INFLUENCE OF INDUSTRY 4.0 ON THE COMPETITIVENESS OF THE NATIONAL ECONOMY

• Main Authors: N. Ye. Skorobogatova, Y. H. Kravchuk
• Format: Article
• Language: English
• Published: Igor Sikorsky Kyiv Polytechnic Institute 2020-11-01
• Series: Ekonomìčnij Vìsnik Nacìonalʹnogo Tehnìčnogo Unìversitetu Ukraïni "Kiïvsʹkij Polìtehnìčnij Institut"
• Online Access: http://ev.fmm.kpi.ua/article/view/216396
• ISSN: 2307-5651; 2412-5296

The article examines the impact of Industry 4.0 on the competitiveness of the national economy. The authors identified the features of Industry 4.0 and the consequences of the production of its technologies by economic entities. The sphere of influence and global application are the main differences. The main opportunities and risks for the national economy associated with the introduction of technology Industry 4.0 are determined. In particular, the main opportunities are the development of industry, the activation and simplification of the relationship, the spread of cooperation, increasing the competitiveness of production and countries, improving the environmental friendliness of production. The main threats and risks are the increase in unemployment, political and economic instability, legislative risk, as well as the excessive growth of costs for the development and implementation of the latest technologies that may exacerbate countries' dependence on financial donors. For the purpose of thorough analysis, countries, that were selected, are divided into four groups depending on their degree of readiness to introduce the new technologies: leading countries (China, USA, Germany, France, Japan and South Korea); countries that are ready to introduce new technologies (India and Russia); countries with high potential (Australia and Ukraine); countries where the transition is just beginning (Brazil, South Africa and Saudi Arabia). The features of the implementation of the main provisions of the concept of Industry 4.0 in these groups of countries and their impact on the competitiveness of national economies are determined. The factor analysis showed a significant degree of influence of foreign direct investment, the amount of funding for research, development and other factors of innovative development on the volume of gross domestic product produced by the analyzed groups of countries. The main barriers to the implementation of Industry 4.0 technologies in national production such as the insufficient funding, lack of involvement of small and medium-sized businesses, lack of appropriate capacities and skilled labor, government strategies were identified. These barriers are inherent mainly for the countries of the fourth group. To increase the efficiency of introducing Industry 4.0 technologies, were determined the driving forces, taking into account the specifics of the economic development of each of the groups of the analyzed countries. Implementation of a number of measures on the basis of identifying obstacles to the use of innovative technologies in the national economy of Ukraine are proposed, in particular: enhancing the interaction of stakeholders and the state, developing the latest programs, initiatives and development strategies; increased government funding for the IT sector; deepening integration into existing EU innovation development programs; reforming the mechanism for protecting intellectual property rights in Ukraine; digitalization of basic sectors of industry and infrastructure, and more.