IMPACT OF R&D EXPENDITURES ON THE COUNTRY'S INNOVATIVE POTENTIAL: A CASE STUDY

Kazakhstan has all the prerequisites for the formation of innovative potential. However, to ensure the innovative economic development of Kazakhstan, it is necessary to create favorable conditions that promote the commercialization of innovations. Otherwise, all expenditures that are currently primarily of a state nature will not have the required economic indicators. The modern theory of sustainable economic growth is based on the concept of innovation. That is why the main indicators of overall economic development depend on innovative development. The article studies the variability of a data group formed from indicators of innovative development of the economy of Kazakhstan, using one of the methods of reducing dimension as a correlation analysis. The data of 2000–2018 are analyzed, that is, for 19 years. Discusses the correlation analysis of indicators characterizing the amount of research and development costs and gross domestic product. The obtained correlation coefficients demonstrate a strong linear relationship between the selected indicators. The statistical analysis showed: patterns of change in the GDP of the economy internal R&D costs are almost identical, correlation-regression model of the impact of GDP on domestic R&D expenditures. That is, the number of innovatively active enterprises and internal R&D costs are interdependent variables with a close correlation. High correlation coefficients between the registration of patent applications and the grant of patents in Kazakhstan and the number of employees performing R&D. A strong but negative relationship between the number of organizations performing research and development and the rest, perhaps some organizations exist only nominally and their economic activity is minimal.


Introduction
The study is devoted to the disclosure of the internal structure of the relationships in the data array used to assess the state of innovative development of the economy of Kazakhstan. Such work involves the statistical processing of raw data using multivariate statistical analysis methods. From a usual analysis of the dynamics of indicators, you can also get important information about the nature and patterns of data changes, but such a study, as a rule, does not provide a complete picture of the relationships.
One of the effective tools for statistical research in economics is correlation analysis, correlation analysis allows you to group the source data by the influence of external factors. That is, in essence, it is possible to create a statistical model of the problem in which the variability of all parameters is explained by the identified factors. The weight or significance of one or another factor can be estimated by the value of its share in the total variance of variables. And the close connection of each parameter of the problem with a specific factor is estimated by the correlation coefficient.
Research in the innovation sector of the economy, as a rule, comes down to an analysis of the dynamics of indicators using correlation and regression analyzes. From a usual analysis of the dynamics of indicators, you can also get important information about the nature and patterns of data changes, but such a study does not provide a complete picture of the relationships.
Of the methods of multivariate statistical analysis, the use of dimensionality reduction, as factor analysis is sometimes called, provides an opportunity to reveal the logical structure of a complex phenomenon. The main assumption of factor analysis is that phenomena in a certain field of research can be described by a relatively small number of factors. It is assumed that in the study area there is a pattern that combines the studied data into some groups.
Moreover, it is believed that each group of data has a certain factor. The term "factor" is used here in the sense of an objective reason, which unites heterogeneous data. That is, in essence, it is possible to create a statistical model of the problem in which the variability of all parameters is explained by the identified factors. The weight or significance of one or another factor can be estimated by the value of its share in the total variance of variables. And the close connection of each parameter of the problem with a specific factor is estimated by the correlation coefficient.

Literature review
Innovation is one of the most important components of the modern economy, a "stepping stone" to improving the quality of life and a sustainable, environmentally friendly future. Innovation is an important part of socioeconomic life and human life in all its manifestations. Today, there are more than a hundred different definitions and interpretations of the term "innovation".
In recent decades, innovation has become one of the most intensively researched topics in economics and management. World practice shows that the development of innovations is not only the main tool to increase the competitiveness of a single enterprise, but also acts as a serious incentive for the economic development of the country as a whole.
Both the current state of innovative development of the economy of Kazakhstan and the history of its development are considered in detail in many analytical works (Satpayeva, 2017;Shevyakova, Munsh, Arystan, 2019;Petrenko, Vechkinzova, Antonov, 2019;Caurkubule, Kenzhin, Bekniyazova, Bayandina, Dyussembekova, 2020). An important result of studying the state of affairs is the conclusion that the country's innovative development, being an important sector of the economy, has not yet fully realized its potential capabilities.
In the studies ofscientists, experts in economics and management, correlation analysis by the method of identifying the relationship, the mutual influence of various socio-economic processes.
In 1896, the correlation coefficient was first formulated and studied by Karl Pearson (Hauke & Kossovsky, 2011), with the concepts of correlation of Francis Galton: (Hauke & Kossovsky, 2011). Correlation analysis is used in the study of risks in the field of public and private investment management. The problems of the influence of financial markets on sustainable economic growth are investigated.
Correlation analysis is also used in the field of risk reduction associated with the management of production and company assets. Risks associated with solving organizational problems. Some scholars pay great attention to studying the correlation of the dynamics of the tourism industry and regional economic growth.
Correlation is designed to study the degree of relationship between two variables. The correlation coefficient is a measure to quantify the degree of relationship between variables. Essentially, the correlation coefficient r will be in the range from -1 to +1, i.e., -1 ≤ r ≤ +1 (Hauke & Kossovsky, 2011).

