Organizational and Economic Mechanism for The Innovative Development of The Service Sector

The service sector has become the leading component of the global economy, accounting for more than 66% of the world's gross domestic product (GDP), playing a dominant role in the labor market, and demonstrating the highest adaptability to innovation-driven transformation. At the same time, the distinctive characteristics of innovation in the service sector—intangibility, direct interaction with customers, and the close integration of process and product innovations—require specific organizational and economic approaches that differ from those applied to industrial innovation. The findings indicate that the share of the service sector in Uzbekistan's GDP increased from 44.8% in 2022 to 48.6% in 2025. Furthermore, Uzbekistan ranked 79th out of 139 countries in the Global Innovation Index 2025 and has been recognized as an "overperformer" for four consecutive years. However, the country's relatively low position in the Innovation Outputs sub-index (92nd place) highlights the need to improve mechanisms for translating research and development (R&D) outcomes into practical applications within the service sector. The article concludes by proposing a system of organizational and economic measures aimed at enhancing innovation activity in the service sector.