The state of formation of innovative economy in the regions of Georgia and existing economic difficulties

Vakhtang Burduli

Journal number 3 ∘ Vakhtang Burduli ∘
The state of formation of innovative economy in the regions of Georgia and existing economic difficulties

journal N3 2025

DOI : 10.52340/ekonomisti.2025.03.01

Annotation. The article presents some elements of the classification of types of innovations, as well as mechanisms for coordinating the dissemination of innovations. Some main directions of implementing innovations in the modern period are considered. Further, the state of coordination of the formation of an innovative economy by the Agency of Innovation and Technology of Georgia, as well as the state of dissemination of basic innovative technologies in the regions of Georgia are considered, some difficulties are identified and ways to overcome them are outlined. The regional components of the formation of the innovative economy of Georgia are systematized and the state of their use in the regions is shown. The last section examines the existing economic difficulties in the formation of the innovative economy and some ways to overcome them.

Key words: diffusion of innovations, basic, improving and pseudo-innovations, innovation cluster, technology park, start-ups.

Introduction

In order to determine the state of formation of an innovative economy in the regions of Georgia, it is necessary first of all to study modern views on the classification of types of innovations and the systematization of methods, mechanisms and instruments for coordinating their dissemination, which I have done in the first section of the article. It is taken into account that the coordination of the formation of an innovative economy in the regions is carried out primarily through national components (institutions, mechanisms, instruments), although some of them have regional divisions (for example, technology parks of the Agency for Innovation and Technology). The main directions of innovation implementation in the modern period are also reflected here, namely: information and communication technologies (or in a broader sense – digital economy technologies), green economy technologies (up to 40% of innovations implemented in the world), circular economy and technologies for the production of composite materials and products made from them. The second section examines the state of coordination of the formation of an innovative economy by the Georgian Innovation and Technology Agency (GITA). The third section examines the state of dissemination of basic innovative technologies in the regions of Georgia, identifies some difficulties and outlines ways to overcome them. Then, the regional components of the formation of Georgia\'s innovative economy are systematized and the state of their use in the regions is highlighted. The final section examines the existing economic difficulties in the formation of an innovative economy and some ways to overcome them. In particular, the factors that hinder the implementation of innovative technologies (in the form of the creation of new enterprises or technological modernization of existing enterprises) and some ways to overcome them are considered. It is taken into account that the overwhelming majority of both basic and improving innovations in Georgia, as in other medium and small countries, are imported either through the purchase of production technologies or through the organization of joint ventures with foreign partners.

1. Classification of innovations and methods of their dissemination Classification of innovations.

There are many variants of innovation classification in economic literature. [Пригожин А., 1998; Гонаренко О., 2011; Виды инноваций ...; Мухамедъяров А.; Классификация и виды ...; Классификация инноваций ..., 2016; Тема 3. ...]. Based on their study and on modern ideas about the nature of innovation, I have compiled a more modern classification in [Burduli V., 2020]. Here we will present only some of the classification components that will be needed in this work.

Depending on the significance (or degree of impact on the economy), a distinction is made between basic (radical), improving and pseudo-innovations.

Basic (radical) innovations may be new or fundamentally improved products or services, as well as new or fundamentally improved production technologies.

Improving innovations are innovations that provide a significant improvement to existing technologies or products.

Pseudo-innovations (some sources call them modification innovations), which are the most common, allow achieving maximum efficiency of existing technologies or products due to their minor improvements..

Depending on the subject and the area of its application, a distinction is made between product innovations (new products, including tools and materials) and process innovations (technologies, organizational production processes, management processes), that is, innovations in the form of a product and innovations in the form of an operation.

The same new technology in one case or another can be both a product and a process innovation. For example, the release of a new (innovative) machine by an enterprise is a product innovation, and the introduction of such a machine into the production process at another enterprise is a process innovation.

According to the criterion of prevalence (scale), a distinction is made between single and diffuse innovations, in other words, those implemented at one site, and repetitive ones, spread across many sites.

And most importantly, those used only in one specific industry and spread across many industries (for example, information and communication innovations).

According to the place in the system of an enterprise, firm or organization, a distinction is made between innovations at the input of the enterprise (changes in the selection and use of raw materials, materials, machinery and equipment, information, etc.), innovations at the output of the enterprise (products, services, technologies, information, etc.), innovations of the systemic structure of the enterprise (managerial, production, technological), i.e. innovations of the structure of the enterprise as a system that includes individual elements and the mutual connections between them.

Methods of disseminating innovations.

Even in the case of internal (within an enterprise or organization) development of innovations (basic, improving, modifying), the conditions for their distribution often require the purchase of patent licenses, technological documentation, etc.). Financing in this case is independent, but state support is also possible. TNCs and other large corporations independently implement their innovation strategy, although they sometimes do not shy away from government support or attracting specialized partners (especially when implementing process innovations).

