Page 63 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 46-76

about decrease in production. Application of passive strategy instead of active one,

slow resolution of new problems decreased the competitiveness of the products.

The renovation and technical restoration based of the industry is implemented

as part of investment programs. In this case the production became more effective

and technical base of production development is created. We would like to no two

basic conditions: the potential of investment process depends on technical level of

the production and its ability to adopt the improvements and updates; second,

during recurring production investment plays important role in the reconstruction

of the production process. The volume and direction of the investments defines the

temps of changes and growth of national economy. Nowadays in order to develop

and improve the refinery sector economy need the large volume of investments.

From this point of view improvement of technical base in existing refinery related

factories is essential. This explained by the fact that in cases when factory is not

technically well equipped the production of high competitive products is limited,

and this negatively impacts the efficient management of production, human and

resource management. In some sectors, like food industry, chemistry and oil-

chemistry, the technical development of the equipment directly impacts the quality

of produced products.

The upgrade the technical base of the industry faces number of problems. In

such conditions the development of the industry in cluster forms is essential. This

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