Key Factors In Forming A National Innovation System: A Case Study Of Uzbekistan
Keywords:
national innovation system, innovation infrastructure, R&D expenditure, human capital, public-private partnershipAbstract
Purpose. This study investigates the principal factors shaping a national innovation system (NIS) in a transition economy, using Uzbekistan as an empirical focal point. The research addresses a gap in the literature concerning the interplay between institutional quality, R&D investment intensity, and human capital development in economies undergoing structural transformation.
Design/Methodology. Drawing on the Triple Helix framework and the open innovation paradigm, the study employs a multi-source empirical base comprising the WIPO Global Innovation Index (2019–2023), the World Bank Human Capital Index, UNCTAD Technology Payments Balance data, and Uzbekistan's national statistics. A macro–meso–micro three-level analytical model is applied to classify NIS factors. Uzbekistan is benchmarked against three structurally comparable regional peers — Kazakhstan, Azerbaijan, and Georgia.
Findings. Five interdependent factor groups are identified: (1) institutional and legal environment; (2) R&D financing mechanisms; (3) human capital and education quality; (4) innovation infrastructure; and (5) international technological integration. The analysis reveals a structural 'institutional trap': Uzbekistan's human capital index (0.57) is broadly competitive regionally, yet R&D expenditure constitutes only 0.13% of GDP — approximately 19 times below the OECD average — suppressing the conversion of knowledge endowments into innovation outputs. A 16-fold increase in IT service exports between 2019 and 2023 demonstrates the scalability of targeted infrastructure policy, but the growth remains predominantly adaptive rather than frontier-generating.
Practical Implications. Five targeted policy recommendations are proposed — including an R&D tax credit, patent box regime, university–enterprise consortia, deeper integration into international innovation networks, and a unified digital innovation platform — aimed at positioning Uzbekistan within the Global Innovation Index Top 60 by 2030.
Originality/Value. The study contributes to the scarce English-language empirical literature on NIS formation in Central Asian transition economies and provides a replicable multi-level analytical framework applicable to analogous country contexts.
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