However, which is quite natural, in the majority of medium and small enterprises and organizations (with the exception of specialized innovative enterprises) the dissemination of innovations occurs through the purchase of basic (including in the form of “turnkey contracts”) and in various forms (equipment, documentation, licenses, consulting services, etc.) improving and modifying innovations, often with the involvement of specialists who facilitate their implementation.

Naturally, the main way of promoting innovations in production (spreading innovations in production) is borrowing (most often importing) both basic and improving innovations, product and process ones at each stage of their promotion (special scientific research, direct development, implementation).

Let us list the main modern mechanisms existing in developed countries for the promotion (dissemination) of innovations in production [Абесадзе Р., Бурдули В., 2017; Abesadze R, Burduli V., 2019; Abesadze R., Burduli V., 2018]

Ensuring the state\'s innovation policy: a) government organizations that determine the state\'s innovation policy, ministries, departments, agencies, funds and other regulatory and financing agencies; in Georgia, following the example of developed countries, issues of innovation policy are primarily handled by the government as a whole [Government of Geogia, 2018], Ministry of Economy and Sustainable Development, Ministry of Regional Development and Infrastructure, Ministry of Agriculture, Georgian Agency of Innovation and Technology has been established and is actively operating [For the rapid ...], Rural Development Agency; The Produce in Georgia Agency unites all state programs aimed at supporting the entrepreneurial sector and economic development of the country. The program is aimed at developing micro and small businesses, forming a modern culture of entrepreneurship and creating new jobs [Турнава Натия, 2021]; b) strategy and programs of innovation policy; in this aspect, in the process of dissemination of innovations in developed countries, various programs, in the financing of which the state also participates, play a major role, for example, programs for organizing innovative start-ups; c) the regulatory framework in the area of development and stimulation of innovation activities, including provisions regulating the relationship between science, business and the state; in this regard, the “Law of Georgia on Innovations” was adopted in Georgia, but other laws also contain provisions regulating this activity.

Technology transfer organizations and other elements of innovation infrastructure (technology parks, business incubators, business accelerators, centers for commercialization and technology transfer, innovation laboratories, etc.) should facilitate the identification and implementation in production of both domestic (of which there are few in a small country) and, especially, imported new production technologies. In fact, in addition to the “technology transfer center”, other elements of the innovation infrastructure also directly or indirectly participate in the transfer. For example, the task of business accelerators is usually to support the development of technologies (including investment) by innovative start-ups, which can also be considered as an element of the technology transfer process.

Innovative clusters. Unlike traditional industrial clusters, innovative clusters represent a system of close relationships not only between firms, their suppliers and clients, but also knowledge institutions, including large research centers and universities, innovation divisions of large corporations, innovative enterprises, etc. Through the system of relationships between these objects, the developed innovations are distributed not only within the cluster, but also beyond its borders..

Innovative clusters can be at the national level and at the regional level. It is necessary to take into account that clusters, regardless of their territorial size, are formed mainly within a certain industry specialization. Even innovative enterprises of the famous Californian Silicon Valley mostly specialize in the field of information and communication technologies. Within a NUTS level 1 region, there may naturally be several clusters belonging to different sectors; for example, in Finland there are at least two national-level clusters. However, the majority of innovation clusters in EU countries (of which there are already more than 2 thousand) specializing in a certain type of activity are formed within the territorial units of a lower NUTS level (for details, see [Abesadze R., Burduli V., 2018]).

Each country is characterized by its own approach to cluster development. Despite the differences, the cluster strategy is especially evident in Denmark, Holland, Belgium, Finland, France, and Italy. Finnish and Scandinavian industry is fully clustered. The EU countries have adopted the Scottish model, according to which the cluster center is one large enterprise, around which smaller firms are grouped. There is the so-called "Italian model" - more flexible and "equal" cooperation between small, medium and large businesses. [Сепашвили Э., 2013].

Today, there are several spontaneous clusters in Georgia that are in their infancy and very far from being real clusters (for example, the wine production cluster, the furniture cluster, tourism infrastructure and related industries). However, if their development potential is properly used, they can play an important role in the process of future economic growth of the country in the current conditions, when the domestic market of Georgia is very small, and the country occupies an insignificant place in the world market. [Сепашвили Э., 2013].

The main directions of innovation in the modern period

f we judge from the point of view of the number of innovations (basic, improving and pseudo-innovations) currently spreading in many industries (according to the prevalence criterion), then the key factor innovations of the modern technological order are: innovations spreading in different industries along the line of IR technologies (currently mainly digital technologies) – about 40% of the total number of innovations; innovations spreading in different industries along the line of green economy – about 40% of the total number of innovations (however, innovations along the line of green economy partially overlap with innovations taken into account along the line of circular economy and ecology); innovations spreading in some industries along the line of composite materials and nanotechnology; innovations spreading in all industries along the line of circular economy and ecology; biotechnological innovations spreading in the field of healthcare (microbiology, molecular and cellular biology, biochemistry, embryology, genetic engineering, virology, etc.).

