Opportunities and Challenges in the Innovation Ecosystem Discussed with Startups and Technology Companies as Part of “Baku ID”

An “Ecosystem Meetup” was held at the initiative of the Innovation and Digital Development Agency (IDDA) with leading technology companies and startups in Azerbaijan. Held as part of “Baku ID”, the meeting brought together representatives of nearly 20 companies.

Deputy Minister of Digital Development and Transport Rashad Hasanov provided detailed information on the large-scale reforms being implemented in Azerbaijan in the field of digital development, the priorities arising from the “Action Plan for 2026–2028 on Accelerating Digital Development in the Republic of Azerbaijan”, and legislative initiatives in the field of innovation, including the “OpenWave” Open Innovation Programme and the “Digital Horizons” project, which aims to enhance the digital literacy of employees of government agencies.

Addressing the issue of human capital development in the IT sector in Azerbaijan, Rashad Hasanov noted that there are certain challenges in the labour market: “There is a significant gap between supply and demand in the IT labour market. Although the number of graduates with IT qualifications is sufficient, graduates face difficulties in finding jobs that match their qualifications. At the same time, IT companies have difficulty finding mid- and senior-level professionals with relevant experience in the field. In other words, there is an imbalance between supply and demand in the market.”

He also noted that international experience has been studied to address this issue and that, as part of the relevant reforms, mechanisms are envisaged for training, reskilling and facilitating the entry of IT specialists into the labour market.

The Deputy Minister also provided information on the “Digital Horizons” National Digital Literacy Training Programme. As part of the programme, a new learning platform has been developed for 30,000 employees of government agencies. The platform features learning materials covering such areas as artificial intelligence and cybersecurity, as well as examination modules. The programme is scheduled to launch in October.

The programme aims to systematically develop digital skills, accelerate digital transformation in public administration, and strengthen employees’ competencies in using modern technologies effectively and securely.

During his speech, Farid Osmanov, Chairman of the Management Board of IDDA, presented the “OpenWave” Open Innovation Programme, developed by the Agency, to representatives of the ecosystem. He noted that the programme provides opportunities to address real operational challenges faced by institutions and organisations using artificial intelligence technologies:

“The programme serves as a bridge between real-world challenges faced by institutions and startup solutions. Workshops are held to address problems identified by institutions, during which startup solutions are presented. Selected solutions are tested at the prototype stage in a real working environment, and the results are analysed by the respective institutions.”

He added that the programme was initially implemented in September this year in cooperation with Plug and Play for Azerbaijan Railways CJSC and Baku Metro CJSC.

Following the presentation session, a discussion was held with the participating companies. The event participants exchanged views on technology parks, enhancing the potential for expansion in local and international markets, challenges faced by startups, and other important topics.

It should be noted that the “Ecosystem Meetup” events regularly organised by IDDA aim to strengthen connections within the innovation ecosystem and facilitate in-depth discussions on experience, knowledge, achievements and plans.