Uzbekistan's Innovation Ecosystem: Strong Foundations, Missing Proof

By Neil Marshall, Development Director, ChangeSchool London

In October, walking through the Innoweek exhibition in Tashkent, I witnessed the confidence in Uzbekistan's technology and entrepreneurship scene first-hand. Founders pitched with conviction. University researchers showcased solutions. Venture-capital professionals scanned for opportunities. The momentum is palpable.

From the presence of IT Park Uzbekistan to the new legislation enabling state-owned banks to take stakes in startup ventures, the country has built an impressive innovation foundation. According to Startup Genome, Uzbekistan has surged into the global top-100 startup ecosystems. Tashkent has become the fastest-growing city in Central Asia, with ecosystem growth of 132%, according to YUZ, Uzbekistan's venture capital association.

Innoweek 2025 courtesy UZ Daily

The Commercial Validation Gap

Yet the conversations I had at Innoweek revealed a persistent fault-line: numerous firms are producing solid technical prototypes or smart solutions but have not yet shown commercial validation at scale. This gap holds back the size of venture capital that can enter. VCs require not just promising tech, but evidence of a problem-solution-market match and the potential for large returns.

The venture landscape shows promise. Uzbekistan has surged into the global top-100 startup ecosystems, and Tashkent has become the fastest-growing city in Central Asia with ecosystem growth of 132%.

But investment sizes remain modest compared to more mature markets. The number of firms ready for Series A or beyond is limited. The ecosystem's rapid growth shows promise, yet many enterprises I observed still sit in the "proof-of-concept" and pilot phase rather than full commercial deployment. As one investor at the exhibition put it, the risk remains too high to justify large funding amounts.

Two Critical Challenges

This gap in commercial validation has two implications.

First, firms frequently look inward, solving problems for a domestic market only. That limits scale. To attract sizeable investment, ventures must think regionally if not globally. At the exhibition I met a logistics-tech firm whose model solves bottlenecks in Uzbek supply chains. The solution was clever, but the business case did not yet show how it could scale to Central Asia or beyond. Without that ambition, VCs assume an exit horizon will be limited.

Second, entrepreneurs must shift focus from "can we build the tech?" to "can we build the business?" I observed promising teams who had built platforms but lacked data on customer acquisition cost, monetisation model or market size. To move from lab to launch they need to show they are selling, learning, iterating and growing.

Similar patterns have emerged in other rising innovation ecosystems. Singapore in the 1990s and Estonia in the early 2000s faced comparable challenges in the transition from technical capability to commercial traction.

Policy Support Is in Place

The policy environment supports this transition. A 2024 Presidential decree formalised the "Digital Start-ups Programme" and authorised state-owned banks to invest via venture funds, lease infrastructure at subsidised rates and require contractors to take equity stakes in tech firms. According to Startup Genome, this represents one of the most progressive regulatory frameworks in the region.

Government support such as this is a strong foundation. Similarly, universities such as Central Asian University and the new Pharmaceutical Technical University are building bridges between education, research and business. These partnerships create pipelines of talent familiar with both technical rigour and commercial reality.

But policy alone cannot substitute for commercial traction.

The Path Forward

The solution requires two shifts.

First, Uzbek businesses should think bigger: target not just Uzbekistan but Central Asia, Eurasia and global markets. Successful ecosystems show that size of addressable market drives investment. A firm solving problems across five countries attracts different capital than one serving only one market.

Second, firms must reassure investors with commercial validation: clear customer numbers, repeatable models, revenue data, and a credible growth plan. When entrepreneurs present tech plus early paying customers plus a large market, they reduce perceived risk and attract larger funds.

Uzbekistan has built the infrastructure, talent and regulatory framework to support innovation. The missing piece is commercial proof. This is not unique to Uzbekistan. Most innovation and entrepreneurship ecosystems face this same transition. By shifting from prototype to paying customer and from local fix to global scale, the ecosystem can unlock large-scale venture investment that will power the next phase of growth.

The infrastructure stage is nearly complete. The commercialisation stage is just beginning. Get this next phase right, and Uzbekistan can move from being the fastest-rising startup scene in Central Asia to a credible global innovation hub. The potential is there. The proof is what matters next.

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