Uzbekistan's Path to Knowledge-Driven Economic Growth

Teshaboeva Zilola Toshpulatovna

Andijan Machine Building Institute, Andijan, Uzbekistan

Keywords: Science, Innovation, Economic Development, State Support, Funding.

Abstract: This article presents a comprehensive review of research exploring the intricate interplay between science,

innovation, and the economic advancement of a state. It underscores the imperative for state backing and

investment in fundamental scientific research and development, as substantiated by an analysis of the

prevailing landscape. Drawing upon these insights, the article advocates for enhancements in the state's

scientific and technological policy. By aligning with the findings, it proposes strategies to bolster the efficacy

of such policies. Through this, it aims to foster an environment conducive to sustained scientific progress and

technological innovation, ultimately driving economic growth and prosperity.

1 INTRODUCTION

Trends in the development of the global economy

show that science and innovation have long become

the most effective productive forces ensuring the

competitiveness of the state. The factor that increases

the ability to generate new value and competitiveness

of the economy is its knowledge intensity. As many

researchers characterize the general line of evolution

of the world economy: "At first there was an economy

based on physical labor and agriculture. It was

replaced by an industrial economy based on the use

of natural resources. The latter is gradually being

replaced by a knowledge-based economy" (Kabanov

et al 2012). Back at the beginning of the new

millennium, the participants of the regular meeting of

the European Council held in Lisbon on March 23-

24, 2000 recognized a qualitative leap in the global

economy, the source of which is globalization and the

transition to knowledge-based economic activity.

This definition was recognized at the Lisbon Summit

of the European Union as a strategic priority for both

developed and developing countries. The

Recommendations on the Collection and Analysis of

Innovation Data (The Oslo Manual, 3rd ed.) state:

"The expression "knowledge-based economy" is

intended to emphasize the movement of developed

countries towards a greater reliance on knowledge,

information and high qualifications, as well as the

growing need for direct access to all this from the

sides of the state and business" (item 71 of Chapter 2

"Theory of innovation and the need for

measurements"). Paragraph 72 states that the study of

innovation processes and policy discussions have

shown the importance of studying innovation from a

broad perspective. The UNESCO World Report

"Towards Knowledge Societies" for 2005 states:

"Today it is generally recognized that knowledge has

become a subject of colossal economic, political and

cultural interests so much that it can serve to

determine the qualitative state of society, the contours

of which are just beginning to loom before us". The

relationship of science and research with economic

growth has been considered by many researchers,

such as Bautin et al 2014, Zavarukhin et al 2023,

Petrenko et al 2007, Kabanov et al 2012, Kaneva et al

2017, Kadyrova et al 2021, Makarova et al 2022,

Moldabekova et al. 2020. In their work, they have

shown that there is a close correlation between

investments in science, research and education and

economic growth. The size of the knowledge-

intensive sector and the scale of the use of high

technologies characterize the scientific, technical and

economic potential of the country, determine the

share of high-value-added products in the country's

GDP. Thus, it can be concluded that innovation is a

decisive factor in economic growth.

2 RESEARCH METHODOLOGY

In the preparation of this article, methods of analysis,

synthesis, qualitative comparison, and statistical

analysis were used. Data collection and analysis were

Toshpulatovna, T.

Uzbekistan’s Path to Knowledge-Driven Economic Growth.

DOI: 10.5220/0012919200003882

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd Pamir Transboundary Conference for Sustainable Societies (PAMIR-2 2023), pages 793-796

ISBN: 978-989-758-723-8

793

carried out using a systematic approach, which takes

into account all elements of the system being studied

and their interrelations. The paper draws on

theoretical research conducted by foreign researchers.

It also analyzes materials from domestic and

international news sites, newspapers, and business

blog reviews. Methods such as logical analysis and

the identification of causal relationships between

factors are employed.

