The purpose of the research - is the determination of the directions of innovative and investment development of Azerbaijan's transport system and its development problems.

The methodology of the research - Analysis and synthesis, as well as induction and deduction methods were used in the preparation of the work. Thus, through the method of analysis, the topic was taken as a whole and then divided into chapters and analyzed separately. Later, by synthesis method, these chapters were concentrated in the economic system. Through the method of induction, economic facts about the research work were obtained, systematized and investigated. Then, through the use of the deduction method, both theoretical conclusions and general principles, in short, important recommendations for practical activity, were determined based on those obtained facts.

The results of the research - as a result of the research, selection of appropriate strategy, innovative directions, management and regulation system are proposed for organizing the transport system at a modern level of innovation activity.

The practical importance and scientific novelty of the research - the main scientific innovation of the research work consists of the following:

-  The necessity of implementing the state policy in the direction of determining the characteristic features of the transport system is comprehensively studied;

-  The main characteristics of management in the transport system are determined;

-  The importance of the role played by the systematic approach in the management of the transport system is analyzed;

-  The main directions of state support for the sustainable development of the transport system are identified and comprehensively analyzed.

Keywords: transport, transportation system, investment, investment activity, innovation activity.

https://doi.org/10.59610/bbu2.2023.2.6