Centre for the Fourth Industrial Revolution Network 2023-2024

28 Action: The Digital FDI project began with a series of strategic meetings outlining objectives and defining actionable strategies. Surveys and interviews were conducted with local and international enterprises already active in Azerbaijan’s digital economy, providing a comprehensive understanding of market dynamics, challenges and potential. The gathered data was analysed and presented during a workshop on 4 December 2023. Feedback from these sessions was instrumental in refining the initiative’s approach, resulting in a draft report that was reviewed by relevant state institutions. Next steps: The project includes the creation of the InvesTech calculator – a tool designed to streamline investment decision-making by offering clear insights into the digital investment landscape. This tool represents a key component of the project’s strategy to attract more foreign direct investment by enhancing transparency and simplifying the investment process. Result: The Digital FDI initiative has started making significant impact by fostering a culture of innovation and entrepreneurship in Azerbaijan. The workshops have facilitated knowledge-sharing and strategic efforts to align local businesses with global digital transformation trends. Companies and start-ups have been equipped with actionable insights into their digital readiness and areas for improvement, positioning them to attract investment and scale their operations. Azerbaijan Context: In a rapidly evolving global landscape, where digital transformation is central to economic growth, Azerbaijan seeks to position itself as a competitive player by creating an attractive investment environment for both local and international stakeholders. “IDEA: Investing in the Digital Economy of Azerbaijan” has praised Azerbaijan for its notable progress in fostering a supportive environment for start-ups and innovation. The report highlights the crucial role of attracting foreign investment, invigorating the private sector, advancing digitalization and implementing relevant policies for driving the country’s socio-economic development. Mikayil Jabbarov Minister of Economy, Republic of AzerbaijanCase study 11: Digital economy and foreign investment