Aleksei Vlasov, director of Information and Analytical Center for the Study of the socio-political processes in post-Soviet space at Moscow State University, analyzes Azerbaijan’s development strategy and the turning points on this path. In Vlasov’s view, 2005 marked a pivotal moment for Azerbaijan, when its economy demonstrated the highest global growth rate. He explains how the decade of 1994-2004 established the preconditions for this moment. The article examines Azerbaijan’s development strategy after regaining independence and analyzes the turning points on this path. The author reveal that 2005 marked a turning point for Azerbaijan, when its economy demonstrated the highest global growth rate, and explain how the decade of 1994-2004 established the preconditions for a pivotal moment. During this period, key growth centers were identified, a national modernization model was developed, and the key parameters of the “Azerbaijani Project” were established. The author proceed to describe the various problems on this path and to provide a fresh perspective on the Russia-Azerbaijan forward-looking agenda, arguing that Russia and Azerbaijan are not sufficiently engaged in the joint innovative projects necessary for the deepening and intensifying of bilateral interaction at a project level. Russia and Azerbaijan are facing common problems related to building an innovative economy.