The purpose of this study is to investigate and identify the directions for improving innovative economic growth in the Republic of Azerbaijan. Also, in this article, the nature of innovative economic growth and innovation activity in the Republic of Azerbaijan has been examined. For this purpose, statistics from the Global Innovation Index Report (GII) 2021 and the State Statistical Committee of the Republic of Azerbaijan have been revised and analised. Innovation activity and its indicators in the Republic of Azerbaijan have been compared with some relevant countries to identify the level of activity in the mentioned field. So, according to the GII 2021, Azerbaijan ranks 80th out of 132 countries with 28.4 points. This indicates are for Belarus (62 points), Georgia (63), Austria (18), and Turkey (41). Correspondingly, according to the 2020 statistics, the gross industrial product (GIP) was 37.27 billion AZN, the GDP was 72.43 billion AZN, and the gross innovation product was 28.58 million AZN, or 0.039% of GDP and 0.076% of gross industrial product. The study concluded with a set of recommendations, the most important of which are the suggestions to achieve innovative development and sustainable economic growth in the Republic of Azerbaijan.
 

Keywords: innovative economic growth, innovation activity, gross domestic product, industrial product, regional innovation programs
 

JEL classification: B0, B10, C10, C40, E20, E60, O30, O40