On Additional Measures to Improve Mechanisms for Introducing Innovations into Economic Sectors and Industries

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[ OKOZ: 1. 09.00.00.00 Entrepreneurship and Economic Activity / 09.10.00.00 Industry / 09.10.06.00 Localization of Industrial Production] [ TSZ: 1. Economy / Information and Informatization. Electronic Commerce (Document Circulation)]

Decree of the President of the Republic of Uzbekistan

On Additional Measures to Improve Mechanisms for Introducing Innovations into Economic Sectors and Industries

It is noted that extensive work has been carried out in the country to form an innovation-oriented economy in a short period and to create conditions for the widespread introduction of innovations.

The establishment of a single state body implementing state policy in the field of innovative and scientific-technical development of the Republic, and the formation of the Fund for Supporting Innovation Development and Innovative Ideas under it, became one of the important stages in this direction.

At the same time, a number of problems remain that hinder the establishment of effective mechanisms for cooperation between scientific research and production industries and strengthening connections, including, primarily:

firstly, the low and unsatisfactory indicators of commercialization of the results of scientific work of higher education institutions and research organizations;

secondly, the absence of mechanisms to encourage innovative processes, implement comprehensive programs for innovative development and innovative activity at the regional and sectoral levels, and support innovative-active business entities;

thirdly, the insufficient involvement of private sector representatives in innovative activity, including due to their low profitability;

fourthly, the absence of effective measures to increase the efficiency of the distribution and rational use of grants within the framework of state scientific and technical programs;

fifthly, factors such as the unsatisfactory level of international cooperation and investment attraction in the field of scientific research and introduction of innovations.

In order to fundamentally improve the mechanisms of state regulation of innovation activity and create conditions for the more effective introduction of innovations into economic sectors and industries: [ OKOZ: 1. 02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries; 2. 13.00.00.00 Education. Science. Culture / 13.02.00.00 Science / 13.02.06.00 Academy of Sciences]

1. The Ministry of Innovative Development of the Republic of Uzbekistan, the Ministry of Higher and Secondary Special Education, and the Academy of Sciences: [ OKOZ:

13.00.00.00 Education. Science. Culture / 13.01.00.00 Education / 13.01.08.00 Types of Education / 13.01.08.04 Higher Education]

introduce the position of Vice Rector for Scientific Work and Innovations instead of the position of Vice Rector for Scientific Work in higher education institutions; See previous edition. (The third subparagraph of paragraph 1 was removed on the basis of the Decree of the President of the Republic of Uzbekistan No. PF-6198 dated April 1, 2021 — National Database of Legislation, April 2, 2021, No. 06/21/6198/0269) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.07.00.00 Other Issues of the Budget System / 07.07.02.00 State Funds / 07.07.02.04 Funds of Ministries and Departments; 2. 13.00.00.00 Education. Science. Culture / 13.01.00.00 Education / 13.01.08.00 Types of Education / 13.01.08.04 Higher Education]

establish innovation funds and departments for the commercialization of scientific and innovative developments within the structure of higher education institutions; See previous edition. (The fifth subparagraph of paragraph 1 was removed on the basis of the Decree of the President of the Republic of Uzbekistan No. PF-6198 dated April 1, 2021 — National Database of Legislation, April 2, 2021, No. 06/21/6198/0269)

2. It is established that: See previous edition.

[ OKOZ: 1. 05.00.00.00 Legislation on Labor and Employment of the Population / 05.02.00.00 Labor / 05.02.07.00 Labor Contract (Contract); 2. 13.00.00.00 Education. Science. Culture / 13.02.00.00 Science / 13.02.05.00 Scientific and Project Institutions]

the appointment and dismissal from the position of Vice Rectors for Scientific Work and Innovations of higher education institutions, as well as Deputy Directors for Science of research institutions of the Academy of Sciences of the Republic of Uzbekistan, state and economic management bodies (hereinafter referred to as Vice Rectors for Scientific Work and Innovations and Deputy Directors for Science) shall be carried out in agreement with the Ministry of Innovative Development of the Republic of Uzbekistan; (The second subparagraph of paragraph 2 was edited in the edition of the Decree of the President of the Republic of Uzbekistan No. PF-6198 dated April 1, 2021 — National Database of Legislation, April 2, 2021, No. 06/21/6198/0269) [ OKOZ: 1. 02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries; 2. 13.00.00.00 Education. Science. Culture / 13.02.00.00 Science / 13.02.12.00 Innovation. Innovative Activity. Innovative Infrastructure]

Vice Rectors for Scientific Work and Innovations and Deputy Directors for Science are directly accountable to the Ministry of Innovative Development of the Republic of Uzbekistan on issues related to innovation activity, the introduction of scientific and innovative developments, and the results of their commercialization; See previous edition.

