HUMAN DEVELOPMENT AND MODERN TECHNOLOGIES Chapter 1 1.3. Knowledge and Human Development 1.3.2. Technological Achievements Index (TAI) For the first time, the assessment of Azerbaijan's TAI was carried out in line with the preparation of the National Human Development Report 2002. The 2002 assessment, using methodology proposed by the Global Human Development Report-2001 considered the country's position as satisfactory. With TAI magnitude between one as a maximum and zero as a minimum; the calculations based on the 2001 data placed this figure at 0.379. With such TAI value, Azerbaijan, under the UNDP-adopted classification, is among the countries with TAI from 0.350 to 0.490. Calculations based on the latest available data for 2002 show that TAI has increased by 11 percent and currently is 0.421. TAI is based on the following four components: creation of modern technologies spread of modern technologies spread of traditional technologies and professional skills The index of professional skills is a very important component of TAI, as it allows the assessment of human capital potential for technological achievements. The significance of this index is based on the average number of years of the population's education and the gross tertiary science enrollment ratio. Assessment of these components and comparison of the 2001 and 2002 results indicate that today, in order to raise TAI, it is necessary to pay particular attention to the creation of modern technologies, natural science and technological products. The index of modern technologies creation (0.008, 2002 data) depends on the following indices: number of patents issued per residents, royalty and licensed payments. According to Azerbaijan's e-readiness assessment report, there were 965 patents issued for inventions in Azerbaijan between 1995 and 2001, including some 840 patents to local declarants, on average, 120 patents per year (15 per 1 million citizens). Such a low index of creation of modern technologies, which makes up several hundred per 1 million inhabitants in countries leading in this field, contradicts the high level of education in the country. Enrollment in educational institutions at the third level (23 percent) is close to the maximum figure, which UNDP assigns for international comparisons (Global HDR-2002). Per 1 million citizens, 2,735 persons (UNDP, HDR-2002) are specialists engaged in a field where modern technologies can be created. This indicator in Azerbaijan is higher than average for countries in Central and Eastern Europe and the Commonwealth of Independent States (CIS), and insignificantly lower than the average indicator in countries with high HDI. At the same time, such a high potential of qualified human capital is not being utilized as a result of hardships of the transitional period and decrease of investments for research and development (R&D). An apparent consequence of this negative trend is the lack of products, which could have provided receipt of royalty and licensed payments to the country. In 2002, the government budget received more than $50 million in royalty fees. However, that amount could not be incorporated into the assessment of the index of creation of modern technologies. In 2001, Azerbaijan had a zero index in this regard. Modern technologies creation indices, ther TAI components and TAI integral index are given in Table 1.4. Comparisons of the 2001 index indicate an increase in the distribution of modern technologies by 4.2 times as compared to convenient technologies (14.4 percent). Modern technologies distribution index has a stable tendency for growth, due to the widespread use of mobile communication facilities and expansion of Internet services (Chapter 2). Another index, which impacts the modern technologies distribution index, measures the rate of products of new and medium technologies in terms of exports. Currently, this percentage of goods in total exports is low. Despite the expected progress in the development of non-oil industry branches, Azerbaijan will have problems supporting this index. Beginning in 2006, oil and gas exports will grow rapidly, which may cause a decrease in other products being exported, and the need for an accelerated development of non-oil industries. An increase of TAI by 11 percent relates to the expansion of the market of cellular and cable communications lines and the growth of electricity consumption per capita. All these indices should help to alleviate some of the poverty and help to sustain growth. The dynamic of professional skills index will be modest. This index has not risen since 2001 and continues at 0.690. The gross education coefficient for the natural sciences (at the third stage) is assessed as 14.1 percent (Profile calculations by data provided by the State Statistics Commit-tee). In the future, in connection with the development of a multi-sectoral economy, an increase of market demand is expected in specialists' services and relevant responses by youth. This already takes place in branches related to training specialists for the oil industry. Table 1.4. TAI and its Indicator for 2002 Previous page  Next page UP