The Process of Formation and Stages of the Development  of Technoparks in Azerbaijan

Zumrud  Nadjafova  Natiq Gurbanov

Journal number 3 ∘ Zumrud Nadjafova ∘ Natiq Gurbanov ∘
The Process of Formation and Stages of the Development of Technoparks in Azerbaijan

Technopark is a subject of scientific and innovative infrastructure that creates conditions that positively affect the development of production in the scientific and technical sphere, with highly qualified personnel and experimental facilities. The development of the nonoil sector in Azerbaijan is a strategic goal. The government of Azerbaijan is taking all possible measures to develop the production sector. These measures include direct public investment and encouraging entrepreneurs to work actively in the applied economy. In Azerbaijan, there are sufficient natural resources and qualified personnel that contribute to the development of the production sector.

Keywords: Development of industry, technopark, plant, state regulation, Azerbaijan

JEL Codes: L60, L70, O10, P23, Q55

Industry is the main sector of the economy of Azerbaijan. Since the middle of the last century, thanks to the activities of the national leader of the Azerbaijani people, Heydar Aliyev, metallurgy, mechanical engineering, fuel and energy, food, light, chemical and other industries have started to develop.

The volume of industrial production at the enterprises of the Republic of Azerbaijan

(AZN million)

Source: the table is based on the materials of the state statistics Committee of the Republic of Azerbaijan [33]

As we can see from the table, over the period of 2009-2014, the volume of industrial production actually increased by 3.5 times. In this direction, an important role was played by the reforms implemented at manufacturing enterprises.

The development of industry in Azerbaijan is a priority direction of the socio-economic policy that is being implemented in the country. Based on the Decree of the Head of state, 2014 was declared the "Year of industry" in Azerbaijan. [13. c. 338.]

In Azerbaijan, there are sufficient natural resources and qualified personnel that contribute to the development of the production sector. The construction of a Technology Park in our country has created thousands of jobs. This improves the social level of the population.

In April 2009, the Law "on the establishment of Special economic zones in the Republic of Azerbaijan" was adopted. [1. p. 78-82.] As a result of the adoption of this law, it is expected to expand innovation activities in different regions of the country, solve socio-economic problems, develop the country's regions and lagging sectors of the economy, and increase the export potential of the country's non-oil sector.

Azerbaijan has the "State Program of the Republic of Azerbaijan On the national strategy for the development of science for 2009-2015", [4.p.82.] which provides for the development of technoparks in the Republic.

As a result, organizations such as UNESCO provide support to the Republic of Azerbaijan in the development of technoparks. Technopark is a means of creating an innovative, knowledge-intensive and competitive economy

At the event held on March 12, 2014 in connection with the announcement of the year of industry, the idea of creating industrial quarters was first put forward. On April 8, 2014, President Ilham Aliyev signed a decree "on the establishment of industrial districts and the organization of their activities" [ 2 ]. This document stated that industrial districts are of great importance for the development of small and medium-sized businesses, the organization of the production process, strengthening cooperative ties,and other issues.

On the territory of industrial blocks, it is planned to create external and internal infrastructure, which is an advantage of the blocks. The advantage is to save money on creating infrastructure for your company.

Industrial districts will be created in such a format that they can function in small areas of the country. At the moment, it is planned to create one industrial quarter in each economic zone of Azerbaijan. After evaluating their activities, blocks will be created in other regions of the country.

The Sumgayit technopark

Since the 70s of the XX century, the national leader Heydar Aliyev has laid the Foundation for the development of today's successful economy of Azerbaijan. President Ilham Aliyev, continuing this policy, implemented a large number of economic reforms, which led to favorable conditions for private entrepreneurs. In this regard, in the territory of the Republic of Azerbaijan, In the city of Sumgayit, in accordance with the relevant Decrees and Orders of President Ilham Aliyev, Azenco OJSC has built a giant Sumgayit Technology Park. STP is considered one of the largest technology parks in Europe.

Sumgayit was built immediately after the Second world war as a center of the chemical industry and aluminum industry. Decline 32 industrial production in the early 1990s strongly affected Sumgayit factories, but thanks to the purposeful policy of our state, Sumgayit began to reborn. Gradually, an aluminum plant was put into operation, then a pipe plant, and production began to improve.

In Sumgayit Technological Park, consisting of 17 plants. These factories create various types of products that play an important role for our country. This company is one of the largest tax payers, which contributes to the stable development of the economy of the Republic of Azerbaijan.