Innovations spread through digital technologies. It is the speed and versatility that have made IC technologies so popular in modern science, manufacturing and everyday life. Computers, smartphones, digital television electronics, etc. are a unique phenomenon that has radically changed the lives of every person on the planet over the past decades. In the sphere of these already existing technologies, their modernization occurs through the implementation of mainly improving and pseudo-innovations.

The transition to the possibilities of applying new forms of work organization using automated task distribution systems, enterprise management taking into account the effective distribution of resources, electronic accounting and document flow, as well as production monitoring systems, the environment and support for making management and technological decisions allows for a qualitative leap and more efficient use of the existing economic potential. This transition is already taking place through the implementation of relevant basic and improving innovations. At the same time, the volume of new innovative developments in this direction is growing throughout the world

Modern researchers and experts identify ten main areas of development of digital technologies (in these areas, both basic and improving innovations are implemented, some of them are product-based, but mostly process-based, however, in the service sector, many of them can be interpreted as product-based): 1. Artificial Intelligence and Machine Learning. 2. Blockchain and Cryptocurrencies. 3. Big Data. 4. Telemedicine. 5. Augmented and Virtual Reality (AR/VR). 6. Chatbots and Virtual Assistants. 7. Mobile and Cybersecurity. 8. Internet of Things (IoT). 9. Computer Vision. 10. Artificial Neural Networks [Чеботарев А., 2018]. In most of these areas, the corresponding innovations can be spread across all sectors of the economy.

Innovations disseminated through the green economy. All areas of development of the "green" economy require the introduction of innovations both in the form of the introduction of completely new technologies (basic innovations) and improving innovations, for example, to increase the energy efficiency of industrial equipment. I present innovations in the green economy in detail in the article [Burduli V., 2019]. Here we will systematically characterize "green" innovations in terms of types (basic, improving) and sectors of the economy where they are used.

“Today, 40% of global innovations are in the green economy, and 50% of them are in energy conservation and energy efficiency, which are key factors in the green economy,” it is noted in [Что такое ..., 2017].

In our opinion, the following key general areas of the "green" economy can be identified: 1. General ecosystem management (waste management, combating water and air pollution, land restoration and rational use, restoration and planting of forests); 2. Introduction of renewable energy sources; 3. Reducing the energy intensity of GDP and increasing energy efficiency (construction of buildings and housing and communal services, industry, transport, agriculture); 4. Development of electric transport; 5. Organic farming in agriculture; 6. Development of ecotourism.

Waste management. Currently, a circular economy is being formed in developed countries, the main task of which is to involve production and consumption waste in the secondary circulation. Thus, in Finland, which according to the EPI economic efficiency index for 2016 is the greenest country in the world, only 11% of waste goes to landfill, the rest is divided into the following categories: "sorted waste", "recycling", and "energy generation" [Опыт Финляндии ..., 2017]. Naturally, these subsystems require the implementation of modern innovative technologies, which is what is happening in developed countries.

Implementation of renewable energy sources. Renewable energy sources include hydroelectric power plants, solar and wind power plants, biofuel installations, geothermal and some other types of power plants. Their implementation represents the implementation of basic innovations in the energy sector of the economy. Also, for these objects in developed countries, there is an intensive development of improving innovations with the aim of modernizing the components of their equipment to increase the efficiency of their work. For example, batteries for storing generated energy and other equipment for stable energy transmission to the grid need to be improved, since the volume of electricity generated during the day at solar and wind power plants is uneven - in solar power plants, electricity is naturally not generated at night, and in wind power plants, its volume depends on the strength of the wind.

Reducing the energy intensity of GDP and increasing energy efficiency. In all countries, the overwhelming share of energy consumption falls on three sectors: industry, housing and communal services and transport (for details, see [Burduli V., 2020]).

Innovations spreading through the composite materials line.

This issue has been covered in detail by me in my work [Burduli V., 2018].

According to expert estimates, the main consumers of composite products are mechanical engineering (primarily transport) – about 28%, the construction industry (including pipes and tanks for housing and communal services) – about 24%, energy and electronics, including wind energy – about 23%, the oil and gas industry – about 10%, sports, medicine, and non-ferrous metallurgy.

