This article provides information about the main directions of development of the innovative economy of the region, the role of higher educational institutions. The innovative activity of higher educational institutions, various approaches to it, and indicators of financing innovative activity are analyzed. The principles and conditions for innovative development of higher educational institutions were also studied. Scientific conclusions and recommendations have been developed for further expansion of the relationship between education, science and business, commercialization of innovative developments and results of scientific research in higher educational institutions.

This article provides information on the main directions of development of the innovative economy in the region, the impact of higher education institutions, and analysis. Innovative activities of higher education institutions, various approaches to them, indicators of financing innovative activities are analyzed. Also, the principles and conditions of innovative development of higher education institutions were researched. Scientific conclusions and
recommendations have been developed on further expansion of mutual relations between
education, science and business, commercialization of innovative developments and scientific research results of higher educational institutions.

Internationalisation has become a prime factor of competitiveness in the sphere of higher education, shaping global presence, image and abilities to employ graduates. In the case of emerging economies, it presents an opportunity to enter the global academic communities and be rated in world rankings. The aim of this paper is to address the issue of how the internationalisation enhances the competitiveness of universities in Uzbekistan through the interviews held and by referring to the relevant body representatives of different universities. The results indicate that, as much as Uzbek universities have embraced internationalisation, the challenge in their governance, allocation of resources and language capacity still exist. Internationally affiliated institutions like the Westminster International University in Tashkent (WIUT) and Webster University in Tashkent (WUT) can make use of international networks more efficiently in contrast to nationally based universities, which use strategies based on small steps, including the mobility programmes, and faculty training in foreign countries. The paper supports the view that the current internationalisation in Uzbekistan cannot be considered as a sustainable competitiveness issue unless it is integrated into the processes of teaching, research, and governance in the country.

The article analyzes the state policy in digitalization, international cooperation, and innovative development of higher education in Uzbekistan. It examines university modernization processes, the implementation of digital technologies, the development of joint educational programs with foreign universities, as well as improving education quality and training specialists capable of critical thinking and lifelong learning. The role of the State Concept for the Development of Higher Education until 2030, the optimization of educational programs, and the growth dynamics of international students are highlighted. The study emphasizes the need for comprehensive innovative transformation of the higher education system for integration into the global educational space and sustainable national development.