Page 69 - Azerbaijan State University of Economics

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

 Creation of companies with strong scientific and research departments or

formation of production and technology sector with horizontal and vertical

integration;

 Improvement of financing mechanisms of science related sectors;

 Preparation of management and personnel, which will be able to manage

the innovation based system.

The formation of Azerbaijan Investment Fond played the important role in

development of appropriate environment of attraction of innovation. The fund

should make decisions on financing of real innovation projects. In our opinion, this

fund will play intermediary role between the industrial sector and organizations

developing the innovative technology. The government policy is directed not only

on implementation of innovation model, but also improvement of industrial

structure. In some cases in order to increase the efficiency the government is

required to incur the costs. In order top make such expenses maximum efficient,

the government should identify the priority sectors and establish the measurements

in sequence with supports this priority allocation. The experience shows that the

development of weak sectors on account of benefits gained from the strong ones is

not always successful. In some cases such activity could decrease the

competitiveness of the entity and bring about additional problems. Therefore

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