From Industry 4.0 to Industry 5.0: A Human-Centric Analysis of Azerbaijan's Digital Economic Transformation
Leyla Rzayeva 
Abstract. The transition from the technology-centric paradigm of Industry 4.0 to the human-centric, sustainable, and resilient vision of Industry 5.0 represents a critical juncture for global economies. This shift presents both systemic challenges and significant opportunities for national development strategies. This study aims to analyze the alignment of the Republic of Azerbaijan's national digital development strategy with the core principles of Industry 5.0, and to identify the key challenges and opportunities this transition presents for the country's economic future. Employing a qualitative research design, this study integrates a systematic literature review with a content and institutional analysis. The theoretical framework is built upon the concepts of industrial revolutions, and key documents from the European Commission, the World Economic Forum (WEF), the OECD, and the official strategy of the Government of Azerbaijan are critically examined. The findings reveal that while Industry 4.0 focused primarily on technological efficiency, the shift to Industry 5.0 represents a fundamental socio-technical transformation. Globally, this is characterized by the displacement of 92 million jobs by 2030, a significant "compute divide," and pressing ethical concerns. The study finds that the "Strategy for the Development of the Digital Economy of the Republic of Azerbaijan for 2026-2029" demonstrates a strong, though not yet complete, alignment with Industry 5.0 principles, particularly in its focus on human capital development and infrastructural resilience. This research provides a novel, evidence-based assessment of Azerbaijan's readiness for the human-centric industrial era. It offers practical policy recommendations for enhancing the inclusivity and sustainability of the national digital strategy, thereby contributing to the broader discourse on economic development in the context of global technological transformation.
Keywords: Industry 5.0, Industry 4.0, human-centricity, digital transformation, sustainable development, economic policy, Azerbaijan