INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 08,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
754
INVESTMENT AND INNOVATION: INTERCONNECTION AND THEIR PLACE IN
THE MODERN ECONOMY
Ibragimov Aziz Turayevich
Asia international university, Bukhara, Uzbekistan
Abstract:
In the article investment and innovation concepts in the economy theoretical and
practical their place each other connection , modern in the economy importance analysis
In world experience used
mechanisms , Uzbekistan
in practice take going reforms and
leather - fur in the industry investment-innovation strategies harmony issues illuminated .
Keywords
: investment , innovation , economic
growth , technology , synergy,
competitiveness , leather and fur industry .
Current globalization in the processes of countries economic power their natural resources or
geographical location with not , maybe innovative potential and investment opportunities with
World
bank and International currency fund to the information according to , last ten
annually gross internal of the product growth pace high was in the countries investment and
innovative politics central place caught
Uzbekistan investment for and innovation economic of reforms basis as In particular , in
our country working to release modernization to do , new technologies attraction to grow and
high additional
valuable products export increase according to wide extensive
measures
done is being increased .
Investment plays a vital role in economic development, serving as a driving force not only for
capital multiplication but also for broader social and technological transformation. Its functions
extend beyond financial growth to shaping the structure and dynamics of society. One of the
key functions of investment is capital formation and renewal, which ensures the modernization
of production tools and the creation of new production capacities. Another important role of
investment is the increase of competitiveness, as enterprises are able to adopt advanced
technologies and improve their efficiency. At the same time, investment contributes to social
stability by generating new jobs and raising the income levels of the population. Furthermore, it
fosters regional development by attracting capital to less-developed areas, building
infrastructure, and supporting industrial growth. For instance, in Uzbekistan the volume of
capital-directed investments reached 330 trillion soums, with 30 percent of this amount
accounted for by foreign investments. This reflects the growing economic openness of the
country and its expanding international cooperation.
Innovation is a key driver of economic dynamism and development, acting not only as a means
of modernizing production but also as a factor that takes the entire economic system to a new
stage. It introduces fundamental changes in products, processes, management, and even social
life. Product innovation refers to the creation of new goods, such as bio-leather-based products
that diversify and modernize industries. Process innovation involves optimizing production
methods, for example, by introducing eco-friendly technologies in leather processing.
Management innovation is linked to the adoption of new organizational and marketing methods
that enhance efficiency and competitiveness. Social innovation, on the other hand, is aimed at
improving the quality of life, such as through “green economy” initiatives. According to data
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 08,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
755
from UNIDO (United Nations Industrial Development Organization), countries that actively
invest in innovation achieve GDP growth rates that are on average 2.5 times higher than those
that do not.
The synergy between investment and innovation is particularly important, as both complement
and reinforce each other. Investment provides the foundation for innovation by funding
scientific research, technological development, and startup activities. At the same time,
innovation makes investment more effective by reducing the payback period through the use of
advanced technologies. Their combined effect generates a synergistic impact, as seen in
industries such as leather and fur, where the application of new technologies has significantly
boosted export potential. Moreover, investment and innovation together create a continuous
development chain: investment fuels innovation, and innovation, in turn, generates the need for
new investments, ensuring sustainable economic progress.
World experience shows that investment and innovation are decisive factors in shaping modern
economies. In the United States, the world’s largest market for venture capital and startups has
given rise to globally recognized companies such as Google and Apple, illustrating how
innovation ecosystems drive long-term competitiveness. Japan has successfully advanced
through the creation of technology parks and the promotion of the “industry–education–
science” triangle, which fostered close cooperation between universities, research institutions,
and businesses. South Korea, with strong government support, managed to transform itself
within just two decades into an “innovative economy,” building global leadership in industries
like electronics and telecommunications. China, through its “Made in China 2025” strategy, has
focused on large-scale investments in high-tech sectors, significantly expanding its industrial
and technological capabilities.
Uzbekistan is also actively developing its investment and innovation potential. In recent years,
particular attention has been given to advancing these areas through strategic policies and
international partnerships. The Innovative Development Strategy for 2019–2021 was adopted to
strengthen the national innovation ecosystem. A network of technoparks was established in
Tashkent, Samarkand, Namangan, and Bukhara, creating platforms for startups and industrial
modernization. In addition, the leather and fur industry has been modernized in collaboration
with Italy, Turkey, and South Korea, integrating advanced technologies and management
practices. As a result, in 2023, exports of leather and fur products exceeded 200 million US
dollars, representing a 1.3-fold increase compared to previous years. These achievements
highlight the practical benefits of combining investment and innovation, demonstrating their
joint role in fostering economic diversification and global competitiveness.
Investment and innovation are the most important factors of economic development. Their
combination increases the competitiveness of the national economy, modernizes production and
creates new export opportunities. World experience shows that without innovation, investment
efficiency is low , and innovation without investment is not implemented in practice. In the
conditions of Uzbekistan , the combination of these processes , in particular, strengthening
investment and innovation strategies in the leather and fur industry , will serve as a decisive
factor in entering a new stage of economic development .
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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 08,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
756
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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 08,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
757
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