Evaluating the Effects of Technological Innovation Spending on Productivity Growth in Azerbaijan’s Manufacturing Industry
in: Sustainable Practices in Finance, Economics and Technology, Aamir Aijaz Syed,Alka Singh,Kiran Sood,Simon Grima, Editor, wiley, New Jersey, pp.477-497, 2026
- Publication Type: Book Chapter / Chapter Research Book
- Publication Date: 2026
- Doi Number: 10.1002/9781394315048.ch18
- Publisher: wiley
- City: New Jersey
- Page Numbers: pp.477-497
- Editors: Aamir Aijaz Syed,Alka Singh,Kiran Sood,Simon Grima, Editor
- Azerbaijan State University of Economics (UNEC) Affiliated: Yes
Abstract
The swift advancement of information and communication technologies (ICT), globalization, and increasing competition push countries to utilize all opportunities to expand their market share. Economic advancement is intricately linked to innovation, with the manufacturing sector playing a particularly prominent role in this process. Countries prioritize strengthening the manufacturing industry through policies that encourage innovation. Using econometric analysis, this study explores the effect of technological innovation spending on productivity growth in Azerbaijan’s manufacturing sector. Since its independence, our country has achieved significant success in natural resource production and export. At present, the promotion of growth in the non-oil sector constitutes a strategic priority. Expanding innovative activities is seen as key to stimulating the manufacturing industry. The econometric analysis conducted reveals that technological innovation expenditures positively affect productivity growth in the manufacturing sector. However, challenges remain research and development (R&D) expenditures account for just 0.2% of GDP, most R&D spending is directed towards fundamental research, and the government dominates R&D financing. Strengthening cooperation between research centers and industrial enterprises is essential for expanding innovation activities and accelerating economic growth. The article concludes with recommendations to enhance innovation-driven development in Azerbaijan.