📄 Abstract
This article examines Azerbaijan’s light manufacturing capacity to transition toward Industry 5.0, focusing on the link between human capital and higher education. Utilizing quantitative surveys from 42 enterprises in Baku, Ganja, and Mingachevir, and qualitative interviews with 24 academic leaders, the study analyzes the country's industrial-educational ecosystem. The findings indicate that transitioning to human-centered, sustainable manufacturing depends heavily on human capital transformation rather than just hardware investments. Despite state-led regional modernization, a severe skills gap persists. Engineering and management graduates lack cross-disciplinary proficiency in automated workflows, CAD/CAM, cognitive problem-solving, and circular economy metrics due to rigid, outdated theoretical curricula. Thematic analysis reveals that academia suffers from bureaucratic constraints, inflexible national standards, and a shortage of faculty trained in cyber-physical systems. Furthermore, university-industry collaboration remains superficial, limited to unmonitored internships due to low mutual trust and a lack of financial incentives like tax exemptions or R&D grants. To bridge this gap, the study recommends strategic policy reforms: updating engineering education with smart-textile modules and live data analytics, legally expanding dual education, and adopting problem-based learning. Concurrently, industrial firms must prioritize long-term human capital development through structured internal training.
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📚 How to Cite:
Shalala Yusubova, Sevinj Babakishiyeva, Tamella Ahmedova , INDUSTRY 5.0 IN AZERBAIJAN’S LIGHT INDUSTRY: HUMAN CAPITAL DEVELOPMENT , Volume 13 , Issue 7, July 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 260 - 264 ,