Creative Economy at the Nexus of Innovation, Digitalization and Education: ARDL and NARDL Approach from Kazakhstan

Abstract The purpose of the research work is to assess the indicators of innovation, digitalization and knowledge that have an impact on the creative economy. For this purpose, the following indicators were analyzed: total GVA for the creative industry, the share of GVA for the creative industry in GDP, government expenditure on education, research and development expenditure, information technology exports, internal R&D costs by branches of science, the volume of innovative products (goods, services), and the share of innovative products (goods, services). The data covers the period 2004-2022 and is taken from global and domestic data sources. In order to obtain comprehensive results of the study, two models were used: Linear Autoregressive Distributed Lag (ARDL) and Non-Linear Autoregressive Distributed Lag (NARDL). According to the results of the model, indicators with linear and nonlinear effects in the long and short term were identified. The practical significance of the study lies in the finding that the negative impact of internal Research and Development indicates the need to strictly monitor the progress and results of funds allocated to this sector and scientific projects. Although government spending on education has negative effects in the short term, it has positive effects in the strategic long run. It is important to highlight that for Kazakhstan, it is high priority to support creative economy sectors that have practical importance and result in production. The study also adds new empirical evidence and extends the existing literature on the creative economy.