Azerbaijan’s startup ecosystem has made steady progress, with notable improvements in global rankings over the past decade. Once considered underdeveloped, the country began gaining traction around 2018, driven by government initiatives promoting digitization, innovation, and business-friendly reforms. The Startup Genome report noted a rise in ecosystem maturity from 3.2 in 2018 to 3.6 by 2021, placing Azerbaijan among the top 50 emerging ecosystems in its region. Growth in sectors like fintech, e-commerce, and software development has also contributed to this momentum.
StartupBlink’s Global Ecosystem Index reflects a similar trend. Azerbaijan rose to 80th globally in 2024, with Baku advancing to 344th. Efforts by Barama VC and the Ministry of Digital Development and Transport have helped improve access to funding and policy support. The Global Innovation Index ranked Azerbaijan 65th in 2021, up from 74th in 2019, reflecting a move toward a more diversified, tech-driven economy.
However, a drop to 95th in 2024 suggests that implementation gaps and regulatory challenges remain.While progress is evident, entrepreneurial knowledge and ecosystem maturity are still developing. Over the next years, strategic actions of EU4Innovation East will aim at creation of a dynamic, self-sustaining, and globally connected innovation ecosystem in Azerbaijan.
Our activities are strategically structured to maximize impact, engagement, and alignment with the overarching objectives by focusing on early-stage funding, high-performance incubation, community development, and enhancing the international visibility of local startups.
