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Bulletin of the Kyrgyz National Agrarian University

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Financing innovative processes in agriculture of the Kyrgyz Republic

T Tinatin Sydykova
Received 19.01.2026
Revised 15.05.2026
Published 15.06.2026

Abstract

Under conditions of limited access to long-term capital and high climate vulnerability, the agricultural sector of the Kyrgyz Republic faces institutional constraints on the adoption of innovations. The aim of the study was to identify and quantitatively assess the relationship between the financing structure and the dynamics of innovation activity in the agricultural sector, as well as to develop a mixed financing model. The empirical base covered official data for 2020-2024. The methodological framework was based on economic and statistical analysis, linear normalisation of indicators, expert assessment of weighting coefficients (n = 14), and Spearman’s non-parametric correlation analysis. The consistency of expert assessments was confirmed by Kendall’s coefficient of concordance (W = 0.74). The study proposes an integral index of innovation financing, which includes budget support, long-term bank lending, private investment, funds from international financial organisations, and the investment risk factor. A statistically significant positive relationship was identified between the share of long-term lending and the volume of investment in fixed capital (ρ = 0.71; p < 0.05), confirming the key role of the temporal structure of capital in shaping the sector’s innovation potential. It was shown that increasing the share of long-term lending to 35% can ensure growth in innovation activity depending on the level of private and international capital attraction. A formalised mixed financing model was developed, and scenario modelling of three development trajectories was conducted. The baseline scenario maintained the predominance of short-term lending and ensured growth at the level of 3-4%; the moderate scenario envisaged an increase in the share of long-term loans to 35% while maintaining state support, resulting in growth of 5-6%; whereas the innovative scenario was based on mixed financing with expanded resources and participation of private and international capital, ensuring growth of 7-9%

Keywords

investment mechanisms; agricultural sector; state support; production modernisation; lending
Suggested citation
Sydykova, T. (2026). Financing innovative processes in agriculture of the Kyrgyz Republic. Bulletin of the Kyrgyz National Agrarian University, 24(2), 43-50. https://doi.org/10.63621/bknau./2.2026.43

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