Effective mechanism of public financing innovation start-ups: evidence from Uzbekistan

Nowadays developing countries are raising the volumes of financial support of the enterprises with high potential for the innovation growth with the aim of improving national innovation system and activation of innovation processes. As the volume of budget transfers increase, the problem of their efficient and targeted use is becoming more urgent. This article is devoted to studying the financial aspects and economic efficiency of start-ups financing via public funds of venture capital instead of grant support of innovation projects in the evidence of the Republic of Uzbekistan. The analysis is based on abstracting techniques with the use of IRR. Moreover, this article suggests advantages of using the venture financing mechanism of start-ups which turn out to be more efficient than through grant support.