ANALYSIS AND ASSESSMENT OF ICT INNOVATIONS IMPACT ON COMPETITIVENESS OF FOREIGN ECONOMIC RELATIONS: AZERBAIJAN’S EXPERIENCE

effective spending


Introduction
The social and political stability, business security, investment environment are the external influence factors, but innovation activity, effective spending, existing infrastructure, human capital demonstrate the characteristics of internal influence factors.
Currently, such a concept is accepted by economiststhe level of technological development of the country, the potential for innovative development is the main criterion of its competitiveness. In recent times, the indicator of the volume of foreign direct investments proposed by authors of paper [1] has been accepted as the main criterion affecting the country's competitiveness.
Countries with low-level technologies and labor-intensive industries are net importers of foreign direct investment (FDI), which occurs in stage 1. In the 2 nd stage with the development of capital-intensive and high-tech production, the volume of foreign direct investment increases, and first the export of mining industry products begins to increase, and then in the 3 rd stage, the production of export-oriented products with high added value increases. Thus, in the 4 th stage typical of developed countries, FDI exports exceed FDI imports, which are accompanied by a high level of competitiveness indicators of national companies and leads to the realization of strategies that are consistent with foreign investment policy. In the 5 th stage, the path of investment development is observed by creating a balance between FDI export and FDI import. Such level of investment development is characteristic of countries that have occupied leading positions in capital-intensive and high-tech sectors around the world.
ICT sector of economy has got the high-technological intensity. In this case author would like to investigate the ISSN 2664-9969 role of ICT sector in innovations whose influence to competitiveness of foreign economic activity in world. Author considers this research in case of Azerbaijan ICT sector activity such as Azerbaijan had got two satellites since 2013. Now, despite the pandemic situation, Azerbaijan is preparing to use their ICT sector's opportunities more effectively.
Thus, the object of research is new innovative ICT services that join the competition in the field of foreign trade and act as the main criterion for measuring the competitiveness of international economic relations. The aim of research is to analyze and assess of Azerbaijan's ICT innovations impact on competitiveness of foreign economic relations.

Material and Methods
Author used to statistics of world sources. In chapter 3.1 author applied observational, statistical grouping and comparative analysis methods. In chapter 3.2 author used SWOT and PEST expert assessment analysis together with analytical research.

Results and Discussion
3.1. Global Innovation Index (GII) of Azerbaijan in sphere of foreign economic relations. If to look at the economic potential of the former USSR countries, it is possible to see that Russia, Ukraine, Belarus and Kazakhstan [2] have got the high competitiveness indices when comparing different in-novation indices. Azerbaijan's position in the economy and application of innovations remains at an average level (Table 1).
In 2019 Azerbaijan occupies the 58th position according to the global competitiveness index and the 80th position according to the global innovation index [3][4][5][6][7][8]. In that period Azerbaijan's high technology export index was established at 89 places. Azerbaijan will take 93rd place among 132 countries in 2022 [9,10]. Within 5 years the position of Azerbaijan has decreased by 13 points. Currently, the share of science-intensive products of Azerbaijan, such as machine building, in the world composition is 0.1 % [11].
According to [11], the share of science-intensive engineering industry products in world trade is 0.1 % (2017-2021 database). As can be seen from Table 1, Azerbaijan's global competitiveness index occupies the 58th position, which once again confirms the very low level of scientific and technological development. Let's take a look at the dynamics of Azerbaijan's GII score/value around the world in Table 2.
As can be seen from Table 2 the import of ICT services (share of total import, %) increased (+0.1), export of ICT services (share of total export, %) has decreased over 5 years (-0.2 %), Table 3. Net FDI inflows (weighted in GDP, 5 year average) decreased by (-4.9) points. The share of exports with high technological intensity increased to 13.6 %, and imports with high technological intensity had risen to 2.3 %. This is one of the best indicators achieved by Azerbaijan in 5 years.  Note: based on data [3][4][5][6][7] TECHNOLOGY AUDIT AND PRODUCTION RESERVES -№ 5/4(67), 2022

