Global Innovation Index: Uzbekistan is among the top three in South Asia

In recent years, the authority of our country in the international arena has been increasingly strengthened. The result of ensuring the fulfillment of the priority tasks outlined in the Presidential Decree "On approval of the Strategy of Innovative Development of the Republic of Uzbekistan for 2019-2021" was the recognition of its economic development. For the first time in 2020, the republic ranked 93rd in the Global Innovation Index - the only one of the Central Asian countries.
In 2022, in the ranking of indicators of the Global Innovation Index ("GII-2022"), announced by the World Intellectual Property Organization (WIPO) under the title "Future — innovation-based growth", Uzbekistan rose by four positions compared to 2021 and took 82nd place. As a result, he entered the top 10 rapidly rising countries. Without exaggeration, this is the result of fundamental and consistent reforms implemented in our country in a completely new direction.
Uzbekistan has set a goal to become one of the 50 strongest in the Global Innovation Index by 2030. In general, the dynamics of the past years shows a rapid upward movement of Uzbekistan. Currently, there are more than 200 rating monitoring sites in the world. One of the most authoritative of them is the Global Innovation Index (GII). Due to the coronavirus pandemic that has occurred in the world and the ongoing conflicts between countries, the World Intellectual Property Organization is facing various problems and difficulties in assessing the economies of countries. GII is published jointly by Cornell University, the European Institute of Business Management, the World Intellectual Property Organization and specialized agencies of the United Nations. In 2022, the 15th publication dedicated to the topic "The future is growth based on innovation" provided an innovation rating of 135 countries.
According to the World Intellectual Property Organization, the Global Innovation Index is a rating of innovative opportunities and indicators of countries. At the same time, levels are measured according to such criteria as institutions, human capital and research, infrastructure, loans, investments, communications.
As noted, the Global Innovation Index is a huge study, it makes a rating of countries by the level of innovative development. It usually serves as a reference point for corporations and governments.
GII consists of several components divided into several sub-indexes. The rating indicators cover the economies of countries and are determined on the basis of about 80 indicators. The main goal of the Strategy of Innovative Development of the Republic of Uzbekistan for 2019-2021 is aimed at the development of human capital, that is, it is consonant with world economic development. As a result of the main goal, it indicates the entry of Uzbekistan into the top 50 advanced countries by 2030 according to the rating of the Global Innovation Index. This can be recognized as the main factor determining the level of competitiveness of the republic in the international arena and its innovative development.
It should be noted that Uzbekistan has become the leading country in the top three leading countries in the Central and South Asia region (India - 40, the Islamic Republic of Iran — 53 and the Republic of Uzbekistan — 82). In 2021, we were in fourth place in the South Asia region, this year, leaving Kazakhstan behind, we received the title of "new member of the strong three".
Unfortunately, in terms of income, our country is still on the tenth line among countries with a lower-middle income group. According to the indicators of 2022, taking the tenth place in terms of income and the third place in the "Ranking of territories" among the countries of Central and South Asia, Uzbekistan received a total of 27.4. In 2021, it had a score of 25 out of 100 points.
Thus, according to the Global Innovation Index, Uzbekistan has the following indicators:
in the GII-2022 rating — 82nd place,
in the input rating — 68th,
in the output rating — 91st,
in terms of income below average — 10th place.
In terms of purchasing power parity, GDP is $291.2 billion (growth — 103.2 percent), in terms of GDP per capita — $ 8.4 thousand (growth — 113.5 percent).
On September 15-16 last year, the next summit of the Shanghai Cooperation Organization was held in Samarkand. The participating states of the summit in the GII-2022 ranking occupy the following positions in it: China — 11th place, Russia - 47th, India — 40th, Iran - 53rd, Armenia — 80th, Kazakhstan - 83rd, Pakistan — 87th, Azerbaijan — 93rd, Kyrgyzstan - 94th, Tajikistan — 104th. The growth of Uzbekistan's activity within the framework of the Shanghai Cooperation Organization in recent years (the signing of more than a hundred agreements) has been important in increasing our positions in international rankings.
In comparison with the Central Asian states, Uzbekistan was awarded the first place in innovative developments in 2022 for the first time.
There is no doubt that by 2026 our country will become one of the 50 strongest, if it continues to rise by an average of 2.4 positions per year. Moreover, currently the lower limit of the top 50 of the GII-2022 rating is 34. Of course, for this it will be necessary to move forward, not to slow down, to introduce innovations.
Uzbekistan has managed to rise in the Global Innovation Index by nine positions compared to 2020.
