Page 25 - Special Issue Modern Trends in Scientific Research and Development, Case of Asia

International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470

Main content
Today, Uzbekistan pays great attention to the development In order to assess how effective the costs of innovation are,
of an innovative economy. The experience of developed we decided to test the relationship between costs and
countries shows, that the introduction of innovations and the the volume of innovation (innovative products, works and
creation of national innovation system gives its results in the services) from 2008 to 2019. We tested the data on various
long term. But, it is also important to note that innovations models and settled on the linear logarithmic
themselves do not live a long time or do not have time to be regression model, since the simple linear model had
realized without government intervention[9]. Many states, a heteroscedasticity problem (different observed variances).
especially developing countries, are faced with the problem Below we obtained regression model using the
of creating favorable conditions for the development and program Gretl and graph the observed interrelationship
promotion of innovations. "Since bureaucrats are interested between x and y (chart №1). According to the results of the
in a large salary and the power of their bureau, it is rational calculations that the value of p is very close to zero and,
for them to increase the budget of their bureau rather than therefore, it can be argued that the model explains well the
optimize the social product [10]". This statement means that relationship. The value of R squared tells us that the cost of
a purely bureaucratic way of innovating is prone to failure innovation explains 68% of the change in the volume of
due to lack of sufficient incentives. In addition, policymakers innovation, which is quite significant. According to our
in charge of innovation policy are usually poorly informed model (1.1), if spending on innovation increases by 1%, then
about the market by which entrepreneurs and therefore tend the volume of innovation will increase by 0.51%. Hence, it is
to err in the implementation of innovation policy. Therefore, clear that the efficiency of costs must be increased at least
it is very important to analyze what exactly contributes to twice in order for the costs to pay off.
the growth of innovation.

ln vol_innov = 4.54 + 0.51 * ln exp_onR&D (1.1 )

Observed and estimated volume of innovations from expenditures on innovation (Graph No 1)
Source: Calculations were made by the author based on the data
https://stat.uz/uz/432-analiticheskie-materialy-uz/2038-innovatsion-faoliyat

In 2019, the expenditures of developed countries on usually able to develop innovations independently and have
research and development reached: 2,79% in the USA, 3,29% sufficient financial resources for investment in large
in Japan, 2,93% in Germany, 2,22% in France, 3,28% in scientific projects.
Sweden, Israel 4,25%, in South Korea 4,23% of
GDP . Observations show, that in the developed countries on Conclusions and suggestions
the State account for 30-50% of the cost of the national R & D Today many measures are taken to develop the innovational
including at stimulating the development of small innovative activities, in particular, legislation is being revised and
business expenses [13] . reformed, as well as precise directions for the development
of innovation are approved. Unfortunately, due to the
It is believed that the foreign investment in the developing fact that investments in innovation are typically associated
world is one of the main factors of economic strength. with high risks [15], it is also necessary to develop the
Foreign direct investment, represented by foreign financial system to provide constant flow of investments. It
enterprises, allows the development of competition and is important to take the following measures to improve
thereby constantly stimulates the improvement of the final innovation in the republic:
product or services. The state plays an important role of the 1. To stimulate the activities of universities in important
"first customer" here. It is state-owned enterprises that technical areas. Improve the quality of educational
actively cooperate with foreign companies and played an services by attracting foreign specialists ;
important role" the guarantor of the investors in 2. create close cooperation between manufacturing
China [14]. In addition to the state, big companies are enterprises and universities through a centralized

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