Abstract
<jats:p>In this article, the authors examine the impact of digitalization factors affecting small and medium-sized enterprises (SMEs) in Kazakhstan on productivity growth in regional economies. The investigation of these issues stems from the need for a qualitative assessment of the effectiveness and economic returns from the implementation of digital tools in the business environment. The study identified a research gap in the lack of quantitative analysis of the impact of digital capital and competencies on SME productivity at the regional level. The main objective of this article is to conduct an empirical study, based on econometric modelling and cluster analysis, of the effectiveness of SME digitalization in Kazakhstan in the context of digital transformation, and to classify regions according to their level of digital development. The study was conducted using data from the National Statistics Bureau of the Republic of Kazakhstan for the period from 2020 to 2025 across all regions of the country, and the following methods were applied during hypothesis testing: pairwise correlation analysis, econometric modelling based on panel data using fixed effects and cluster analysis using dendrogram construction (Ward’s method). As a result of the study, it was possible to identify the predominant influence of macroeconomic factors on productivity growth in the regions (R² = 0,98) and the significance of the role of digital competencies, as well as the negative impact of digital capital, where investments in ICT, as transaction costs, have a negative elasticity for business. Given the regional heterogeneity identified during the analysis of variable effects in the cluster analysis, it was established that the application of universal support and incentive measures in the regions is not effective, and that the formulation of state strategies to support the digitalization of business requires targeted incentives based on spatial specifics. Keywords: digitalization, government support, digital tools, entrepreneurship, productivity.</jats:p>