INNOVATIVE MECHANISMS FOR DEVELOPING INDUSTRIAL ENTERPRISE COMPETITIVENESS IN THE DIGITAL ECONOMY

Abstract: The transition toward a digitally driven industrial paradigm has created an urgent need to identify and systematize the innovative mechanisms through which industrial enterprises convert digital technologies into durable competitive advantage. This article investigates how artificial intelligence, the Internet of Things, cloud computing, big data analytics, digital twins, digital platforms, and industrial robotics function as innovation mechanisms that reshape production efficiency, product differentiation, and market responsiveness within the framework of Industry 4.0 and the broader digital economy. Building on the theoretical contributions of Porter, Schwab, Brynjolfsson, McAfee, and Bharadwaj et al., as well as empirical evidence from the World Bank, OECD, IMF, UNCTAD, UNIDO, the International Telecommunication Union, the World Economic Forum, and Eurostat, the study applies comparative analysis, statistical and correlation analysis, a systematic literature review, international benchmarking, and synthesis-deduction reasoning to evaluate the relationship between digital innovation mechanisms and industrial competitiveness for the period 2020–2025. The empirical findings demonstrate a strong positive association between the intensity of Industry 4.0 technology deployment and indicators of productivity growth, cost efficiency, and global competitiveness rankings, while revealing substantial heterogeneity between technologically advanced economies and developing economies such as Uzbekistan. The article identifies specific innovative mechanisms-including data-driven decision architectures, platform-based value co-creation, and digital twin-enabled process optimization-that are most readily transferable to developing-country industrial sectors, and proposes a set of policy and managerial recommendations aimed at accelerating the digital competitiveness of Uzbekistan’s industrial enterprises. Theoretical contributions, practical implications, and directions for future research are also discussed.