Akademik Məlumat İdarəetmə Sistemi
Tokyo Summit – VIII Tokyo 8th International Innovative Studies & Contemporary Scientific Research Congress, vol.10, no.978-1-955094-91-7, pp.314-323, 2024 (Conference Book)
The intensification of competition between enterprises forces them to use all ways to improve their competitive advantages, to increase their efficiency and productivity. Innovation activity plays an important role in increasing the efficiency and productivity of the enterprise. The increasing innovation activities of enterprises depend on the expansion of activities in the field of research and development. By considering the research and development activities of enterprises around the world at the present time, we could say that there are different situations. Thus, in most developed countries, the share of the business sector in research and development expenses is higher (60-70%). However, in most developing countries, this amount is lower (10- 30%). In 2021, the share of the government in research and development expenses in the Republic of Azerbaijan was approximately 82%, and the rest was provided by the higher education and business sectors. For this reason, it can be said that the low level of research and development expenses in the country is caused by the fact that enterprises do not pay due attention to this field. It is obvious from the conducted studies that there is a direct positive relationship between research and development activities and economic indicators of the enterprise. Thus, the expansion of research and development activities of enterprises leads to the improvement of their indicators such as productivity and profitability. The purpose of the presented article is to identify ways to increase the research and development activities of enterprises. We assume that the strengthening of research and development activities in enterprises leads to an increase in their productivity, the amount of output and profits in general. For this purpose, econometric model was created to assess the relationship between the research and development expenses of the enterprises in Azerbaijan and their productivity.