Thanks to the construction of the Sumgayit Technological Park, thousands of jobs were opened, which led to an improvement in the social level of the population. Highly qualified specialists with extensive experience in this field are involved in the work at this Technopark. All actions to attract staff are fully in line with the overall socio-economic policy of the government of Azerbaijan.

The following enterprises are currently operating in the STP:

Cable factory
Plant, plastic pipe Plant, hot-dip galvanizing
Precision machinery manufacturing plant heavy machinery Plant
Plant for the production of electrical equipment
Plant of technical gases.

All these plants have machines and equipment based on the latest technologies and purchased in developed industrial countries of the world - Japan, great Britain, Belgium, China, etc. Application at the factories of the latest technologies in the production of products is not limited only to internal needs, but also creates opportunities to export products, and does not harm the environment.

The products produced at the factories of the Sumgait Technological Park can meet the needs of the domestic Market, and it is also planned to export these products to other countries in the near future, since the products produced are competitive in the foreign market.

One of the promising plants on the territory of the Sumgait Technological Park which has been operating since December 2009. is a Plastic pipe Factory.[ 2 ] the Plant specializes in the production of water and gas pipes, drip irrigation pipes, telecommunications and drainage pipes, multi-layer polyethylene pipes with aluminum inserts for heating systems and other types polypropylene pipes. In addition to plastic pipes, various types of PE, PP fittings, polycarbonate sheets and PVC profiles are produced. The Plant has more than 80 different production lines.

Heavy Machinery plant, commissioned in 2011. This plant has become an important element in the development of the machine-building industry in Azerbaijan.

The annual capacity of the Heavy Machinery Plant is 120,000 tons. [ 4, page 5]

There are two areas within the plant: crane repair and crane manufacturing.

Composition of the Heavy Machinery Plant

Figure 1

The Foundation of the Press factory was laid on may 26, 2010 on the territory of STP covering an area of more than 11160 m2, and finally launched in August 2011. This plant uses high-tech lines and universal pressing equipment of well-known brands that meet international standards. The hydraulic press, which has no analogues in the country, is able to process various chassis parts and other parts for the automotive industry. This equipment is unique. The uniqueness lies in the ability to work not only in Autonomous mode, but also in combination with other equipment, the so-called tandem, and this, in turn, allows you to work on larger and larger parts for cars. On the territory of the Sumgait Technopark there is a polymer products factory, which is the largest in the region.

Evaluating the Effectiveness of Azerbaijan's Technoparks and Industrial Zones

The creation of technopolises abroad can be considered as one of the most ambitious social experiments in the twentieth century, covering a wide range of economic, technical and technological, research, communication, social and other problems that go far beyond the limits of today in their significance and consequences.

After analyzing the activities of technoparks around the world, you can see both positive and negative aspects in the work of technoparks. Positive aspects in the development of Technology Parks should be applied when creating a similar structure on the territory of our country.

Positive aspects of creating technoparks

Figure 2

1. The most important is the state's interest in the development of technology parks, allowing them to commercialize innovative ideas, and provide assistance and support to achieve results in various industries. This understanding leads to serious and high-quality support of technoparks from the state.

2. Serious support of the Technopark's resident companies from the management company, which attract "anchor residents" who could provide financial support by investing their capital, thereby enabling tremendous business development companies.

3. Developed system of services. Here we mean not only assistance and services to residents within the framework of business services, but also services aimed at business development. These services include:

Assistance in forming a legal entity that is the owner of ideas;
Learning the basics of doing business;
To promote the implementation of R & d and implementation results.

In 2014, the industrial sector of Azerbaijan was under special attention. This year, more than 230 new industrial enterprises were put into operation, existing production facilities were expanded and the foundations for the future of the country's industrial industry were laid.

The Role of the State in the Development of Technoparks

The modern economy is extremely complex, and it is designed to create conditions for a wide variety of activities of people. Depending on how the economy is organized, on what principles this organization is built, you can determine what tasks it is able to solve, what interests of society and various social groups it can meet. The state plays an important role in ensuring the normal functioning of any modern economic system. The state throughout its history, along with the tasks of maintaining order, law and order, and organizing national defense, has performed certain functions in the economic sphere.

State regulation of technoparks activity is a set of measures implemented by the state authorities of the subjects of the Republic of Azerbaijan and local self-government bodies aimed at establishing a legislative basis for the implementation of activities by technoparks, determining measures of state support for technoparks, ways to manage the activities of technoparks, developing requirements for technoparks and assigning the status of a Technopark.

