The purpose of the research is to analyze and study the mechanisms of entrepreneurship and innovation strategies, which are the cornerstones of the modern economy, the impact on competitiveness, increasing international market share and economic development. At the same time, it is to study the relationship between economic development and innovation and the current situation in Azerbaijan.

The methodology of the research is based on systematic approach, comparative analysis and deductive method.

The practical importance of the research the materials provided in the research and the results obtained can be used in the development of complex and systematic measures, conceptual approaches to solving problems in order to form a competitive economy of innovation and entrepreneurship in modern times.

The results of the research analyzed the prospects of innovation and entrepreneurship in the world and in Azerbaijan, and made recommendations on measures to be taken.

The originality and scientific novelty of the research is that the importance of constantly changing products, services and production methods based on the latest achievements of science and technology in order to demonstrate resilience in an increasingly competitive environment between countries was emphasized. International experience in developing and applying new ideas, methods and products that will provide economic and social benefits has been studied and successful practices have been demonstrated.

Keywords: entrepreneurship, economic competition, innovative entrepreneurship, economic development, innovative development.