Transition to an innovation ecosystem: Azerbaijan's strategic choice

The idea of ​​“transforming oil capital into human capital”, put forward years ago, is presented today with a broader, deeper and more global context. The point that President Ilham Aliyev particularly emphasized is that natural resources are not a goal, but a means, and the main guarantor of sustainable development is science, technology and the knowledge economy.

Commenting on the topic, Isa Gasimov, head of the “Enterprise Azerbaijan” portal of the Center for Analysis of Economic Reforms and Communication, said that knowledge has been used at all stages of history. However, in previous periods, knowledge mainly played the role of an intermediary that increased the efficiency of production processes and ensured more effective use of existing resources. In the era of information and digital transformation, knowledge already carries a separate capital value. Many processes that were considered technically and financially impossible in the industrial era are now realized as a result of the application of science and technology. This transformation, in addition to changing the structure of the world economy, has also radically renewed the essence of competition between countries.

Taking into account these realities, Azerbaijan has identified innovation, digitalization and the formation of a startup ecosystem as a priority direction in its economic policy in recent years. Strengthening the non-oil sector, developing high value-added sectors and promoting technology-based business models have become one of the main pillars of state policy. In this context, the establishment of the “Enterprise Azerbaijan” portal in 2018, in accordance with the relevant Presidential Decree, is no coincidence.

The main goal of the “Enterprise Azerbaijan” portal, operated by the Center for Analysis of Economic Reforms and Communication, is to increase the country’s investment attractiveness, expand alternative financing mechanisms and form a favorable environment for innovative initiatives. Global experience shows that investors’ interests change over time and are increasingly moving from traditional areas to high technologies, knowledge and innovation-based projects. In this regard, the special emphasis on supporting high technologies and startup initiatives in the activities of the “Enterprise Azerbaijan” portal is a fully justified approach from a strategic perspective.

The “Startup School” projects implemented within the portal make a significant contribution to the formation of an innovation ecosystem in Azerbaijan. These initiatives not only support young startups from an idea to the market, but also stimulate the transition of entrepreneurial culture in the country to a new stage. Through startup schools, local innovators gain access to international mentoring, networking, and investment opportunities, which is a practical mechanism for transforming human capital into real economic value.

The main advantage of the policy line set by President Ilham Aliyev is that innovation and technology are considered not only as separate sectors, but as the main fulcrum ensuring sustainable development of the entire economy. This approach positions Azerbaijan as a country integrating into the global knowledge economy, with a competitive and long-term development model.

Consequently, the redirection of oil revenues to human capital, knowledge, and technological potential is the most reliable guarantee of Azerbaijan’s future development. The “Enterprise Azerbaijan” portal and the initiatives it implements are an institutional manifestation of this strategic vision and continue to play an important role in shaping the innovation ecosystem in the country.