KNOWLEDGE-BASED ECONOMIC ACTIVITY AND SOCIO-ECONOMIC DEVELOPMENT

The article examines conceptual approaches to providing this activity by defining the importance of knowledge-based activity in innovative development of the economy, evaluates the current situation in this field in Azerbaijan and in the world and defines directions of development based on world experience. The way to public wellfare depends on the good use and continuous development of scientific and technological means. In the article it is shown that advanced technology and human capital create a higher added value and assesses how it affects the development of both already formed and new emerging economic fields. Innovation-oriented, efficient and competitive development of the economy first of all necessitates the formation of higher education, science and economy unity. In the article, state expenditures allocated on education in providing knowledge-based economic activity is specially highlighted. Along with this it is also shown that new long-term challenges to the development of human capital in Azerbaijan necessitate the implementation of important measures at financing education. In the world the position of Azerbaijan is determined analyzing the dynamics of costs to R & D expenditures allocated from the General National Product. In the article suggestions for increasing the competitiveness of the "processing industry" and the knowledge economy in Azerbaijan is proposed, in order to achieve new quality of human capital, activities related to qualitative renewal all forms of education system in the country is highlighted.