The state authorities of the subjects of the Republic of Azerbaijan interact in the sphere of state regulation of technoparks by:

1) participation in the work of the interdepartmental Commission for coordinating the creation, operation and development of technoparks in the field of high technologies;

2) providing state support to technoparks, which is carried out by the bodies of the subjects of the Republic of Azerbaijan by providing property, financial resources, tax and other benefits, information support and other assistance to the management company of the Technopark, founders or residents of the Technopark;

3) providing information and consulting support, which is carried out by the bodies of the subjects of the Republic of Azerbaijan in order to establish relations with interested economic entities, promote the products of technoparks on the domestic and international markets, protect the results of intellectual activity, and create other measures to promote the development of technoparks.

The goals of state regulation for the creation and the purpose of technoparks is to accelerate the innovative development of the Republic of Azerbaijan, meet its needs for innovative products and services, increase the competitiveness of such products and services in the domestic and international markets, strengthen the integration of science, education and production, and solve other socio-economic problems.

For the development of national TPs, the government has developed special programs:

- "plan for the development of technopolisies", which involves the provision of subsidies, low-interest loans for venture capital business, reduction of payments for the lease of industrial facilities and buildings.

- "plan for the location of scientific production", which presupposes the territorial concentration of regional industries and their association by specialization.

- a "basic research plan" that promotes the development of the enterprise in the early stages of its existence.

Special programs for the development of national TPs

Figure 3

Policy conducted in the Republic of Azerbaijan is aimed at the development of the industry, enhancement of the socio-economic level of the population, reduction of poverty, increase of oil production, creation of new production sectors, increase of the level of self-sufficiency in basic foodstuffs and construction materials.

References:

State Program Of The Republic Of Azerbaijan " About National Strategy for the Development of Science for 2009-2015".
Information and Cultural Portal in City. Sumgait industrial Park http://incity.az/
Materials of the Ministry of Economic Development of Azerbaijan (www.economy.gov.az)
Technical assistance Programs with the participation of Azerbaijan http://www.tracecaorg.org/en/technical-assistance/

State Statistical Committee of the Republic of Azerbaijan http://www.stot.kuv.oz/menu/11/
Mechanism of state support of technoparks / / "Entrepreneurship" - 2007. - №5.
The Role of Techno Parks in the Process of Commercialization of Technological Innovations // Integral-2007
Hajiyev Sh. "Azerbaijan on the way to world peace community:foreign economic development strategy". Kiev: 2018

Economics and Business Referential and Reviewed International Scientific-Analytical Journal of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business