2. The state of coordination of the formation of innovative economy by the Agency of Innovation and Technology of Georgia

The Georgian Innovation and Technology Agency (GITA) has developed or created a number of effective mechanisms for the dissemination of innovations in the country: programs, financial mechanisms and elements of the infrastructure that supports the dissemination of innovations. In 2017, the agency became a member of the Startup Europe Regions Network (SERN). SERN is a European regional network aimed at supporting startups..

n accordance with the Law of Georgia on Innovations, the Innovation and Technology Agency of Georgia promotes the commercialization of innovations and encourages the use of innovations (Article 5). The first paragraph of Article 6 states that in order to stimulate innovative activities, a state body or other entity shall create the following infrastructure: a) a science and technology park; b) a business incubator; c) a business accelerator; d) a technology transfer center; d) an industrial innovation laboratory (FabLab) and an innovation laboratory (ILab); e) an innovation center; g) other infrastructure.

Agency programs.

The Georgian Innovation and Technology Agency focuses its activities on creating and developing tools that will contribute to the development of a sustainable and high-quality startup ecosystem in Georgia. To this end, the organization offers stakeholders and potential beneficiaries a set of products and services designed to help entrepreneurs and startups working in the field of innovation and technology smoothly move from an idea to operational revenue models.

The Small Grants Program, Startup Friendly, Startup Beats, Bootcamp, Co-working Space, Incubator, Idea Registry, Learning Portal, and IT Support Registry are a set of products and services that are key tools for building a thriving startup ecosystem. These products help startups and entrepreneurs focused on innovation and technology move from idea to market with less risk and more confidence, and help organizations with an established revenue model gain knowledge, contacts, finance, and overall capabilities that can radically change the pace and direction of their growth [GITA materials].

The activities of the Georgian Innovation and Technology Agency (GITA) are becoming increasingly diverse and dynamic. In March 2024, the Agency celebrated its tenth anniversary.

The anniversary event opened with speeches by Georgian Prime Minister Irakli Kobakhidze and First Deputy Prime Minister Levan Davitashvili. GITA Chairman Avtandil Kasradze summed up the ten-year history of the agency\'s existence and development, and presented new initiatives and plans for the future to the audience. [The Georgian Innovation ..., 2024].

Over 200 innovative startups with global potential received funding under the co-financing grant program of the Georgian Innovation and Technology Agency. The total grant funding amounted to 38 million GEL, resulting in half a billion GEL in private financial benefits for the funded startups and the creation of up to 3,000 new jobs [The Georgian Innovation ..., 2024].

At the initiative of the Georgian Innovation and Technology Agency, a powerful global venture platform .500 Global, one of the three largest accelerators in the world and implementing an acceleration program of international level, came to the country. Along with Georgian startups, foreign ones also participate in it, which emphasizes the role of Georgia as a regional innovation hub. In addition, the first venture fund in Georgia with a capital of 20 million dollars was created [The Georgian Innovation ..., 2024].

There are 9 technology parks across Georgia that provide a comprehensive solution for commercializing innovative ideas to Georgian citizens. 80 projects have been financed under the grant program “Innovation Grants up to 25,000 GEL for Regions”. “As a result of the introduction of tax incentives for IT companies by the Georgian government, 120 international IT companies have come to Georgia, which, according to data for the first 12 months of 2023, paid one billion GEL in salaries, creating more than 10,000 jobs,” GITA said [The Georgian Innovation ..., 2024].

GITA\'s future plans are also aimed at further dynamization of economic development and increasing the efficiency of the economy. Let us note some of them. "In order to maximize the global competitiveness of the Georgian economy and the scientific potential of Georgia, three main technological areas of the country have been identified, which will allow local and international businesses to create world-class technological solutions in Georgia: Artificial Intelligence - A scientific group will be created in Georgia to work on the implementation of artificial intelligence in education, healthcare, agriculture and other areas. Phages. The demand for phages is growing worldwide due to the resistance of many infections and diseases to antibiotics. Georgia has almost a century of experience in phage research, so our country can export important technological products in the field of phages on an international scale. Agrotechnologies - a significant part of the population of Georgia is employed in this sector, so it is important to create new scientific and technological products that will further increase the productivity and competitiveness of Georgian farmers. A full-scale incubation project will be implemented, including a 12-month startup incubation program consisting of 3 stages" [The Georgian Innovation ..., 2024].

The incubation program will be implemented by four international and/or local incubators selected by GITA. The program will incubate 160 startups annually [The Georgian Innovation ..., 2024].

3. Examples of the dissemination of basic innovative technologies in the regions of Georgia, some difficulties and ways to overcome them.

Against the backdrop of depleting fossil fuel reserves, the use of wind, solar, geothermal and other environmentally friendly energy sources for generating electricity and other practical purposes is becoming relevant. The first wind and solar power plants equipped with innovative technologies have been built in Georgia. All these innovations belong to the class of basic innovations.

