DEVELOPMENT CONCEPT “AZERBAIJAN - 2020: OUTLOOK FOR THE FUTURE” Project new impetus in this regard are seriously affecting the socio-economic life of various countries. In this sense, Azerbaijan is no exception. Factors of a global and planetary nature are penetrating the flow of processes almost in all the spheres of the country’s life – economic, social, political, humanitarian-cultural, etc. Along with that, as is the case in any country, in Azerbaijan there are also regional (typical of regional countries) and domestic factors by origin and sphere of influence, and taking them into account in managing various spheres of the country’s public life is of special importance in terms of forming an effective policy. The main factors (challenges) are divided as follows for convenience. 1. With the gradual intensification of innovative activity at a qualitatively new level in conditions of globalization, the pace of change in economic processes in the whole world, copying of innovations and their application in the sphere of production is increasing in an unprecedented manner. This, in fact, is the “positively charged” effect of globalization and gradually allows an increasing number of countries to benefit from achievements in the sphere of innovations, advanced technical standards and new methods in management. According to predictions, world economic growth in the short- and medium-term will take place precisely as a result of this factor. In the coming years, trade is expected to grow more rapidly than production worldwide and globalization and regional integration is expected to expand even further. It is believed that new standards will be determined regarding international trade, competition, intellectual property and the environment and the role of international organization in this sphere will strengthen. The global and regional competitiveness of countries that prefer specialization on the international market, develop production technologies and innovative potential and thus promote the fields that create higher added value is expected to increase. The development of industry on the basis of innovations will be possible as a result of the strengthening of scientific and technological potential and expansion of education opportunities. It is important to ensure that developing countries achieve economic growth based on productivity and form comparatively more advantageous production spheres. 2. In this situation, the main issue facing Azerbaijan is that countries of the world do not retreat in the process of development. This, first and foremost, requires constant attention to such an important issue as preventing the danger of the country turning into a raw material appendage for the world economy in the medium- and long-term and becoming a technological “outsider” by eliminating the economy’s current dependence on the export of hydrocarbon reserves. Although the export of hydrocarbons has been the main driving force of economic growth in the past decade, the main issue facing us at the current stage is to ensure the rapid development of the non-oil sector, increase the effectiveness and competitiveness of the economy and secure its progress based on 6