To evaluate the internal innovation processes in Kazakhstan, the paper involves two pieces of empirical research. In the first piece, the main drivers of innovation performance are identified based on regression analysis. The literature suggests three factors affecting innovation activities of firms, namely foreign direct investments, research and development investments, and international trade. In order to test this theoretical framework, a probit regression analysis is carried on to estimate the determinants of innovation performance in Kazakhstan. The chapter makes use of firm level data from the Kazakhstan Enterprise Survey 2009, conducted by The World Bank. The results are supplemented by descriptive analysis. The second piece deals with the examination of multi-level relationships between business organizations and innovation. The literature distinguishes between two modes of learning and innovation, based on the distinction between implicit and explicit knowledge. Promotion of R&D and codification of innovation process are the main features of the Science, Technology, and Innovation mode of innovation. On the other hand, the Doing, Using, and Interacting mode of innovation is based on learning by doing. In order to discern which of these is the main innovation mode adopted by firms within the EKMC, a survey was conducted among them in the period from November 2011 to January 2012.