Strategy for Innovative Development of The National Economy Based on Attracting Foreign Investments

Аннотация

This article explores the strategic importance of attracting foreign investments as a key driver for the innovative development of the national economy. In the context of globalization and increasing economic competition, the effective mobilization of foreign capital plays a critical role in enhancing technological progress, improving production efficiency, and promoting sustainable economic growth. The article analyzes the current state of foreign investment inflows, identifies existing barriers, and proposes practical recommendations for creating a more favorable investment climate. Special attention is given to policy reforms, institutional support mechanisms, and the role of innovation ecosystems in fostering long-term economic transformation. The study emphasizes the necessity of aligning investment strategies with national development goals to ensure inclusive and innovation-oriented economic advancement. Keywords: Foreign investments, innovative development, national economy, investment strategy, economic growth, technological progress, investment climate, policy reforms, sustainable development, innovation ecosystem. investment inflows in the national economy and to Introduction: In today’s rapidly evolving global propose strategic directions for enhancing the economy, the role of foreign investments has become innovation potential through targeted investment increasingly significant in shaping the development policies. By aligning foreign investment strategies with trajectories of national economies. Countries striving broader national development goals, it is possible to for sustainable economic growth and technological foster sustainable economic growth, improve advancement recognize the necessity of attracting competitiveness, and ensure long-term socio- foreign capital not only as a source of financial economic benefits for the country. resources but also as a catalyst for innovation, modernization, and competitive advantage. The inflow METHOD of foreign investments contributes to the introduction Foreign investments play a pivotal role in the of advanced technologies, management practices, and modernization and innovative development of national access to international markets, which are essential for economies, especially in developing countries seeking fostering an innovative economic environment. For to accelerate economic growth and improve global emerging economies, including Uzbekistan, developing competitiveness. The attraction of foreign direct a coherent and effective strategy to attract and utilize investment (FDI) brings not only much-needed capital foreign investments is crucial for accelerating the but also advanced technologies, managerial expertise, transition to a knowledge-based and innovation-driven and access to international markets, all of which economy. This involves addressing structural contribute to the creation of an innovative ecosystem. challenges, improving the investment climate, and The Role of Foreign Investments in Innovation. One of creating institutional frameworks that support both the primary benefits of foreign investments is the investors and domestic enterprises in collaborative transfer of technology and knowledge from more innovation efforts. This article aims to analyze the developed economies to recipient countries. Foreign current trends and challenges related to foreign companies often introduce cutting-edge technologies International Journal of Management and Economics Fundamental 84 https://theusajournals.com/index.php/ijmef International Journal of Management and Economics Fundamental (ISSN: 2771-2257) and efficient production methods that domestic firms their innovations and investments are safeguarded, can adopt or adapt. This spillover effect stimulates encouraging them to commit resources to innovative research and development (R&D) activities and activities within the country. encourages local businesses to innovate in order to Impact on National Economic Development. When compete effectively. Furthermore, foreign investments successfully implemented, a strategy centered on promote collaboration between multinational attracting foreign investments for innovative corporations and local enterprises, fostering development can transform the national economy by innovation networks that enhance the overall shifting it from resource-dependent to knowledge- economic dynamism. Current Challenges in Attracting based. This transition leads to higher productivity, Foreign Investments. Despite its advantages, attracting diversification of economic activities, and improved foreign investments presents several challenges. Many standards of living. Moreover, innovation-driven countries face regulatory and bureaucratic hurdles that growth contributes to sustainable development by discourage investors. Political instability, lack of promoting environmentally friendly technologies and transparency, weak legal frameworks, and inadequate efficient resource use.