Near Gori, about 90 km from Tbilisi, six wind farms have been generating electricity for ten years. The Kartli wind farm is the first wind farm built in Georgia, with a design capacity of 21.7 MW and a projected output of 84.1 million kWh. Its construction was made possible by the support of the European Bank for Reconstruction and Development, as well as other international donors through the Green Growth Fund. [Gori Wind Power ..., 2018]. During its first year of operation, the wind farm generated about 88 million kilowatt-hours of electricity, actually exceeding the projected figure by 3.8 million kilowatt-hours.

Georgia also has its first solar power plant. In particular, ProCredit Bank has implemented another innovative green project. Solar panels located on an area of 500 square meters on the roof of the bank\'s head office at 21 Alexander Kazbegi Street in the center of Tbilisi have already started generating electricity. As a result of the implemented green investments, it is planned to generate 130 thousand kWh of clean energy annually, thereby replacing 12% of the total energy consumed with alternative sources [ProCredit Bank ...].

As we can see, the number of power plants based on the use of the main sources of renewable energy - wind and solar power plants - in Georgia is insignificant (with the exception of hydroelectric power plants). Neither business representatives nor the relevant government agencies dare to invest in the construction of such facilities. First of all, because they do not generate electricity stably - solar power plants generate electricity only during the day, and the amount of electricity generated depends on the intensity of solar radiation, while the amount of electricity generated by wind power plants depends on the strength of the wind. The problem of widespread deployment of solar and wind power plants in Georgia can be solved by creating energy storage devices for them.

The turbine plays a fundamental role in traditional energy, but energy storage devices (energy accumulators) are extremely important for the development of increasingly popular renewable energy sources: without them, it is impossible to solve the main problem of wind and solar power plants - dependence on weather variability [Гурков А., 2020].

For energy storage in renewable energy sources, the corresponding batteries (batteries for stationary electric power plants) are primarily used. Recently, their intensive innovative modernization has been carried out in the world, as a result of which their cost has decreased by 2/3 from 2010 to 2020. In the coming years, the emergence of more advanced types is expected, and the leaders in the field of battery technology are Japan and South Korea [Гурков А., 2020].

Large battery power plants are already operating in Asian countries, the USA and Australia. For example, on the Caribbean island of Sint Eustatius (Netherlands Antilles), since 2014 the local population (about 4 thousand residents) has been supplied with electricity from a solar power plant during the day, and in the evening and at night – from its batteries installed by a German company. The technology for storing surplus electricity generated by wind turbines and solar panels on an industrial scale has been developed at the Fraunhofer Institute in Magdeburg since 2014 [Гурков А., 2020].

Another way to store electricity from renewable sources is to build hydroelectric power plants. This is an ancient and well-developed technology for storing electricity. When there is excess electricity generation, an electric pump pumps water from a lower reservoir to an upper one. When electricity is needed, the water is released and an electric generator is turned on. When there is excess electricity generation, an electric pump pumps water from a lower reservoir to an upper one. When electricity is needed, the water is released and an electric generator is turned on. The Norwegian fjords offer optimal conditions for generating hydroelectric power. That\'s why the 623-kilometer, 1,400-megawatt NordLink high-voltage transmission line was built in 2020 to transport excess electricity from wind farms in northern Germany to Norway\'s rocky coastline, where it will be stored until needed. [Гурков А., 2020].

Thus, when creating wind and solar power plants in Georgia, it is necessary to take into account the need to create energy storage devices, both batteries and hydroelectric power plants, which is already quite acceptable: the cost of batteries of the appropriate class has recently decreased significantly, and in Georgia it is not difficult to find places with the necessary elevation difference for reservoirs when building hydroelectric power plants, or you can use reservoirs of ordinary small hydroelectric power plants.

Now let us consider what innovative enterprises have been created in Georgia in the field of composite materials and products made from them.

For several years now, the production and commercial company Komposit Georgia has been operating in Georgia, whose area of activity is composite materials, as well as thermal and waterproofing using composites. The company supplies materials and equipment, manufactures products and provides service support for products. The main activity of the company is the production of goods mainly based on the use of imported composite materials: architectural solutions, facades, boats, motor boats, catamarans, hull parts and interior elements for automobile and rail transport, etc. The company also supplies materials for the production of fiberglass in Georgia. The company\'s partners are the world\'s largest manufacturers [kompozit-georgia].

The company "C-M-G Group" offers the consumer a wide selection of composite materials: polyester, fibrous glass fabric (fiberglass), gelcoat, calcium carbonate, etc. It also offers the production and repair of fiberglass products: boats, pedal boats, swimming pools, drainage channels, building facades, etc. [CMG Group offers].

All the complexities associated with the construction and commissioning of a modern plant for the production of composite materials are clearly demonstrated by the construction process of the Tbilisi Plant for the Production of Composite Products for Aircraft (ATS).