3 RESULT AND ANALYSIS

The concept adopted in 2020 for the development of

science in the Republic of Uzbekistan until 2030 has

defined the main directions for the development of

this sphere in the medium and long term, which is

based on a plan for the phased development of science

according to such indicators as:

• increase in funds allocated to science in

relation to GDP with balanced participation

of the public and private sectors (from 0.2 to

2% of GDP); Creating the necessary

conditions for attracting private capital to

R&D;

• training of highly qualified scientific and

engineering personnel and their stimulation

to research activities;

• bringing the average age of scientists to 39

years due to the greater involvement of

young specialists in science and increasing

the number of young scientific specialists of

the highest category from 11 to 30% of the

total number of applicants under the age of

39;

• increasing the publication and patent activity

of domestic scientists in the country and

abroad, increasing the share of Uzbekistan in

the total number of articles published in

international scientific journals indexed in

the international scientific database Scopus

and Web of Science, from 0.008 to 0.2%;

• functioning of national scientific

laboratories, implementation of GSP and

GLP standards;

• structural transformations in favor of the

production of knowledge-intensive and

high-tech products with high added value.

According to the Decree of the President of the

Republic of Uzbekistan "On improving the public

administration system for the development of

scientific and innovative activities" PF-6198 dated

April 1, 2021, the Fund for Support of Innovative

Development and Innovative Ideas was reorganized

into the Scientific Fund for Support of Science and

Innovation by joining the Presidential Fund and the

Fund for Support of Gifted Youth of the Academy of

Youth under the Ministry of Innovative

Development.

The main activities of the fund include:

1. Financing the creation and implementation

of innovative projects by subjects of

innovative activity, on a competitive basis.

2. Financing research, innovation,

development, and startup projects, also on a

competitive basis.

3. Financing the commercialization of

scientific and technical results.

4. Financing measures to equip (additional

equip) scientific laboratories with high-tech

equipment.

5. Covering the costs of registering and

maintaining intellectual property abroad,

including patents created within state

programs.

6. Payment of expenses to ensure free access to

leading electronic databases for research and

educational institutions.

7. Preparation for publication of scientific

results in international journals.

8. Financing of scientific internships for young

scientists in leading foreign research

organizations (centres, universities, etc.).

By the end of 2022, 1.79 trillion soms worth of

research and development (R&D) projects were

carried out in the Republic of Uzbekistan. Although

the volume of R&D has increased by almost 4 times

compared to 2017, it is still not enough and there is

great potential for growth in this area that needs to be

explored. It is especially important to find ways to

further enhance state support for fundamental

research, as this forms the basis for scientific and

technological advancement.

In 2023, 1.8 trillion soums were allocated for

science and innovation, and the allocated funds were

used to create a scientific and theoretical basis in

energy, agriculture, geology, and construction. It

should be noted that the salaries of scientists have

increased by almost fivefold in recent years.

According to the Ministry of Higher Education,

Science, and Innovation, in January-November 2022,

511.9 billion soums were allocated for 929 scientific

projects under state programs. Applied initiatives

were mainly funded (63%), followed by innovative

projects (15%), and fundamental research (11%).

Tashkent, the Tashkent Region, and Karakalpakstan

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794

Table 1: Diverse Approaches in Scientific Work: Classifying R&D Projects.

Indicators 2017 2018 2019 2020 2021 2022

The volume of completed research and development

ects, million soums

449905.4 680038 853404.4 992029.1 1069676.5 1788300.9

scientific research works 300254.5 336482.5 535208.9 663152.8 744693.2 1379718.3

of them fundamental 82276.3 89254.2 162804 178052.6 233194.6 224 896.6

design and technological 36888.4 38714 97641.2 74346.7 85624.4 186 437.3

production of prototypes, batches, products (products) 4025.6 7677.9 6318.8 3975.8 5071.9 7524.5

design work for construction 31166 77687.2 54628.9 68252.7 90481 105218.6

scientific and technical 77570.9 221205.1 160512.1 182301.1 143806 109402.1

drew the most investment in science over the 11-

month period. The worst outcomes were in the

Jizzakh, Syrkhandarya, and Khorezm Regions. In

2022, the number of women engaged in scientific

research in Uzbekistan reached 12.5 thousand, which

is a decrease of 1.9 thousand compared to 2021.