[ OKOZ: 1. 01.00.00.00 Constitutional System / 01.10.00.00 President of the Republic of Uzbekistan / 01.10.03.00 Administration of the President of the Republic of Uzbekistan; 2. 02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries; 3. 09.00.00.00 Entrepreneurship and Economic Activity / 09.06.00.00 Valuation Activity / 09.06.01.00 General Rules]

The Ministry of Innovative Development of the Republic of Uzbekistan submits information to the Administration of the President of the Republic of Uzbekistan at least twice a year regarding the assessment of the scientific and innovative activity of Vice Rectors for Scientific Work and Innovations and Deputy Directors for Science; (The fourth subparagraph of paragraph 2 was edited in the edition of the Decree of the President of the Republic of Uzbekistan No. PF-5650 dated February 1, 2019) See previous edition.

The Deputy Minister of Innovative Development of the Republic of Uzbekistan responsible for the relevant area is considered responsible for the effective coordination of the activities of Vice Rectors for Scientific Work and Innovations and Deputy Directors for Science; (The fifth subparagraph of paragraph 2 was edited in the edition of the Decree of the President of the Republic of Uzbekistan No. PF-6198 dated April 1, 2021 — National Database of Legislation, April 2, 2021, No. 06/21/6198/0269) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.07.00.00 Other Issues of the Budget System / 07.07.02.00 State Funds / 07.07.02.04 Funds of Ministries and Departments; 2. 13.00.00.00 Education. Science. Culture / 13.01.00.00 Education / 13.01.08.00 Types of Education / 13.01.08.04 Higher Education; 3. 13.00.00.00 Education. Science. Culture / 13.01.00.00 Education / 13.01.14.00 Social Protection of Participants in the Educational Process]

the formation of innovation funds of higher education institutions (hereinafter referred to as innovation funds) shall be carried out by allocating no less than 5 percent of the payment-contract funds after covering the income from the commercialization of innovative products, salaries, scholarship payments of higher education institutions, as well as other current expenses. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.07.00.00 Other Issues of the Budget System / 07.07.02.00 State Funds / 07.07.02.04 Funds of Ministries and Departments]

The funds of innovation funds: [ OKOZ: 1. 05.00.00.00 Legislation on Labor and Employment of the Population / 05.05.00.00 Labor Discipline / 05.05.03.00 Labor Incentives. Types and Procedures for Application]

shall be directed to encourage scientific research and innovative developments; [ OKOZ: 1. 13.00.00.00 Education. Science. Culture / 13.02.00.00 Science / 13.02.09.00 Material and Technical Base of Scientific Research Institutions]

to purchase scientific-laboratory equipment, consumables, and components; See previous edition.

to finance small startup projects; (The tenth subparagraph was added to paragraph 2 on the basis of the Decree of the President of the Republic of Uzbekistan No. PF-6198 dated April 1, 2021 — National Database of Legislation, April 2, 2021, No. 06/21/6198/0269)

to form and update scientific research infrastructure and materially incentivize scientific staff;

it is established that it shall be directed to implement other expenses related to innovation activity.

3. The following are considered the main tasks and directions of activity of the departments for the commercialization of scientific and innovative developments of higher education institutions:

systematic analysis of the market and study of demand for innovative products (works, services), assessment of the payback period, profitability, and risks associated with the commercialization of innovative products;

selection of promising projects for implementation with high commercial potential that are ready for adoption;

involvement of investors, partners, and other interested persons for the implementation of innovative projects;

collaboration with industrial enterprises for the introduction of new technologies and the production of innovative products. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republican Budget / 07.05.05.00 Financing of Budgetary Organizations and Institutions; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.07.00.00 Other Issues of the Budget System / 07.07.02.00 State Funds / 07.07.02.04 Funds of Ministries and Departments; 3. 13.00.00.00 Education. Science. Culture / 13.01.00.00 Education / 13.01.08.00 Types of Education / 13.01.08.04 Higher Education]

It is established that the activities of the departments for the commercialization of scientific and innovative developments of higher education institutions are financed from the funds of innovation funds and other sources not prohibited by legislation.

4. Heads of state and economic management bodies:

within one month, designate one of their deputy heads as responsible for innovation development issues; [ OKOZ: 1. 02.00.00.00 Fundamentals of State Administration / 02.08.00.00 General Issues of State Administration in the Field of Economy, Social and Cultural Construction / 02.08.01.00 State Programs, Concepts, etc.]

by October 1 of each year, in agreement with the Ministry of Innovative Development of the Republic of Uzbekistan, ensure the development of "roadmaps" for the innovative development of the respective sectors and industries for the coming year, specifying the exact amounts and sources of funding for events, as well as their effective implementation.

