INNOVATION IN THE SERVICE SECTOR AS AN ECONOMIC CATEGORY

PRINCIPAL ISSUES OF SCIENTIFIC RESEARCH AND MODERN EDUCATION Vol. 4 No.6 (2025) 58 INNOVATION IN THE SERVICE SECTOR AS AN ECONOMIC CATEGORY A.A. Ergashev is a PhD independent researcher at International Institute of Food Technology and Engineering The development of the service sector creates new demand for goods and services and a new competitive environment. Covering all sectors affected by innovation activity, the following main types of innovation activity can be distinguished:[1]  market research;  scientific research and development;  software developments;  technological preparation for production;  education and training of personnel;  reorganization of the enterprise management system;  change business processes.[2] At the current stage of economic development not only in the Republic of Uzbekistan, but also throughout the world, very little innovative activity is carried out in the field of software development and technological developments in the service sector, and ready-made developments developed by technical enterprises are mainly used.[3]. This implies that the innovative development of a single enterprise is not enough. The overall innovative development of an entire region is necessary[4]. Only then will it be possible to exchange the results of the innovative activities of enterprises in different sectors and mutually beneficial experiences with new models of organizational management[5]. The principles and directions of innovative development mentioned above can further expand the concept of innovation as an economic category. This serves PRINCIPAL ISSUES OF SCIENTIFIC RESEARCH AND MODERN EDUCATION Vol. 4 No.6 (2025) 59 to identify the main components of innovation that are useful in managing innovative development in service enterprises.[6]. The economic content of innovations Innovation is a product of science, which is the result of scientific research. Innovation as a set of technical, production and commercial activities that lead to the emergence of new technologies, products and processes Innovation is the tangible result of capital invested in new technology, production, service provision, and management. Innovation is the process of transforming inventions and ideas into real economic units such as products, services, and technologies. Key features of innovation High level of risk and ambiguity at various stages of innovation creation and implementation Financing associated with uncertainty of outcome and risk of non-guaranteeo‘ziga xos xususiyati The need to search, collect, and process large amounts of information and the knowledge required for this Uncertainty (or lack thereof) of demand for the proposed innovation The fundamental structure of innovation Innovation serves to meet the needs of consumers, who participate as economic entities in the regional industries and markets. Innovation is implemented in a certain field of activity, qualitatively improving the activities and state of the industry, providing impetus for the development of related activities, and in turn ensuring a chain effect of innovative development. Innovation is a necessary resource, a development tool, and at the same time a product that requires perfect commercialization in the process of realization on the market. Innovation requires effective management using tools, methods, and proven methods that enable the innovation process to develop and improve. PRINCIPAL ISSUES OF SCIENTIFIC RESEARCH AND MODERN EDUCATION Vol. 4 No.6 (2025) 60 Figure 1.5. Innovation as an economic category1 Having studied the economic content of innovation and analyzed the research on it, it can be said that innovation can be understood as a product of science, a measure aimed at innovation in a relevant field, a material result obtained from an investment aimed at organizing a new form of service provision and management, and a process that transforms the proposed idea into a finished product and service[7]. The main characteristics of innovation are the risks associated with its proposal and implementation, the uncertainty of the result of innovation and the demand for it, and the complexity required in this process, such as the need for strong knowledge and skills. The result of innovation is economic, social, environmental and multiplicative, depending on which area it is aimed at reforming[8]. LIST OF REFERENCES 1. The official website of the President of the Republic of Uzbekistan – https://president.uz[1]. 2. National database of legislative acts of the Republic of Uzbekistan – https://lex.uz[2]. 3. The official website of the State Statistics Committee – https://stat.uz[3]. 4. Center for Economic Research and Reforms – https://ier.uz[4]. 5. Ministry of Innovative Development of the Republic of Uzbekistan - https://mininnovation.uz[5]. 6. Scientific journal "Economy and Innovation" – https://iqtisodiyot.uz[6]. The result of innovation Economic impact (increased revenue, reduced costs, improved quality and profitability) Social impact (improvement of working conditions, skills and standard of living) Ecological impact (reducing negative impact on the environment) Multiplicative effect (comprehensive development of the industry and region) PRINCIPAL ISSUES OF SCIENTIFIC RESEARCH AND MODERN EDUCATION Vol. 4 No.6 (2025) 61 7. Electronic database of the National Library of Uzbekistan – https://n.ziyonet.uz[7]. 8. Collection of analytical articles on the topic "Services sector in the economy of Uzbekistan" - https://otda.uz[8].