THE INTERACTION OF STATE AND MARKET MECHANISMS IN THE FORMATION OF AN INNOVATIVE ECONOMY

This article examines the role of the regions of the Republic of Uzbekistan in creating an institutional environment, supporting innovation, and stimulating research and development activities, as well as the influence of market mechanisms—competition, supply, and demand—on innovation processes. The significance of cooperation between the state and the private sector in innovative development is highlighted, and the theoretical and practical aspects of maintaining a balance between state regulation and market freedom for the sustainable development of an innovative economy are revealed.