The first stage of construction of this plant was completed in December 2018. The plant produces products for hundreds of millions of dollars on order from foreign companies, and its consumers are the largest companies in the world aviation: Boeing, Airbus and Bombardier. The project is jointly implemented by the Partnership Fund of Georgia and the Israeli company Elbit Cyclone. The enterprise has Italian-made units installed. Their installation was carried out by Italian specialists over the course of two months. They also installed two autoclaves manufactured in California (USA), the cost of which is several million dollars. Retraining of engineering and technical personnel to work at the plant producing modern products took place in Israel, in particular, up to 120 specialists were trained in the Elbit Cyclone company over the course of a year. Semi-finished composite materials for civil aircraft come from Israel. The products are pressed under high pressure, autoclaves are used, and solid products are obtained. Aircraft frames, wings, and other external parts of the aircraft are made from these products. The project is jointly implemented by the Partnership Fund of Georgia and the Israeli company Elbit Cyclone. The enterprise has Italian-made units installed. Their installation was carried out by Italian specialists over the course of two months. They also installed two autoclaves manufactured in California (USA), the cost of which is several million dollars. Retraining of engineering and technical personnel to work at the plant producing modern products took place in Israel, in particular, up to 120 specialists were trained in the Elbit Cyclone company over the course of a year. Semi-finished composite materials for civil aircraft come from Israel. The products are pressed under high pressure, autoclaves are used, and solid products are obtained. Aircraft frames, wings, and other external parts of the aircraft are made from these products. [Bakhutashvili E.].

These examples clearly show the difficulties associated with organizing modern production of composite products in the country: it is necessary to purchase technologies for their production abroad, attract foreign specialists for installation and adjustment of equipment, train engineering and technical personnel abroad, and coordinate in advance the problems of external and domestic sales of products.

There is no doubt that in the future, for these purposes, it is necessary to create a special organization in the country to facilitate such innovative activities: centers for the transfer of relevant technologies, relevant consulting organizations, etc.

Thus, since 2005, France has had a competitiveness pole (or cluster) called “Plastipolis”, an industry association supported by the state, which brings together 1,000 organizations and companies working in the field of composites. This center, located in the Rhône-Alpes region, aims to promote the French plastics industry (plasturgie), to assist in entering new markets, and to find new ways of using composite materials through R&D support [Производство композиционных ..., 2011].

In Georgia, it is certainly too early to talk about creating a cluster in the composite materials industry, but it is worth taking a closer look at the experience of the Russian company DEG Composite, which is an engineering center competent in developing innovative technologies for the production of composite products. Key areas: development, technology transfer; development and testing of prototypes; technological audit; selection and supply of tooling, equipment, support for process development; consulting in the field of management of experimental design work [Баркалов Ф.].

It seems that with the participation of state and private capital it is necessary to establish a special innovation center for composite materials and products made from them, which will provide for the search for and study of relevant foreign production technologies, facilitate the transfer of necessary technologies to interested organizations and enterprises, that is, the selection and supply of equipment and tooling, support the development of technological processes, facilitate the training of engineering and technical personnel, and also participate in the preliminary assessment of sales opportunities both on the domestic market and abroad.

4. The state of development of regional components of the formation of innovative economy in Georgia

In modern conditions, the dissemination of innovations at the regional level is facilitated by technology parks and innovation centers created under the leadership of the Agency of Innovation and Technology of Georgia (in the future, obviously, regional innovation clusters will also appear, but for now they do not exist). Also, technology parks include laboratories (fab labs, training centers, common workspaces and other components. Let\'s consider these systems [GITA materials].

Thus, the coordination of the creation of innovative enterprises (basic innovations) and the implementation of improving innovations should be carried out by technology parks. The International Organization of Technology Parks defines them as follows: “A technology park is an organization managed by specialists whose main goal is to increase the well-being of the local community through the promotion of an innovative culture, as well as competition between innovative businesses and scientific organizations. To achieve these goals, the technology park stimulates and manages the flow of knowledge and technology between universities, research institutes, companies and markets.It facilitates the creation and growth of innovative companies through incubation processes and spin-off processes. The Technopark provides other services in addition to high-quality space." [Международная ..., 2020].

Technoparks and innovation centers are aimed at developing a technological and innovation ecosystem in Georgia aimed at disseminating innovations. Through technology parks, not only national and regional components participate in the coordination of the formation of an innovative economy, but also global ones, for example, the global venture platform .500 Global, which is one of the three largest accelerators in the world [The Georgian Innovation ..., 2024].

Technopark is a physical space that brings together technological, educational and professional resources to serve the development of the knowledge economy in Georgia. The Technopark, thanks to its infrastructure, facilitates the emergence and development of high-tech enterprises that will be competitive both in local and global markets. The Technopark is one of the key elements of the startup ecosystem focused on innovation. It brings together incubators, training centers and laboratories, as well as office, shared work and recreational spaces. The Park provides access to training centers and exhibition halls. [GITA materials].

