Dr Gubad Ibadoghlu, Economic Research Center
In 2020, the European Commission adopted its European Data Strategy. On November 25, 2020, the European Commission issued the Data Governance Act, the first proposal regarding the implementation of the Strategy. With the Strategy implementation, the EC is targeting to reach €829 billion value of the data economy in 2025 in EU from €301 billion (2.4% of EU GDP) in 2018.
StrategEast has interviewed leading experts from Eastern Partnership countries to hear about the role of the data economy in their home countries. Here are the answers from the expert on Azerbaijan.
Does your country use data-sharing platforms and ecosystems?
In our country, the agency responsible for ICT policy and regulation is the Ministry of Transport, Communication and High Technologies (MTCHT) of the Republic of Azerbaijan. Data-sharing platforms and ecosystems are already established, but not operating effectively. Thus, the High Tech Park, established by a presidential decree in 2012, consists of 50 hectares on Pirallahi Island, a Baku city district, and reports to the MTCHT. Its mission is to help foster a high-tech economy by providing a business-friendly environment with state-of-the-art facilities, economic incentives, and business services. However, today, it is perceived more as an industrial park, so the number of established computer services companies locating there is low. Nevertheless, from 2015 the resident company at Mingachevir High Tech Park started producing computers, tablets, and other electronic devices. Despite the high tech park created data platform and ecosystems, e-commerce remains underdeveloped, limited software sector, and insufficient capacity to develop ICT applications.
What are the perspectives of the data economy in your country, can it bring economic benefits to businesses and citizens?
Azerbaijan’s Information and communication services (ICS) sector generated AZN 2 235,9 million ($1.315 million) in 2020. It accounts for 3.08% of GDP, less than its peer countries with available data and significantly smaller than the European Union and members such as Bulgaria and Romania.
On February 2, 2021, the President of the Republic of Azerbaijan approved “National priorities for socio-economic development: Azerbaijan – 2030” for achieving the new strategic period’s goals. The Azerbaijani Cabinet of Ministers will prepare and submit a draft “Strategy of socio-economic development for 2021-2025” within nine months to the Azerbaijani president. An expansion of the digital economy is one of the goals mentioned.