5. The following:

it is accepted for information that, in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-5264 dated November 29, 2017 "On the Establishment of the Ministry of Innovative Development of the Republic of Uzbekistan," the Fund for Supporting Innovation Development and Innovative Ideas was established;

it is accepted for information that, in accordance with the Resolution of the President of the Republic of Uzbekistan No. PQ-3365 dated November 1, 2017, the funds of the Fund for Supporting Innovation Development and Innovative Ideas were designated as sources of financing for the comprehensive measures program for strengthening the infrastructure of scientific research institutions and developing their innovative activity for 2017–2021, along with other sources in the relevant parts. [ OKOZ: 1. 02.00.00.00 Fundamentals of State Administration / 02.01.00.00 Cabinet of Ministers of the Republic of Uzbekistan (see also 01.11.00.00) / 02.01.06.00 Commissions and Other Bodies of the Cabinet of Ministers. Reserve Fund]

The Supervisory Council of the Fund for Supporting Innovation Development and Innovative Ideas shall ensure that the funds received by the Fund are directed, primarily, to the fulfillment of tasks assigned to the Ministry of Innovative Development of the Republic of Uzbekistan. See previous edition.

[ OKOZ: 1. 02.00.00.00 Fundamentals of State Administration / 02.03.00.00 Republican State Administration Bodies and Economic Management Bodies / 02.03.02.00 Ministries; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republican Budget / 07.05.03.00 Expenditures of the Republican Budget]

The Ministry of Finance of the Republic of Uzbekistan, together with the Ministry of Investment and Foreign Trade, shall ensure the timely financing of the missing part of the comprehensive measures program for strengthening the infrastructure of scientific research institutions and developing their innovative activity for 2017–2021, including from the funds of the State Budget of the Republic of Uzbekistan. (The fifth subparagraph of paragraph 5 was edited in the edition of the Decree of the President of the Republic of Uzbekistan No. PF-6075 dated September 27, 2020 — National Database of Legislation, September 28, 2020, No. 06/20/6075/1330)

See previous edition.

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republican Budget / 07.05.03.00 Expenditures of the Republican Budget]

6. The Ministry of Finance of the Republic of Uzbekistan shall allocate budget funds in the amount of 50 billion UZS to the Fund for Supporting Innovation Development and Innovative Ideas in 2018 for the financing of priority innovative, scientific research, experimental design, and "startup" projects, and shall submit proposals on additional sources for the formation of Fund funds based on the justified proposals of the Ministry of Innovative Development of the Republic of Uzbekistan regarding the results of the utilization of funds. (The first subparagraph of paragraph 6 was edited in the edition of the Decree of the President of the Republic of Uzbekistan No. PF-6198 dated April 1, 2021 — National Database of Legislation, April 2, 2021, No. 06/21/6198/0269)

The Ministry of Innovative Development of the Republic of Uzbekistan: [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republican Budget / 07.05.13.00 State Subsidies and Grants; 2. 13.00.00.00 Education. Science. Culture / 13.02.00.00 Science / 13.02.07.00 Scientific Research]

shall carry out systematic monitoring of state scientific and technical programs for fundamental, applied, and innovative research carried out on a grant basis, and on this basis, adopt specific measures to redirect misused grant funds to the implementation of projects on other promising and high-demand topics;

ensure the targeted use in the future of funds allocated for financing state scientific and technical programs for fundamental, applied, and innovative research and not utilized during the financial year; See previous edition.

shall announce a grant competition once a year for the issuance of grants on relevant topics in priority areas of fundamental, applied, and innovative research. (The fifth subparagraph of paragraph 6 was edited in the edition of the Decree of the President of the Republic of Uzbekistan No. PF-58 dated April 10, 2026 — , April 13, 2026, No. 06/26/58/0342) See previous edition. (Parent 7 lost its force on the basis of the Decree of the President of the Republic of Uzbekistan No. PF-6198 dated April 1, 2021 — National Database of Legislation, April 2, 2021, No. 06/21/6198/0269)

8. By January 1, 2022: [ OKOZ:

10.00.00.00 Foreign Economic Activity. Customs Affairs / 10.01.00.00 General Rules in the Field of Foreign Economic Activity / 10.01.04.00 Export and Import / 10.01.04.02 Import; 2. 10.00.00.00 Foreign Economic Activity. Customs Affairs / 10.02.00.00 Regulation of Customs Tariffs / 10.02.07.00 Tariff Preferences and Preferences; 3. 10.00.00.00 Foreign Economic Activity. Customs Affairs / 10.05.00.00 Taxes and Fees Collected When Goods and Transport Vehicles Cross the Customs Border / 10.05.07.00 Customs Fees]

scientific instruments, components, consumables, reagents, and software imported by research organizations shall be exempt from customs payments (except for fees for customs clearance) according to lists approved in the established order; [ OKOZ: 1. 05.00.00.00 Legislation on Labor and Employment of the Population / 05.05.00.00 Labor Discipline / 05.05.03.00 Labor Incentives. Types and Procedures for Application; 2. 06.00.00.00 Legislation on Social Security and Social Insurance. Social Protection / 06.03.00.00 Financing of Social Security and Social Insurance / 06.03.02.00 Extra-budgetary Pension Fund (see also 07.07.02.02); 3. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.09.00.00 Tax Legislation / 07.09.05.00 Exemptions and Preferences for Taxes and Fees]

research organizations shall be exempt from all types of taxes and mandatory deductions related to their main activity, except for deductions to the Extra-budgetary Pension Fund under the Ministry of Finance of the Republic of Uzbekistan, and the freed-up funds shall be directed for the targeted material incentivization of their staff.

