[01] Almaz Mehdiyeva, Control and System Engineering Department, Azerbaijan State Oil and Industry University, Baku, Azerbaijan.

One of the most prominent features of entrepreneurial activity in modern times is the entrepreneur's activity in the field of innovation. In the broadest sense, the content of this function is that the entrepreneur creates such conditions and thus innovates his business activities, not expecting a favorable business environment in the economic environment surrounding him. Innovative activity in ensuring the overall dynamism and progress of the country's economy is indispensable. In this regard, the modern features of innovative management in Azerbaijan's economy, problems existing in this area and ways of their solution are the main subjects of the research. It is shown that the establishment and proper functioning of the national innovation system in the market relations in the Republic of Azerbaijan is impossible without the elimination of the various factors that adversely affect this process. The ability of the country to make a technical and economic progress, to reach the international market with competitive and high-tech products directly depends on the government's favorable environment and the benefits that it has created in the field of innovation to domestic and foreign firms.

Azerbaijan's Economy, Economic Progress, Innovation Management, Innovation System, Innovation Activities, Economic Environment

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