THE ROLE OF FOREIGN INVESTMENTS AND INTERNATIONAL GRANTS IN INNOVATION ACTIVITY ON THE EXAMPLE OF UZBEKISTAN

Abstract

This article analyses the role of foreign investment (foreign direct investment and venture capital) and of international grant-financing programmes (external non-repayable grants and co-grants) in accelerating innovation processes in Uzbekistan. The study was carried out on the basis of strategic documents and international reports, relying on the concepts of growth through investment in science, research centres and innovation. The results show that foreign investment links (chains together) and strengthens enterprises through the transfer of innovation, new technologies and managerial experience. Grants constitute gap-filling financing at stages of high risk and support the stimulation of research centres, commercialization, and scientific and innovation cooperation. As a form of financing, they stimulate research centres and support the commercialization of scientific developments and inter-institutional cooperation. Co-financing of grants (50/50) is proposed in order to increase effectiveness. It is recommended to strengthen local production potential by integrating research institutes (centres and the like) with industry through foreign direct investment.