Azerbaijan has dropped 7 positions in the global startup ecosystem rankings.
Startup.az reports that Azerbaijan ranked 74th last year. However, the report notes that the country’s startup ecosystem recorded an annual growth rate of 7.3%.
The performance of regional countries also drew attention in the ranking. Uzbekistan climbed 19 positions within a year to rank 79th, showing 227% growth. Georgia moved up five places with 78% growth, while Kazakhstan ranked 71st and Armenia placed 55th.
The report ranked the United States first globally, followed by Israel in third place, China in 15th, and India in 21st. Saudi Arabia has emerged as one of the fastest-rising countries in recent years, climbing to 28th place.
Azerbaijan’s ranking dynamics over recent years were as follows:
- 2020 — 70th place
- 2021 — 89th place
- 2022 — 85th place
- 2023 — 84th place
- 2024 — 80th place
- 2025 — 74th place
- 2026 — 81st place
President of the Azerbaijan Internet Forum and expert Osman Gunduz commented on the report, stating that competition among startup ecosystems worldwide has intensified significantly. He emphasized that Central Asia, the Gulf countries, and Eastern Europe are experiencing rapid development. The “StartupBlink” report specifically highlights Central Asia as the fastest-growing subregion in the world.
He noted that Azerbaijan has taken several steps in recent years to support the innovation and startup ecosystem. Various initiatives have been implemented by Innovation and Digital Development Agency (IDDA), Small and Medium Business Development Agency (KOBIA), ASAN Service, and SABAH.HUB.
At the same time, the report points to a number of ongoing systemic challenges in the sector. These include limited access to investment, the absence of venture financing legislation, weak innovation support within universities, and the difficulties faced by early-stage startups in surviving in the market.
According to the expert, amid increasingly aggressive and systematic approaches by neighboring countries, Azerbaijan now needs to move beyond an event-oriented model and focus on real investment, technology transfer, and global integration.
It was also noted that expectations from the Innovation and Digital Development Agency remain high, although the institution is still facing challenges in the areas of startups and innovation development.
