Page 46 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.73, # 2, 2016, pp. 42-61

administration and reasonable taxation rates, and ease of access to finance at various
stages of enterprise development, as well as creating favorable conditions for foreign
enterprises which are interested in investing in the country, including in R&D. These
factors influence the business climate in which the innovation-based enterprises
operate, and thus determine the demand for innovation.

Exhibit 2.2 Innovative process:interaction of major actors and processes

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- Universities and research organizations
-SMEs and big firms
- Customers
Source: Report of the United Nations Economic Commission for Europe (2012)
“Fostering Innovative Entrepreneurship”

4. The intensity of ties between the various participants involved in innovation.
These links are provided by public and private organizations that support
entrepreneurs in establishing spin-off companies, commercializing their innovations
and bringing them to the market (Exhibit 2.2).
5. Openness to foreign technologies and to international cooperation in
innovation. Research and development is effective when it is carried out across
national borders and the national capacity to absorb and adapt technologies
developed worldwide is one of the key drivers of innovation. By participating in
international R&D networks and technology transfer, countries can also get access
to the knowledge accumulated abroad as well as foreign sources of innovation
finance and investment, and can increase the speed and quality of their own
innovation.
6. Wide use of information and communication technology (ICT). Well
developed internet and mobile phone networks both provide support for enterprises
and create a business environment which is more supportive to entrepreneurship.

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