Page 28 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 23-45

 Creation of necessary conditions for development of entrepreneurship and

continues support for this realm;

 Continues involvement of investment into the economy

 Encouragement of production of export-oriented products

 Creation of modern infrastructure and modernization of already existing one

 Provision of population with all modern conveniences

 Increase of employment and related measurements

 Decrease the level of poverty

In our opinion, the improvement of financing mechanism of investment-

innovation activity in the regions is essential for implementation of principles

mentioned above. As professor Mehdiyev said, investment into the human capital

provides sustainable development of economy. As a result, the improvement of the

quality of human capital brings about increase in productivity and provides the

grounds for development of innovative activity.

2. The sector and regional problems of innovation economy in Azerbaijan

The results of the current researches indicate that the metallurgy industry

should be renovated from technical and technological points of view. Except for

Baku Steel Company the technical basis of the remaining companies is out of

dated. Thus renovation of the existing entities or establishment of new ones instead

of them is of high importance. As a result, construction of Ganja Aluminum

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