Vol.2, No.1, 28-33 (2011) Agricultural Sciences
doi:10.4236/as.2011.2 1005
Copyright © 2011 SciRes. Openly accessible at http://www.scirp.org/journal/AS/
Effective use of scientific cum technologically
achievements and financing innovative projects in the
agricultural sphere
Babadjanov Abdirashid Musayevich
Uzbek Research Institute of Market Reforms, Tashkent, Uzbekistan; pirbobo@mail.ru
Received 28 December 2010; revised 5 January 2011; accepted 19 January 2011
Justified the urgency of modernization and re-
tooling of production in agriculture, which is an
important sector in the economy of the Republic
of Uzbekistan. The author describes the prob-
lems of extending the research in agriculture,
the implementation of its results into production
and increasing innovation activity. Also has
considered the possibility of extra-budgetary
funding of research in agrarian sector, and
given a recommendation on the use of bank
loans by (dehkan) private households, farmers
and other stakeholders in the financing of sci-
entific research. The findings based on socio-
logical survey, among the different farms on the
use of innovative ideas for development of
production. Offered mechanism of funding, the
implementation of scientific production, as well
as providing market participants of the scientific
and technical products allows removing the
shortage of financial resources. The main direc-
tions of investment mobilization has been iden-
tified in the research process from extra-
budgetary funds. Statistical data reflecting the
amount of agricultural land use in Uzbekistan
has adduced and its structure in key areas. Here
is given the number of farms operating as a
major agricultural producer of the leased land
area and the state long-term basis. Also, de-
scribes the main problems of agricultural pro-
ducers, hindering the development of produc-
tion of marketable products. In this paper, the
main attention is shown the importance of in-
novative ideas for further development of the
agricultural sector as a basis for providing peo-
ple with food today and in the future.
Keywords: Research and Technological
Achievements of the Agrarian Sector; Innovation;
Research; Financing and Bank Loans
Uzbekistan is the largest agricultural producer in Cen-
tral Asia (See Annex 1 and 2). The total land area of the
Republic is 44.410.3 hectares. Out of it, more than
25.645 hectares is used for agricultural purposes (in-
cluding irrigated land 4278 million hectares), pastures
21.367,000 hectares, forests 3221.8 thousand hectares
and 15543.5 thousand hectares of others. Majority of
agricultural products produced on irrigated lands, pas-
tures, in turn, are a source of feed for livestock. At pre-
sent, the agricultural production is predominant in the
two forms of management: farmers and dehkan farms
(Dekhkan—In Uzbekistan an owner of a household
croft). Farmers are the major producers and have a large
area of land. Dekhkan farms are small farms producing
agricultural products. The average area of land of farmer
households, on average from 0.15 hectare to 1.0 hectare,
while the average acreage of farms formed the basis of
their specialization and direction of production.
In condition of 2010 in the Republic were about 81
thousand farms, which were active on land leased from
the state on a long term basis. The term of the lease is 49
years with possibility of extension. Peasantries land is
given to peasants for a lifetime lease with the right to
transfer by inheritance (Figure 1) 1.
Currently, the main problems of agricultural produc-
tion are:
- Lack of necessary equipment, and physical obsoles-
cence of existing technology;
- High growth rates of price makes difficult to pur-
chase material and technical resources necessary for
- The establishment and development of infrastructure
serving the agricultural production is slow;
- Development of storage, processing and delivery to
consumers of agricultural products have not yet met the
high requirements of the market;
- Long period of application period for achievement of
science and technology, a bad relationship of science and
B. A. Musayevich / Agricultural Sciences 2 (2011) 28-33
Copyright © 2011 SciRes. Openly accessi ble at http:// www.scirp.org/journal/AS/
4055 6081 6748
quanti tyof farm
Cot t on-grain
horti culture
watermelon-m e lon
specialization(activi ty)offarms
Figure 1. Number of farms and their activities in
Republic of Uzbekistan on 01.01.2010.
production etc.
Due to the above mentioned problems profitability of
agricultural production is rising slowly. In our opinion,
paramount solution of these problems is the moderniza-
tion, technical and technological renewal of production.
