According to the “Global Innovation Index 2026” report released by the World Intellectual Property Organization (WIPO), Azerbaijan ranked 85th among 139 economies, advancing 9 places compared to the previous year. The country’s performance improved in infrastructure, institutions, market sophistication, business sophistication, and knowledge and technology outputs.
Rashad Najafli, Deputy Head of the Economic Analysis Division at the Center for Analysis of Economic Reforms and Communication (CAERC), noted that this progress, covering various aspects of the innovation environment, is significant in terms of increasing the role of new technologies and entrepreneurial initiatives in Azerbaijan’s economic development.
A 20-place improvement in business sophistication is the area where Azerbaijan recorded its most significant progress. This category assesses companies’ ability to use knowledge and skills, establish innovation linkages, and absorb new knowledge. Research cooperation between universities and enterprises, the participation of qualified specialists in economic activity, and the integration of technologies into business are particularly important in this area. The progress recorded is noteworthy in terms of the development of innovation at the enterprise level. The application of new knowledge to production and services means more efficient working methods, new products, and broader market opportunities for companies.
An 18-place improvement in infrastructure indicates positive dynamics in one of the key pillars of innovation activity. This area covers information and communication technologies, general infrastructure, and environmental sustainability. Digital connectivity, e-services, energy, and logistics capabilities are factors that facilitate the application of new technologies in the economy. Infrastructure development creates conditions for transforming an idea into a practical solution: it expands entrepreneurs’ access to digital markets, helps enterprises organize their operations more efficiently, and facilitates the delivery of innovative services to users. Azerbaijan’s progress in this area is a positive indicator for the expansion of innovation-driven activities.
A 10-place improvement in knowledge and technology outputs reflects progress in an area that encompasses the economic outcomes of innovation. This area combines components such as knowledge creation, economic impact, and knowledge diffusion. Scientific publications, patents, high-tech production and exports, as well as the international flow of knowledge, are included in the assessment framework for this area. The progress recorded is significant in terms of converting scientific and technological capabilities into economic value. The commercialization of research results and the expansion of technological entrepreneurship can contribute to the development of higher value-added products and services.
A 9-place improvement in market sophistication is noteworthy in terms of opportunities related to innovation financing and market access. This area covers such components as access to credit, investment, trade, and market scale. Financial resources and a market with demand for a product are essential for transforming a new idea into a successful business. Therefore, market sophistication creates an important link between an idea and a commercial outcome in the innovation process. Azerbaijan’s improved position in this area can be viewed positively in terms of creating conditions that expand the economic prospects of innovative initiatives.
Azerbaijan advanced 5 places in institutions, rising to 36th place. The institutional environment is one of the country’s notable strengths in the index and is also highlighted separately in the analytical section of the WIPO report. This area assesses the institutional, regulatory, and business environment. Clear rules, effective governance, and predictable conditions for entrepreneurial activity play an important role in the development of new initiatives. Since innovation requires forward-looking decisions, a favorable institutional environment provides a foundation for the long-term plans of entrepreneurs and investors.
Rashad Najafli added that the progress achieved in five areas covers interconnected components of the innovation ecosystem. The institutional environment provides a foundation for initiatives, infrastructure facilitates their implementation, and market opportunities create financing and commercial prospects. Businesses transform these opportunities into products and services, while knowledge and technology outputs reflect the economic impact of innovation.
The main theme of the 2026 report is the transformation of advanced scientific research into entrepreneurial activity. WIPO emphasizes the creation of real products, companies, and jobs through scientific innovations. The progress recorded by Azerbaijan is also significant against the backdrop of this global agenda. Sustaining the momentum achieved, expanding cooperation between science and business, and promoting technological initiatives can contribute to economic diversification and strengthening the country’s international competitiveness.