Page 30 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 23-45

diversified, we believe that long-term innovation measurements are required in

order to establish the grounds for further development.

Considering that the scale of machine production is quite large we believe that

its concentration is an important point. It is important to establish scientific basis

for the development of this sector and encourage the creation of large entities.

Thus establishment of large entity will provide the grounds for wider scientific and

research activities. This is also effective from technologies attraction point of view.

Thus the most effective way for attraction of technologies is acquisition of the

foreign companies. This practice can be applied not only in this sector of economy.

On other hand this practice can encourage the existing local companies to establish

the joint ventures with the foreign counter-parties.

Recent researches indicate that there is a great experience in production of

electric engines in Azerbaijan. Thus the merger of “Yeni BMEZ” OJSC and

“Elektomashin” OJSC is the most efficient solution for the further development of

the industry. Thus the area of only “Yeni BMEZ” OJSC is 16 hectares and the

production area is 80 thousand square meters. We would like to remind that this

entity was the only factory in former USSR, which produced 1.5- 100 kilowatt

electric engines, which were utilized internally and exported to 54 countries

outside of USSR. Nowadays the technical base of the entity is obsolesced. For

example, some equipment in “Yeni BMEZ” OJSC has the useful lives more than

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