What prevents Kazakhstani corporations from becoming innovative

1. Corporate Innovation

Innovation is no longer just an experiment — companies are increasingly incorporating it into their strategy. However, most still view innovation as a way to enhance resilience rather than as a source of new growth.

What has changed:
— companies are moving away from isolated initiatives, establishing a long-term innovation agenda
— innovation increasingly concerns not only technology but also the transformation of business models and corporate culture
— nevertheless, about 45% of companies still associate innovation exclusively with digitalization.

Innovation is viewed as a tool for competitiveness and resilience.
In the face of rising costs and intensified competition, innovation allows companies to maintain their market positions, optimize processes, and retain customers. More than 60% of respondents consider innovation a priority for preserving leadership.

The main focus is not breakthrough, but strengthening current positions.
For most corporations, innovation serves as a means of adaptation and efficiency improvement, whereas searching for new niches and radical changes remain less prioritized areas.

Dissonance between the perception of risks and sources of growth.
Companies see the main constraints in the external environment: regulatory changes, macroeconomic instability, and rising costs are noted by more than 65% of respondents. At the same time, about 80% of companies see the main threat in digital transformation and the implementation of AI in key business processes.

2. Innovation Strategy

Corporate strategies are becoming dynamic: instead of classic "five-year plans," companies are revising their plans every two to three years.

Innovation is being embedded in strategies — but more often as a supporting element rather than a standalone direction.

3. Process Management

— responsibility is blurred. In half of the companies, innovation is distributed among HR, CEO, and individual initiators, without a single center
— methodologies are applied partially. Agile, Scrum, and Kanban are used by approximately 60% of companies, but often formally
— KPIs for innovation have not yet solidified. Only 40% of companies track specific success metrics.

Startups and Corporate Partnerships

Collaboration with startups is becoming the norm:
— 30% of corporations conduct regular pilots
— 32% engage startups for specific tasks
— 18% develop internal entrepreneurship.

However, acquiring startups remains a rare practice: only 10% of companies are willing to include it in their strategy. Most prefer a cautious approach — investing only when interests align and effectiveness is proven, or working through venture funds without integration. More than half of the companies believe that developing innovation internally is cheaper and more reliable.

4. Corporate Culture and Motivation

The main barrier is not technology, but communication.
— only 40% of employees understand the company's innovation strategy
— engagement is low: most perceive innovation as "additional workload"
— the motivation system is fragmented: KPIs, bonuses, and career incentives are not structured into a unified system.

Conclusions

1. Corporations are transitioning from one-off initiatives to systematic innovation management.
2. In Kazakhstan, two corporate venture funds have already been launched — this is the first step toward creating a full-fledged CVC infrastructure in the country.
3. Most companies are ready to work with startups, but primarily as contractors rather than through investment mechanisms.
4. Paradox: companies are more concerned about macroeconomic risks, yet most believe that technological changes will be key in the next five years.
5. Today, innovation remains more of a defensive strategy aimed at maintaining positions than a growth driver.
6. Positive trend: an increasing number of companies are beginning to increase their innovation budgets, laying the groundwork for future development.
7. The future of corporate innovation in Kazakhstan depends on how well companies can transform them from formal initiatives into a sustainable system based on people, culture, and partnerships with startups.

The full research is available here.