The Ministry of Economy of Azerbaijan and the Spanish IE University signed the framework agreement for the establishment of the Baku Economic Observatory on October 27. IE University (Instituto de Empresa) is a leading international private university in Spain, known for its programs in business, technology, law and design. The document was signed by Deputy Minister of Economy Samad Basharli and Senior President of IE University Santiago Iniguez Onsonho. The new platform will unite the structures of the state, businesses and the academic community. The main areas of work are the diversification of the economy, increasing productivity and increasing the competitiveness of the country. The observatory will study the factors of economic growth, monitor and compare the international experience. The research results will be translated into practical recommendations for economic policy. The research agenda will be determined jointly with IE University, taking into account Azerbaijan's priorities. The stated mission is to link scientific research with concrete economic decisions. Herald of the Caucasus.