The role of innovation in economy strengthening of Azerbaijan in the conditions of transition to Industry 5.0: on the example of a comparative analysis of indicators of some Eurasian countries

The object of the study is innovative transformations in the context of Azerbaijan's transition to Industry 5.0. Innovative development not only strengthens the national economy, but also creates preconditions for the entry of competitive industrial products and services into world markets in the context of the transition to Industry 5.0. Innovative transformations are possible only with investments from both the state and industrial enterprises' own funds, as well as by attracting foreign capital. In this regard, the article examines the indicators of both Azerbaijan innovative development and Azerbaijan investment indicators in comparison with similar indicators of a number of Eurasian countries in the context of the transition to Industry 5.0. The authors used both innovation development indices and statistical indicators of industry in other Eurasian countries to determine Azerbaijan’s innovation capabilities in the context of the transition to Industry 5.0. The article also examines internal and external factors influencing innovation development in Azerbaijan and investment attractiveness in the republic. The study showed that large innovation and investment projects in the liberated lands attract foreign investors from both near and far abroad. Particularly noteworthy are investments from the Organization of Turkic Countries (OTC) – from Turkey, Kazakhstan, Uzbekistan, Kyrgyzstan. They are actively involved in the creation of smart cities, industrial facilities, transport infrastructure and telecommunications, as well as tourist facilities. Innovative development of Azerbaijan depends on the strategy of implementation of innovative investment projects. This strategy includes improvement of produced science-intensive products and services; and development of high technologies, especially information technologies. These areas include the creation and management of two artificial satellites of Azerbaijan, the petrochemical industry, the mechanical engineering industry. As well as the information technology sector, the ICT sector, pharmaceuticals and cosmetics industry based on the use of unique plants (saffron, medicinal oils from walnuts, hazelnuts, juices from unripe grapes, fig leaves) in the process of transition to Industry 5.0.