Page 59 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 46-76

Product innovation - 1 635 5 325
Process innovation - - 53.4
Chemistry industry 38.8 177.6 -
Product innovation 38.8 - -
Process innovation - 177.6 -
57.2 0.7 196.8
Production equipment and vehicle
Product innovation 57.2 0.7 196.8
Process innovation - - -
Electricity, gas and stream production and
allocation 808.5 - -
Product innovation 808.5 - -
Process innovation - - -
Water supply, collection and refinery of
garbage - 5.7 1 577
Product innovation - 5.7 1 577
Source: State Statistical Committee of Azerbaijan Republic

As a result of financial crisis the product market significantly decreased and

competition as a result became tougher. The country, which could overcome this

competition, will obtain the competitive advantages. The results of the financial

crisis taught the significant lessons. Development of industry and supporting of

competitive advantages will provide the grounds for sustainable growth. The

factors affecting the competitiveness level are strategic behavior (strategic pricing,

advertisement, differentiation of the products) of suppliers, producers and

customers, technology of production, the dynamics, institutional factors, foreign

competition and other (Porter, International competition, 1993: 896-26.).

In conditions of international competition each sector has both relative

standards (they are applied internally within the country) and absolute standard

without which the competition with the foreign competitors is not possible. In

cases when even the most efficient sector loses in competition with the foreign

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