Publication Details
Abstract
The article focuses on examining how digitalization influences the localization of production processes and the growth of industrial cooperation in Uzbekistan. In the context of accelerated digital transformation of the global economy, digitalization is becoming a key tool for increasing technological independence, production efficiency, and integration into global value chains. Utilizing the statistical data of international organizations (World Bank, UN Comtrade, WIPO, ADB) by regrouping into technological groupings, conducted analysis has shown that between 2015 and 2023 Uzbekistan witnessed an increased share of medium- and high-tech industries, offering higher-value, capital-intensive, import and trade-able high-tech products, as well as an overview of the expansion of digital infrastructure between 2015–2023. And with the implementation of the state strategy "Digital Uzbekistan 2030", it contributes to building national digital ecosystems, development of technology parks, implementation of ERP systems, IoT and AI solutions to the industry. The study identifies three mechanisms through which digitalization impact: transaction costs reduction, production cost efficiency, and industrial cooperation effectiveness. It is concluded that digitalization is one of the factors in strengthening Uzbekistan's technological sovereignty and transitioning to an innovative economic growth model based on the synergy of digital technologies, localization, and industrial cooperation.