Authors

  • Gulrukh Kholmirzayeva
    Samarkand Institute of Economics and Service
  • Og’abek Narzikulov
    Samarkand Institute of Economics and Service

DOI:

https://doi.org/10.71337/inlibrary.uz.ijpse.113588

Abstract

This article analyzes the essence of innovative activity in the economy, its stages of development and specific features. It considers the role of innovative activity in modern economic development, its importance in the development and introduction of new technologies, as well as its role in increasing competitiveness. The article also analyzes the factors affecting the state support of innovative processes, the active participation of business entities and the formation of an innovative environment. Proposals and recommendations are presented to accelerate innovative activity in the economy of Uzbekistan.


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SPECIFIC FEATURES OF INNOVATIVE ACTIVITY IN THE ECONOMY

Kholmirzayeva Gulrukh

Samarkand Institute of Economics and Service

Assistant of the “Department of Investment and Innovations”

Narzikulov Og’abek

Student of the Samarkand Institute of Economics and Service

Abstract:

This article analyzes the essence of innovative activity in the economy, its stages of

development and specific features. It considers the role of innovative activity in modern

economic development, its importance in the development and introduction of new technologies,

as well as its role in increasing competitiveness. The article also analyzes the factors affecting

the state support of innovative processes, the active participation of business entities and the

formation of an innovative environment. Proposals and recommendations are presented to

accelerate innovative activity in the economy of Uzbekistan.

Keywords:

innovative activity, economic development, technological innovation,

competitiveness, innovative environment, scientific and technical progress, state support,

economic efficiency.

Introduction

The modern development of the economy is associated with reliance on innovative activity,

which plays an important role in increasing the competitiveness of countries, strengthening their

role and status in the global economic arena. Innovative activity is carried out through the

development of new knowledge, technologies, products and services, modernization of

production processes, as well as the integration of advanced technological approaches into the

economy. At the same time, the transition to such a model of economic development plays an

important role in the effective use of large-scale resources and increasing the competitiveness of

the economic system.

Today, supporting and developing innovative activity is necessary to ensure the country's

economic stability and increase its competitiveness in the world market. Uzbekistan, in order to

modernize and diversify its economic system, attaches great importance to the development of

innovative activity. In this regard, the innovative environment created by the state, measures

taken to support scientific and technical achievements and activate the participation of business

entities in innovative processes play an important role.

This article is devoted to the analysis of the specific features of innovative activity in the

economy. It considers the main principles and types of innovative activity, the interaction

between the state and business entities, as well as strategic recommendations aimed at

developing innovative activity.

Literature review

The number of scientific literature on the role of innovative activity in the economy and its

development directions is increasing from year to year. The role of innovation in economic

growth, its importance in increasing its efficiency and creating new market opportunities has

been studied in depth by world scientists.

For example, Joseph Schumpeter, evaluating innovation as the main driving force of economic

development, put forward the theory of "creative disruption". According to him, new products

and technologies displace old systems, opening the way for economic growth and competition.


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M. Porter, in his theory of competitive advantage, identifies innovation as the main factor

determining the efficiency of national economic systems. In his opinion, companies can achieve

superiority only through innovative activity.

Uzbek scientists have also been intensifying research on the innovative economy in recent years.

In particular, I. Umurzakov, Sh. The works of Ganiyev, Kh. Abdurakhmonov and other

economists cover the issues of forming an innovative environment, effective use of scientific and

technical potential, and the impact of digital transformation on the economy.

Also, important directions for stimulating innovative activity and implementing the results of

scientific research into practice are outlined in state programs, presidential decrees and strategic

documents adopted in the republic.

An analysis of the literature shows that the effectiveness of innovative activity largely depends

on the consistency of state policy, cooperation between scientific institutions and manufacturers,

and the level of assimilation of international experience.

Methodology

This scientific research aims to deeply study the specific features of innovative activity in the

economy and analyze them in a practical way. Analytical, comparative, statistical, inductive-

deductive and systematic approaches were chosen as the methodological basis of the research.

First of all, existing theoretical views on innovative activity were studied and their impact on

economic development was analyzed. Then, the role of innovative activity in the experience of

different countries, in particular developed countries, the conditions for its formation and

efficiency factors were compared with the economic system of Uzbekistan.

During the research, economic indicators were analyzed based on official statistical data and

reliable sources, and the impact of innovative activity indicators on economic growth was

substantiated through numbers. At the same time, scientific conclusions were developed by

drawing specific conclusions from general scientific theories (deductive) and forming

generalizations based on real situations and examples (inductive). Innovative activity was

considered as an important component of the economic system, its interconnection with other

sectors and systemic impact were identified.

Also, during the research process, decrees, resolutions of the President of the Republic of

Uzbekistan, strategic programs, regulatory and legal acts, national and international scientific

articles, conference materials, as well as data from the State Statistics Committee were widely

used. Through these approaches, scientifically based recommendations were developed for

determining the economic efficiency of innovative activity and its development.

Analysis and results

Innovative activity is an important tool for modernizing the economy, producing competitive

products and creating high added value. During the study, the role of innovative activity in the

economy, its structural elements and development factors were comprehensively analyzed.

Initially, it was found on the basis of international experience that countries with an economic

model based on innovation have a high level of funds allocated for research and development as

a part of the gross domestic product, and their economic growth is stable and long-term. For

example, the experience of the USA, Germany, South Korea and Japan shows that competitive

advantage is created by supporting innovative activity. In Uzbekistan, innovative development

has also become one of the priority areas of state policy in recent years. The adoption of the

Innovation Development Agency, Technoparks, youth startup projects, grant-based programs,

and the “Innovative Development Strategy” are evidence of positive developments in this area.

