Page 61 - Azerbaijan State University of Economics

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

Table 6. Innovation level and the volume of innovation product per type of

economic activity (mln AZN)

Significantly changed and newly Improved product
applied product
2006 2009 2010 2011 2006 2009 2010 2011
Industry, 1852 730,9 693,3 68,9
total 4 384 13 163 2 029 14403
Mining 323,0 - - 2 073 - - 10 430
Refinery 1529 730,9 4 384 11 090 693,3 68,9 2 029 3 973
Note: excluding small business
Source: Statistical Committee of Azerbaijan Republic

In order to gat competitive advantage in non-oil sector, the producers should

bring to market new products at lower prices and of the same quality or products at

higher prices and higher quality. In period of labour diversification the production

of one product can be realized by participation of various sectors. The production

of competitive product depends on provision and supply with high quality raw

materials, existence of specialized personnel and wide sales network. The

competitiveness of the products in Azerbaijan depends on establishment of these

factors. The experience shows that during transition period the countries have lost

the production and realization relations, which significantly affected economic

development. This occurred due to the fact that investments made prior to the

transition have lost their value. On macro-economic level the factors affecting the

competitiveness of the industry include openness of economy, quality of

government policies, efficiency of fiscal policy, level of development of the

infrastructure, mobility of labor market, education level of labor forces, perfection

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