DIGITAL TECHNOLOGIES AND PROBLEMS OF INDUSTRIAL DEVELOPMENT

Authors

DOI:

https://doi.org/10.15407/economyukr.2022.01.047

Keywords:

smart industry; Industry 4.0; digital technologies; cyberphysical production systems; robotization; industrial policy.

Abstract

The accelerated development of cyberphysical production systems and robotization of production are important long-term trends in the global smart industry. The performed analysis shows that Ukraine lags significantly behind in the implementation of these technologies. It is one of the leading countries in the world in the development of digital financial instruments and one of the last in the development of cyberphysical production. This means that in the long run the country will continue to lose its competitive position in the world. One of the main reasons for this situation is that the economic rules of the game in the country are tied to short-term political cycles, which hinders the long-term investment and innovation.
It is necessary to break the chain of negative causal links “outdated technologies-low incomes-further decline” and the negative selection of “the most adapted” to the conditions of short-term political cycles. One of the effective methods of solving this problem, well known from world practice, is to pursue a proactive nationally oriented industrial policy. It has helped South Korea, China and some other countries make the transition to accelerated industrial development through innovation and the introduction of cyberphysical systems. But this is a very difficult and inconstant method, the use of which is fraught with political failures due to lack of information in the government, selfish behavior of officials, their inability to resist industry lobbyists, stakeholders of other states and more.
However, in the initial phase of the industrial revolution, which opens a “window of opportunity” for stakeholders, despite all these risks, many governments spare no effort and money to promote the latest industrial smart technologies, as on them depend the future of national security and competitiveness. Ukraine needs to move approximately in this direction, distinguishing between long-term economic interests of the state and short-term interests of the political situation.

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Published

26.06.2024

How to Cite

VYSHNEVSKYI , V. (2024). DIGITAL TECHNOLOGIES AND PROBLEMS OF INDUSTRIAL DEVELOPMENT. Economy of Ukraine, 65(1 (722), 47–66. https://doi.org/10.15407/economyukr.2022.01.047