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Journal number 1 ∘ Ramaz Abesadze
Georgias innovative policy and system


Annotation. The processes of innovative policy and innovative system formation in Georgia are investigated and the main directions of innovative policy of Georgia are defined.

Keywords: innovative development, innovative policy, innovative system. 


The well-being of the society is inextricably linked to the innovation. It led to unprecedented progress in all spheres of human activity and daily life. It can be said that the process of economic development is the process of implementing innovations in all elements of the economic system. Innovative economy is based on knowledge, flow of innovations, technologies, information, institutions, human capital, production organization, products, etc. constant perfection, intellectual work of scientists and innovators.

After the collapse of the Soviet Union, there was an economic decline in Georgia, which caused the degradation of the existing innovation system (reduction of scientific potential, destruction of the material and technical base of science, reduction of stimulation of science and invention by the state, etc.). Added to this was the fact that after the restoration of independence, a number of mistakes were made on the path of economic development in Georgia, the most important of which was that the innovative development of the economy was not recognized as the main direction, the way of building a knowledge-based or innovative economy. Especially the wrong policy was led in the scientific field, which is the basis of the foundations of innovative policy.

Innovative policy of Georgia 

The formation of the legal base of innovative policy in Georgia basically started in 2016, when the Law of Georgia "On Innovations" was adopted [Georgia... 2016]. The law applies to the subjects of innovative activities and the infrastructure supporting innovative activities, takes into account the problems of financing innovative activities and commercialization of innovations.

The purpose of the law is to create an ecosystem of innovations necessary for the socio-economic development of Georgia, which will contribute to the construction of an innovative economy in the country.

The following laws of Georgia can also be attributed to the legislative base of innovative policy: "On science, technology and their development" [Georgia... 1994]. It creates the legal basis of the state policy in the field of development of science and technology; "On Higher Education" (2004), which regulates the process of implementation of educational and scientific-research activities of higher educational institutions in Georgia. According to the law, the state ensures: accessibility and openness of higher education; the opportunity to receive higher education throughout life, etc. "About general education" [Georgia...2005]. It regulates the conditions for the implementation of general educational activities in Georgia, the principles and rules of general education management and financing; "Patent Law of Georgia" [Georgia... 1999], which regulates relations related to the creation, use and legal protection of inventions and utility models. The term of validity of an invention patent is 20 years from the date of filing an application in the patent; "About Grants" [Georgia... 2004], which defines the general principles of granting, receiving and using grants in Georgia; "Conclusion of copyright and related rights" (1999), which regulates relations linked to copyright and personal non-property rights that arise during the creation and use of works of science, literature and art (Copyright). 

National innovation system 

The innovation system is a very complex organism. It ensures the intensive flow of new knowledge, its transformation into scientific and technical innovations and their commercialization, that is, all processes from scientific discoveries to innovations. This process (including the import of innovations) is carried out through the innovation infrastructure. Innovative systems differ from each other according to the countries and the tasks facing them [Бурдули В. 2017]

The national innovative system includes: relevant state bodies, scientific system, education system and innovative infrastructure.

The formation of a perfect innovative system is impossible without the existence of developed educational and scientific systems. The educational system should ensure the education of highly qualified entrepreneurial and scientific personnel, and the scientific system should generate new knowledge (discoveries) of fundamental and applied nature. In addition, education and science cannot be considered as one field. Although the education system provides scientific staff, it is not education that provides new knowledge, but science, which determines the progress of society and education itself. Thus, priority should be given to science.

In order to promote innovative activities, the following subjects of innovative infrastructure can be created by a state body or other person: science and technology parks; business incubators; businessaccelators technology transfer centers; Innovation laboratories (FabLab), clusters, innovation centers.

In addition, innovative infrastructure can also include a wide range of other entities: small innovative, engineering, consulting and information services, training centers, leasing service companies, state and non-state funds supporting innovative entrepreneurship. In order to improve financial support, it is desirable to have an innovation bank, which provides long-term loans at a low interest rate for the implementation of innovative projects, insures them, etc.

At present, the following units of the innovation system function together with the executive and legislative bodies of the government in Georgia: the government's deliberative body, the Research and Innovation Council of Georgia [Georgia.. 2015], which was created in 2015 for the development of science, research and in order to promote innovations; Innovation and Technology Agency of the Ministry of Economy and Sustainable Development of Georgia [Public... 2014]. The agency's mission is to support the formation of the ecosystem necessary for the development of innovations and technologies in Georgia, the commercialization of knowledge and innovation, etc.; Department of Communications, Information and Modern Technologies [Georgia... 2016]. Its main function is to participate in the development and implementation of the main directions of the state policy, strategy and programs in the field of electronic communications, information technologies and scientific and technological innovations [Patent of Georgia... 2010]. It is the National Intellectual Property Center of Georgia, which determines the intellectual property policy.

