The report offers a concise overview of the higher education system in Azerbaijan,addressing key areas to provide a comprehensive understanding of the system'scharacteristics. These include institutions of higher education, student population,governance of higher education, and the funding of research. The report delves into theprimary issues within the system, drawing on findings from research projects to assess thealignment of current higher education programs with the labor market, the integration ofwork-integrated learning into higher education institutions, and career support provided tostudents. Additionally, the report explores how incentive mechanisms impact researchoutputs and how the integration of AI can enhance the confidence of faculty andadministrators in higher education. It concludes by offering recommendations forpolicymakers and institutions. It aims to provide policymakers, academics, and highereducation leaders and professionals of the country with an overview of the system, itschallenges, and insights into key topics such as technology integration, work-integratedlearning, and research governance.