Daniel Balsalobre-Lorente

Telecommunication technologies have entered all spheres of society, creating wide chances for improvement. The splendid, safe, and effective digital revolution in best practices and the productive use of resources in this field are the driving force behind the improvement of innovation. The aim of the study is to identify the main problems of the arrangement and evolution of the digital economy in Azerbaijan, as well as to offer recommendations for the successful usage of digital technology opportunities. Using regression analysis, the impact of the digital economy on economic growth was determined. The analysis showed a direct relationship between the indicators (r = 0.857) and a high closeness of the relationship on the Cheddock scale. The outcomes showed that during the last eight years (2015–2023), there has not been a significant growth in the ICT Development Index in Azerbaijan. According to the ICT Development Index, Azerbaijan ranks 87th, the Development Index of e-government – 83rd, and the Network Readiness Index – 75th in the world. The results stressed the necessity of state support for the digital economy in Azerbaijan to solve problems in this area and the significance of applying the progressive foreign countries’ experience in the digitalization of the economy. The study examines the factors influencing the development of the digital economy in Azerbaijan and offers proposals and recommendations for the effective use of digital technologies that have practical and scientific significance.