Econometric assessment of factors affecting the innovation activity of business entities in the processing industry of Azerbaijan

Abstract

The article first highlights the changes in Azerbaijan's ranking in the Global Innovation Index based on reports from international organizations, along with the achievements in various sectors of the national economy. It also examines the current state of innovation in the manufacturing industry, identifying the economic, production-related, and other factors negatively affecting its level, as well as the underlying causes. Furthermore, using the EViews-10 software package, a quantitative statistical assessment was conducted to determine the main indicators influencing the volume of innovative products in the manufacturing sector. The findings of the research indicate that the active attraction of foreign investment, the extensive implementation of targeted innovation projects, and the creation of new cluster infrastructure along the value chain in sub-sectors of the manufacturing industry can steer the sector towards innovative development.