BAKU, Azerbaijan, September 1. The scope of
activities of technology parks in Azerbaijan is being expanded,
Trend's
correspondent reports.


Sabina Humbatzade, head of the Legal Support Department at the
Innovation and Digital Development Agency (IRIA), said this during
her speech on "Development of the digital and innovation ecosystem
in Azerbaijan: new legislative opportunities" held as part of an
educational session titled "Digital skills for the media".


“A technology park is a place where innovative and high-tech
products are developed and produced, related scientific research is
conducted, and products are commercialized,” she said.


According to her, the activities of technology parks are
regulated based on the “Model Regulations on Technology Parks,”
approved by Decree No. 168 of the President of the Republic of
Azerbaijan in 2014.


Humbatzade said one of the new approaches involves expanding the
extraterritoriality principle in relation to technology park
residency.


“Previously, a technology park resident referred only to
individuals and legal entities operating within the physical
territory of the technology park. Later, we introduced the concept
of an external technology park resident. Such a resident can
operate remotely without being located within the physical
territory,” she said.


The department head said that until now, the scope of activities
of external technology park residents had been largely limited to
the development and creation of software.


“Applications we received showed that there are numerous
entities operating in digitalization and innovation that are not
engaged in software development. Although their activities are
related to digital development and innovation, they could not
obtain external technology park resident status under the existing
framework. As a result, they could not benefit from the available
incentives,” Humbatzade said.


She said that for this reason, the areas of activity permitted
for external technology park residents are being expanded.


The new approach identifies 10 main activity domains:



  • artificial intelligence and data analytics;

  • cybersecurity;

  • cloud and digital infrastructure;

  • gaming and creative technologies;

  • startup and venture building;

  • Internet of Things (IoT);

  • high technologies and green energy;

  • software;

  • supporting IT services;

  • scientific research.


“This is not limited to these areas. Each of these 10 main
domains includes subdomains and subcategories. Applicants can also
operate in these areas and apply for residency,” the department
head added.







According to Humbatzade, several burdensome requirements
currently applicable to admission as an external technology park
resident are also being removed.


“Previously, requirements included having at least one employee,
already selling a product or having operated for a certain period
of time in order to become a resident. This prevented startups at
the idea stage from obtaining residency and benefiting from
incentives,” she said.


She said that under the new approach, these requirements will be
abolished.


“Currently, there are no burdensome requirements for admission
as an external technology park resident. An individual or company
can declare that it operates in one of the designated areas of
activity, apply and obtain residency,” Humbatzade stressed.


According to her, residents operating within the physical
territory of a technology park gain access to the relevant premises
and infrastructure, while external residents can benefit from
incentives provided for by legislation.


Humbatzade also said that the concept of a “non-resident” has
been added to the legislation.


“Non-residents are entities that are not directly engaged in
innovation or digital development activities and mainly operate in
public catering and other service sectors within the territory of a
technology park. It is important for residents operating within a
physical technology park to have access to services such as cafes,
restaurants and networking facilities,” she said.


The department head said that no special incentives are
currently applied to non-residents.


“In the near future, taking into account international practice,
the introduction of certain incentives or exemptions for these
entities may be considered,” Humbatzade added.