Sviatoslav I. Kniaziev, 80_01
Wednesday, 06 December 2017 00:19 | Author: Покотиленко Р.В. | 
Sviatoslav I. Kniaziev,
Candidate of Economic Sciences,
Department of Economics of NAS of Ukraine
01030, Ukraine, Kyiv, Vladimirskiy str., 54
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Development of smart industry as an efficient way to implement the policy of neoindustrialization in the world
Section: Problems of strategy development, financial and economic regulation in industry
Ekon. promisl. 2017, 80(4): 5-18
Language: English
Abstract | Full text (PDF)
DOI: https://doi.org/10.15407/econindustry2017.04.005
| Full text (PDF)
References
1. McKinsey Global Institute (2015). The internet of things: mapping the value beyond the hype. McKinsey&Company, 2015.
2. Roadmap Smart Industry (2016). Re-trieved from https://www.hollandhightech.nl/ nationaal/innovatie/roadmaps/smart-industry [Accessed 7 Nov. 2017].
3. Yegorov, I. (2016). Smart Speciali-zation for Ukraine: Preliminary Analysis. Unpublished Report to JRC, Seville, Spain. September 2016. 14 p.
4. Ryzhkova, Yu.O. (2015). Features of realization of the concept of reasonable specialization in some countries of the world. Problem of Sciences, 2, pp. 41-50 [in Ukrainian].
5. Matyushenko, I.Yu. (2016). The Methodical Approach to Evaluation of the Innovation Potential of Ukraine as a Prereq-uisite for Implementing the Fourth Industrial Revolution and the Association with the EU. Business Inform, 10, pp. 85-93 [in Ukrainian].
6. Skitsko, V. (2016). Industry 4.0 as industrial production of the future. Investytsiyi: praktyka ta dosvid, 5, pp. 33-40 [in Ukrainian].
7. Zbarazska, L. (2016). Neoindustriali-zation in Ukraine: concept of national model. Ekon. promisl., 3 (75), pp. 5-32. [in Ukra¬i-nian]. doi: 10.15407/econindustry2016.03.005
8. Vyshnevs’kyi, V.P., & Knyazev, S.I. (2017). Smart industry: prospects and chal-lenges. Economy of Ukraine, 7. pp. 22-37 [in Ukrainian].
9. Cherevatskyi, D. (2017). Quo vadis, industrial? Dzercalo tyznia, 29. Retrieved from https://dt.ua/energy_market/ kamo-gryadeshi-promislovoste-250970_.html [Accessed 7 Nov. 2017] [in Ukrainian].
10. Yin, S., & Kaynak, O. (2015). Big Data for Modern Industry: Challenges and Trends. Proceedings of the IEEE, Vol. 103, 2, pp. 143-136.
11. Hu, H., Wen, Y., Chua, T.-S., & Li, X. (2014). Towards scalable systems for big data analytics: A technology tutorial. IEEE Access, 2, pp. 652-687.
12. Baily, M.N., & Manyika, J. (2013). Is Manufacturing “Cool” Again? Project Syndicate. Retrieved from https://www.project-syndicate.org/print/skills-and-workers-in-the-new-age-of-manufactu-ring-by-martin-n--baily- [Accessed 4 Jan. 2017].
13. Auschitzky, E., Hammer, M., & Rajagopaul, A. (2014). How big data can imp¬rove manufacturing. McKinsey & Com-pany. Retrieved from http://www.mckinsey. com/business-functions/operations/our-insights/ how-big-data-can-improve-manufacturing [Accessed 4 Jan. 2017].
14. Jagadish, H.V., Gehrke, J., Labrinidis, A. et al. (2014). Big Data and Its Technical Challenges. Exploring the inherent technical challenges in realizing the potential of Big Data. Communications of the ACM, Vol. 57, 7, pp. 652-687.
15. Evans, P., & Annunziata, M. (2012). Industrial Internet: Pushing the Boundaries of Minds and Machines. Fairfield, CT: General Electric Co.
16. Industrie 4.0. (2014). Chancen und Herausforderungen der vierter indust¬riellen Revolution. Retrieved from https://www.strategyand.pwc.com/reports/industrie-4-0 [Accessed 7 Nov. 2017].
17. Belov, V.B. (2016). New Paradigm of Industrial Development of Germany – Strategy “Industry 4.0”. Contemporary Europe, 5 (71), pp. 11-22. Retrieved from http://www.sov-europe.ru/2016/5-2016/3.pdf [Accessed 10 Nov. 2017] [in Russian].
18. AT&T, Cisco, GE, IBM and Intel formed the Industrial Internet Consortium. Retrieved from https://www.cisco.com/c/ ru_ru/about/press/press-releases/2014/03-033114b.html [Accessed 7 Nov. 2017] [in Russian].
19. Erfort, I.Yu., & Zbarazska, L.O. (2017). China’s policy on smart-industry development. Visnyk economichnoi nauky Ukrainy, 1, pp. 39-47 [in Ukrainian].
20. European Commission (2016). Peer Review of the Ukrainian Research and Innovation System. Horizon 2020 Policy Support Facility. Directorate-General for Research and Innovation. Luxembourg: Publications Office of the European Union.
