DOI: https://doi.org/10.36719/2789-6919/56/65-72
Hasan Ahmadov
Azerbaijan State University of Economics
Master’s student
https://orcid.org/0009-0000-7586-9606
hasan.ahmedov.145@gmail.com
Chingiz Salehli
Azerbaijan State Oil and Industry University
Master’s student
https://orcid.org/0009-0009-0145-0920
salehlichingiz@gmail.com
Analysis of the Dynamics and Structural Characteristics of Innovative Activity in the Business Sector of the Republic of Azerbaijan
Abstract
Transitioning to a knowledge-based economy is highly important for developing countries in the modern world. This study investigates the dynamics and structural features of innovative activity within the business sector of the Republic of Azerbaijan. Domestic policymakers are actively accelerating initiatives to broaden the national industrial base, systematically seeking to reduce historical reliance on fossil fuel revenues. The promotion of innovative capacities within the private business sector has been redefined as a central and indispensable strategic goal. In this paper, we conduct a comprehensive empirical analysis of the current state of business innovation, utilizing recent statistical data and institutional reports. Our research examines the sectoral distribution of innovative activities, highlighting the existing disparities between traditional industries and emerging technological fields. The existing normative-legal framework and institutional support mechanisms are evaluated to identify structural barriers hindering the widespread adoption of innovative practices by local enterprises. The findings indicate that while there is a positive trajectory in overarching innovation metrics, significant challenges remain regarding research and development (R&D) investments, commercialization of technologies, and financial risk management. Targeted recommendations are proposed aimed at refining state innovation policies and creating a more robust ecosystem to stimulate sustainable economic growth and enhance the global competitiveness of Azerbaijani businesses.
Keywords: innovation policy, business sector, Republic of Azerbaijan, economic diversification, structural analysis, R&D investment, innovation ecosystem.