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As can be seen from Tables 2, 3, during 2018-2022, imports with high technological intensity (share in total imports, %) advanced by 17 points. But Azerbaijan's position on other indicators has worsened. The position of the import of ICT services in Azerbaijan has decreased by 3 points, the export of cultural and creative services by 15 points, the net FDI flows abroad by 98 points, the highly technologically intensive export of ICT services in Azerbaijan has decreased by 4 points. Export of creative goods increased by 25 points for 2022.
Currently, information technologies (Internet, Google search network, social networks -Meta, Instagram, Tiktok, etc.) and ICT (telecommunications devices, Wi-Fi devices, mobile phones) due to the frequency of distribution in hightech products and services not only in the world, but also in Azerbaijan, (TVs, tablets, laptops, etc.) products. Thus, ICT products and services are innovation-oriented as well as science-intensive and technology-intensive products [12].
In 2020, due to the pandemic, the volume of services exported by Azerbaijan in the field of telecommunications worldwide increased by 1.2 % compared to 2018, but decreased by 30 % compared to 2016. Also, the volume of services imported by Azerbaijan in the field of telecommunications decreased by 21.2 % compared to 2016. As can be seen from Table 4, the volume of services imported and exported by Azerbaijan in the field of information services around the world has also decreased. Only the volume of import and export operations on computer services had continuing to grow since 2016. In 2020 imports increased by 1.5 times and exports increased by 167.8 % compared to 2016.
To compare [11] data, let's take a look at [9][10][11] data. It should be noted that according to the statistical indicators of Azerbaijan (Table 5), the import of ICT products during the years 2015-2021 has increased by 3 times. The increase in the import of computer and peripheral equipment in 2021 compared to 2015 was equal to 301.5 %, in the import of telecommunication equipment -328.9 %, and in the import of electronic equipment -338.3 %.
Azerbaijan's exported ICT services continue to grow, despite the fact that they are about 100 times less than imported ICT services. As can be seen from Table 6, this increase in the export of computer and peripheral equipment was 212.9 %, in the export of telecommunication equipment it was 128.3 %, and in the export of electronic equipment a 5.5 times increase was observed.
If to look at to Table 7, wit is possible to see that Internet communication, mobile phone communication service, telephone communication, as well as the sale of computer and peripheral equipment have the main share in the volume of product release and service provision in ICT sector of Azerbaijan.   Note: based on data [13] TECHNOLOGY AUDIT AND PRODUCTION RESERVES -№ 5/4(67), 2022

