Abstract
Emerging economies view economic growth based on innovation as an important condition of ensuring sustainable growth in the 21st century. In light of this, governments of developing economies have adopted state programs on stimulating innovation among small and medium businesses. The government of Azerbaijan has made it a priority to develop new technology based firms (NTBF). The Development Concept of Azerbaijan Republic approved by the President in 2012, “Azerbaijan 2020: Look into the Future” emphasizes the establishment of market infrastructure network that serves to develop the non-oil sector. In this context, it is critical to study the national innovation policies and technology transfer systems of developed countries and modify it for the economy of Azerbaijan in order to stimulate innovative activeness in Azerbaijan. In this paper, experience of one of the leading countries in the field of technology transfer, namely Finland, is analyzed. The research mainly uses qualitative data obtained using the methodology of in-depth-interviews (IDI) with representatives of private sector, a public research centers, start-up accelerators and universities in Finland. Azerbaijan ecosystem for innovative entrepreneurship has also been analyzed based on IDIs conducted at start-up incubators and accelerators in Baku as well as using Delphi technique in a discussion which was attended by managers of Azerbaijani incubators and accelerators. Recommendations on how to apply Finnish experience in Azerbaijan are given in the conclusion of the paper.

Key world: emerging economies, economic growth, stimulating innovation, national innovation policies, technology transfer.
JEL classification: O31, O32, Q55