Azerbaijan has long-established industrial and trade traditions. The industrial revolution reached Azerbaijan in the late 19th century due to the expanding and advanced oil production and refining sector. Further industrial development led to growing a research and development (R&D) base. A large R&D centre, the Academy of Sciences with circa 7,000 research studies, operates in Azerbaijan in parallel with a number of universities and colleges. The country is rich in engineering skills while wages are still very competitive. The government's policies in respect of utilities tariffs are manufacturer-friendly.