Page 65 - Azerbaijan State University of Economics

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

As can be seen from the table, expenditures on technological innovations in all
industries in 2020 amounted to 35919.8 thousand manat and decreased by 0.7 times
compared to 2019. Which of these expenditures, 20059.2 thousand manat were spent
on product innovations, and 15860.6 thousand manat were spent on process
innovations. The total cost of technological innovation by industry can be expressed
as follows. Thus, 1001.1 thousand AZN was spent on the mining industry and
34918.7 thousand AZN on the processing industry.
Innovation expenditures in industry were only 0.39% of industrial investments in
2020 and 0.51% in 2019. These facts show that there are serious problems in
financing the development of innovation.

V. DISCUSSIONS
The current study aimed to investigate the innovation activities and identify
development directions in the economy of the Republic of Azerbaijan. At the end,
the article concluded with a conclusion and some improvement recommendations.
However, the author also thinks that, in order to achieve sustainable economic
growth, the government has to support innovative development, high technology,
education, and fundamental sciences in its policies and state programs that cover all
the regions of the country. And in these programs, the following items should be
taken into account:

• The state's principles take into account macroeconomic conditions;
• Azerbaijan's socioeconomic development goals and priorities;
• conditions in foreign economics and foreign policy
• Forecasting general government needs and financial resources
• Analysis and forecasts on the country's social and environmental situation;
• Focus on scientific, technical, and structural policies;
• Considering the global innovation trend;
• International treaties.

Future research may identify development strategies for improving economic
activities in the regions of the country according to their economic potential. Also,
the concluded research can be helpful for further investigations and preparing
development directions towards achieving sustainable economic growth.

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