ECONOMETRIC ASSESSMENT OF THE IMPACT OF INTELLECTUAL PROPERTY ON THE SCIENTIFIC PRODUCTIVITY OF THE COUNTRY: THE CASE OF AZERBAIJAN

Abstract

This study investigates the econometric impact of intellectual property (IP) imports on scientific productivity in Azerbaijan. It analyzes the dynamics of IP imports from 2002 to 2023, their share in total imports, and their correlation with national R&D expenditures. An approximate structure of IP import values is proposed. Using data from the World Bank, WIPO, the State Agency on Intellectual Property of Azerbaijan, and the State Statistical Committee, an econometric assessment is conducted for the country. In the model, the volume of IP imports serves as the explanatory variable, with R&D expenditure included as a control variable. Scientific productivity is measured by the number of articles indexed in the Web of Science in the fields of basic science and engineering, serving as the dependent variable. The results reveal a statistically significant and positive relationship between both IP imports and R&D expenditure and scientific productivity. The estimated regression equation for Azerbaijan follows a U-shaped curve, showing that scientific productivity—on a logarithmic scale—behaves as a parabolic function of IP imports. To assess the economic impact, both average and point elasticity coefficients are calculated across the analyzed period. The study identifies a critical (minimum) threshold for IP imports, below which additional imports do not lead to increased scientific output, suggesting inefficiencies in such investments. Furthermore, it finds that the effect of R&D expenditures on article output is approximately three times stronger than that of IP imports. It was found that the impact of R&D spending on the number of articles occurs with a one-year lag. The model is estimated using the ordinary least squares method via EViews econometric software. Future research could extend this analysis to include countries in the CIS region and those in the Caspian region.