Page 58 - Azerbaijan State University of Economics

Gulbaniz T. Aliyeva: The issues related to formation of competitive structure of industry in Azerbaijan

applied to the industry. At the same time the growth temps of industrial product is

below the growth of gross domestic product. For example, in 2012 GDP increased

by 2.2%, while the volume of industrial product decreased by 3.8%. This prevents

the industry for being the moving power of national economy. At the same time in

2012 oil portion of GDP of Azerbaijan decreased from 52.47% to 47.3%, there is

an intention to decrease the portion of the oil sector to 20% till 2020. Such changes

in the structure of the industry will have the positive effect on overall production

and as a result of portion of the oil industry decreased from 78.7% to 50% and the

portion of refinery industry should increase from 13.4% to 43-45%.

In order to make the Azerbaijan to improve that competitiveness of local

product and compete with leading economies on the world market, significant

improvements, structural changes and acceleration of the innovation process in the

industry are required.

Table 5. Expenditures for innovation by investment type (thousand AZN)

2005 2010 2011
Total industry 53 273 8 139 31 589
Product innovation 53 272 7 952 30 904
Process innovation 0.8 187.3 684.6
Mining 43 892 4.8 692.9
Product innovation 43 892 4.8 692.9
Process innovation - - -
Refinery 8 573 8 128 29 319
Product innovation 8 572 7 941 28 634
Process innovation 0.8 187.3 684.6
Production of food 3 422 690.6 782.8
Product innovation 3 421 690.6 208.3
Process innovation 0.5 - 574.5
Oil products - 1 635 5 378

57