Methodology
An important component of the development of the country's economy is innovation, the level of development of which creates the basis for the sustainability of economics growth, contributes to the implementation of the strategic objectives of the territory. Innovative activity is an indicator of innovative activity. In accordance with the methodology of the Committee of Statistics of the National Economy of the Republic of Kazakhstan, innovation activity is determined by the ratio of the number of organization implementing technological, organizational, marketing innovations to the total number of organizations surveyed. Figure 1 illustrates the dynamics of innovation activity in the field of innovation in Kazakhstan for 2008-2018.
To do this, we construct a correlation analysis between two groups of indicators: a) GDP at current U.S. prices. dollars, Billions, b) internal R&D costs in dollars. The correlation coefficient is estimated by the following formula: where, sample data on internal research and development costs in the Republic of Kazakhstan (in dollars); sample data on GDP at current prices (dollars); n number of observations; , estimates of mathematical expectations. Thus, the correlation coefficient for the quantities is: Thus, the correlation value is 0.9380. This means that there is a fairly close linear relationship between the variables, and on the basis of research it can be concluded that innovative development is highly dependent on the use and implementation of highly efficient technologies and the latest developments, as well as the development of science and technology.  Figure 2 shows graphs of changes in GDP at current prices, as well as domestic R&D costs (in dollars). From a visual inspection of the graphs it can be seen that the patterns of change in the GDP of the economy and the internal costs of R&D are almost identical.

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES
ISSN 2345-0282 (online) http://jssidoi.org/jesi/ 2020 Volume 8 Number 2 (December) http://doi.org/10.9770/jesi.2020.8.2(41)  2. When making predictive calculations of economic indicators using the integrated method, you can simultaneously use an arbitrary number of private statistical models for each forecast indicator. Between themselves, these models can differ in the number and composition of the independent factors of the economic process that enter into them, the structure of the relationship between the dependent and independent variables of the external and internal environment of the organization.
To identify the best trend equation of the analyzed time series, we determine the parameters of the following main types of trends: linear, parabolic, power-law, exponential, hyperbolic. The results of these calculations are shown below: The calculated correlation and regression model show a strong positive effect of GDP on domestic R&D expenditures (Figure 3). The highest values of the exponent R 2 correspond to nonlinear functions, like the logarithmic function (R 2 = 0.8627) and the exponential function (R 2 = 0.795).

Application functionality
In this section, we consider the innovative activity of Kazakhstan enterprises in all types of innovations. The full use of innovations for national development is possible only if a targeted innovation policy is carried out at the state level. This task is especially relevant for Kazakhstan, which has significant innovative potential, which is clearly used insufficiently. Thus, the level of innovative activity of enterprises, despite the growth from 9. Kazakhstani enterprises do not seek to research and development independently and are not inclined to invest in the creation of new products. One of the problems of innovative development in Kazakhstan is the incompleteness of scientific research, its separation from production, as the applied developments are not continued in the form of commercialization and implementation in production. In order to solve this problem, Kazakhstan has adopted a number of Programs, created Institutes, adopted Laws. An important role in this is given to the development of innovative entrepreneurship capable of quickly establishing high-tech products.
In the Republic of Kazakhstan, 384 organizations were engaged in research and development in 2018 (386 organizations in 2017).So in 2018, in terms of the number of innovatively active enterprises, the three leaders were: Almaty -135 enterprises, Nur-Sultan -60 enterprises, East Kazakhstan region -35 enterprises.
At the same time, the smallest number of innovation-active ones according to the results of 2018 was demonstrated by Mangistau region -6 enterprises, North Kazakhstan region -5 enterprises (Table 2).  The highest level of innovative activity of enterprises was observed in the East Kazakhstan region -15.5%, which is almost 1.5 times higher than the republican indicator. Next come the cities of Nur-Sultan and the cities of Karaganda, the cities of Kyzylorda -14.7%, 14.7 and 12.2%, respectively. The lowest indicators of innovative activity of enterprises in the Mangistau region are 4.0% (Figure 4).

