INTELLECTUAL INVESTMENTS AS A DRIVER OF SUSTAINABLE ECONOMIC GROWTH: OPPORTUNITIES AND BARRIERS IN THE CONTEXT OF UZBEKISTAN'S DIGITAL TRANSFORMATION

Abstract

Intellectual investments in human capital, science, technology, digital infrastructure, and the innovation are emerging as a major source of long-term economic growth in the environment of the global shift toward a knowledge economy. This paper will discuss what constitutes intellectual investments, how they differ with the normal physical investments, and its relevance at both the micro and macro level. The main case study is the example of Uzbekistan- a country that may be regarded as actively carrying out digital reforms and making efforts to become a nation with a model of development based on knowledge and using fewer resources. According to the analysis of the government programs, data provided by the Ministry of Innovative Development, education statistics, the cases of the startups and the research conducted by World Bank, the following significant achievements (the growth in IT exports, the development of digital platforms, the modernization of universities) and serious obstacles have been determined: the low level of research activity, the lack of qualified human resources in the spheres of engineering and IT, the poor connection between science and business, and the lack of access to venture funds. To enhance the ecosystem of intellectual investment in Uzbekistan, they suggest such practical steps as the establishment of a national innovation fund, the introduction of the so-called system of returnable research grants, the development of digital competences, and the transformation of universities into applied research centres. The article has the IMRAD format, is over 3,300 words and focuses on the Uzbekistan context and its practical applicability.