CC BY
5
UDK 338.2
Soliyev I. docent
Namangan Engineering - Construction Institute
Uzbekistan, Namangan city INVESTMENT AND INNOVATION IN THE DEVELOPMENT OF
UZBEKISTAN'S ECONOMY
Annotation: This article covers investment and innovation, its essence, its importance in the development of the economy of Uzbekistan, the work carried out in this regard and similar issues.
Keywords: investment, innovation, development, economy, industries.
The formation of the Republic of Uzbekistan, the integration of its economy into the world community takes place in difficult conditions. The Republic is overcoming the difficulties of the transition period and is looking for effective models of the future, taking into account the global and regional directions, the most important of which is the desire to follow the path of sustainable development. The national aspect of sustainable development for the Republic of Uzbekistan is determined, first of all, by its formation as a sovereign state, the need for the fastest way out of socio-economic difficulties and environmental tensions, improving the living standards of the population, entering the world community, maintaining good-neighbourly relations with other countries of the world and mutually beneficial cooperation. Currently, the state scientific and technical policy of the country is aimed at concentrating the efforts available to its scientific and technical potential to solve socio-economic problems in a gradual transition to a socially oriented market economy [1].
The effective and qualitative functioning of economic sectors plays an important role in creating conditions for sustainable growth of the national economy, as well as social development of the country. The current state of the economy is characterized by significant wear of fixed assets. Investments in fixed assets are required to replace worn-out fixed assets, expand production or produce new goods or services. But at the same time, the most important function of investment in fixed capital should be innovation: with their help, innovative renewal of fixed assets is carried out on the basis of the use of scientific and technological achievements for the production of new or improved competitive products, new or modified effective technologies. Investment is a necessary condition for innovation. Without innovation, capital investment can be inefficient and even harmful, prolonging the future production of uncompetitive products. The innovative function of investment is not to replace obsolete funds with new ones in the same enterprise and to produce the same products (goods or services).
As emphasized by the first President of the Republic of Uzbekistan I. A. Karimov: "our Important priority for the long-term perspective and having crucial importance for the growth potential of the country's power and competitiveness of the economy, is the implementation of active investment policy on realization of
strategically important projects aimed at modernization, technical and technological renewal of the leading basic industries, development of powerful modern network of transport and communications infrastructure" [2].
Foreign investments are of great economic interest for the development of the innovation process, the attraction of which can be facilitated by the provision of a relatively cheap but qualified labor force and a stable sales market in Uzbekistan. But for this it is necessary to strengthen the real guarantees of safety and return of foreign loans and investments, which will be provided by domestic insurance companies in the domestic market of the Republic. As material support for foreign loans and investments, it seems appropriate to use Republican holdings in foreign banks, as well as to invest currency in joint production abroad[3].
Consequently, the implementation of market reforms in Uzbekistan, including the deepening of privatization processes, achieving macroeconomic stabilization and ensuring sustainable economic growth, fundamental structural changes in the national economic complex are inextricably linked to the implementation of an active investment policy. Foreign investment is one of the main factors contributing to the accelerated economic development of the country. Even such highly developed countries as the USA, Germany, France, Japan, great Britain and others consider the constant attraction of foreign capital as a necessary means of growth of their economic potential, improvement of citizens ' welfare. The experience of countries that are in a state of rapid economic development - China, South Korea, Singapore, Malaysia and other East Asian countries-clearly proves the activating influence of foreign investment. Their governments created a favorable climate, and the results were not slow to affect [4].
Attraction of additional investment capital. The capital market in the country is just beginning to develop, so it cannot provide the required amount of capital for large projects. In addition, access to hard currency needed to purchase goods that are not available in the local market is difficult. Foreign investment can solve both of these problems at once, as they are a source of external capital.
Access to advanced technology. Many enterprises of the Republic use outdated equipment and technologies, which significantly reduces productivity and leads to the production of lower quality goods. This affects their competitiveness and reduces the ability to earn hard currency. Foreign investment can solve this problem, as investment goods embody advanced technology, and enterprises can use new technologies.
Access to advanced management techniques. Foreign investors carry with them advanced proven management methods and provide an opportunity to study and use them. This transfer of experience is particularly important in the context of the creation of a joint venture, the privatization of local enterprises by foreign investors. Both sides benefit - a foreign firm-investor replenishes local knowledge and contacts, and local enterprises use the proposed methods to increase productivity and improve product quality.
Improving access to the world market. Foreign investors will help to gain access to distributed channels and gain experience in selling goods on the world
market, which will develop the export opportunities of the Republic and creates a reliable source of foreign currency.
Connection of investments and innovations as factors of social and economic development of the country. Investments and innovations are quite interrelated structural elements of the market, therefore, any investment tactics, which is carried out by a particular enterprise, will be determined by the it is related to innovation in a divided way.
Thus, a set of measures aimed at further improving the competitiveness of the national economy will be implemented in the Republic of Uzbekistan. In accordance with this, the main directions of the state investment strategy can be formulated as follows:
- implementation of a targeted policy to deepen structural reforms;
- full support of priority sectors in order to ensure high competitiveness of domestic products in the domestic and world markets and increase the export potential of the country;
- development of industrial and social infrastructure;
- improvement of conditions for the activation of investment and innovation activities of both domestic and foreign investors.
References:
1. Asadullina N. R. Development of integration processes in the field of innovation in the Republic of Uzbekistan/N. R. Asadullina / / Economic Bulletin of Donbass. -2013. - № 2. - P. 42-52.
2. Karimov I. Modernization of the country and building a strong civil society is our top priority. Report of President Islam Karimov at the joint session of the Legislative chamber and Senate of the Oliy Majlis of the Republic of Uzbekistan / I. Karimov // Pravda Vostoka. - 2010.
3. Akobirova D. N. Innovative strategy / D. N. Akobirova. - T:, 2011. - 352 p.
4. Ismatullaevich S. I., Yakubovich Y. A. The role of innovative activity in the Socio-Economic development of society //ACADEMICIA: An International Multidisciplinary Research Journal. - 2019. - T. 9. - №. 4. - C. 93-98.
