The purpose of this Law is to regulate relations in the field of innovative activity.

The legislation on innovative activity consists of this Law and other legislation.

If an international treaty of the Republic of Uzbekistan establishes rules other than those provided for by the legislation of the Republic of Uzbekistan on innovative activity, then the rules of the international treaty shall be applied.

The following basic concepts are applied in this Law:

innovation — a new development introduced into civil circulation or used for one's own needs, the application of which in practice ensures the achievement of a significant socio-economic effect;

innovative infrastructure — a set of enterprises, organizations, institutions, their associations of any form of ownership, carrying out material and technical, financial, organizational and methodological, information, consulting and other support for innovative activity;

an innovative project — a set of measures that provide for deadlines, performers, sources of funding and the formation of an appropriate infrastructure for the creation of new developments;

innovative activity — activity on the creation of new developments, as well as ensuring their transfer and implementation in the production sector;

state order for the creation of innovations — an assignment for the performance of an innovative project at the expense of the State budget of the Republic of Uzbekistan and other sources not prohibited by law;

transfer of technologies — a set of measures aimed at transferring a new development from the sphere of its receipt (development) to the sphere of practical application;

a new development — is the result of intellectual activity (new or improved technology, service and organizational and technical solution of a production, administrative, commercial or other nature), which has signs of novelty compared to existing analogues, practical applicability and the ability to ensure the achievement of a significant socio-economic effect when use in practice.

The basic principles of innovative activity are:

freedom of innovative activity;

ensuring equal access to state support for innovative activity;

publicity and targeting of state support for innovative activity;

promoting the development of competition;

free exchange of information;

legal protection of intellectual property objects created as a result of innovative activity;

no harm to the life and health of citizens, the environment.

The main directions of state policy in the field of innovative activity are:

ensuring the legal regulation of innovative development;

determination of priority areas in the field of innovative activity, including on the basis of forecasting technological development;

creation of the necessary conditions and infrastructure for the implementation of innovative activity;

state support and stimulation of subjects of innovative activity;

development and implementation of state republican, sectoral and territorial programs in the field of innovative activity;

assistance in attracting investment in innovative activity;

development of public-private partnerships in the field of innovative activity;

organization of training, retraining and advanced training of personnel in the field of innovative activity;

development of international cooperation in the field of innovative activity.

Cabinet of Ministers of the Republic of Uzbekistan shall:

ensure the implementation of a unified state policy in the field of innovative activity;

ensure the formation and coordination of activities for the implementation of innovative development strategies;

approve priority areas for innovative development of economic and social sectors;

create the necessary conditions for innovative development;

approve the criteria for assessing the achievement of target indicators of innovative development;

create the necessary conditions for the commercialization of new developments and transfer of technologies;

ensure the development of international cooperation in the field of innovation.

The Cabinet of Ministers of the Republic of Uzbekistan may exercise other powers in accordance with the legislation.

The Ministry of Higher Education, Science and Innovation of the Republic of Uzbekistan is the authorized state body in the field of innovative activity (hereinafter referred to as the authorized state body).

The authorized state body shall:

implement the unified state policy in the field of innovative activity;

coordinate the activities of state and economic management bodies, local government bodies in the field of innovative activity;

develop and implement strategies for innovative development;

develop regulatory legal acts in the field of innovative activity;

develop recommendations for assessing the risks of innovative activity;

analyze the state of the country's innovative development;

implement measures to ensure interaction between the subjects of innovative activity;

ensure the organization of state expertise of innovative projects;

form, approve and finance innovative projects as a single state customer;

monitor and evaluate the effectiveness of the implementation of innovative projects within the framework of the state order for the creation of innovations;

register contracts for the transfer of technologies purchased at the expense of the State budget of the Republic of Uzbekistan;

recommend new developments for financing to state and economic management bodies, local government bodies and other organizations;

finance the commercialization of new developments and assists in transfer of technologies;

contribute to the creation and development of subjects of innovation, forms effective mechanisms for the implementation of the results of innovation;

participate in the organization of a system of training, retraining and advanced training of personnel for subjects of innovative activity;

carry out international cooperation in the field of innovative activity.

The authorized state body may exercise other powers in accordance with the legislation.

