Scientific research expenses of Azerbaijani SMEs increase by 36 percent

Azerbaijan aims to grow the specific weight of the high and medium-high technology industry by 15 percent by 2026, Azernews reports, citing Chairman of the Board of the Small and Medium Business Development Agency (KOBIA) Orxan Mammadov speaking at the Azerbaijani-Israeli Innovation Forum.

"In the `2022-2026 socio-economic development strategy' approved last year, qualitatively new development models for the medium term were defined. Productivity, which is the foundation of a competitive economy, has been established through innovation and modern technologies. For this purpose, it is planned to stimulate the application of innovations in the private and public sectors, prepare a system of targeted fiscal privileges for start-ups and investors, create an innovation cluster, as well as to implement other measures. As a result, by 2026, it is expected to increase the specific weight of the high and medium-high technology industry in the total added value to 15%," Orxan Mammadov said.

The chairman added that is important to integrate scientific innovations into business in order to organize business activities according to modern requirements and increase competitiveness.

"In 2021, scientific research expenses by SMEs amounted to AZN21.4m or roughly $13m. Despite approximately 36 percent increase compared with the previous period, in order to achieve the set goals, there is a need to increase this indicator in the public and private sectors,” Orxan Mammadov said.

He also pointed out that KOBIA presents the Startup certificates as a continuation of the measures taken toward the improvement and development of the innovative business and startup ecosystem.

"The Startup certificate exempts the entrepreneur from profit and income tax for a period of 3 years. This also raises the interest of local and foreign investors in the startup and facilitates its access to foreign markets. About 90 certificates have been presented so far,” he concluded.