Azerbaijan can move up global value chains through innovation, UN official says

Azerbaijan can move up the regional and global value chains by promoting innovation, private sector development, and export competitiveness, UN Resident Coordinator in Azerbaijan Dmytro Shlapachenko said during a panel discussion held as part of the 2nd Azerbaijan International Investment Forum (AIIF 2026) in Baku, Report informs.

Shlapachenko emphasized that the major economies in the region can be targeted for value chain integration to further increase the country's non-oil production and exports: "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 strengthening the regulatory framework and harmonization of standards is of great importance for Azerbaijan: "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 minimizing 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."

The UN official emphasized that Azerbaijan has many characteristics needed to become 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."