One of the main directions of achievement of this goal is
the widespread use of science and technology in the ag-
ricultural sphere and radical improvement of the mecha-
nism of financing of innovative projects. It is known that
the economic prosperity of any country is directly linked
and determined by the level of the existing scientific
potential, the effective use of the results of its activities
in the production. Employees of the scientific sphere
with his new ideas, practical developments directly and
indirectly contributing to the economic development of
Increased demand in society for the science to the de-
velopment of production contributes to a more active
implementation of scientific and technological products
in the manufacturing process, which ultimately improves
the volume and profitability of agricultural production.
Therefore, it is most urgent and priority to select the
areas of research related to the development of the
agrarian sector, as well as to improve its financial me-
chanism 2.
Each stage of the agrarian reforms in Uzbekistan is
characterized peculiar problems of this phase. With the
deepening of economic reforms, together with increased
production in the agricultural sector become important
task of raising the competitiveness of agricultural prod-
ucts. In order to improve the competitiveness of products,
along with the introduction of modern techniques and
technologies, best practices in agriculture, advances in
science it is important to pay great attention to the eco-
logical balance.
Science, research organizations, scientists directly
contributed to the ideas of socio-economic development
of society. By definition of the Russian scientist I.S.
Sandu innovative processes in the agricultural sector is a
constant and continuous transformation of scientific re-
search, organizational, technological and technical ideas
in the technology of production of quality products, re-
duce squandering and increase production efficiency.
According to I. S.Sandu, main actors in this process are
scientific and educational institutions related to agricul-
ture, agricultural authorities, organizations and farmers
According to another outstanding Russian scientist I.
Ushacheva economic research conducted to the agricul-
tural sector is a source of innovation of the industry. In-
dustry has to be developed through the introduction of
scientific developments, which should be financed by
the state. However, this needs to take into account the
increase of the financial interest of researchers. First,
need to introduce the achievements of science in industry,
taking into account region-specific (soil, climate, etc.).
That is important to develop the concept of development
of the agrarian sector and its financing at the country
level 4.
E. Ogloblin in their scientific research states the fol-
lowing: research funding, primarily, should be on a
competitive basis based on the results, to be scientifi-
cally valid, of budgetary and extra budgetary funds.
With funding of agricultural science also needs atten-
tion to the following aspects:
• Modernization of the administrative staff of Agri-
cultural Academy and its constituent research institu-
• Organization of integration of research centers of
various directions;
• Promotion of cooperation ties between research in-
stitutes, etc 5.
In our opinion, for the efficient organization of sci-
entific supplies agriculture appropriate to consider the
following important factors:
• Identify topics of practical and innovative research
based on the existing problems of the agricultural sector;
• Mutual conducting of scientific research in funda-
mental and practical areas;
• Implementation of applied research in the form of
innovative projects 6.
Joint implementation of these directions will enable a
stable system of scientific provision of agriculture sector
and render a positive impact on the results of its opera-
tions. The accelerated introduction of innovative ad-
vances in the production process is raising incomes of
commodity producers, especially large farmers. In order
to determine the role of innovative products in the ac-
tivities of farms and estimate the demand for these
B. A. Musayevich / Agricultural Sciences 2 (2011) 28-33
Copyright © 2011 SciRes. Openly accessi ble at http:// www.scirp.org/journal/AS/
products in the two regions of the country among the
farms of the different districts, a sociological survey was
During the survey 78 farms in the Samarkand region
and 56 farms in the SyrDarya region were selected,
along with, evaluating the effectiveness of the farm ac-
tivities and relation of innovation and innovative prod-
ucts has been studied. Based on the analysis of the re-
sults of the survey were rated how innovative products
affect the efficiency of farms in the present (Table 1).
The essence of the first question was as follows:
- How did you get information about outstanding in-
novation and innovative products?
Response options were as follows:
1) From the news media;
2) By contacting the information and consulting firm;
3) At meetings, congresses and meetings organized by
local governments;
4) During treatment with the suggestion of scientific
institutions engaged in the creation of innovative prod-
5) During treatment with the proposal of sale dealer
firms newly established products (seeds, varieties, tech-
nology, equipment, drugs, etc.);
6) To local and international exhibitions and fairs;
7) Itself directly involved in cooperation with scien-
tific institutions in the creation of innovative products
and innovations.
The results of our studies showed that for most farms
(26%) the main source of information on innovative
products are dealer firms, which sell this product.
The second most important source of information for
most farms (24%) is congresses and meetings organized
by local authorities. In addition, significant proportion of
these sources is the media (18%) on local and interna-
tional exhibitions (15%) in obtaining information about
innovative products (Figure 2).
