Abstract
The transition to a knowledge-based economy increasingly depends on the accumulation and effective use of regional intellectual capital (RIC). This challenge is particularly acute for resource-oriented countries seeking to reduce their dependence on natural resources and achieve sustainable long-term development. However, its immediate economic effects of RIC remain unclear. The paper examines whether regions that accumulate RIC are able to convert it into short-term economic dynamics and whether such accumulation creates the foundations for long-term regional transformation. Using panel data for regions of Kazakhstan, the empirical strategy distinguishes between two complementary dimensions of RIC impact. The structural effect of RIC is estimated using a two-way fixed-effects panel model, while the short-term conversion effect is operationalized through a novel indicator - the Regional Intellectual Capital Conversion Elasticity (RICCE_Elasticity). The results show that RIC functions primarily as an accumulated institutional resource whose development impact depends not only on its stock, but also on regional mechanisms that enable its economic conversion. By distinguishing between accumulation and conversion effects, the paper contributes to the literature on intellectual capital and regional development.
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