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As can be seen from Table 7, the share of mobile phone communication in the export of ICT products and services is equal to 43.6 %, the share of internet communication -11.0 %, the share of other communication activities -11.6 %, and the share of telephone communication -10.0 %. In 2021 compared to 2015, computer production increased 17 times, and internet communication increased by 221.3 %.
In 2010-2018, despite a 10 % decrease in ICT sector investments, ICT goods' production in Azerbaijan increased by 1.5 times, and import by 4.9 times. VAT increased by 56 %, and the volume of investments decreased by 10 % [13].
Recording Table 8, the import of ICT products has increased by 4 times, and its share among the products imported into the country has increased by almost 2 times. The volume of capital investments decreased by 60.1 %. ICT product output has increased about 41.6 %, but the volume of added value has risen about 71.4 %.
As shown in the «Azerbaijan industry» state statistic collection, the production volume of computer, electronic and optical products that underwent significant changes or were newly applied due to the level of innovation was 27.9 % of all industrial products in 2019, and 5.7 % in 2021. The weight of significantly changed or newly applied products in the machine-building industry was 1.1 % in 2019 and 0.1 % in 2021 [14].
It is necessary to have continuous scientific and research activities in the ICT sector ( Table 9). One of important conditions for ICT efficient operation is the presence of scientific research work not only in state enterprises, large organizational institutions (Azerbaijan Ministry of High Technologies and Communications, ICT parks, STP, etc.), but also in additional small and medium ICT institutions. In 2019 and 2020, the expenses incurred for scientific-research works in micro, small and medium enterprises in the field of information and communication have a variable (with a tendency to increase and decrease) dynamics [9,10,15].
And finally, author give the assessment to Azerbaijan ICT sector's import-export operations and its actively influence to Global Innovation Index by SWOT analysis (Table 10). Note: based on data [13]   ISSN 2664-9969 The results of the assessment are: 1. Due to the small amount of spending on education in the GDP, innovative approaches cannot be effectively applied in institutions and universities. The government should pay special attention to this issue and apply legal and financial support mechanisms to the import of equipment aimed at increasing the industrial potential of Azerbaijani entrepreneurs for the production of export-oriented products based on innovation.
2. The specific weight of both imports and exports of knowledge economy, hi-tech and creative products is very low, which indicates a low application of both process and product innovations.
3. Foreign-financed projects on the creation of innovation-based science-intensive products and distribution of services have a small weight in Azerbaijan's GDP. This, in turn, makes it difficult for it to introduce innovations on its own with little money.
3.2. Impact of Azerbaijan ICT sector's to development of online services during the pandemic. In recent years, the increase in internet usage in Azerbaijan has created an important infrastructure for the development of effectively online services. This is due to the fact that the Internet is undergoing a change towards innovation, its application in many business models that include new management methods. Through these, internet users become an important part of online services' infrastructure.
During the pandemic, the increase in the use of the Internet in Azerbaijan creates an important infrastructure for the development of online services' infrastructure. This is due to the fact that the Internet is undergoing changes aimed at innovation, the introduction of new management methods in many business models. Through them, Internet users become an important part of online services (Table 11) [13].  -starting a business in ICT sector contributes to the development to small and middle size enterprises (documentation on market development, ease of obtaining loans, microfinancing conditions, as well as the existence of ICT and creative organizational models); -cooperation of universities and ICT sector's enterprises contribute to the best position of Azerbaijan for creating high Global innovation index (GII); -the increase in the specific weight of net FDI import and export in GDP will affect the production of hi-tech products in Azerbaijan and will lead to further improvement of Azerbaijan's position on GII -despite the increase of net FDI inflows (weight in GDP, three-year average) by 1.  [13].
Recently, information technologies are showing their impact not only on the economic, but also on the social sphere. In the last two years, in the pandemic situation, all people turned to the Internet not only for economic matters, but also for social communication. This once again shows that the use of information technologies has increased during the pandemic, so the Internet has affected the functioning of many infrastructures -banking, healthcare, education, etc.
As can be seen from Azerbaijan Statistic collection [13,14] in 2015-2021 years the documentary electric communication service for population has increased by 59.4 %, mobile electric communication -by 45.1 %, and internet service -by 15 times. The volume of intercity international telephone communication service for population has decreased 15 times.
If to look at to the costs incurred for servicing equipment in the ICT field (Table 12) During the pandemic, online trading opportunities have become highly dependent on information technology. One of the most important factors for the sustainable development of online operations is the number of Internet users in the country.
The main factors influencing the development of online operations in Azerbaijan are: 1) almost no infrastructure; 2) weakness of the telecommunication system; 3) failure to meet customer demand in the electronic space.
It should be noted that the ICT sector suddenly started to play a special role in population activities and activities of business subjects with a sudden leap during the pandemic. However, certain psychological barriers prevent the adoption of economic, technological and social innovations in ICT. Such obstacles include the following: -distrust of citizens in the banking system, in general, in non-cash payments, in particular, as a result of the instability of the economic situation in the country; -unresolved organizational and legal issues of electronic payments; -mistrust of electronic signatures; -uncertainty about the security of transactions through the Internet. The specific list of necessary reforms for each country is determined by the characteristics of its current healthcare model and the weaknesses identified during the COVID-19 pandemic. Thus, for the development of online operations, the development of the ICT sector, especially its technological support, is necessary, and in the conditions of the ongoing pandemic, the population can access online e-government, e-trade, e-banking, e-medicine, e-pharmacy, e-education, etc. there is a process of socialization in areas.   ICT services provided to the population are reflected in online trading and e-banking operations. Let's focus on e-commerce indicators. In 2019, the turnover of e-commerce in Azerbaijan was 42255.6 AZN. In 2020, this number increased almost 2 times to 98161.2 AZN, that is, a 56.0 % increase was observed. In 2021, e-commerce turnover was 117882.1 AZN. It should be noted that due to the pandemic, the volume of e-commerce turnover in 2021 increased 9 times compared to 2015, and increased to 292.8 % compared to 2019 [17].
E-banking services also occupy a special place on the basis of online operations. In 2019 the volume of noncash payments made with debit and credit cards was 23 billion 241 million manats, in 2020 it was 28 billion 951 million manats, and in 2021 the volume of payments made with debit and credit cards was 37 billion 434 million manats [17,18].
The total volume of transactions conducted with the Government Payment Portal in 2020 is 3.3 billion manat, and the number is 51.9 million numbers, these indicators are 34 % and 39 % higher than the indicators of the last 3 years, respectively. During 2020 card transaction was carried out about 53.2 million USD with the Interbank Card Center. The volume of transactions with national currency was 2752 million AZN, either has been in foreign currency -14.6 million USD and 3.1 million EUR. Compared to 2018, the total number of transactions processed in the system increased by 1.9 times, and the volume increased by 2.8 times for manat, 2.6 times for USD, and 1.6 times for EUR [19,20].
As a result of a comprehensive analysis of external and internal factors, socio-economic indicators affecting foreign economic relations and ICT products and services with a high technological capacity in foreign and domestic market, author prepared the PEST analysis (Table 13) on the production and export of ICT products, taking into account the impact of COVID-19 on the economy of Azerbaijan and e-business sphere.
The results of the assessment are: 1. Providing the material and technical base of Azerbaijan universities with new equipment, high-speed Internet, and equipping the teacher-student staff with modern laptops is an important issue. This will also allow classes, exams, master's and doctoral theses submitting by online during the pandemic, and electronic legal support programs to spread rapidly.
2. It should be noted that there are almost no global science and research companies in Azerbaijan. It would be good if such companies operate not only in strategic facilities, but also in non-oil sectors of the national economy. There is a need to establish such companies in non-oil sectors by the state.
3. Paying attention to the sale of products and services in the fields of online trade and education, healthcare, social protection, as well as offering online services for government agencies (especially during a pandemic) is one of the important conditions for increasing the speed of the Internet and solving security issues.
4. The safety of consumers, the responsibility of parties and intermediaries in purchases made through e-commerce mediation should be taken into account in the legislative regulations: -measures should be taken to protect intellectual property rights; -taxation, payment and delivery methods need to be developed; -it is necessary to take measures to protect consumers and their personal information. 5. Paying attention to making the information understandable, enjoyable and entertaining in the web site where e-commerce operations take place can increase the number of visitors and increase the turnover of the web site. Table 13 PEST analysis on the production and export of ICT products, taking into account the impact of COVID-19 on the economy of Azerbaijan and e-business

