BAKU, Azerbaijan, July 6
By Leman Zeynalova – Trend:
Energy research, development and innovation (RDI) activities are necessary to help Azerbaijan maintain and improve the competitiveness of its economy and diversify it away from oil and gas, Trend reports with reference to the International Energy Agency’s (IEA) country review.
“The country has the means to increase its RDI potential and make better use of it, but stronger efforts and a long-term commitment are required. Several of Azerbaijan’s research and education institutions have been important in setting the country on the path to further technological progress. They have participated in various national and international programs and projects, enabling Azerbaijani scientists and researchers to contribute to the work being done while acquiring new skills and knowledge,” said the agency.
The report shows that total R&D spending remains at 0.2 percent of GDP, which is low by international standards, so there is a strong case to be made for increasing spending and changing the country’s approach.
“R&D is primarily funded from Azerbaijan’s state budget, with the private sector providing only 5 percent of the total, whereas in developed economies the private sector covers the majority of R&D expenditures, followed by higher education institutions. Furthermore, the share of funding allocated to applied research in Azerbaijan is low (less than 20 percent of the total) and should be raised to develop the economy’s non-oil sectors; the level of competitive funding (project-based and grants) should also be increased. Active policies to promote co-operation among public research institutions, universities and the private sector will be required to enact the necessary revisions.
Regarding energy RDI specifically, the government should develop a strategy, policies and programmes. It should also encourage and facilitate wider participation in international RDI programmes and projects. As Azerbaijan’s economy, as well as its energy research and technology base, is dominated by the oil and gas industry, there is a strong argument for diversification focused on energy efficiency and renewable energy. RDI in the field of energy efficiency and renewable energy would benefit from framework legislation to create better conditions and provide incentives for small and medium-sized enterprises (SMEs),” said the IEA.
---
Follow the author on Twitter: @Lyaman_Zeyn