In today's world, innovation has become an integral part of economic growth and sustainable development. For developing countries, it paves the way for technological advancement, economic diversification, and access to global markets. However, building a viable startup ecosystem requires more than just investment and infrastructure—it begins with culture, education, the courage to take risks, and the ability to adapt best global practices to local realities.

At the crossroads of Europe and Asia, with its strategic location and abundant resources, Azerbaijan today has a unique opportunity to use innovation as the foundation for future growth—not by copying others, but by forging its own path. AZERTAC presents an interview with Christian Ull Molina, an international innovation expert, co-founder of Area101, co-author of the book "101 Stories about Innovation," and managing partner of the venture capital fund Unitatea Capital.

- How do you define "innovation" in today's context? How universal is this concept, or does it always depend on a country's specific context, culture, and level of development?

-You know, I usually define innovation as a mix of processes, technology, and people. Processes are simply the way we work, technology is the enabler, the tool that makes things possible and people represent the culture and talent behind it all. But, like in any equation, not every element carries the same weight.

- If you had to split those three into a hundred percent, how would you do it?

Honestly, there are as many answers as there are companies in the world. In my case, I’d say 60% of people they’re the heart of innovation, the ones who can either make things happen or stop them. 30% would be processes, because they shape how we collaborate, experiment, and turn ideas into reality. And 10% is technology still essential, but only as an enabler. Without the right people and culture, tech alone doesn’t create innovation.

- Which of the 101 innovation examples presented in your book might be particularly interesting or applicable to countries in the midst of active development, such as Azerbaijan?

-One of the key lessons from 101 Stories of Innovation is that real transformation starts inside organizations. Too often, the world outside moves faster than companies do internally. In Spain, for example, we’re witnessing companies transform what they are, not just what they do, focusing on values over buzzwords.

In that sense, Azerbaijan could look to examples like the Basque Government’s BIND 4.0 program or the UK’s cross-sector innovation initiatives, which show how collaboration between public and private sectors accelerates meaningful change. It’s no longer about “innovation theater”, it’s about creating ecosystems where organizations, governments, and people grow together. That’s where the real impact begins.

- Are you familiar with the development of the startup ecosystem and innovation infrastructure in Azerbaijan? What key steps could accelerate its growth?

- Yes, I’ve followed Azerbaijan’s growing interest in tech and digital transformation especially through initiatives like the Innovation and Digital Development Agency or how Pasha Holdings through initiatives like Inmerge are accelerating the growth.

To accelerate growth, I’d focus on three things: education that nurtures entrepreneurial thinking, stronger links between universities and startups, and access to early-stage capital. Ecosystems grow fastest when local talent feels empowered to experiment even if they fail without stigma.

- Which areas—fintech, agritech, energy, green technologies—do you consider the most promising for Azerbaijan in terms of international cooperation and investment?

- Given Azerbaijan’s strategic position and natural resources, green energy and agritech stand out. The shift toward renewables, like the wind projects in the Caspian region, shows real promise. Combining that with smart agriculture sensors, AI-driven irrigation could help Azerbaijan lead in sustainable resource management. And fintech can tie it all together by enabling new funding and investment models for these sectors.

- What mistakes do you think developing countries often make when building startup ecosystems? What should Azerbaijan avoid?

- A common trap is trying to copy Silicon Valley instead of adapting lessons to local realities. Another mistake is overemphasizing events and “innovation theater” without building real support for entrepreneurs. Azerbaijan should focus on fundamentals, access to mentorship, local investors, and clear regulatory frameworks. It’s better to grow organically than to build a flashy ecosystem that lacks depth.

- What role does venture capital play in building a sustainable innovation ecosystem? Could international partnerships, for example with European funds, be beneficial for Azerbaijan?

- From my point of view, venture capital is the fuel and the compass of innovation ecosystems but only if it’s deployed with the right mindset. At Area101 we’ve seen that simply having money doesn’t guarantee sustainable results; what matters is that the funding comes accompanied by mentorship, alignment of incentives, and a long-term vision. VC helps by enabling startups to experiment, scale, and iterate — and in doing so, it signals to the rest of the market that innovation is viable, not just a nice idea.

In the context of a country like Azerbaijan, the role of VC becomes even more significant because the ecosystem is still maturing. Early-stage capital here doesn’t just finance startups, it legitimises the innovation route, creates role-models, and encourages local entrepreneurs to take risks. If entrepreneurs see that outside funds and corporates are willing to invest and partner, it shifts mindsets from “maybe we should try” to “yes, we can build something”.

- Do you see potential for transregional investment cooperation between the South Caucasus and Spain? What forms of interaction could be most effective?

- Absolutely. Spain has a vibrant network of accelerators and impact investors looking eastward. Cooperation could take shape through joint accelerator programs, cross-border funds, or even talent exchange residencies. For instance, startups from Baku could join innovation hubs in Barcelona or Madrid, while Spanish investors explore opportunities in the Caucasus. Innovation grows best when ideas and people travel.