ISSN 1987-5789 ESSN 2587-5426 doi 10.56079	Journal number 3 ∘ Zumrud Nadjafova ∘ Natiq Gurbanov ∘ The Process of Formation and Stages of the Development of Technoparks in Azerbaijan Technopark is a subject of scientific and innovative infrastructure that creates conditions that positively affect the development of production in the scientific and technical sphere, with highly qualified personnel and experimental facilities. The development of the nonoil sector in Azerbaijan is a strategic goal. The government of Azerbaijan is taking all possible measures to develop the production sector. These measures include direct public investment and encouraging entrepreneurs to work actively in the applied economy. In Azerbaijan, there are sufficient natural resources and qualified personnel that contribute to the development of the production sector. Keywords: Development of industry, technopark, plant, state regulation, Azerbaijan JEL Codes: L60, L70, O10, P23, Q55 Industry is the main sector of the economy of Azerbaijan. Since the middle of the last century, thanks to the activities of the national leader of the Azerbaijani people, Heydar Aliyev, metallurgy, mechanical engineering, fuel and energy, food, light, chemical and other industries have started to develop. The volume of industrial production at the enterprises of the Republic of Azerbaijan (AZN million) *Source:* the table is based on the materials of the state statistics Committee of the Republic of Azerbaijan [33] As we can see from the table, over the period of 2009-2014, the volume of industrial production actually increased by 3.5 times. In this direction, an important role was played by the reforms implemented at manufacturing enterprises. The development of industry in Azerbaijan is a priority direction of the socio-economic policy that is being implemented in the country. Based on the Decree of the Head of state, 2014 was declared the "Year of industry" in Azerbaijan. [13. c. 338.] In Azerbaijan, there are sufficient natural resources and qualified personnel that contribute to the development of the production sector. The construction of a Technology Park in our country has created thousands of jobs. This improves the social level of the population. In April 2009, the Law "on the establishment of Special economic zones in the Republic of Azerbaijan" was adopted. [1. p. 78-82.] As a result of the adoption of this law, it is expected to expand innovation activities in different regions of the country, solve socio-economic problems, develop the country's regions and lagging sectors of the economy, and increase the export potential of the country's non-oil sector. Azerbaijan has the "State Program of the Republic of Azerbaijan On the national strategy for the development of science for 2009-2015", [4.p.82.] which provides for the development of technoparks in the Republic. As a result, organizations such as UNESCO provide support to the Republic of Azerbaijan in the development of technoparks. Technopark is a means of creating an innovative, knowledge-intensive and competitive economy At the event held on March 12, 2014 in connection with the announcement of the year of industry, the idea of creating industrial quarters was first put forward. On April 8, 2014, President Ilham Aliyev signed a decree "on the establishment of industrial districts and the organization of their activities" [ 2 ]. This document stated that industrial districts are of great importance for the development of small and medium-sized businesses, the organization of the production process, strengthening cooperative ties,and other issues. On the territory of industrial blocks, it is planned to create external and internal infrastructure, which is an advantage of the blocks. The advantage is to save money on creating infrastructure for your company. Industrial districts will be created in such a format that they can function in small areas of the country. At the moment, it is planned to create one industrial quarter in each economic zone of Azerbaijan. After evaluating their activities, blocks will be created in other regions of the country. The Sumgayit technopark Since the 70s of the XX century, the national leader Heydar Aliyev has laid the Foundation for the development of today's successful economy of Azerbaijan. President Ilham Aliyev, continuing this policy, implemented a large number of economic reforms, which led to favorable conditions for private entrepreneurs. In this regard, in the territory of the Republic of Azerbaijan, In the city of Sumgayit, in accordance with the relevant Decrees and Orders of President Ilham Aliyev, Azenco OJSC has built a giant Sumgayit Technology Park. STP is considered one of the largest technology parks in Europe. Sumgayit was built immediately after the Second world war as a center of the chemical industry and aluminum industry. Decline 32 industrial production in the early 1990s strongly affected Sumgayit factories, but thanks to the purposeful policy of our state, Sumgayit began to reborn. Gradually, an aluminum plant was put into operation, then a pipe plant, and production began to improve. In Sumgayit Technological Park, consisting of 17 plants. These factories create various types of products that play an important role for our country. This company is one of the largest tax payers, which contributes to the stable development of the economy of the Republic of Azerbaijan. Thanks to the construction of the Sumgayit Technological Park, thousands of jobs were opened, which led to an improvement in the social level of the population. Highly qualified specialists with extensive experience in this field are involved in the work at this Technopark. All actions to attract staff are fully in line with the overall socio-economic policy of the government of Azerbaijan. The following enterprises are currently operating in the STP: Cable factory Plant, plastic pipe Plant, hot-dip galvanizing Precision machinery manufacturing plant heavy machinery Plant Plant for the production of electrical equipment Plant of technical gases. All these plants have machines and equipment based on the latest technologies and purchased in developed industrial countries of the world - Japan, great Britain, Belgium, China, etc. Application at the factories of the latest technologies in the production of products is not limited only to internal needs, but also creates opportunities to export products, and does not harm the environment. The products produced at the factories of the Sumgait Technological Park can meet the needs of the domestic Market, and it is also planned to export these products to other countries in the near future, since the products produced are competitive in the foreign market. One of the promising plants on the territory of the Sumgait Technological Park which has been operating since December 2009. is a Plastic pipe Factory.