Government bodies, within their powers shall:

participate in the implementation of the unified state policy in the field of innovative activity;

ensure the implementation of legislation on innovative activity;

participate in the formation, financing and implementation of innovative projects;

coordinate the activities of their subordinate subjects of innovative activity for the implementation of innovation projects.

Government bodies can exercise other powers in accordance with the legislation.

Local government bodies shall:

participate in the implementation of the unified state policy in the field of innovative activity in the relevant territory;

participate in the formation, financing and implementation of innovative projects in the relevant territory;

approve, in agreement with the authorized state body, territorial programs in the field of innovative activity and ensure their implementation;

create conditions for the development of innovative activity in the relevant territory;

on the recommendation of the authorized state body or on their own initiative, finance innovative activity, as well as the commercialization of new developments and transfer of technologies.

Local government bodies may also exercise other powers in accordance with legislation.

State support and stimulation of innovative activity are carried out in order to create the necessary legal, economic and organizational conditions, to finance innovative projects and new developments for entities engaged in innovative activity.

The state supports innovative activity by:

adoption and implementation of strategies for innovative development;

improving the regulatory framework in the field of innovative activity;

provision of tax, customs benefits and preferences to subjects of innovative activity;

implementation of the state order for the creation of innovations at the expense of the State budget of the Republic of Uzbekistan and other sources not prohibited by law;

creating conditions for attracting funds from business entities to finance innovative activity;

organization of public procurement of science-intensive products and advanced technologies in order to ensure their guaranteed distribution;

promotion of training, retraining and advanced training of personnel in the field of innovative activity.

Strategies for innovative development are developed and implemented in order to accelerate the development of human capital, the country on the basis of modern achievements of world science, innovative developments and technologies, and the unified state policy in the field of innovation.

Innovative development strategies can be adopted for the medium and long term.

Innovative development strategies define the complex goals and objectives facing the state and society, target indicators for the corresponding period, as well as action plans for their implementation.

Draft strategies for innovative development are developed by the authorized state body on the basis of proposals from state and economic management bodies, local government bodies, scientific organizations, business entities, non-state non-profit organizations and experts.

The formation and approval of the state order for the creation of innovations is carried out by the authorized state body on the basis of proposals from the Academy of Sciences of the Republic of Uzbekistan, ministries, departments and other interested organizations.

The main criteria for the selection of innovative projects carried out within the framework of the state order for the creation of innovations are:

ensuring the development of new domestic products and technologies aimed at import substitution and export orientation or quality improvement, reducing the cost of existing products and technologies ready for implementation, including with the creation of new jobs and the use of local raw materials;

implementation of development work related to the design, manufacture and testing of prototypes, experimental samples, technologies, instruments, materials, products and other scientific developments, with a view to their subsequent practical use;

completion of the manufacture of samples or prototypes of high-tech, high-tech products and (or) preparation for the production of high-tech products, and (or) pilot testing of services (medical, financial, informational and others) for their implementation in the relevant sector of the economy, social sphere, banking and financial sector and others.

The maximum period for the implementation of innovative projects within the framework of the state order for the creation of innovations cannot exceed two years.

In the case of financing innovative activity within the framework of the state order for the creation of innovations at the expense of the State budget of the Republic of Uzbekistan, their results belong to the state.

Technical and scientific expertise of innovative projects is carried out in order to comprehensively assess the practical significance, scientific and technological level and economic efficiency of innovative projects, develop recommendations on the feasibility and amount of their financing.

In the process of conducting technical and scientific examinations, the independence and legal protection of participants, objectivity, openness of the results of examinations, with the exception of information constituting state secrets and other secrets protected by law, must be ensured.

Technical and scientific expertise is carried out by attracting specialists corresponding to the direction of the performed or proposed for the implementation of an innovative project.

It is not allowed to participate in the process of technical and (or) scientific expertise of individuals and legal entities personally interested in their results.

An expert who participated in the technical and (or) scientific expertise and does not agree with the adopted conclusion has the right to attach his reasoned opinion to this conclusion.

Technical expertise is an activity aimed at determining the compliance of the submitted documents of a project application with the established requirements, as well as at identifying errors that entail a distortion in the perception and analysis of the information provided on a project application.

The term for the technical examination should not exceed fifteen calendar days from the date of receipt of the project application.

