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The global innovation ecosystem analysis platform Startup Genome has released its 2025 report. The report highlights that Azerbaijan has made progress in several areas of innovative technologies. Specifically, the country demonstrates competitive indicators in sectors such as ICT, digital technologies in public administration, and the gaming industry. Additionally, the report states that Azerbaijan ranks among the top 25 countries in Asia for access to talent within the ecosystem.

According to Startup Genome, Azerbaijan’s ecosystem is comprehensively supported by the government’s approach to digital transformation, cybersecurity, and human capital development. In this context, the report particularly emphasizes the activities carried out by the Innovation and Digital Development Agency (IDDA). Thanks to the Agency's initiatives, a number of projects have been implemented in 2024–2025 in partnership with globally recognized companies such as Microsoft, Viveka, and Startup Wise Guys, while the scope and scale of digital government services have been significantly expanded. Furthermore, as part of the country’s strategy to develop the gaming industry, an incubation program for game studios is being conducted in cooperation with the reputable Xsolla company.

The report also notes that Azerbaijan's technoparks offer favorable conditions for both local and international technology companies. Residency in these technoparks provides various incentives for both domestic and foreign firms. Foreign companies choose Azerbaijan due to its strategic location, tax benefits, and access to high living standards.

The report features a statement by Farid Osmanov, Chairman of IDDA, on Azerbaijan’s digital transformation and innovation ecosystem:

“Azerbaijan’s innovation ecosystem is evolving based on digital transformation, strategic investments, and public-private partnerships. We are building a regional technology hub that combines effective technological solutions by nurturing local human capital and startups, aligned with global challenges and guided by sustainable entrepreneurship principles.”

Stefan Kuesser, Managing Partner at Startup Genome, also shared his views on Azerbaijan’s startup ecosystem:

“Azerbaijan’s startup ecosystem holds strategic importance in the region due to its international connectivity and the development of a dynamic tech community. Innovation initiatives are deepening, creating a solid foundation for long-term growth. Our partner, the Innovation and Digital Development Agency, plays a key role in fostering innovative entrepreneurship and positioning the country as a regional innovation power.”

It is worth noting that the 2025 Startup Genome report analyzes the innovation ecosystems of over 65 countries. Over the past decade, the platform’s reports have provided key indicators of innovation ecosystems by country and region, highlighting ecosystem drivers and strategic development objectives.