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES
Analysis of statistical data on the innovative development of the regions of Kazakhstan allows us to distinguish three groups of regions of the Republic of Kazakhstan by the level of innovative activity: -with a low level: Mangistau, Turkestan, West Kazakhstan; -with an average level: Kostanay, Kyzylorda, North Kazakhstan, etc.; -with a high level: East Kazakhstan region, the city of Nur-Sultan and Karaganda region.
The Republic of Kazakhstan is characterized by significant differences in the level of innovative potential of the regions, while the innovative capabilities of most areas can be rated as average.
In the modern world, transport services provide an increase in the efficiency of social production, the normal functioning of the economy. The issue of introducing innovations in the transport sector of Kazakhstan is of great relevance, since it is here that conditions are created for the rational distribution of production forces across the country, taking into account the most appropriate approach to production consumption areas and sources of raw  The expenditures of Kazakhstan for research and development (R&D) averaged 0, 1% of GDP, while on the recommendation of UNESCO, developing countries need to bring R&D expenditures to 1% of GDP. Currently, the share of scientific research in the EU countries is on average 1.8 percent of European GDP, it is planned to bring this indicator to 4 percent.
This indicator is in Finland -3.49%, Korea -3.64%, USA -2.6%, China -1.44% of the country's gross domestic product, and on average in the countries of the Organization for Economic Cooperation and Development -2, 24%.
In comparison with the data for Kazakhstan, this suggests that financial support for research and development remains a weak link in Kazakhstan's innovation policy. For comparison, it should be noted that in developed countries, the expenditures of the business sector significantly exceed government spending on R&D, since fundamental research is traditionally carried out in the public sector, and the business sector is engaged in applied research.

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES
ISSN 2345-0282 (online) http://jssidoi.org/jesi/ 2020 Volume 8 Number 2 (December) http://doi.org/10.9770/jesi.2020.8.2(41) A quantitative approach to assessing innovative potential involves the analysis of a system of statistical indicators that reflect the dynamics of the development of the scientific and innovative sphere. In the Republic of Kazakhstan in recent years, the costs of research and development have steadily increased in comparable prices. Figure  Of interest is the value of the pair correlation coefficient between v2 and v3: 0.96. That is, the number of innovatively active enterprises and internal R&D costs are interdependent variables with a close correlation. Finding a correlation between the costs of technological innovation and the share of innovative products in GDP showed that the relationship is positive, but not strong: 0.41.
The high correlation coefficients between the registration of patent applications and the grant of patents in Kazakhstan and the number of employees performing R&D, internal R&D expenditures, and the share of innovative products in GDP (r = 0.95, r = 0.78, r = 0.81) indicates the fact that the country has a favorable economic situation and an increase in the intensity of state regulation leads to an increase in scientific activity. Let us analyze the above data on the introduction of innovations in the economy. The calculation results are shown in Table 4, which presents a matrix of correlation coefficients.

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES
In order to analyze the interconnections between the GDP indicators, table 4 shows the paired correlation coefficients. A strong but negative relationship between the number of organizations performing research and development and the rest (r = -0.87, r = -0.75, r = -0.81, r = -0.78), perhaps some organizations exist only nominally and their economic activity is minimal.
As is known, the pair correlation coefficient shows the degree of tightness of the relationship between only two variables under the indirect influence of other variables. That is, correlation analysis does not provide a complete picture of the relationships between variables.
The state as a whole supports the implementation of scientific developments of innovative implementations. This is confirmed by an increase in the real value of domestic research costs from the state budget. Despite the increase in state budget revenues, the number of organizations performing research and development is declining.

Conclusions
The analysis included: the number of employees performing R&D, by ownership of organizations; number of innovatively active enterprises; internal R&D costs; domestic R&D costs from the public sector; share of innovative products (goods, services) to GDP; costs of technological innovation of enterprises by ownership;  Thus, based on the analysis, it is possible to formulate an innovation policy is an important, but not the only tool for managing GDP growth, which proves the research conducted in this article. Many studies of the impact of innovation on GDP dynamics show that the level of interconnection between innovation and the economic development of different countries varies.
The results of the study show that the country has a positive relationship between GDP growth and R&D expenditures. Analyzing the relationship between GDP growth dynamics and innovation variables in Kazakhstan, in most cases, one can observe a rather weak association of innovations and economic development. Certain measures were proposed that should be taken by the Kazakh authorities to stimulate innovation and economic growth. Based on the experience of technologically developed countries, the Kazakh government offers promising innovative policy measures to stimulate economic growth. It is important to ensure the proper level of growth in costs for technological innovations in order to enhance autonomy in Kazakhstan.