9. It is established that the conditions for paying for the labor of employees of the Ministry of Innovative Development of the Republic of Uzbekistan from the funds of the Fund for Supporting Innovation Development and Innovative Ideas and other extra-budgetary sources shall be determined by the Collegium of the Ministry. [ OKOZ:

13.00.00.00 Education. Science. Culture / 13.02.00.00 Science / 13.02.12.00 Innovation. Innovative Activity. Innovative Infrastructure; 2. 19.00.00.00 International Relations. International Law / 19.01.00.00 General Issues in Interstate Relations / 19.01.06.00 International Congresses. Conferences]

10. The Ministry of Innovative Development of the Republic of Uzbekistan, together with interested ministries and departments, shall take measures to organize the annual "InnoWeek.Uz" Innovation Ideas Week in the republic, providing for a ceremony to honor individual business entities that have helped develop innovations in the republic by materially incentivizing authors of innovative ideas, organizers implementing these ideas, and sponsors.

11. Amendments and additions shall be made to certain resolutions of the President of the Republic of Uzbekistan and the Government of the Republic of Uzbekistan in accordance with the Appendix.

12. The Ministry of Innovative Development of the Republic of Uzbekistan, together with interested ministries and departments, shall submit proposals to the Cabinet of Ministers on amendments and additions to legislation arising from this Decree within two months.

13. Control over the implementation of this Decree shall be entrusted to the Prime Minister of the Republic of Uzbekistan A.N. Aripov, Deputy Prime Minister of the Republic of Uzbekistan — Chairman of the State Committee on Investments S.R. Kholmurodov, Prosecutor General of the Republic of Uzbekistan O.B. Murodov, and First Deputy State Advisor to the President of the Republic of Uzbekistan B.M. Mavlonov.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent city,

May 7, 2018,

PQ-3698 [ OKOZ: 1. 09.00.00.00 Entrepreneurship and Economic Activity / 09.10.00.00 Industry / 09.10.06.00 Localization of Industrial Production] [ TSZ: 1. Economy / Information and Informatization. Electronic Commerce (Document Circulation)]

To the Decree of the President of the Republic of Uzbekistan No. PQ-3698 dated May 7, 2018

APPENDIX

Amendments and Additions Being Made to Certain Resolutions of the President of the Republic of Uzbekistan and the Government of the Republic of Uzbekistan

1. In the Decree of the President of the Republic of Uzbekistan No. PQ-3365 dated November 1, 2017 "On Measures to Further Strengthen the Infrastructure of Scientific Research Institutions and Develop Their Innovative Activity":

a) the fourth subparagraph of paragraph 4 shall be supplemented with the words "State Budget of the Republic of Uzbekistan" after the words "Fund for Supporting Innovation Development and Innovative Ideas";

b) the Russian language text of Appendix 2 shall be replaced with the words "Выделение средств будет осуществляться по мере поступления средств в Фонд поддержки инновационного развития и новаторских идей. При этом по недостающей части средств Фонда расходы осуществляются за счет и в пределах выделенных бюджетных средств" (Funds will be allocated as funds are received into the Fund for Supporting Innovation Development and Innovative Ideas. At the same time, expenses for the missing part of the Fund's funds will be carried out at the expense of and within the limits of allocated budget funds). See previous edition. (Parent 2 lost its force on the basis of the Decree of the President of the Republic of Uzbekistan No. PF-107 dated July 3, 2023 — , July 4, 2023, No. 06/23/107/0441)

3. The list of state authority bodies, state and economic management bodies, and other state organizations of republican significance whose employees may submit applications for permanent registration in Tashkent city and Tashkent region, approved by Resolution No. 336 of the Cabinet of Ministers dated October 7, 2016, shall be supplemented with subparagraph 28 2 with the following content:

"28 2 . Ministry of Innovative Development of the Republic of Uzbekistan". (National Database of Legislation, May 8, 2018, No. 07/18/3698/1178; September 28, 2020, No. 06/20/6075/1330; April 2, 2021, No. 06/21/6198/0269; , July 4, 2023, No. 06/23/107/0441; April 13, 2026, No. 06/26/58/0342)