Technical expertise includes the following procedures:

checking the completeness and correctness of the project application, as well as the presence of the necessary signatures, seals and stamps;

checking the presence of previously implemented projects similar to the submitted project application, and identifying duplication of project applications;

determination of the correctness of the presented financial and economic calculations;

verification of the information specified in the project application, identification of technical errors and inaccuracies;

other procedures in accordance with the regulations for technical expertise of projects approved by the authorized state body.

Scientific expertise is an activity aimed at studying the scientific novelty, relevance and practical significance of an innovative project, including analysis and assessment of the scientific and methodological potential of the research team, material and technical base, in order to make an informed decision (conclusion) on an innovative project.

The term for the scientific examination should not exceed thirty calendar days from the date of receipt of the project application.

The criteria for evaluating scientific expertise are:

the expected results from the implementation of the project, providing for the planning of the development of scientific and technical documentation for the preparation (organization) of the production of science-intensive products, the assessment of its import-substituting and (or) export-oriented potential;

prospects for the commercialization of the project;

the level of demand for the object of innovation;

availability of titles of protection for objects of intellectual property;

the availability of relevant experience in the implementation of scientific and technical or innovative activity among the project performers and the backlog of development work;

the level of technological provision of the production base.

Foreign experts may be involved in the scientific expertise.

Innovative projects carried out within the framework of the state order for the creation of innovations are subject to mandatory state expertise, which provides for scientific and technical expertise.

State scientific and technical expertise is carried out by the authorized state body.

The state promotes the development and implementation of measures for the training, retraining and advanced training of personnel in the field of innovative activity by:

formation of state orders for training personnel in the field of innovative activity;

development of state requirements and standards for training, retraining and advanced training of personnel in the field of innovative activity;

supporting the activities of non-governmental educational organizations, vocational training centers that train, retrain and improve the skills of personnel in the field of innovative activity;

promotion of scientific and technical achievements;

supporting the technical creativity of young people and their vocational guidance.

The state provides financial support to state educational institutions specializing in training personnel in the field of innovative entrepreneurship.

The subjects of innovative activity are:

individuals engaged in innovative activity;

state and economic management bodies and other organizations participating in the implementation of the unified state policy in the field of innovation;

scientific, research, higher educational, industrial and other organizations, regardless of their organizational and legal form and ownership, creating, implementing new developments and using innovations;

non-governmental non-profit organizations representing and protecting the interests of producers and consumers of innovations;

owners of intellectual property objects sold and used in the process of innovative activity;

investors and business entities investing in innovative activity.

Subjects of innovative activity have the right to:

carry out free innovative activity, independently choosing and applying methods, technical means and equipment;

carry out innovative activity on an individual or collective basis;

participate in competitions for innovative projects, including those financed from the State budget of the Republic of Uzbekistan;

independently determine and assess the risks of innovation, choose methods for assessing and reducing them;

receive scientific, technological, statistical and other information necessary for the implementation of innovative activity, with the exception of information constituting state secrets and other secrets protected by law;

be recognized by their authors or rightholders in cases of creation of objects of intellectual property, as well as legal protection of intellectual property;

enjoy tax, customs privileges and preferences provided by law;

disclose the results obtained by them in the course of innovative activity, if they do not contain information constituting state secrets and other secrets protected by law.

Subjects of innovative activity may also have other rights in accordance with the legislation and concluded agreements.

Subjects of innovative activity are obliged to:

comply with the requirements of the legislation in the implementation of innovative activity;

ensure, in the prescribed manner, the commercialization of new developments created as part of the implementation of innovative projects financed from the State budget of the Republic of Uzbekistan;

use funds allocated for innovative activity for the intended purpose;

not to harm the life and health of citizens, the environment;

comply with the requirements for the protection of intellectual property rights.

Subjects of innovative activity may also bear other obligations in accordance with the legislation and concluded agreements.

Innovations are divided into the following types:

product innovation — aimed at the development and implementation of technically and technologically new or improved products (works and services);

process innovation — aimed at the development and implementation of technically and technologically new or improved production or educational methods, as well as the implementation of transfer of technologies;

marketing innovation — aimed at introducing new or improved methods, covering changes in the design and packaging of products, the use of new methods of sales and presentation of products (works and services), the formation of new pricing strategies;

organizational innovation — aimed at introducing new or improved methods of organizing and conducting business, creating jobs and building external relations.