The institutions constituting the infrastructure of the innovative system of Georgia are: universities, colleges, scientific-research institutes, astrophysical observatory, Kutaisi International University, whose educational programs are relied on the programs of the munich technical university; Georgian National Academy of Sciences, Shota Rustaveli National Science Foundation, Georgian Academy of Agricultural Sciences; Technoparks of Tbilisi, Batumi, Zugdidi, Ozurgeti, Telavi, Gurjaani and Kaspi [Technoparks 2023]; Innovation centers of Akhmeta, Rukhi, Kharagauli, Choporta and Baghdati; Fablabs on the basis of higher schools, technoparks and vocational schools; Silicon Valley Tbilisi and others.

As for business clusters, they do not have a long history in Georgia. In 2017, the first cluster was founded - the Georgian furniture cluster, in the same year - the Georgian cinema cluster, and later - the ICT cluster of Georgia, whose members are leading technological companies.

Within the framework of the European Union project (EU IPSC), the United Nations Industrial Development Organization (UNIDO) identified 57 developing and potential clusters in Georgia, paying special attention to processing. Black industry and agribusiness. The first 10 clusters have been studied and well developed: wine (Kakheti), production of pharmaceutical products (Tbilisi-), poultry (Kvemo Kartli), sea fishing (Same-Grelo - Zemo Svaneti), wine (Racha Lech Khumi and Kvemo Svaneti), wine (Kvemo Kartli), furniture (Tbilisi), jewelry production (Tbilisi), clothing (Tbilisi), fruit and vegetable processing and Canning (Samegrelo, Zemo Svaneti). [Business... 2020].

In parallel with the formation of innovation policy and innovation system in Georgia, innovative technologies are being implemented in various fields of economic activity. First of all, it concerns information and telecommunication technologies: the number of mobile subscribers and Internet users is growing rapidly; The market of information and telecommunication technologies was created and developed [Абесадзе R., 2016]. In addition, important projects were implemented with his participation of Georgian Partnership Fund (which can be considered as one of the subjects of the innovative system of Georgia and whose main purpose is to encourage investments through participation in the initial stage of the development of investment projects). For example, such as: 230 megawatt thermal power station equipped with the latest technologies; Reservoir-type hydroelectric power station, Nenskrahes, Svaneti; The first civil aircraft composite parts factory in Transcaucasia, which manufactures high-standard parts of civil self-propelled aircraft from composite materials. The first production made in the enterprise was purchased by the world's largest airline company, Boeing; A joint project, which aims at the production of highly energy-efficient constructional gas blocks in Georgia; Kaspi brick factory of European standards and high technologies; Rustavi sandwich panel enterprise of innovative building materials; In Samegrelo, a modern standard Georgian corn grain processing, oil receiving and combined feed manufacturing plant; Georgian mountain pig rescue project; The most modern greenhouse in the Caucasus - "Imereti Greener" company; blueberry plantations in Guria; high-tech pig farming complex "Kalanda"; multifunctional trade center of the village of Rukhi; the first branded tourist complex in Kakheti on the territory of the historical museum of the nineteenth century - Hotel "Radisson Collection Tsinandali", Lopota Hotel Komplex in Kakheti region and others.

In 2016, a venture investment program - "Startup Georgia" was launched in Georgia to find financial support for innovative ideas for start-up businesses. The coordinators of the project are "Partnership" and "Georgian Innovation and Technology Agency". A number of innovative projects have been implemented by the winners of this program. In 2019-2021, five startup projects were financed in the regions of Georgia within the framework of the partnership between the "Startup-Georgia" program and the USAID project, "Growth in Georgia". The joint investment made for the implementation of the projects was more than 1,500,000 GEL, while the total participation of the beneficiaries was 1,050,000 GEL. [Village... 2021].

At the initiative of the Government of Georgia, the state program "Produce in Georgia" is implemented, the purpose of which is to develop and support entrepreneurship in the country, promote the creation of new enterprises and increase the export potential.

As of 2021, 494 enterprises, 152 hotels and 6 facilities providing tourist services were created or expanded with the support of the mentioned program. Within the scope of the mentioned program, more than 1.8 billion GEL was invested and a total of 24,205 jobs were created. In addition, it is important that in 2020, within the framework of the program, the credit-guarantee mechanism was launched, according to which 242 projects have already been financed and which will create 4,418 small businesses. to the place [Saagentos.. 2021]. It should be noted that in 2020, within the framework of the same program, a textile factory equipped with modern standards - "Georgian Textiles" - was opened in Rustavi with the co-financing of Turkish investors and the aforementioned program, where up to 4000 people eventually Will be employed [Thurnava N. 2020].

It seems that since 2016, significant steps have been taken in the direction of the formation of innovative policy and innovative system in Georgia, and at the same time, the implementation of innovations in various fields of the economy. Now it is necessary to make further progress. In this regard, attention should be focused on the four main directions of the innovative policy and the development and implementation of the resulting strategy and operational plans. These directions are:

1. The main goal of economic development should be to increase the construction of an innovative economy;

2. The process of innovative development of the economy should acquire a continuous and comprehensive character;

3. It is necessary to take an orientation towards the formation of an innovation system based on its own research in the country, for which it is necessary to especially strengthen the scientific system;

4. Create a five-ring model of the innovation system and, accordingly, strengthen the relationship between the state, business, society and the environment. 


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