The Role of Strategic Management of Higher Education Institutions in Regional Socio-Economic Development: The Case of Azerbaijan

Abstract

Abstract
This article examines the strategic management functions of higher education institutions in the socio-economic development of regions. In the global context, universities are not limited to the training of qualified specialists; they also play a crucial role in socio-economic processes through the organization of innovation activities, the application of technologies, the development of entrepreneurship, and the enhancement of human capital quality. Analysis of the case of Azerbaijan shows that between 2020 and 2025 the number of students in higher education increased by 24.6%. However, the concentration of this growth mainly in the capital city Baku has deepened socio-economic inequalities across the regions. In strategically significant economic zones such as Karabakh and East Zangezur, higher education is still at an early stage, highlighting the necessity of strengthening the role of universities in regional development. The findings of the research demonstrate that enhancing the strategic management capacity of higher education institutions can support economic diversification in the regions, foster the formation of innovation ecosystems, and accelerate socio-economic reintegration. The scientific significance of the article lies in its systematic exploration of the interconnection between higher education and regional development on both empirical and theoretical grounds. Its practical importance relates to the potential contribution of the findings to higher education policy-making and the design of regional development programs.