Page 61 - Azerbaijan State University of Economics

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

1. A steadily growing, competitive economy
2. A dynamic, inclusive society based on social justice
3. Areas of modern innovations and competitive human capital
4. The great return to the territories liberated from occupation
5. A clean environment and a country of “green growth”

The above-mentioned National Priorities are of particular importance to the
fulfillment of our commitments arising from "Transforming Our World: the 2030
Agenda for Sustainable Development" of the United Nations [Order of the President
of the Republic of Azerbaijan on approval of ‘Azerbaijan 2030: National Priorities
for Socio-Economic Development’]. In my opinion correct implementation
mechanisms of these ‘National Priorities’ have to be defined and carried out
accordingly so that to ensure sustainable, inclusive and innovative economic growth
in the Republic of Azerbaijan.

IV. RESEARCH RESULTS
Investment in innovation reached an all-time high prior to the pandemic, with
research and development (R&D) having grown an exceptional 8.5 percent in 2019.
When the pandemic hit, the big question was what its effect on innovation would be.
Historical evidence suggested a severe cutback in innovation investments. However,
according to the Global Innovation Index Report 2021, scientific output, R&D
expenditure, IP filings and venture capital (VC) deals continued to grow in 2020,
building on peak pre-crisis performance:

• Publication of scientific articles worldwide grew by 7.6 percent in 2020.
• Government budget allocations for the top R&D spending economies that have
already disclosed their R&D budgets continued to grow in 2020. The top global
corporate R&D spenders, for which data is available, grew overall R&D expenditure
by around 10 percent in 2020, with 60 percent of R&D-intensive firms reporting an
increase.
• International patent filings via WIPO reached a new all-time high in 2020. An
increase of 3.5 percent was driven by medical technology, pharmaceuticals and
biotechnology.
• VC deals grew by 5.8 percent in 2020, exceeding the average growth rate for the
past 10 years.

Strong growth in the Asia Pacific region more than compensated for declines in
Northern America and Europe. Africa and Latin America and the Caribbean also
registered double-digit increases. First quarter figures suggest VC activity will be
even more vibrant in 2021 [Global Innovation Index Report 2021].

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