Risks of innovative activity — the likelihood of failure to achieve the goal of innovative activity, including failure to implement an innovation project.

Risks of innovative activity can be political, organizational, financial, market, commercial, industrial, investment and environmental.

Risks of innovative activity can be determined and assessed by the subjects of innovative activity independently or by other persons in accordance with the concluded agreements.

Risk assessment of innovative activity is carried out in order to reduce or prevent possible damage, including for making a decision based on the feasibility of financing an innovative project.

The following methods can be used to reduce the risks of innovative activity:

distribution of risks of innovative activity between subjects of innovative activity and the state;

reallocation of resources between other innovative projects;

the use of insurance mechanisms to cover the risks of innovative activity.

Lost profit is not taken into account when assessing the risks of innovative activity.

Subjects of innovative activity have the right to assess the risks of innovative activity based on the technical or economic characteristics of the innovation project and its implementation.

Priority areas of transfer of technologies are:

production of high-quality and competitive new or improved products in comparison with similar ones produced using existing technologies;

production of new types of products based on new developments and technologies;

introduction of energy and resource saving technologies in comparison with similar technologies.

The main methods of transfer of technologies are:

obtaining technologies free of charge;

introduction of technologies through the creation of joint ventures;

introduction of technologies on the basis of licensing agreements;

transfer of technological documentation;

full technology acquisition.

Transfer of technologies can also be carried out in other ways provided by law.

Transfer of technologies is carried out using mechanisms:

analysis and assessment of technical characteristics, feasibility studies, instructions and other documents;

organization of trainings with the involvement of experts from the party carrying out transfer of technologies;

mastering the technical knowledge necessary for the construction of structures and the installation of equipment and their operation;

promoting technology adoption.

Transfer of technologies can be carried out using other mechanisms.

Transfer of technologies based on the use of equipment and products is not allowed to the Republic of Uzbekistan:

containing unprotected toxic substances (that is, spreading into the natural environment) or unprocessed environmentally hazardous waste;

containing radioactive substances above the established norm;

designed to create products that negatively affect the health of the population;

designed to create and promote products that negatively affect national values, traditions and social behavior.

The transfer of technologies is carried out on the basis of agreement concluded in accordance with the procedure established by law.

A prerequisite for concluding a transfer of technologies agreement is the existence of the right to intellectual property and benefits from it.

Registration of transfer of technologies agreement purchased at the expense of the State budget of the Republic of Uzbekistan is carried out by the authorized state body.

The commercialization of new developments is the process of their introduction into civil circulation using various types of contracts that regulate the relations between the subjects of innovative activity in order to make a profit.

The commercialization of new developments is carried out by:

sale of goods (performance of work, rendering of services) created with the use of new developments or using them for their own needs;

creation of commercial organizations, the founder or one of the founders of which is an organization (affiliated organization) that has contributed an object of intellectual property or technology as a contribution to the statutory fund;

transfer of property rights to intellectual property objects to third parties and granting the right to use these objects by concluding licensing agreements based on royalties, including with the condition of their subsequent commercialization by the acquirer of these rights.

The size of the share of the rightholder for the intellectual property object in the authorized capital of the organization is determined by mutual agreement between the founders.

Commercialization of new developments of strategic importance for the state or containing information classified as state secrets is carried out in accordance with the legislation on the protection of state secrets.

The subjects of the innovative infrastructure include:

an innovative technology park;

a center of transfer of technologies;

an innovative cluster;

a venture organization;

an innovation center.

The subjects of the innovative infrastructure can be other persons, regardless of their organizational and legal form.

An innovative technological park represented by the Directorate of an innovative technological park (hereinafter referred to as an innovative technopark) is a legal entity that owns, on the basis of ownership or other legal grounds, a territory with a single material and technical complex, where favorable conditions are created for the implementation of innovative activity.

A resident of an innovative technopark is a legal entity or individual implementing an innovative project on the territory of an innovative technopark.

