Systematic Assessment of Regional Economic Potential for Innovation-Driven Industrial Development

This study systematically assesses the economic potential of administrative areas for innovation-driven industrial development in Kashkadarya Region, Uzbekistan. Six indicators, averaged over 2022–2024, are used to evaluate 16 cities and districts. Ward’s hierarchical clustering and composite indices identify territorial groups and classify them into four development zones. Kasbi District occupies the highest zone, while Dehqonobod, Nishon, Kokdala, and Chiroqchi districts fall within the lowest zone. Empirical models examine innovative production in relation to capital–labour intensity ratios and technological development. The findings reveal differences in investment utilisation and innovation infrastructure, indicating a need for targeted reforms, particularly in the lowest zone, which accounts for 33% of regional industrial production. Beyond the territorial classification, the study interprets zone-specific empirical relationships between innovative production, the capital-to-labour intensity ratio, and technological development. The contribution of the analysis lies in combining hierarchical clustering, composite indicators, and empirical functions within a unified framework for territorial diagnosis. The resulting evidence can support differentiated regional policy by identifying where innovation infrastructure, investment efficiency, workforce productivity, and technology upgrading require the greatest attention.