According to the State Statistics Committee of the

Republic of Uzbekistan, the total expenditures on

research and development (R&D) in 2022 increased

by 34% compared to the previous year, amounting to

1.4 trillion soums. The cost of maintaining research

institutions alone was 628 billion soums, while other

expenses, including transfers to the Science

Financing and Innovation Support Fund, amounted to

819 billion soums. As can be seen from the data,

research and development costs and their

effectiveness continue to be a major issue in the

development of an innovative economy. It is essential

to increase the funding for both basic and applied

research and to use the mechanism of public-private

partnerships in financing research projects. In

Uzbekistan, the share of funding for the scientific

field in the country's gross domestic product (GDP) is

expected to increase by 6 times by 2025 and by 10

times by 2030. This was announced by President

Shavkat Mirziyoyev during a congratulatory speech

on the occasion of the 80th anniversary of the

founding of the Academy of Sciences. There is an

obvious connection between funding science and

innovation, and sustainable economic growth. The

greater the investment in research and development,

the greater the potential for long-term economic

growth and a better quality of life for the people.

4 CONCLUSION

Measures to Support and Finance Science and

Research in the Context of Innovative Development

Measures to support and finance scientific research

and innovation can be categorized into several groups:

• Government Funding: Government agencies

are key players in supporting scientific

research and development (R&D). They can

fund R&D through national research

programs, grants, and scholarships, as well as

by providing grants to academic institutions

and industries.

• Private Sector Funding: The private sector can

also play a significant role in funding R&D.

Companies and individuals can make

donations to organizations that conduct

research, or they can invest in start-ups that are

developing innovative products and services.

• Crowdfunding: Crowdfunding platforms

allow individuals and small groups to pool

their funds together to support specific

projects. This can include funding for research

projects, product development, and other

innovative initiatives.

• Tax Incentives: Governments may offer tax

incentives to encourage investment in R&D,

such as reduced tax rates or accelerated

depreciation for equipment used in research.

• Public-Private Partnerships: Public-private

partnerships can be formed to co-fund

innovative projects, with the public sector

providing funding and the private sector

contributing expertise or resources. These

measures can help to create a supportive

Uzbekistan’s Path to Knowledge-Driven Economic Growth

795

environment for scientific innovation and

contribute to the development of new

technologies and products.

• Private sector funding: The private sector

plays an important role in funding scientific

research. Corporations and foundations can

provide support through grants, research and

development contracts, and investment in

research institutions.

• International collaboration: International

collaboration is an essential tool for

supporting scientific research, particularly in

areas that require significant investment.

Countries can collaborate on international

research projects, student and scientist

exchange programs, and joint scientific

projects.

• Innovation Clusters and Technology Parks:

The creation of innovation clusters and

technology parks can contribute to the

development of science and innovation. These

organizations provide scientists and

researchers access to specialized services,

equipment, and help companies identify new

technologies and solutions.

• Infrastructure Development: Developed

infrastructure is also crucial for the

advancement of science and technology. This

includes the establishment of scientific

laboratories and research centers, as well as

the creation of networks and the provision of

access to information.

• Support for Young Scientists and Students:

Supporting young scientists and students in

the early stages of their career is essential for

stimulating innovative development. This

could include providing scholarships, grants,

and internship and exchange programs.

• Education and Training: Developing the

education and training system is another

important aspect of promoting science and

innovation. Developing skills and

competencies in science, technology, and

innovation through educational programs, as

well as supporting higher education

institutions and research organizations, are

crucial tools for achieving this goal.

• Creating an Enabling Environment for

Innovation: Creating an enabling environment

for innovation involves measures such as

reducing bureaucratic obstacles, simplifying

regulatory processes, and creating a

competitive environment that stimulates

innovation.

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