As the push to engage in the globalknowledge economy becomes increasingly vital tocountriesaround the world, higher education institutions(HEIs) are being recognized as valuable centers for researchand teaching in support of entrepreneurship, innovation,competitiveness, and economic growth. Many HEIs inAzerbaijan, however, lack the capacity to serve as effectivedynamic hubs for such enterprising efforts, limitingAzerbaijan’s ability to collaborate and compete with othernations in the global economy. Leveraging its expertise inthis area, the World Bank carried out an analysis of thestatus of the research and innovation environment inAzerbaijan’s higher education sector, identifying the mainobstacles to the advancement of research work and itsresults and to effective coordination between highereducation institutions and industry to achieveinnovation-led growth. Science in Azerbaijan is examinedthrough policy and institutional lenses, encompassing itsgovernance, funding and management issues. The analysislooks at innovation as a dynamic outcome fromuniversity-industry collaboration, examining issues oftechnology transfer and intellectual property rights, thestart-up environment, and funding of research towardpractical and applied outcomes. The results of the analysispresented in this note, based on national and internationaldata sources along with numerous consultations with avariety of stakeholders, informs concrete policy measuresthat can be taken by Azerbaijani authorities to strengthenthe capacity of HEIs to serve as key actors in the country’sinnovation ecosystem and facilitate economic diversificationwithin the global knowledge economy. Recently adoptednational strategic documents are creating possibilities forreform by the MOE as well as by individual HEIs. TheEducation Development Strategy (EDS), approved by thePresident of the Republic of Azerbaijan in 2013, definespurposeful reforms in education with the main goal ofbuilding a competitive and leading education system in linewith the world’s best practices and based on cutting-edgetechnology infrastructure, quality and accessibility. Thekey findings and recommendations center on undertakingstrategic efforts to maximize the quality and relevance ofhigher education as it relates to innovation and economic competitiveness.
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