Innovative and Traditional Industries in the Azerbaijan Economy: Dualism or Contradictions

Azerbaijan is one of the best developed economies in CIS, its oil and gas sector contributes to the development of the country the most significant part. At the same time, the innovative sector plays a very important role in the contemporary situation – the oil prices are hard to predict, the global situation is turbulent. In this regard, the development of innovative economy for Azerbaijan is one of the key priorities. The article aims at the revelation of the main aspects of interactions between the traditional and innovative industries of the country’s economy and to assessing the risks and benefits that the shift to innovations may bring to the economy of the country. The novelty of the article incorporates the development of the ineffective innovations vicious circle for the economy of the country. Keywords—Azerbaijan; innovations; traditional industries; influence; institutions