At the turn of the 20th and 21st centuries, the global economy was dominated by developed countries, primarily located in Europe and North America. Economic development in the G7 (later G8) countries was determined by the efficient use of natural resources and long-term scientific and technological progress. Resource and energy efficiency were paramount in these countries. For example, the United States experienced significant growth in production throughout the 20th century. At the same time, despite industrial development, high prices were due to the expansion of the service sector and the emergence of new industries based on the scientific and technological revolution

This article provides a scientific analysis of the role and significance of the state in financing innovative activities in the context of the modern economy. It highlights the impact of innovations on economic growth, national competitiveness, and technological advancement. Based on international experience, effective mechanisms of state support for innovation are examined. The study develops practical recommendations for improving the system of financing innovative activities in Uzbekistan’s economy