Opportunities and Challenges in the Innovation Ecosystem Discussed with Startups and Technology Companies within the “Baku ID” Framework

18 September 2026

An “Ecosystem Meetup” meeting was held on the initiative of the Innovation and Digital Development Agency (IDDA) with leading technology companies and startups in Azerbaijan. Nearly 20 companies were represented at the meeting, held within the framework of “Baku ID.”

Deputy Minister of Digital Development and Transport Rashad Hasanov provided detailed information on large-scale reforms being implemented in the country 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 Program and the “Digital Horizons” project aimed at enhancing the digital literacy of employees of government institutions.

Touching upon the development of human capital in the IT sector in Azerbaijan, Rashad Hasanov noted that there are certain challenges in the labor market: “There is a significant gap between supply and demand in the IT labor market. Although the number of graduates with IT degrees is sufficient, graduates face difficulties finding jobs relevant to their fields. On the other hand, IT companies face difficulties finding mid- and senior-level professionals with relevant experience. In other words, the balance between supply and demand in the market is disrupted.”

He also noted that international experience has been studied to address this issue and that, within the framework of relevant reforms, mechanisms for training, reskilling, and attracting IT specialists to the labor market are planned to be introduced.

The Deputy Minister also provided information about the “Digital Horizons” National Digital Literacy Training Program. A new learning platform has been developed for 30,000 employees of government institutions, featuring materials and examination modules covering artificial intelligence and cybersecurity. The program will be launched in October.

The initiative aims to systematically develop digital skills, accelerate digital transformation in public administration, and strengthen employees’ ability to use modern technologies effectively and securely.

In his speech, Chairman of the Board of IDDA Farid Osmanov presented the “OpenWave” Open Innovation Program developed by the Agency to ecosystem representatives. He stated that the program offers opportunities to address real operational challenges faced by institutions and organizations through artificial intelligence technologies: “This program serves as a bridge between the real challenges faced by institutions and startup solutions. Workshops are held on problems identified by institutions, during which startup solutions are presented. Selected solutions are tested at the prototype level in real working environments, and the results are analyzed by the institutions.” He added that at the initial stage, the program was implemented in September of this year together with “Plug and Play” for “Azerbaijan Railways” CJSC and “Baku Metro” CJSC.

Following the presentation session, discussions were held with the companies. Participants exchanged views on technoparks, increasing the potential for expansion into local and international markets, challenges faced by startups, and other important topics. It should be noted that the main purpose of the “Ecosystem Meetup” events regularly organized by IDDA is to strengthen connections within the innovation ecosystem and facilitate in-depth discussions on experience, knowledge, achievements, and future plans.