CHALLENGES IN THE IMPLEMENTATION OF DIGITALIZATION IN AZERBAI-JAN'S INDUSTRIAL SECTORS

Abstract

The economic development of any state, amid rapidly evolving technological paradigms and the transition from Industry 4.0 to Industry 5.0 and beyond, is primarily determined by the pace of technological modernization of industrial sectors driven by digitalization. Digital technologies significantly reduce production costs by automating and robotizing manufacturing processes, optimizing value chains, and enhancing labor productivity, including managerial efficiency.

Despite governmental efforts, the economy of Azerbaijan, in addition to structural imbalances and low labor productivity, exhibits a relatively low level of overall technological development and slow transformation dynamics.

The aim of this paper is to analyze and systematize the outcomes of industrial digital transformation in leading regions—Southeast Asia, the Americas, and Europe—and to assess the state of industrial digitalization and robotics in Azerbaijan in comparison with these regions, as well as to identify the existing potential for accelerating industrial automation and robotization.