International Scientific Journals
of Scientific Technical Union of Mechanical Engineering "Industry 4.0"

The paper comments on Bulgaria’s penultimate position in the Global Innovation Index 2024. This position provoked the authors’ scientific interest in analysing the innovation environment in the country. The results of the analysis are considered according to individual indicators of the innovation environment, with the emphasis on the difficulties and problems facing the development of innovations. Innovations are a strategic factor for the development and competitiveness of small and medium-sized enterprises. On the basis of our own research with managers of industrial enterprises, conclusions about the opportunities and challenges for the development of innovations are formulated.

In the digital era, radical changes occur in all processes, under the influence of the dynamic development and application of intelligent technologies, including of artificial intelligence. The report explains the specific areas of application of artificial intelligence in human resource management processes, as well as the corresponding changes in these processes. Based on their own research, the authors indicate the specific benefits of applying artificial intelligence to HR processes.

Bulgaria is considerably lagging behind the general trends in the EU for the introduction of a digital society and it is therefore necessary to adopt specific measures and to focus efforts on overcoming the lagging behind. Creating the right conditions for the introduction of Industry 4.0 will support, on the one hand, the competitiveness of production and attracting investment in the economy and, on the other, will help to increase efficiency in optimal resource use. The aim of the study is to reveal the possibilities for digital transformation of the Bulgarian business and to give recommendations for process transformation, using adequate strategic tools. The results of the study show that investment and innovation in IT are a key factor in boosting productivity in the EU and it is expected that three quarters of the value of the digital economy will come from traditional sectors (industry), so it is crucial to support its digital transformation.