no.2, pp.535-544, 2020 (Peer-Reviewed Journal)
This article represents the state of innovative activity in the agriculture of Azerbaijan. Factors stimulating the innovative development of the agro-industrial complex include the existence of natural resources, significant scientific and educational potential, large domestic food market, the ability to produce environmentally friendly, natural food products and the transition to a market-based way of managing. An analysis of innovative activity in Azerbaijan and developed foreign countries revealed the main organizational and economic factors that impede its development. In this article is shown comparisons of the features of innovation in Azerbaijan and developed foreign countries, as well as, conditions and factors affecting the innovative development of agro-industrial complex of Azerbaijan. Agriculture itself, by virtue of its position in the country’s economy, is not in a position to dictate the conditions for achieving the necessary profitability for other sectors and fields of activity. The risks of financing scientific and production results and the time gap between costs and results, the uncertainty of demand for innovative products do not interest private investors to invest in agricultural development. The difficulty of conducting a detailed analysis of the current state of innovative activity in the agricultural sector of the agro-industrial complex is associated for this type of activity in such volumes and indicators as is done in industry. Currently, in Azerbaijan, the flow of foreign technologies suppresses the development of national innovation policy and creates a real danger of dependence on foreign developments. Currently, these services are expressed in passive forms: in consulting and information services and are designed on the initiative of agricultural workers. The main point of the state innovation policy in this period should be to, on the one hand, maintain the maximum accumulated scientific and technical potential, on the other, develop the necessary infrastructure and develop mechanisms that stimulate the development of innovative processes. The continued inequality of the exchange of agriculture with other sectors of the economy leads to the degradation of its material and technical base. The main direction of increasing the sustainability of agriculture is the creation of conditions for ensuring profitability in farms necessary for expanded reproduction. Keywords: Agriculture, Agro-industrial complex, Financing, Innovative activity, Analysis, Sustainability