DOI: https://doi.org/10.36719/2706-6185/54/37-41
Mehman Hasanli
Azerbaijan University of Architecture and Construction
PhD student
https://orcid.org/0009-0008-6369-7059
mehmanhli10@gmail.com
Expanding Manufacturing Entrepreneurship in Azerbaijan’s
Industrial Parks Through Public–Private Partnership Mechanisms
Abstract
Azerbaijan has actively established industrial parks and districts in recent years to boost non-oil industrial development. These zones offer incentives that have attracted numerous manufacturing enterprises, resulting in billions of manats in investments and thousands of new jobs. However, unlocking the full potential of industrial parks and further expanding manufacturing entrepreneurship require additional financing and efficient management. This article examines the role and mechanisms of public–private partnership (PPP) in this context. Globally, PPP models are recognized as effective tools for financing infrastructure and managing industrial zones.
In Azerbaijan, the first comprehensive PPP law was adopted in 2022, creating a legal basis for such cooperation. The study analyzes the current performance of Azerbaijan’s industrial parks, reviews state incentives and support measures, and discusses how private sector involvement can accelerate industrial diversification. A comparative literature review highlights that leveraging private capital alongside state investment can significantly enhance innovation and diversification in industry. This is particularly relevant for newly established industrial parks in the liberated territories, where large-scale funding is needed for infrastructure and facilities. The findings suggest that PPP-based co-financing and management models are key to ensuring the sustainable development of these zones. The results demonstrate that adopting PPP mechanisms in industrial parks can substantially contribute to expanding non-oil industrial output, accelerating job creation, and stimulating innovative activities in Azerbaijan’s economy.
Keywords: industrial park, manufacturing entrepreneurship, PPP, investment incentives