21. ITUdata. ICT Development Index 2016. Retrieved from http://www.itu. int/net4/ITU-D/idi/2016/ [Accessed 24 Jan. 2017].
22. Industry 4.0 in Ukraine. Retrieved from https://industry4-0-ukraine. com.ua/ [Accessed 10 Nov. 2017] [in Ukrainian].
23. The Prime Minister presented a draft Medium-Term Plan for Priority Actions of the Government for the period up to 2020 (2016). Government portal. Retrieved from http://www.kmu.gov.ua/control/uk/ publish/article?art_id=249628227 [Accessed 24 Jan. 2017] [in Ukrainian].
24. The pilot projects of smart specialization will begin in three regions of Ukraine (2017). Ministry of Economic Development and Trade Ukraine. Official web-site. Retrieved from http://www.me.gov.ua/News/Detail?lang=uk-UA&id=a43dbee5-485a-416f-9422-4c87d758303f&title=UTrokhRegionakhUkrainiRozpochnutsiaPilotniProektiSmartspet-sializatsiiPromislovosti [Accessed 7 Nov. 2017] [in Ukrainian].
25. Reiman, M. et al. (2017). Road2CPS. Priorities and Recommendations for Research and Innovation in Cyber-Physical Systems. Stuttgart, Germany: Steinbeis-edition. Retrieved from https://dspace.lboro.ac.uk/dspace-jspui/bits-tream/2134/24472/1/Road2CPS-EBook.pdf [Accessed 7 Nov. 2017].
Candidate of Economic Sciences,
Department of Economics of NAS of Ukraine
01030, Ukraine, Kyiv, Vladimirskiy str., 54
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Development of smart industry as an efficient way to implement the policy of neoindustrialization in the world
Section: Problems of strategy development, financial and economic regulation in industry
Ekon. promisl. 2017, 80(4): 5-18
Language: English
Abstract | Full text (PDF)
DOI: https://doi.org/10.15407/econindustry2017.04.005
Abstract: The paper reveals modern trends of development of manufacturing systems, based on the principles of the Forth Industrial Revolution and linked with transition to the smart industry principles.
Smart enterprise is considered as the key primal segment of smart industry construction, which characterized with the possibility of control and tracking of industrial tools and industrial staff functioning through the Industrial Internet of Things. It also allows using data, collected for increasing productivity of labour, modification of technological processes and production quality.
Nowadays a number of countries all around the world formatted their own strategies of national mechanisms of smart industry’s incipience. At the same time, there are some similarities and differences in the formatting of principles and implementation of approaches that can be observed in this context in leading industrial countries.
German’s concept “Industry 4.0” was formed with the direct participation of governmental structures, scientific and business circles and considered the development of national industry, but not the global breakthrough. Implementation of this concept is directed on supporting of small and medium national manufacturers. In the USA the Industrial Internet Consortium was created as a non-commercial organization with open membership. Promoting the concepts of “sharing” and “open platforms”, Consortium considers its main task to be an optimization of profitable assets with emphasize on total financial returns. Chinese “Made in China 2025” strategy was formed upon the initiative of the government and assumed its leading role in the management of economy and transformation processes. The strategy defines an ambitious task as the main goal – to turn China into the world leading manufacturer and high-tech state through the increasing of “intellectual” smart industry capacity by 2025.
Different appraisals of the abovementioned countries’ prospects of the programs im-plementation show that today progressive businessmen no longer believe that transfer of production capacities to countries with cheap labour is a reliable way to succeed. This is due to the fact that goods have to fit the configuration of manufacturing, directed on satisfying the individual consumers’ needs and requests. From now on, the industry can become more localized. On the other hand, development of a smart industry means qualitative leap in cooperation and coordination of enterprises, linked through the global computer networks with researchers, developers, suppliers, distributors, end-users, etc. all around the world.
Ukraine must form its own program of national manufacturing transition to “smart” grounds, because the analysis of foreign experience, conducted in the paper, reveals an inexpediency of “blindly copying” the foreign strategies. Given the current state of affairs, combined model of building the smart industry can be congruent one for Ukraine. This model represents a combination of profitable assets optimization (according to the US experience) and support of national small and medium businesses (according to the German experience). The latter can provide fast integration into world smart environment, development and export of the necessary advanced technologies and products for the network industry under existing circumstances.
Keywords: smart industry, Industry 4.0, Industrial Internet Consortium, Industrial Internet of Things, smart factory, cyber-physical production systems, information and communication technologies, big data.
JEL code: O140.
Smart enterprise is considered as the key primal segment of smart industry construction, which characterized with the possibility of control and tracking of industrial tools and industrial staff functioning through the Industrial Internet of Things. It also allows using data, collected for increasing productivity of labour, modification of technological processes and production quality.
Nowadays a number of countries all around the world formatted their own strategies of national mechanisms of smart industry’s incipience. At the same time, there are some similarities and differences in the formatting of principles and implementation of approaches that can be observed in this context in leading industrial countries.