The main activities of the innovative technopark are:

assistance in ensuring the integration of science, education and production;

assistance in the development of innovative entrepreneurship;

provision of material and technical, organizational and methodological, financial, informational, consulting and other services to subjects of innovative activity;

assistance in the management of innovative projects;

conducting pilot industrial tests of new developments and assisting in the provision of legal protection to objects of intellectual property;

attracting domestic, foreign investors and business entities interested in organizing high-tech and innovative industries;

assistance in the implementation of foreign economic activity in order to promote innovations to the external market;

ensuring close and practical interaction between the subjects of innovative activity.

The main task of the innovative technopark is to support its residents by:

assistance in the creation of production facilities for the release of new or improved products for their sale on the market, as well as the development of new or improved technologies;

provision of movable and immovable property, including premises for various functional purposes, on a contractual basis;

performance of work related to the manufacture and testing of a prototype and other development work;

the provision of services for certification and registration of products, including services for the provision of legal protection to objects of intellectual property;

promoting innovative products, technologies by organizing their participation in exhibitions, conferences and other events;

provision of other services (performance of work) related to the scientific, scientific-technical and innovative activity of the innovative technopark.

The funds received from residents for the rental of laboratory equipment, production, office and other premises, for the services rendered, remain in full at the disposal of the innovative technopark.

The term of functioning of the innovative technopark is up to thirty years with the possibility of its subsequent extension.

The status of an innovative technopark resident is granted on a competitive basis for up to ten years.

The relationship of an innovative technopark with residents is based on contracts concluded between them for the implementation of innovative activity.

An innovative technopark and its residents can be provided with tax, customs benefits and preferences in accordance with the law.

Creation, reorganization and liquidation of an innovative technopark are carried out in the manner prescribed by law.

The activities of the innovative technopark are coordinated by the authorized state body.

Center of transfer of technologies is a legal entity created to ensure transfer of technologies and commercialization of innovative developments.

The main activities of the Center of transfer of technologies are:

conducting market research to identify organizational and technical opportunities to promote new developments;

provision of engineering, consulting and design services (engineering services);

provision of services for the preparation of business plans;

attraction of investments;

dissemination of information related to transfer of technologies.

Creation, reorganization and liquidation of the center of transfer of technologies are carried out in the manner prescribed by law.

An innovative cluster is created without the formation of a legal entity as a set of subjects of innovative activity, consumers of the results of innovative activity, participating in the creation of innovations in the relevant territory, the main purpose of which is to stimulate innovative activity through effective interaction, joint use of capacities and exchange of knowledge, competencies, as well as providing input into transfer of technologies.

The main areas of activity of the innovative cluster are:

combining the potential of subjects of innovative activity in the field of science, education and production to create certain innovations, as well as meet the needs of the market;

formation of orders for training and retraining of personnel related to the activities of innovative clusters, including the creation of innovations;

assistance in the creation of industries and enterprises specializing in the production of new or improved developments;

joint promotion of the results of innovative activity to the market.

An innovative cluster is created on the basis of mutual interest of the subjects of innovative activity based on the needs of the economy and is liquidated by their decision in the manner prescribed by law.

Venture organizations, funds, partnerships (hereinafter referred to as venture organizations) are specialized financial institutions created both in the form of a legal entity and without forming a legal entity, the main activity of which is financing the implementation of risky innovative projects.

The founders of venture organizations can be legal entities and individuals, including foreign ones.

Venture organizations have the right to:

take equity participation in the authorized capital of newly created legal entities;

transfer their funds for the implementation of new developments without collateral, surety and guarantee.

Creation, reorganization and liquidation of venture organizations are carried out by decision of the founders in the manner prescribed by law.

The innovation center is created in the form of a legal entity in order to implement the full cycle of work in the field of innovative activity — from the creation of new ideas to the commercialization of new developments.

The main activities of the innovation center are:

formation of a base of new ideas and developments;

taking measures to improve and strengthen new ideas (acceleration);

assistance in providing material and technical conditions for translating new ideas and developments into innovations;

conducting trainings on innovative management;

financing and assistance in the implementation of innovative projects;

marketing research;

development of recommendations for the orientation and adaptation of new developments to market requirements;

development of cooperation between the subjects of innovative activity;

provision of advertising and exhibition services in order to popularize new ideas, developments and technologies.

Creation, reorganization and liquidation of the innovation center are carried out in the manner prescribed by law.