One of the important projects for the creation of an innovative ecosystem is the Tbilisi Technopark, which was created in Okrokan on an area of 18 thousand square meters and has been operating since January 11, 2016. It is aimed at the creation and development of innovative production in the country. The Technopark is a physical space that unites technological, educational and professional resources and serves as a platform for the development of business based on innovation and technology.

In October 2016, the second technopark opened in Zugdidi. “This is the second technopark in Georgia, equipped with the latest equipment and technologies, even more modern than those in the Tbilisi technopark. The 700 sq. m building is now an open space for knowledge, news and innovation” [Dimitri Kumsishvili..., 2016].

In November 2018, following Tbilisi and Zugdidi, a technopark was opened in Telavi, the construction of which was carried out by the Innovation and Technology Agency of the Ministry of Economy and Sustainable Development within the framework of the National Innovation Ecosystem of Georgia project, financed by the World Bank. The Telavi technopark is equipped with all types of services that are used by users of other technoparks in Georgia. [A technopark was open ..., 2018].

In 2020, technology parks opened in the Georgian cities of Kaspi, Batumi and Gurjaani, in 2022 - in Ozurgeti, in 2024 - in Senaki.

The goal of the Kaspi Technopark of the Georgian Innovation and Technology Agency is to create a favorable ecosystem for the growth of startups and small and medium-sized enterprises. The agency provides access to modern equipment, laboratories, office space and various educational programs. In addition, the technopark hosts conferences for participants, seminars and trainings aimed at improving the competence of participants. The main areas of the agency\'s activities are information technology, biotechnology, environmental technology and engineering sciences. Startups, entrepreneurs, researchers can find support there for developing their ideas, prototyping and entering the market. [Агентство инноваций ..., 2020].

Innovation centers, in turn, are recognized as mini-technoparks and offer the same services to local clients, but on a relatively small scale as technoparks.

Currently, innovation centers operate in Kharagauli, Choporti (a village in Dusheti municipality), Baghdati, Akhmeta and Rukhi.

As mentioned, key components of technology parks are fab labs and shared workspaces, which are important mechanisms for the dissemination of innovation.

A fablab is a high-tech facility that offers digital manufacturing services to customers. The Fablab concept was introduced in 2001 by Neil Gershenfield, director of the Center for Bits and Atoms at MIT. His idea was to create a small analogue of an industrial laboratory, where, with computer-controlled equipment and the appropriate knowledge, anyone could bring their idea to life. Fablab equipment - 3D printers, CNC milling machines, laser cutters, printed circuit board machines, etc. - allows you to create both simple and complex and "smart" products, conduct prototyping, testing and even small-scale production. The development of fabless spaces is important both for the formation of new startup businesses and for the popularization of small personal production. This means that in order to produce a product with the required individual design or functions, there will no longer be a need to interact with large factories and manufacturers, and all this will be carried out locally, on the basis of fabless factories.

The Technopark\'s co-working space is an open-plan office that provides business incubator teams and startups with the opportunity to use office space free of charge. In addition, here startups have the opportunity to communicate with business incubator participants and specialists from various fields. The Technopark\'s co-working space creates an educational environment and contributes to the formation of a strong corporate culture. In this environment, thanks to the participants of the space, startups receive excellent opportunities for business development: rapid business development; expansion of personal and professional connections; finding new clients and increasing income; hiring talented specialists; productivity; working in a professional environment; an isolated, customizable work environment. All this creates favorable conditions for the spread of various types of innovations (mainly information and communication or digital in nature) in the corresponding regions.

5. Current economic difficulties and some ways to overcome them

In order for the country\'s economy to develop, production to grow and at the same time to produce competitive products for sale both on the domestic and foreign markets, it is necessary to create new production facilities in the designated sectors of the economy (i.e. to implement basic process innovations for the subsequent release of basic product innovations), and also periodically, as necessary, to implement improving and modifying process (modernization of existing production technologies) and product innovations in order to maintain the competitiveness of existing production facilities (improving product quality, reducing their cost, modernization, etc.). At the same time, projects to create new enterprises or modernize production technologies and final products must be carefully considered (weighed) from various positions in order to ultimately avoid financial collapse.

The introduction of innovations (the construction of innovative enterprises or the modernization of their production technologies or the final products manufactured) is carried out either with the participation of foreign capital or on the basis of the use of national capital. In addition, in a small country the absolute majority of innovations (production technologies, manufactured consumer products) are borrowed (i.e. imported), and only an insignificant part (mainly improving and pseudo-innovations) is developed and produced within the country.

