This article analyzes the concept of innovation activity and its role within joint-stock companies, highlighting both theoretical foundations and practical mechanisms of effective innovation governance. It substantiates how innovation, under corporate governance frameworks, influences competitiveness, capital efficiency, stakeholder balance, and economic resilience. The study explores Uzbekistan’s reform agenda, the role of state ownership, foreign investment inflows, and the adoption of modern governance practices to enhance innovation capacity. It also emphasizes the strategic function of corporate governance in directing internal resources toward innovation and achieving sustainable outcomes.