The Index is based on approximately 80 indicators that assess the potential, efficiency, and framework conditions of innovation activities.
The indicators analyzed include legislation, science and education, market conditions, business environment, and infrastructure. The GII 2024 rating consists of seven indicators divided into two main sub-indices: innovation inputs and innovation outputs.
The innovation inputs sub-index includes institutions, human capital and science, infrastructure, market development, and business development. The innovation outputs sub-index covers the diffusion of knowledge and technologies and the results of creative activities. These sub-indices reflect the innovative elements of countries’ economies and the actual outcomes of their innovation activities.
Switzerland leads the GII 2024, followed by Sweden, the United States, Singapore, and the United Kingdom. South Korea, Finland, the Netherlands, Germany, and Denmark complete the top ten, with China ranking 11th.
Azerbaijan ranks 95th in the GII 2024. In the Institutions indicator, Azerbaijan is 51st, reflecting government efficiency, regulation quality, and political stability. The country has improved by two places to 15th in the Business Environment sub-indicator, indicating a favorable environment for innovation and business development.
Azerbaijan has advanced three places to 19th in the stability of Business Policy sub-indicator, surpassing many regional states. In the Business Development indicator, Azerbaijan ranks 67th. The country leads the South Caucasus in Scientific Research and Development (30th place) and Cluster Development (29th place) in university-industry cooperation.
These indicators highlight the strong interaction between science and the private sector, crucial for stimulating research and innovation. The government promotes the creation of industrial clusters and research and development cooperation, key elements of Azerbaijan’s 2030 agenda. The report shows that reforms in Azerbaijan have positively impacted the business and investment environment.
Azerbaijan has advanced to 50th place in the patent sub-indicator of the Knowledge and technological results indicator, achieving an improve of 13 places according to GII experts. This result is the highest in the South Caucasus region. Additionally, Azerbaijan ranks 72nd in the number of patents submitted through the Patent Cooperation Treaty (PCT), advancing 15 places from last year, and 49th in utility model patents.
In the Increase in labor productivity sub-indicator, Azerbaijan rose 34 places to 28th, thanks to the introduction of advanced technologies in industry and production, the development of intellectual labor, and the improvement of employee qualifications. Azerbaijan also moved up 17 places to 49th in the trademark sub-indicator of the Results of creative activity indicator, surpassing many regional countries.
Although Azerbaijan ranks 94th in the Human Capital and Science Indicator, significant progress has been made in education, particularly in the student-teacher ratio (20th place) and state investment in education (53rd place).
Moreover, Azerbaijan ranks 45th in the number of science and engineering graduates, indicating a strong technical talent base essential for driving innovation, especially in technology, research, and engineering sectors.
Azerbaijan’s 41st place ranking in the number of corporate investors focused on research and development highlights the importance of corporate investment in the country’s innovation ecosystem.
Reforms in the education sector and investments in human capital are already yielding positive results. However, there is a need to further strengthen collaboration between education and industry.
Regarding the general indicators of Results of Creative Activity, Infrastructure, and Market Development, GII experts suggest focusing on attracting venture capital to Azerbaijan, increasing high-tech exports, and improving private sector access to credit.
The index indicates that Azerbaijan’s business environment is improving, and a strong innovation base is being established.
In this context, it is crucial to introduce financing mechanisms for start-ups and high-tech sectors, enhance commercialization and technology transfer, strengthen mechanisms that convert research into economic outcomes, and continue supporting digital infrastructure, high-tech industry, and innovation.
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