UN official urges Azerbaijan to boost innovation, export competitiveness

Azerbaijan can strengthen its position in regional and global value chains by promoting innovation, developing the private sector and improving export competitiveness, UN Resident Coordinator in Azerbaijan Dmytro Shlapachenko said.

Speaking during a panel discussion at the 2nd Azerbaijan International Investment Forum (AIIF 2026) in Baku, Shlapachenko said Azerbaijan could target major regional economies for greater integration into value chains, helping expand its non-oil production and exports, Caliber.Az reports, citing local media. 

"For example, in 2025, total imports into the European Union from non-EU countries amounted to around $3 trillion. This is an area where Azerbaijan can find advantages, complemented by the Port of Baku and the railways we have been discussing. On the other hand, Azerbaijan needs to invest in a workforce equipped with the skills required by the Fourth Industrial Revolution. We know that Azerbaijan has taken important steps to strengthen human capital and innovation ecosystems. Building on these efforts will be very important," he said.

Shlapachenko also highlighted the importance of strengthening Azerbaijan’s regulatory framework and harmonising standards to support manufacturing exports and value-chain integration.

"As global trade becomes increasingly competitive, countries are looking for every possible way to reduce costs and gain a competitive advantage. Expanding manufacturing exports and integrating into value chains depend particularly on minimising additional costs, including those arising from regulatory differences or inconsistencies in standards. Here, we should look closely at the experience of countries that are members of the World Trade Organization, as this has helped them align their standards with international norms," he said.

The UN official said Azerbaijan had several characteristics that could support its development as a regional manufacturing hub.

"This includes its strategic location, modern infrastructure, growing industrial capabilities, and commitment to reforms. Today, we also heard a very clear vision for economic diversification," Shlapachenko said.

By Sabina Mammadli