However, the analysis shows that, despite the existing opportunities, the share of innovative

activity in the economy still remains low. The main problems include the disconnect between


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science and production, the weak activity of the private sector, the underdevelopment of the

intellectual property market, and the insufficient formation of the innovation infrastructure.

According to statistics, the funds allocated for research and development in Uzbekistan are 0.2–

0.3 percent of GDP, which is significantly lower than world standards. In addition, the share of

innovative products in the total volume of production is still insufficient. Therefore, in order to

increase economic efficiency, it is necessary to modernize production based on innovative

approaches, switch to the production of high-tech products, and ensure the integration of science

and production.

The results of the study show that the following areas are important for the successful

development of innovation in the economy: first, increasing the volume of state funding for

scientific research; second, encouraging the involvement of the private sector in innovation

projects; thirdly, to establish a system of innovative cooperation between higher education

institutions and industrial enterprises; fourthly, to develop innovative infrastructure through the

introduction of digital technologies.

Thus, identifying the specific features of innovative activity in the economy, analyzing existing

problems and developing practical recommendations for their elimination are one of the main

factors for Uzbekistan to have a competitive and sustainable economy.

Conclusion

Research shows that innovation is one of the most important components of the modern

economy, which plays a decisive role in increasing production efficiency, rational use of

resources and ensuring the competitiveness of the national economy. World experience proves

that countries that consistently use innovations achieve stable and high economic growth.

In Uzbekistan, a legal and regulatory framework for the development of innovation has been

formed, and a number of infrastructure projects are being implemented. However, there are still

problems in this area that are waiting to be solved: the disconnect between scientific research and

production, the slow development of the innovation environment, the passive participation of the

private sector, and insufficient human resources.

Based on the analysis presented in the article, the following main conclusions can be drawn:

— For the effective development of innovation in the economy, it is necessary to strengthen

cooperation between the state and the private sector;

— It is necessary to increase the amount of funds allocated for scientific research and direct their

results to commercialization;

— It is necessary to create a basis for the production of innovative products by ensuring

integration between science, education and production;

— The formation of an innovative ecosystem based on digital technologies, startups and

technoparks should be considered an urgent task.

Based on the above, it is possible to bring the economy of Uzbekistan to a qualitatively new level

through the comprehensive development of innovative activities. This will serve as an important

factor in strengthening the country's position in the global economic arena.

References:

1. Resolution of the President of the Republic of Uzbekistan dated August 24, 2023 No. PQ–283

“On measures to implement the innovative development strategy”.

2. Agency for Innovative Development of the Republic of Uzbekistan (2023). Statistical analysis

of the state of innovative development in Uzbekistan. Tashkent.

3. Abdurakhmonov, H. (2024). “Development trends and priority areas of the innovative

economy”. Journal of Scientific Research, No. 2(18), 28–34.


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4. G‘iyev, S. & To‘htayev, R. (2024). “Innovative activity and mechanisms for its stimulation”.

Economics and Management, No. 1(41), 15–21.

5. Karimova, M. (2024). “The role of state policy in the development of technoparks and

startups”. Journal of Innovations of Uzbekistan, No. 3, 44–50.

6. World Bank (2024). Innovation for Development in Central Asia: Policy Approaches and Best

Practices. Washington D.C.

7. OECD (2023). Science, Technology and Innovation Outlook 2023: Navigating Global

Challenges. OECD Publishing. https://doi.org/10.1787/sti-outlook-2023-en

8. UNCTAD (2023). Technology and Innovation Report 2023: Opening Green Windows –

Technological Opportunities for a Low-Carbon World. United Nations.

9. Center for Economic Research and Reforms under the Statistics Agency (2024). Efficiency of

Innovation Activities in Uzbekistan: Problems and Solutions. Tashkent.

10.

Hasanov, B. (2024). “The Impact of Young Entrepreneurship and Innovative Initiatives

on Economic Growth”. New Economic Research, No. 2, 19–26.

References

Resolution of the President of the Republic of Uzbekistan dated August 24, 2023 No. PQ–283 “On measures to implement the innovative development strategy”.

Agency for Innovative Development of the Republic of Uzbekistan (2023). Statistical analysis of the state of innovative development in Uzbekistan. Tashkent.

Abdurakhmonov, H. (2024). “Development trends and priority areas of the innovative economy”. Journal of Scientific Research, No. 2(18), 28–34.

G‘iyev, S. & To‘htayev, R. (2024). “Innovative activity and mechanisms for its stimulation”. Economics and Management, No. 1(41), 15–21.

Karimova, M. (2024). “The role of state policy in the development of technoparks and startups”. Journal of Innovations of Uzbekistan, No. 3, 44–50.

World Bank (2024). Innovation for Development in Central Asia: Policy Approaches and Best Practices. Washington D.C.

OECD (2023). Science, Technology and Innovation Outlook 2023: Navigating Global Challenges. OECD Publishing. https://doi.org/10.1787/sti-outlook-2023-en

UNCTAD (2023). Technology and Innovation Report 2023: Opening Green Windows – Technological Opportunities for a Low-Carbon World. United Nations.

Center for Economic Research and Reforms under the Statistics Agency (2024). Efficiency of Innovation Activities in Uzbekistan: Problems and Solutions. Tashkent.

Hasanov, B. (2024). “The Impact of Young Entrepreneurship and Innovative Initiatives on Economic Growth”. New Economic Research, No. 2, 19–26.