However, only 6% of farmers indicated that informa-
tion about innovations are in the institutions involved in
the creation of innovative products.
Farmers who are directly involved in collaboration
with academic institutions in the creation of innovative
innovations and products, amounted to only 3 percent
among those surveyed.
These figures show that the academic institutions,
which directly create innovative products, have a very
Table 1. Information on surveyed farms.
Directions of activity Average area of landNumber of surveyed Relatively to total %
s plants 90,5 36 46
Vegetable and -gourd
growing 26,4 14 18
livestock 48,6 5 6
horticulture 12,4 20 26
1 Samarkand region
others 4,5 3 4
All per region 36,5 78 100
s plants 58,7 24 43
Vegetable and -gourd
growing 7,2 12 21
2 Sirdary region
Livestock 34,6 6 11
1(а)1(b)1(c)1(d)1(e) 1(f)1(g)
Figure 2. Sources of information of farms about the innovative products.
B. A. Musayevich / Agricultural Sciences 2 (2011) 28-33
Copyright © 2011 SciRes. Openly accessi ble at http:// www.scirp.org/journal/AS/
low share in the dissemination information on the results
of its activities.
The next question that we asked the farmers was
aimed at determining their readiness to cooperate with
academic institutions to create innovative products.
To the question: “Would you like to collaborate with
academic institutions in the creation of innovative prod-
ucts and finance the process?” the following answers
were received:
1) My farm, and so well developed;
2) I do not believe that innovative products, they have
created positive impact on the development of my farm-
3) I am ready to experience the products they create
and allocate the land to carry out various experiments;
4) It is better to get ready innovative products created
by research institutions;
5) I am ready to cooperate with research institutions to
create innovative products and finance this process;
6) Only in case if an innovative product will be the
property of my farm with the right of resale.
Our research has shown that farmers have a positive
attitude to cooperation with scientific institutions in the
creation of innovative products and partial financing of
this process. Thus, 67 farms (35%) indicated their will-
ingness to cooperate with academic institutions to create
innovative products. 14 % of respondents are willing to
cooperate and finance, as if creating innovative products
will become the property of the farm. The share of farms
who prefer to buy ready-innovative product was 18%. At
the same time 5% of farms surveyed had a negative re-
action to the idea of cooperation with research institu-
tions (Figure 3).
In our research, we examined in the creation of any
innovative products interested farmers. So the question:
“What innovative products you need to develop and
improve the efficiency of your farm?” There were fol-
lowing answers:
1) Quality and competitive seeds, seedlings, pedigree
2) Agricultural equipment and machinery which pro-
viding high-quality farming practices;
3) New technologies for storing, processing and
packaging of agricultural products;
4) Necessary to improve the supply of organic and
mineral compounds and fertilizers, allowing for timely
implementation of agricultural activities;
5) Establishment of modern biological control of pests
and diseases of plants and animals;
6) Necessary to form information system that promotes
the effective administration and management of farms.
Most farmers (28%), its development is associated
with such innovative products as high quality and com-
petitive seeds, seedlings, pedigree cattle, etc. The share
of other answers are more evenly distributed and ranged
from 12 to 16 % (Fi gure 4).
Based on the above studies it can be argued that the
system of research support of the agrarian sector must be
developed by increasing the supply of agricultural quali-
fied personnel, the use of economic management, to
achieve closer links between science and production.
The effectiveness of scientific support of the agrarian
sector is dependent on research funding. In recent years
financial constraints have led to a decline in basic and
applied research, which in turn reflected in the declining
quality of research solutions. Therefore, in market con-
ditions in order to improve research support for the
agrarian sector it is important to create a theoretical basis
for the mechanism of financing of research, which will
use the financial resources to customers with innovative
Scientific support of the agrarian sector is the demand
for agricultural science and technology for the develop-
ment of agricultural production, improving agricultural
2(а)2(b) 2(c)2(d) 2(e)2(f)
Figure 3. Readiness farms to cooperate with research institutions to create innovative products.
B. A. Musayevich / Agricultural Sciences 2 (2011) 28-33
Copyright © 2011 SciRes. Openly accessi ble at http:// www.scirp.org/journal/AS/
16% 14%
3(а)3(b) 3(c)3(d) 3(e)3(f)
Figure 4. What are the innovative products you need to develop and improve
performance of your farm?
production through the introduction of scientific solu-
tions to production.