Sources of financing for innovative activity include:

the republican budget of the Republic of Uzbekistan;

the republican budget of the Republic of Karakalpakstan and local budgets of regions and the city of Tashkent;

Fund for support of innovative development and innovative ideas;

the fund for financing science and supporting innovations;

venture funds;

own funds of subjects of innovative activity;

international grants, targeted loans of commercial banks, including foreign ones, and international financial institutions;

funds from private investors, including foreign ones, and other sponsors;

other sources not prohibited by law.

The fund for financing science and supporting innovations shall be established in the form of a legal entity under the authorized state body for the purpose of financing the development of innovative activity.

The funds of the fund for financing science and supporting innovations shall be directed to the following:

financing of innovative activity in accordance with the orders of economic entities that have a state share in their statutory funds;

financing the creation and implementation of innovations by the subjects of innovative activity;

financing based on a competitive selection of innovative, experimental design and start-up projects;

financing of measures to equip (retrofit) scientific laboratories with modern high-tech equipment, as well as the necessary consumables and components;

covering the costs of registration and maintenance abroad of intellectual property rights (patents) created within the framework of state programs for scientific activities;

payment of expenses for ensuring free access of research and higher educational institutions to leading electronic scientific databases, as well as preparation for publication of scientific results in international publications;

financing scientific training for scientists in leading foreign scientific organizations (centers, universities, etc.);

financing of costs (salaries, transportation costs and others) of attracted foreign highly qualified scientists and specialists in the field of scientific and innovative activity on the basis of agreements (contracts) concluded with them.

The funds of the fund for financing science and supporting innovations shall be formed from the following sources:

part of dividends accrued on state shares in business entities with a state share of 50 or more percent in their statutory funds, as well as deductions from state enterprises to the State budget of the Republic of Uzbekistan in amounts determined when adopting the State budget of the Republic of Uzbekistan for the next year;

a part of the foreign currency funds received from patent fees, charges, and other payments not classified as taxes by the Ministry of Justice of the Republic of Uzbekistan;

funds of the State budget of the Republic of Uzbekistan;

grants and loans from international financial organizations and institutions;

sponsorship funds of individuals and legal entities, including foreign ones;

other receipts not prohibited by law.

The establishment, reorganization, and liquidation of the fund for financing science and supporting innovations shall be carried out in accordance with legislative acts.

Funds to support innovative activity are created without forming a legal entity to finance the costs associated with the creation, implementation, production, transfer of technologies and commercialization of new developments.

The main areas of use of funds to support innovative activity are:

implementation of activities in the field of innovation;

financing innovative projects, commercialization of new developments and transfer of technologies in accordance with the orders provided by the subjects of innovative activity;

material incentives for the subjects of innovative activity, financing their research and improving the qualifications of personnel, strengthening their material, technical and scientific laboratory base.

Funds to support innovative activity can allocate funds on a repayment or gratuitous basis, and also act as a guarantor for the obligations of the subjects of innovative activity.

The creation, reorganization and liquidation of funds to support innovative activity are carried out in the manner prescribed by law.

International cooperation in the field of innovative activity is carried out in accordance with the legislation and international treaties of the Republic of Uzbekistan.

International cooperation in the field of innovative activity is carried out on the basis of:

agreements or memorandums concluded with interested foreign organizations, funds and investors;

conducting joint innovative activity, developing and implementing international innovation programs and projects, creating favorable legal, economic, financial and organizational conditions for their implementation;

organization of joint training, retraining and advanced training of personnel in the field of innovation and mutual exchange of experience;

holding international conferences, seminars, symposia, innovation fairs (exhibitions) and events in the field of innovative activity.

Disputes in the field of innovative activity are resolved in the manner prescribed by law.

Persons guilty of violating the legislation on innovative activity are liable in the prescribed manner.

The Ministry of Higher Education, Science and Innovation of the Republic of Uzbekistan and other interested organizations shall ensure the execution of this Law, its delivery to the executors, and the explanation of its essence and significance among the population.

To the Cabinet of Ministers of the Republic of Uzbekistan:

bring government decisions in line with this Law;

ensure the revision and annulment by the state administration bodies of their normative legal acts that contradict this Law.

This Law comes into force from the day of its official publication.