ICT ministry promotes innovative ideas of young developers
By Nigar Orujova
Azerbaijan's Communications and Information Technologies Ministry is ready to assume the commitment to fund the patenting of innovative ideas of young developers, ICT Minister Ali Abbasov said at the conference "Internet business in Azerbaijan: current state and prospects of development" on July 4.
According to Abbasov, the new innovative ideas must be patented in Azerbaijan's Copyright Agency as well as in similar organizations operating in Europe and Asia.
"This is a very important issue. Thereafter, these ideas can be submitted for public discussion. On the other hand, we are ready to support the discussion of these ideas with investors. We can also act as a sponsor in this matter," Abbasov said.
The ICT Ministry is eyeing the creation of venture capital funds, aimed to financially support start-up projects, he said.
According to Abbasov, talks on the issue are currently underway with the private sector of the country, as well as with major international companies.
"Creation of funds with private capital is a very important issue. They can be a major source of funding for start-up companies. Accordingly, we are also planning to develop this direction. Azerbaijan is a small country and the market size is limited. Market expansion can be achieved through innovation development," he said.
The minister believes that currently Azerbaijani youth has enough knowledge and skills. The main obstacle is the lack of financial resources for further generation of ideas, which is typical for many countries. The state has a number of mechanisms for financial support of intelligent young people like the ICT Fund or high-tech parks.
In the near future, the government plans to provide companies involved in the ICT sector with special tax and customs benefits.
The parliament of the country has already approved the tax benefits for enterprises operating in the high-tech parks.
The customs duty for computers imported into the country is 3 percent, while the duty on imports of spare parts for their production ranges from 10 to 15 percent of the cost.
2013 was declared the ICT Year in Azerbaijan. The action plan on the ICT Year includes the activity of the State Fund for ICT Development, the High Technologies Park, Information Security Center, Virtual Qarabag ICT center, and IT University.
The State Fund was established to implement the state policy on development and support of small enterprises in the scientific and technical fields and defines three ways of financing - investments, grants and credits.
Each Azerbaijani citizen may avail of the advantages of the ICT Fund's financing. Financial aid to enterprises will be arranged through contests. Businesses can borrow small, medium and large loans.
According to the ICT Ministry, the initial financing volume of the Fund for 2013 is 15 million manats (over $19 million).
High-Tech Park was established in Azerbaijan to create laboratories for start-ups where developers will be allowed to implement the projects technically.
High Tech Park is envisaged for the development of IT projects and operation of IT companies. Organizational work on creating the 30 hectare area IT high technology park, located in Sumgayit, an industrial city some 30 km north of the capital Baku, is underway in the country. Participants of the high-tech parks will be tax and customs duty-exempt for seven years.