Page 59 - Azerbaijan State University of Economics

Namiq Abbasov: The Nature of Innovatıve Economıc Growth and Development
Dırectıons of Its Formatıon

In general, it should be noted that a common feature that unites different national
innovation systems is the importance of state leadership. This leadership should set
and ensure three priorities: the development of science; the development of
education; the development of scientific production [Gasimov Farman, Aliyev
Tarbiz, Najafov Zakir. Organization and management of the National Innovation
System, p. 534].

There are five absolute blocks that make up all national innovation systems [IIETI,
Baku, 2018, p.36, p. 18], and they include:
• Creative block - a block that creates knowledge;
• Technology transfer block;
• Financial block;
• Production block;
• Staff training block.

In general, the NIS enables a country's economic development intensity to be
increased by collecting, communicating, and efficiently utilizing the findings of
scientific, technical, and innovative activities in practice.

The activation of innovation activity in Azerbaijan requires the transition of the
country's economy to a new stage of development, i.e., fundamental changes in
functional, sectoral and regional subsystems of NIS.

Taking into account the institutional state of the business fields, it is necessary to
make important changes in this sphere in order to achieve positive progress in the
use of modern ICT, knowledge, and innovation. One of the main features of the
management of the economic system is the combination of industrial, social, and
regional policies into an innovation policy. The competitiveness of any country's
economy depends on technological changes in various fields, the formation of high-
tech production, and organizational innovations that combine all sectors of the
economy into the national innovation system. At the same time, it is worth noting
that improving innovation infrastructure is critical to the development of innovative
economic growth. The main role of innovation infrastructure in achieving innovative
economic growth is to make far more efficient use of the resources required to carry
out the innovation process. An innovation infrastructure is an integral system
consisting of subsystems (elements). Varying approaches to the division of
innovation infrastructure subsystems differ in different studies. According to the
theory of G.V. Shepelev, organizations can be divided into 6 subsystems for
providing services to subjects of innovation (see Figure 1).

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