Innovation as a term refers to development of science, increase quality and evolve current
system. In other meaning, it is process of complex implementation of new ideas, suggestions
and theories. It is an industrial appropriation of new ideas and improvements as a consequence
of education and research. Hence, it changes production process and its qualifications. The
distinguished specification of innovation management lays on extensive use of scientific
benefits, application of new technologies, development of product qualification, progressions
toward to demand of consumers, and as a consequence to economic growth. New challenges
force us to look at scientific and innovative activities from different dimensions in order to find
better approaches and management. Therefore, the main challenge is to form and management
innovation system in the country. This study researches an implementation of innovative
management in Azerbaijan on development of non-oil sector and its crucial role in management
of oil revenues. It is also important to apply international practice in this regard as a risk of
gradually decreasing oil revenues in Azerbaijan.
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