The Role of the Innovation Factor in the Strategic Management System
Ramal Karimov 
Abstract. One of the main pillars of an organization's long-term competitiveness is the presence of a superior innovation factor in the management system. The pace of change in the modern economy is so high that a strategy without innovation quickly becomes outdated and ineffective. Innovative management strategy is one of the main factors that play a decisive role in the economic development of states in modern times. The strengthening of global competition, the rapid spread of technological innovations and the deepening of digital transformation processes necessitate the application of new approaches in the management systems of sovereign countries. In this regard, innovative management is not limited to the use of technologies alone, but also encompasses such multifaceted areas as strategic decision-making, flexible economic model building, human capital development and modernization of the institutional environment. The economic development model of the Republic of Azerbaijan is also based on innovation-oriented management approaches. The expansion of digital government platforms, strengthening the startup ecosystem, the application of high technologies in the industrial and energy sectors, as well as the modernization of human capital are considered strategic priorities of innovative management in the country. The implementation of this strategy accelerates the diversification of the economy, creates conditions for attracting local and foreign investments, increases aggregate productivity and increases the country's global competitiveness.
Innovative management also has a significant impact on strengthening socio-economic sustainability, the formation of new jobs and the expansion of digital skills. However, challenges such as improving the quality of human capital, expanding research and development spending, and strengthening the culture of innovation remain relevant. Overall, the innovative management strategy acts as the main guarantor of the sustainable development of sovereign states and plays a leading role in the long-term modernization course of the Azerbaijani economy.
Keywords: innovative management, management strategy, modernization, digitalization, development