[ 2 ] the Plant specializes in the production of water and gas pipes, drip irrigation pipes, telecommunications and drainage pipes, multi-layer polyethylene pipes with aluminum inserts for heating systems and other types polypropylene pipes. In addition to plastic pipes, various types of PE, PP fittings, polycarbonate sheets and PVC profiles are produced. The Plant has more than 80 different production lines. Heavy Machinery plant, commissioned in 2011. This plant has become an important element in the development of the machine-building industry in Azerbaijan. The annual capacity of the Heavy Machinery Plant is 120,000 tons. [ 4, page 5] There are two areas within the plant: crane repair and crane manufacturing. Composition of the Heavy Machinery Plant Figure 1 The Foundation of the Press factory was laid on may 26, 2010 on the territory of STP covering an area of more than 11160 m2, and finally launched in August 2011. This plant uses high-tech lines and universal pressing equipment of well-known brands that meet international standards. The hydraulic press, which has no analogues in the country, is able to process various chassis parts and other parts for the automotive industry. This equipment is unique. The uniqueness lies in the ability to work not only in Autonomous mode, but also in combination with other equipment, the so-called tandem, and this, in turn, allows you to work on larger and larger parts for cars. On the territory of the Sumgait Technopark there is a polymer products factory, which is the largest in the region. Evaluating the Effectiveness of Azerbaijan's Technoparks and Industrial Zones The creation of technopolises abroad can be considered as one of the most ambitious social experiments in the twentieth century, covering a wide range of economic, technical and technological, research, communication, social and other problems that go far beyond the limits of today in their significance and consequences. After analyzing the activities of technoparks around the world, you can see both positive and negative aspects in the work of technoparks. Positive aspects in the development of Technology Parks should be applied when creating a similar structure on the territory of our country. Positive aspects of creating technoparks Figure 2 1. The most important is the state's interest in the development of technology parks, allowing them to commercialize innovative ideas, and provide assistance and support to achieve results in various industries. This understanding leads to serious and high-quality support of technoparks from the state. 2. Serious support of the Technopark's resident companies from the management company, which attract "anchor residents" who could provide financial support by investing their capital, thereby enabling tremendous business development companies. 3. Developed system of services. Here we mean not only assistance and services to residents within the framework of business services, but also services aimed at business development. These services include: Assistance in forming a legal entity that is the owner of ideas; Learning the basics of doing business; To promote the implementation of R & d and implementation results. In 2014, the industrial sector of Azerbaijan was under special attention. This year, more than 230 new industrial enterprises were put into operation, existing production facilities were expanded and the foundations for the future of the country's industrial industry were laid. The Role of the State in the Development of Technoparks The modern economy is extremely complex, and it is designed to create conditions for a wide variety of activities of people. Depending on how the economy is organized, on what principles this organization is built, you can determine what tasks it is able to solve, what interests of society and various social groups it can meet. The state plays an important role in ensuring the normal functioning of any modern economic system. The state throughout its history, along with the tasks of maintaining order, law and order, and organizing national defense, has performed certain functions in the economic sphere. State regulation of technoparks activity is a set of measures implemented by the state authorities of the subjects of the Republic of Azerbaijan and local self-government bodies aimed at establishing a legislative basis for the implementation of activities by technoparks, determining measures of state support for technoparks, ways to manage the activities of technoparks, developing requirements for technoparks and assigning the status of a Technopark. The state authorities of the subjects of the Republic of Azerbaijan interact in the sphere of state regulation of technoparks by: 1) participation in the work of the interdepartmental Commission for coordinating the creation, operation and development of technoparks in the field of high technologies; 2) providing state support to technoparks, which is carried out by the bodies of the subjects of the Republic of Azerbaijan by providing property, financial resources, tax and other benefits, information support and other assistance to the management company of the Technopark, founders or residents of the Technopark; 3) providing information and consulting support, which is carried out by the bodies of the subjects of the Republic of Azerbaijan in order to establish relations with interested economic entities, promote the products of technoparks on the domestic and international markets, protect the results of intellectual activity, and create other measures to promote the development of technoparks. The goals of state regulation for the creation and the purpose of technoparks is to accelerate the innovative development of the Republic of Azerbaijan, meet its needs for innovative products and services, increase the competitiveness of such products and services in the domestic and international markets, strengthen the integration of science, education and production, and solve other socio-economic problems. For the development of national TPs, the government has developed special programs: - "plan for the development of technopolisies", which involves the provision of subsidies, low-interest loans for venture capital business, reduction of payments for the lease of industrial facilities and buildings. - "plan for the location of scientific production", which presupposes the territorial concentration of regional industries and their association by specialization. - a "basic research plan" that promotes the development of the enterprise in the early stages of its existence. Special programs for the development of national TPs Figure 3 Policy conducted in the Republic of Azerbaijan is aimed at the development of the industry, enhancement of the socio-economic level of the population, reduction of poverty, increase of oil production, creation of new production sectors, increase of the level of self-sufficiency in basic foodstuffs and construction materials. References: State Program Of The Republic Of Azerbaijan " About National Strategy for the Development of Science for 2009-2015". Information and Cultural Portal in City. Sumgait industrial Park http://incity.az/ Materials of the Ministry of Economic Development of Azerbaijan (www.economy.gov.az) Technical assistance Programs with the participation of Azerbaijan http://www.tracecaorg.org/en/technical-assistance/ State Statistical Committee of the Republic of Azerbaijan http://www.stot.kuv.oz/menu/11/ Mechanism of state support of technoparks / / "Entrepreneurship" - 2007. - №5. The Role of Techno Parks in the Process of Commercialization of Technological Innovations // Integral-2007 Hajiyev Sh. "Azerbaijan on the way to world peace community:foreign economic development strategy". Kiev: 2018