Data on the first indicator "Institutes" rose by one step (from 94 to 63) (level — 57.3). This was assessed by the following parameters:
first, the political situation — 52.1, or 94th place (political and operational stability - 65.5/74, government efficiency — 38.8/98);
second, the legislative base is 50.7, or 104th place (the quality of laws is 21.3/123, the rule of law is 18.5/123, the cost of dismissal from work is 17.3/73);
third, the business environment is 69.2, or 21st place (convenience of business organization is 69.2/21, convenience of resolving insolvency — there is no information).
Much has been done in the country to strengthen the legal framework and ensure its supremacy. In turn, in this rating, it is the legislation that is rated "weak". Therefore, at the meeting of the Republican Council for Work with International Ratings and Indices, measures were identified to improve the indicators of international ratings in the political and legal sphere. According to this parameter, our business environment indicators are rated as strong (21st place).
According to the second indicator "Human capital and research":
we have risen by seven steps, and received 30.8, or 65th place. It's basically:
 first, education — level 57.4, or 50th place. Unfortunately, the education indicator has decreased by eight positions compared to 2021. At the same time, according to some criteria, the data are not given (spending on education is 4.9 percent relative to GDP, or 45th place;
state funding/student, as a percentage of GDP — no data available; duration of secondary education (school) in years — 12.5/88, international student assessment program — PISA scale — no data available; student—teacher ratio, average — 10.9/37);
second, higher education — level 33.9, or 54th place (admission to universities, in gross percentage - 15.9/101, graduates in the fields of science and engineering, as a percentage — 36.9/6, admission to universities, as a percentage — 0.2/106);
third, research and development (R&D) — level 1.2, or 93rd place (researchers, FTE — full time equivalent/person — 439.9/73, research expenses, as a percentage of GDP — 0.1/98, research and investors, million dollars — 0.0/38, QS rating-university — 0,0/72).
Strong in the ranking are such indicators as the student—teacher ratio, graduates in the fields of science and engineering — 6th place (India — 11th, Russia — 14th).
According to the third indicator, "Infrastructure" has risen by five steps compared to 2021 (level — 41.7):
first, information and communication technologies (ICT) - level 76.1, or 55th place (entry into ICT — 82.7/78, use of ICT - 62.3/66, online government services — 78.2/46, electronic users — 81.0/46);
second, infrastructure — level 32.6, or 56th place (electricity production — 1891.9/84, logistics — 24.7/92, gross capital formation, as a percentage of GDP — 40.6/6);
third, environmental balance — level 16.4, or 117th place (GDP/energy use 5.2/118, environmental impact — 38.2/77, environmental certificates ISO 14001, billion dollars in relation to GDP — 0.1/125).
According to some of these indicators, we were awarded a place in the top 50. For example, the government ranked 46th in online services. At the same time, the level of capital formation in relation to GDP is in seventh place (Russia — 59th, Kazakhstan - 24th). According to the Infrastructure index, our indicators were able to show strengths in many ways.
Another important indicator of the international rating — the fourth, "Attractiveness of the market", dropped by 36 steps — to the level of 33.9, or 60th place. At the same time:
 first, the loan is rated at 7.1, or 119th place (ease of obtaining a loan - no information, in 2021 — 65.0/61, domestic credit allocated to the private sector, as a percentage of GDP — 35.7/87, microfinance gross loans, as a percentage of GDP — 0.2/51);
secondly, on investments, data for 2022 are not provided. In 2021, it is estimated as 70, or the data is not fully presented (convenience of protecting minority investors — 70.0/36, market capitalization, as a percentage of GDP — data are not presented, venture capital investors, agreements in billions of dollars — data are not presented, venture capital recipients, agreements in billions of dollars — data are not presented);
third, trade, diversification and market volume are estimated at 60.7, or 51st place (the applied tariff rate, average - 2.6/69, diversification of domestic industry — 92.9/37, the volume of the domestic market (billion dollars) (PPR) — 291.2/59).
According to the fifth indicator of the rating "Attractiveness of business" compared to 2021, in 2022 there was an absolute record, that is, they climbed 49 steps, or from 123rd to 74th place. At the same time:
first, data on the qualifications of employees are not presented (last year at the level of 22.8), firms offering official training, as a percentage — 16.9/98, GERD implemented by business in relation to GDP — 0.1/69, GERD funded by business, as a percentage — 13.7/56, women with advanced level, — there is no data;
the second, innovative communications — the level of 24.7, or 59th place. Last year we were in 109th place (cooperation between the university and industry on research work - no data, the state of cluster development - no data, GERD, funded by a foreign country, as a percentage of GDP — 0.0/93, joint venture/strategic partnership agreements (billion dollars), as a percentage of GDP — 0.0/62, family patent (billion dollars), as a percentage of GDP — 0.0/91);
third, knowledge acquisition — level 22.8, or 100th place (intellectual property protection).