Positive assessment
Negative assessment Political factors -during the COVID-19 pandemic, Azerbaijan began to quickly realize 2 artificial satellites, as well as its ICT products and programs in foreign and domestic markets; -it has created a platform for the introduction of radical innovations in the field of ICT and telecommunications, taking into account both the geopolitical position and technological capabilities between the North and the South, as well as the West-East -e-government, e-insurance services are not well received by population, psychological barriers still remain; -protecting the security mechanism of using the e-signature service goes hand in hand with difficult procedures of e-government 6. The application of the tax system applied to the field of e-commerce is sometimes dual in nature, and it is necessary and urgent to form a system for calculating tax collection in the banking system not according to goods, but according to services. The state can also organize incentive campaigns and concession mechanisms for the development of this area.
7. When shopping on e-commerce in countries around the world, a contract is signed between the buyer and the seller and the sale is made. The proposal is to formalize the purchase and sale process by signing an agreement in our country. At this time, any conflict that may arise between the parties can be legally resolved in an arbitration court.

Conclusions
The study showed that: 1. Azerbaijan's innovation-oriented development depends on the development of both knowledge-intensive products and services and information technologies as a process. Such areas include the creation and management of artificial satellites, chemical and machine-building industries, production of pharmaceutical and cosmetic products, as well as the field of information technologies, the ICT sector.
2. In order to actively use innovations in the field of foreign economic relations, innovative development must be developed in areas with high technological capacity, taking into account the factors affecting them.
3. The ICT sector occupies a special place in Azerbaijan's import-export operations and has a positive effect on Azerbaijan's GDP evaluation indicators. Despite the increase of net FDI inflows (weight in GDP, three-year average) by 1.2 point change the position of Azerbaijan by 1 point positively. When the specific weight of ICT services exports in total trade increased by 0.1 points, Azerbaijan's position among the world countries increased by 2 points.
4. Another direction of innovative development is the ability to actively use the state marketing policy, marketing strategies and advertising companies of science-intensive products and services exported abroad.
5. Competitive innovation development is more noticeable in the sphere of e-banking, e-commerce, e-education and other electronic services. An innovative development strategy should be developed to increase the competitiveness of foreign economic relations.
6. Should apply legal and financial support mechanisms to the import of hi-tech equipment aimed at increasing the ICT sector's potential of Azerbaijan for export-oriented services based on innovation. The safety of consumers, the responsibility of parties and intermediaries in purchases made through online operation mediation should be taken into account in the legislative regulations.
7. The specific weight of both imports and exports of knowledge economy, hi-tech and creative products is very low (the export of cultural and creative services has decreased by 15 points from 2018 to 2022), which indicates a low application of both process and product innovations. It is necessary to increase attention to this area.

Conflict of interests
The author declares that there is no conflict of interest regarding this research, including financial, personal nature, authorship or other nature that could affect the research and its results presented in this article.

Financing
Presentation of research in the form of publication through financial support in the form of a grant from SUES (Support to Ukrainian Editorial Staff).

Data availability
The manuscript has associated data in a data repository.