Azerbaijan makes notable progress in creating favorable environment for startups and innovation - WEF

Economy Materials 12 June 2024 18:23 (UTC +04:00)
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, June 12. Azerbaijan has made notable progress in creating a favorable environment for startups and innovation, the World Economic Forum's report “IDEA: Investing in the Digital Economy of Azerbaijan” said, Trend reports.

According to the report, the progress is reflected in the creation of numerous institutions and programs aimed at supporting business development and promoting innovation, such as large-scale events organized by the government and the development of technology parks and business incubators.

The report notes that following the decree of the President of the Republic of Azerbaijan Ilham Aliyev, the Ministry of Economy is developing a draft law “On Innovation Activity” to ensure coordination and development in this area.

In recent years, the digital economy in Azerbaijan has been perceived as an integral component of socio-economic development goals. In line with its national vision to diversify its economy and reduce dependence on extractive industries, Azerbaijan considers the role of foreign direct investment crucial in promoting digital growth and enhancing global competitiveness, the document said. The Azerbaijani government pays significant attention to attracting foreign investment, implementing reforms, and stimulating the private sector through a comprehensive Socio-Economic Development Strategy for 2022-2026.

Furthermore, the report emphasizes that although the oil and gas sector accounts for the bulk of foreign direct investment in Azerbaijan, a closer look at the activities of foreign investors operating in the country shows that the majority of new investment projects (from January 2016 through April 2023) were concentrated in sectors such as financial and business services, software and IT services, and industrial equipment manufacturing.

''The government of Azerbaijan is carrying out large-scale reforms with a focus on the digital economy. Among the measures being implemented, the authors of the report note the development of the Digital Economy Development Strategy and the Socio-Economic Development Strategy for 2022-2026. Since December 2022, a special working group under the auspices of the Center for Analysis and Coordination of the Fourth Industrial Revolution (4SIM) has been established in the country to develop this strategy to form a sustainable and competitive digital economy,'' the WEF experts note.

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