There are no strengths in the rating scale for "Business Attractiveness", except for only one aspect — GERD, funded by the business.
According to the sixth indicator of the rating, "Scientific and technological results" reached 17.9, or 80th place. In 2021, this indicator improved by 13 positions compared to 2020: from 90th to 77th place. In fact, he could have been even better. But we cannot boast of patents, scientific and technical articles and information that are cited. At the same time:
first, knowledge (creativity) — level 9.1, or 78th place (patents, billion dollars) (PPR), as a percentage of GDP — 1.3/56, PCT patents (billion dollars) (PPR), as a percentage of GDP — 0.0/95. We were able to show the strengths of utility models (billion dollars) as a percentage of GDP — 1.3/18, scientific and technical articles (billion dollars) (PPR) as a percentage of GDP — 2.4/124, h-index of cited documents — 3.4/113);
second, the impact of knowledge is 33.9, or 42nd place in the rating (labor productivity growth, as a percentage — 4.7/7, new business entities - 2.7/49, software costs, as a percentage of GDP — no information, ISO 9001 quality certificates (billion dollars) (PPR) as a percentage to GDP — 1.5/92, high—tech production, as a percentage - 27.3/46);
third, the dissemination of knowledge — the level of 10.7, or 101st place in the ranking (income from intellectual property, as a percentage — 0.0/106, the attractiveness of production and exports — 30.3/85, the export of high technologies, as a percentage of total trade — 0.3/98, the export of ICT services, as a percentage of total trade — 0.9/87).
The emergence of business entities on the basis of socio-economic reforms carried out in the country and high labor productivity are also reflected in the international rating. We took the eighth place in terms of labor productivity growth. Belarus — 38th, Russia - 44th, Kazakhstan - 48th. As a percentage, this is 4.6/8. Positive results were also obtained in terms of new business entities. In general, the analytical data were able to show our strengths.
According to the seventh indicator "Fruits of creativity": Uzbekistan rose by 11 lines (in 2022 — 102nd place), the level of 7.7. At the same time:
the first, intangible assets - the level of 12.5, or 94th place (took a place in the ranking for the first time), by trademarks (billion dollars) (PPR), in relation to GDP — 30.9/75, global brand — the highest 5,000, in terms of GDP — no information, in terms of industrial designs (billion dollars) (RRR), in relation to GDP — 0.6/82);
second, creative goods and services — level 5.3, or 100th place in the ranking (export of cultural and creative services, as a percentage of total trade - 0.0/132, national feature films — 1.2/79, entertainment and media market — no data, printing and other media, production as a percentage — 0.5/79, exports of creative products, as a percentage of total trade — 0.3/68);
third, online creativity - level 0.5, or 109th place in the ranking (common high—level domains (TLD) — 0.0/132, country code TLD — 1.2/79, Wikipedia editors — 0.9/104, creation of mobile applications (billion dollars) (PPR), as a percentage of GDP — 0,0/107).
There is still a lot of work to be done on this indicator. The creation of intellectual property objects and its commercialization lag behind foreign countries. This has been emphasized many times by the head of State and designated as one of the priorities.
The Concept of Science Development until 2030 is in effect, adopted as one of the important steps in Uzbekistan's achievement of decent indicators in international indices and ratings. It must be admitted that the amount of funds allocated in Uzbekistan for science and scientific activities is only 0.5 percent of the gross domestic product. This indicator is noticeably lower compared to advanced countries. The level of commercialization of research results is also low. This affects the lack of investments and bank loans in scientific institutions, in innovative enterprises organized by them. To take high places in the ranking of the Global Innovation Index, it is necessary to improve some indicators. At the same time, it is necessary to pay attention to the following aspects:
first, to increase spending on research and development on the components of human capital and research, as well as to develop technology transfer;
secondly, to improve the indicators financed by foreign companies on the business attractiveness component (GERD), to develop ICT services;
third, to popularize the results of science and technology;
fourth, to improve Internet creativity and mobile applications on the component of creative results.
According to the Concept of science development until 2030, it is necessary to constantly strengthen the research direction of universities on the basis of state support of the most prestigious, based on such indicators as the number of published scientific articles, the index of quotations from them, participation in international conferences and seminars, the number of patents received.
 
Uzbekistan has taken the first steps in the ranking of the Global Innovation Index, achieved significant places among economically developed countries. This is a kind of mirror of sustainable development, strengthening the power of the state and improving the welfare of the population.
 
Nurbek Rizaev,
Professor of the Banking and Finance Academy,
Doctor of Economics.