Moreover, in many post-socialist countries in the 1990s many modern powerful production facilities were closed due to the breakdown of production links, loss of sales markets, and chaotic privatization. In Georgia, for example, the Kutaisi Automobile Plant, the Tbilisi Machine Tool Plant, the Tbilisi Silk Weaving Factory, and most of the Rustavi Metallurgical Plant were closed. At a certain period, namely in the 1990s and 2001–2010, some Western companies transferred a significant part of the production capacities of their modern enterprises to post-socialist countries (for example, large capacities of the French automobile industry were transferred to Slovenia, which caused protests by French workers who were left without work). However, in Georgia, under current conditions, it is difficult to attract production capacity from foreign industrial enterprises, despite the tax and other preferences established several years ago (see, for example: [Грузия вошла ..., 2021]). Even the opportunity to provide cheap electricity tariffs by building large hydroelectric power plants was not used (cheap electricity tariffs, along with cheap labor, are an important argument for attracting foreign investors to industry). Several relatively large hydroelectric power plants stubbornly continue to be built at the expense of foreign investors, which means that the profits from their operation will go abroad.

But the main condition that determines the desire to place modern high-tech innovative enterprises on the territory of the country is the guarantee of subsequent sales of manufactured products. Let us recall how carefully the problems of exporting products to the world\'s largest aircraft manufacturers (Boeing, Airbus, Bombardier) were thought out and agreed upon in advance during the joint construction of the Tbilisi Aviation Composites Plant by the Georgian "Partnership Fund" and the Israeli company Elbit Cyclon. At the same time (with the exception of the construction of joint ventures, where the auxiliary infrastructure organizations necessary for construction will be attracted by a foreign partner), the presence of specialized innovative infrastructure organizations to support construction is advisable.

Several technology parks have been created in Georgia, mainly dealing with IR technologies, biotechnologies, agricultural technologies, environmental technologies, engineering sciences, etc. In the existing technology parks, more attention should be paid to the problems of the green economy. Also, in our opinion, in the near future it is necessary to create a technology park dealing with issues of the electrical industry, a technology park dealing with issues of the production of composite materials and products from them. It is also necessary to organize several innovation clusters, the coordinating core of which will be some technology parks. Moreover, it is necessary to create not a multitude of actually formal innovation clusters, but to create real clusters to support innovative growth in priority industries, for example, a cluster of energy and electrical engineering, a cluster of composite materials and products made from them, a leather and footwear cluster (the latter have existed in some countries for centuries, but, naturally, they were not called clusters then), later it will be possible to create a cluster of transport engineering. (At present, there already exists a wine production cluster with farmers supplying it with grapes, a furniture cluster, but they must first of all strengthen their function of identifying and studying the needs of sales markets and of facilitating the promotion of their products in them; the infrastructure of tourism and related industries is also clustered to a certain extent).

Conclusions

The second section examines the state of coordination of the formation of an innovative economy by the Innovation and Technology Agency of Georgia. It is important to note here that in order to maximize the global competitiveness of the Georgian economy and the scientific potential of Georgia, the Agency has identified three main technological areas of the country that will allow local and international businesses to create world-class technological solutions in Georgia: Artificial Intelligence; Phages; Agrotechnology. At the initiative of the Georgian Innovation and Technology Agency, a powerful global venture platform .500 Global, one of the three largest accelerators in the world and implementing an international-level acceleration program, came to the country.

The third section examines the state of dissemination of basic innovative technologies in the regions of Georgia, identifies some difficulties and outlines ways to overcome them. Specifically, basic innovations in the electric power industry and the industry of composite materials and products made from them are considered. The main drawback of wind and solar power plants is the instability of the amount of energy they produce: wind power plants depend on the wind force, and solar power plants depend on the time of day and weather conditions. This problem is solved by creating energy storage units at the plants. As for the composite materials industry and products made from them, Georgia has positive experience in creating such enterprises and it may make sense to continue it.

Then, in the fourth section, the regional components of the formation of Georgia\'s innovative economy are considered and the state of their use in the regions is highlighted. Technoparks are considered as regional cores of the system that ensures the development of startups, which is achieved through the use of a single workspace, with the involvement of business incubator teams, etc. An important component of technoparks are also Fablabs.

The last, fifth, section examines the existing economic difficulties in the formation of an innovative economy and some ways to overcome them. In particular, it examines the factors that hinder the introduction of innovative technologies (in the form of creating new enterprises or technological modernization of existing enterprises) and some ways to overcome them. (It is taken into account that most innovations, both basic and improving, in Georgia, as in other medium and small countries, are imported either through the purchase of production technologies or through the organization of joint ventures with foreign partners). Several technology parks have been created in Georgia, mainly dealing with IT technologies, biotechnologies, agricultural technologies, environmental technologies, engineering sciences, etc. In the existing technology parks, it is necessary to pay more attention to the problems of the green economy. Also, in our opinion, in the near future it is necessary to create a technology park dealing with issues of the electrical industry, a technology park dealing with issues of the production of composite materials and products from them. It is also necessary to organize several innovation clusters, the coordinating core of which will be some technology parks.

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