New mechanisms have been created to promote participation of startups in public procurement in Azerbaijan, Head of the Legal Department of the Innovation and Digital Development Agency (IDDA), Sabina Humbatzade, said during her speech on the topic "Development of the digital and innovation ecosystem in Azerbaijan: new legislative opportunities" organized within the framework of the educational session "Digital skills for the media", Trend's correspondent reports from the event. According to her, one of the most important issues for a startup is the formation of customers and demand for its product. "In this regard, the state's role as the first buyer of startups can help expand their market access opportunities and form a reliable customer base.
First of all, a startup needs a customer, there must be demand for its product. A startup must form its portfolio so that it can launch its innovative product on the market and attract real buyers," Humbatzade noted. She recalled that in the previous period, the complexity of tender and other procurement procedures within the framework of state procurement, as well as numerous requirements, made it difficult for startups to participate in these processes.
"It's a great advantage for the state to act as the first buyer for a startup. If the state trusts them, other buyers can also look at this and trust the startup. This also allows for the formation of a more reliable customer base for the startup," she emphasized.
According to Humbatzade, a number of relevant amendments have been made to the legislation on public procurement. "If the price of innovative products presented by startups and residents of the Technology Park is up to 100,000 manat ($58,820), they can participate in direct procurement. State bodies and institutions can acquire these products without going through additional procurement procedures," the department head said.
She also noted that a price discount mechanism will also be applied when purchasing innovative products. "If the estimated price of an innovative product is up to 250,000 manat ($147,060), a 20% discount is applied to the startup. This doesn't mean a 20% reduction in the price of the product.
Compared to other offers, a 20% discount is applied to the offer of a startup or resident of the Technology Park, and this offer is evaluated," Humbatzade explained. The head of the department said that the concept of a "pilot implementation contract" has also been added to the legislation as a new mechanism. "If a government body or institution has a real need, but it is an innovative product whose purpose and specifications cannot be precisely determined in advance, then a pilot implementation agreement can be concluded," she clarified.
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