan’s emerging role as a regional innovation leader and its ambition to drive economic growth through creativity and technology.

Central Asia’s Innovation Momentum

Kazakhstan’s success is part of a broader trend in Central Asia, where economies like Kyrgyzstan (99th) and Uzbekistan (83rd) are also climbing the GII ranks. The region is seeing increased investment in education, infrastructure, and high-tech exports. Kazakhstan alone accounts for nearly 95% of Central Asia’s high-tech exports, while the value of regional brands has doubled from $600 million in 2019 to over $1.2 billion in 2024.

Key Drivers of Kazakhstan’s Innovation Success

Kazakhstan’s climb in the GII rankings stems from targeted reforms and investments, as outlined by Kazakh Minister of Justice Azamat Yeskaraev. Improvements in government efficiency, ease of doing business, and market sophistication have created a favorable environment for startups and foreign investors. The country’s strong performance in PISA scores (reading, mathematics, science) further signals a robust human capital base, essential for sustaining innovation.

For entrepreneurs, Kazakhstan’s policies supporting entrepreneurship (ranked 25th globally) and its focus on digital infrastructure make it an attractive destination.

Opportunities for Startups in Kazakhstan

Kazakhstan’s innovation ecosystem offers several opportunities for startups:

• Digital Transformation: With 93.3% of government services available electronically and a top-10 ranking in the UN Global Online Services Index, Kazakhstan is a leader in GovTech. Startups in e-governance or digital services can find a receptive market.

• Tech Exports: Kazakhstan’s dominance in high-tech exports presents opportunities for startups in AI, IoT, and blockchain to collaborate with established players.

• Sustainable Innovation: The country’s focus on low-carbon energy use (Kyrgyzstan ranks 13th regionally) aligns with global sustainability trends, attracting green tech startups.

• Astana Hub: The Astana Hub International Park of IT Startups serves as a regional headquarters for tech giants and a launchpad for local startups, offering mentorship, funding, and networking.

Challenges and the Road Ahead

Despite its progress, Kazakhstan faces challenges in converting innovation inputs into outputs, a common issue among middle-income economies. Global declines in venture capital (-40%) and R&D spending pose risks, as noted by Sacha Wunsch-Vincent, co-editor of the GII. However, Kazakhstan’s strategic focus on digital infrastructure and education positions it to overcome these hurdles.

Why Kazakhstan Matters for Global Innovators

Kazakhstan’s rise in the GII 2024 reflects its transformation into a regional innovation powerhouse. Its hosting of the GII regional ceremony and strong performance in digital governance and high-tech exports signal a market ripe for investment and collaboration. For startups and entrepreneurs, Kazakhstan offers a unique blend of government support, digital infrastructure, and access to Central Asia’s growing markets.