The rapid development of technologies is changing the world economy. Today, the competitive advantage of countries is also determined by innovation, artificial intelligence, and high technologies.
How ready is Azerbaijan for these changes? What is an innovation economy and why is it important for Azerbaijan? At what stage is Azerbaijan currently in terms of transition to an innovation economy? What steps should be taken first to develop this field in our country?
In his explanation to Medianews.az on the topic, economist expert, member of the Royal Economic Society of Great Britain, Aslan Azimzade stated that every 40-60 years, technologies characterizing fundamental changes in the new economy are discovered in the world economic system.
According to A. Azimzade, the discovery of these technologies inherently changes the entire structure of the national economic system and forms a new technological structure, including a new techno-economic paradigm: “This is a very relevant issue for researchers. From the first researchers in this field - Joseph Schumpeter, Nikolai Kondratiev, Christopher Freeman, Carlota Perez to a number of world-renowned scientists, the application of technology in the economy and how it produces effects has been studied.”
Currently, the 6th technological structure is forming. The leading technologies of this structure are bio and nanotechnologies, including heliotechnics and, according to some studies, artificial intelligence.
Countries that implement these technologies into their economy can achieve additional profitability of 30% in some sectors and 70% in others. Especially in agriculture and manufacturing industry, very effective results are achieved.”
A. Azimzade noted that the application of technologies should primarily be characterized: “Technologies are usually transferred to the country within the framework of direct investments. Here, not only foreign but also domestic investments should be characterized.
In my opinion, to apply the modern technologies of the 6th technological structure to various sectors of the economy in Azerbaijan, there is a need to further develop domestic investment circuits. Especially if bank interest rates are differentiated according to the profitability level of entrepreneurs and a soft monetary-credit policy is adopted – on the condition that the allocated funds are indeed directed to the real sector of the economy, value-added sectors, and progressive technologies – we can see the application of technologies to the national economy.
Naturally, this is also a factor that increases exports and preserves purchasing power. On the other hand, some experiences show that the application of exactly such technologies is characterized by a reduction in product prices in the country.
In my opinion, Azerbaijan should currently move to a more progressive monetary-credit policy model within the framework of stimulating domestic investment circuits.”
Nailə Qasımova,
Medianews.az