Stimulating Economic Growth Through High Technologies: The Case of The Republic of Azerbaijan

Abstract

This paper explores the role of high technologies in stimulating economic growth in Azerbaijan, a country transitioning from a resource-based economy towards a more diversified, innovation-driven development model. With the increasing global importance of technological advancement, Azerbaijan’s government has strategically positioned high-tech industries as a key driver for sustainable economic development. This study examines the impact of emerging technologies such as ICT, AI, and renewable energy on Azerbaijan’s GDP, employment, and export diversification. Through a mixed-methods approach, including both quantitative analysis of economic indicators and qualitative case studies, the paper identifies key policy frameworks and strategic investments that have supported the high-tech sector’s growth. The findings indicate that while significant progress has been made, challenges such as limited innovation capacity, dependence on oil revenues, and insufficient R&D infrastructure remain. In conclusion, the paper recommends targeted policy interventions, such as increased public and private investment in R&D, the development of technology hubs, and a more robust innovation ecosystem, to ensure that high technologies continue to contribute to Azerbaijan’s long-term economic growth. The study provides valuable insights for policymakers and researchers interested in the role of technology in economic transformation, particularly in post-Soviet economies.