Expanding the scope of startups in Azerbaijan

Abstract

This study examines the current state of Azerbaijan’s startup ecosystem in the context of the leading role of startups in global economic development and innovation-driven transformations. It provides a comparative assessment based on international indices and formulates a set of policy-relevant recommendations adapted to national conditions aimed at expanding and strengthening the ecosystem.

The scientific novelty of the research lies in demonstrating that existing international indices primarily assess startup ecosystems through institutional and innovation-related criteria, while a universal indicator that directly measures startup productivity and efficiency has not yet been established in the academic literature.

As a practical outcome, differentiated recommendations are developed at the overall system level, as well as specifically for government institutions and startup founders. Overall, the article concludes that Azerbaijan’s startup ecosystem is at a transformational stage and that strengthening institutional and financial mechanisms is crucial for achieving sustainable and globally oriented development.