In agriculture must be ready to turn scientific-research
solutions in commercial products. The ultimate scientific
decisions can be: new varieties, sorted and prepared for
sowing seeds, production technology, well, methods of
planting, processing, pest and diseases, harvesting,
management mechanisms, etc.
As shown by our investigations, at present, most
farmers are not ready to buy scientific solutions in the
form of goods. Therefore, it is necessary to improve
system of implementation of the ultimate scientific solu-
tions in production.
In our opinion, to solve this problem is first necessary
to develop a mechanism for state support. State support
should not be in the budget financing, as well as provid-
ing long-term soft loans, tax incentives, improving the
mechanism of stimulation and etc.
In this case farmers and other agricultural producers,
as well as organizations of infrastructure in this field
engaged in the implementation of scientific and techni-
cal results will apply to commercial banks to receive
credit for introducing innovative products into produc-
tion. To promote the interest of commercial banks, re-
search institutions, consumers of research products, in
action of this mechanism, it is necessary to develop a
system of tax privileges. The application of this funding
mechanism, the introduction of research products, firstly,
motivates academic institutions choose topics based on
the analysis of demand, the market products.
Second, consumers of scientific production more se-
riously and reasonably would relate to decision-making
about introduction of some innovative products in its
production. In turn, giving loan to market participants to
ensure scientific and technological products will remove
the problem of lack of financial resources.
The recommended method of implementation the re-
search output does not require the allocation of budg-
etary funds to the this process, however, increases the
amount of the product and improves its quality, as well
as reduce production costs and improve competitiveness.
In addition, the system of funding research projects of
agriculture must be intensified to attract extra-budgetary
funds. To do this:
- It is necessary to develop a system to utilize various
sources of funding for research and implementation of
its results into production;
- Use bank loans to finance the implementation of re-
search results into production, as well as to develop
economic and legal mechanisms for encouraging banks;
- To increase research to develop a legal framework
for participation in this process, private sector, including
private entities;
- It is necessary to develop scientific research institu-
tions and their infrastructure, leading its work on the
laws of the market and specializes in scientific produc-
Thus, through the involvement of producers to par-
ticipate in scientific research, its funding and implemen-
tation of the results can be achieved stable development
of agriculture.
Financing in adequate level of agricultural science, the
implementation of its achievements in production will
increase opportunities for people of good quality and
less expensive food, to solve the challenges of regular
supply of raw materials, processing plants, which ulti-
mately have an impact on raising the level and quality of
[1] Uzbekistan in figures. Materials of State Statistics com-
mittee of Republic of Uzbekistan (2010) Tashkent, Uz-
[2] A. Babadjanov (2010) Main directions of scientific sup-
B. A. Musayevich / Agricultural Sciences 2 (2011) 28-33
Copyright © 2011 SciRes. Openly accessi ble at http:// www.scirp.org/journal/AS/
port for agriculture in Uzbekistan in the development of
farms. Economics and Finance, 36-38 Art.
[3] J. Sandu (1990) Production and scientific-production
system—An effective form of integration of science and
production. Nauka, 73.
[4] I. Ushachev (2006) Scientific support of government
programs for agriculture in Russia. Nauka, 9.
[5] E. Ogloblin. (2005) Development of research institutions
and their activities in a condition of market economy.
Nauka, 32.
[6] A. Babadjanov. (2007) Improve financing of agricultural
science. AIC: Economics, Management, Moscow, 12.
Annex 1. Map Republic of Uzbekistan
INFORMATIONS MAPS Land Boudaries Total : 6,221 km .
Geographic Coordinates : mostly midlatitude desert, long, hot summers, mild winters; semiarid grassla-
nd in east .
Area Total : 447,400 sq km .
Area Land : 425,400 sq km .
Area Water : 22,000 sq km .
Area Comparative : slightly larger than California .
Coast Line : 0 km (doubly landlocked); note - Uzbekistan includes the southern portion of the Aral Sea
with a 420 km shoreline .
Railways Total : 3,950 km .
Highways Total : 81,600 km .
Waterways : 1,100 km (2004) .
Ports and Harbors : Termiz (Amu Darya) .
Annex 2. GPS/ Location of Uzbekistan
GPS- Area Type: Populated place. Location Type: Captial Of A Country (pcld, Pclf, Pcli, Pcls).
Latitude: 41.31667; Longitude:69.25; Latitude (DMS): 41° 19' 0 N; Longitude (DMS): 69° 15' 0 E;