Publication Details
Abstract
This article analyses the range and power of factors defining the realization efficiency of an economic mechanism ensuring the innovative activity of small business subjects in the Republic of Uzbekistan. It investigates the underlying critical contexts where innovation stimulation, funding and management in small businesses needs to be improved, against a backdrop of deepening market competition and; continuing national reforms for innovation driven growth. Previous studies have examined innovation for its development, financing, and state support to small enterprises, however there is obvious gap in the academic knowledge regarding the integrated assessment of the factor groups affecting the effectiveness of the economic mechanism of innovative activity as an integrated system. In order to fill this gap, this paper adopts an expert evaluation method and analyzes key factor groups on five-point scale. It includes an analysis of internal organizational conditions, financial and credit resources, external market conditions, state policy and the regulatory legal framework, scientific and technological innovation environment. Despite a supportive state program and an increasingly competitive market environment, the results reveal that innovation activity is largely limited by internal management deficiencies, poor access to financial resources, and an immature innovation ecosystem. The findings suggest that managerial skill improvement, diversification of financing instruments, strengthening science production integration, and decreasing bureaucratic barriers are key components of increasing innovation effectiveness. This study offers insights for policymakers and development institutions about priority directions for reforming support mechanisms and creating conditions for small business entities to sustainably innovate in a conducive transitional direction.