Theoretical Foundations of Improving the Mechanisms for Forming Venture Funds in the Innovative Development of the Economy: The Perspective of Uzbekistan

Abstract

This article explores the theoretical foundations of improving the mechanisms for forming venture funds in the innovative development of Uzbekistan’s economy. Innovations are regarded as the primary driving force of the modern economy, with venture funds playing a crucial role in financing high-risk projects with significant potential. Between 2018 and 2025, Uzbekistan implemented key reforms in innovative development: the volume of venture investments reached 15 million USD in 2024, though this remains low compared to the global market. The study, based on the IMRAD framework, employs a literature review, statistical analysis, analysis of regulatory documents, case studies, and expert surveys to examine the current state of mechanisms in Uzbekistan, their challenges, and pathways for improvement. The findings highlight institutional weaknesses and legal issues, proposing measures such as fostering public-private partnerships, implementing AI-based analytical systems, and adopting a dedicated law. It is forecasted that, by 2030, with enhanced mechanisms, venture investments could reach 50 million USD, and the IT sector’s share in GDP could rise to 5%.