German’s concept “Industry 4.0” was formed with the direct participation of governmental structures, scientific and business circles and considered the development of national industry, but not the global breakthrough. Implementation of this concept is directed on supporting of small and medium national manufacturers. In the USA the Industrial Internet Consortium was created as a non-commercial organization with open membership. Promoting the concepts of “sharing” and “open platforms”, Consortium considers its main task to be an optimization of profitable assets with emphasize on total financial returns. Chinese “Made in China 2025” strategy was formed upon the initiative of the government and assumed its leading role in the management of economy and transformation processes. The strategy defines an ambitious task as the main goal – to turn China into the world leading manufacturer and high-tech state through the increasing of “intellectual” smart industry capacity by 2025.
Different appraisals of the abovementioned countries’ prospects of the programs im-plementation show that today progressive businessmen no longer believe that transfer of production capacities to countries with cheap labour is a reliable way to succeed. This is due to the fact that goods have to fit the configuration of manufacturing, directed on satisfying the individual consumers’ needs and requests. From now on, the industry can become more localized. On the other hand, development of a smart industry means qualitative leap in cooperation and coordination of enterprises, linked through the global computer networks with researchers, developers, suppliers, distributors, end-users, etc. all around the world.
Ukraine must form its own program of national manufacturing transition to “smart” grounds, because the analysis of foreign experience, conducted in the paper, reveals an inexpediency of “blindly copying” the foreign strategies. Given the current state of affairs, combined model of building the smart industry can be congruent one for Ukraine. This model represents a combination of profitable assets optimization (according to the US experience) and support of national small and medium businesses (according to the German experience). The latter can provide fast integration into world smart environment, development and export of the necessary advanced technologies and products for the network industry under existing circumstances.
Keywords: smart industry, Industry 4.0, Industrial Internet Consortium, Industrial Internet of Things, smart factory, cyber-physical production systems, information and communication technologies, big data.
JEL code: O140.
| Full text (PDF)
References
1. McKinsey Global Institute (2015). The internet of things: mapping the value beyond the hype. McKinsey&Company, 2015.
2. Roadmap Smart Industry (2016). Re-trieved from https://www.hollandhightech.nl/ nationaal/innovatie/roadmaps/smart-industry [Accessed 7 Nov. 2017].
3. Yegorov, I. (2016). Smart Speciali-zation for Ukraine: Preliminary Analysis. Unpublished Report to JRC, Seville, Spain. September 2016. 14 p.
4. Ryzhkova, Yu.O. (2015). Features of realization of the concept of reasonable specialization in some countries of the world. Problem of Sciences, 2, pp. 41-50 [in Ukrainian].
5. Matyushenko, I.Yu. (2016). The Methodical Approach to Evaluation of the Innovation Potential of Ukraine as a Prereq-uisite for Implementing the Fourth Industrial Revolution and the Association with the EU. Business Inform, 10, pp. 85-93 [in Ukrainian].
6. Skitsko, V. (2016). Industry 4.0 as industrial production of the future. Investytsiyi: praktyka ta dosvid, 5, pp. 33-40 [in Ukrainian].
7. Zbarazska, L. (2016). Neoindustriali-zation in Ukraine: concept of national model. Ekon. promisl., 3 (75), pp. 5-32. [in Ukra¬i-nian]. doi: 10.15407/econindustry2016.03.005
8. Vyshnevs’kyi, V.P., & Knyazev, S.I. (2017). Smart industry: prospects and chal-lenges. Economy of Ukraine, 7. pp. 22-37 [in Ukrainian].
9. Cherevatskyi, D. (2017). Quo vadis, industrial? Dzercalo tyznia, 29. Retrieved from https://dt.ua/energy_market/ kamo-gryadeshi-promislovoste-250970_.html [Accessed 7 Nov. 2017] [in Ukrainian].
10. Yin, S., & Kaynak, O. (2015). Big Data for Modern Industry: Challenges and Trends. Proceedings of the IEEE, Vol. 103, 2, pp. 143-136.
11. Hu, H., Wen, Y., Chua, T.-S., & Li, X. (2014). Towards scalable systems for big data analytics: A technology tutorial. IEEE Access, 2, pp. 652-687.
12. Baily, M.N., & Manyika, J. (2013). Is Manufacturing “Cool” Again? Project Syndicate. Retrieved from https://www.project-syndicate.org/print/skills-and-workers-in-the-new-age-of-manufactu-ring-by-martin-n--baily- [Accessed 4 Jan. 2017].
13. Auschitzky, E., Hammer, M., & Rajagopaul, A. (2014). How big data can imp¬rove manufacturing. McKinsey & Com-pany. Retrieved from http://www.mckinsey. com/business-functions/operations/our-insights/ how-big-data-can-improve-manufacturing [Accessed 4 Jan. 2017].
14. Jagadish, H.V., Gehrke, J., Labrinidis, A. et al. (2014). Big Data and Its Technical Challenges. Exploring the inherent technical challenges in realizing the potential of Big Data. Communications of the ACM, Vol. 57, 7, pp. 652-687.
15. Evans, P., & Annunziata, M. (2012). Industrial Internet: Pushing the Boundaries of Minds and Machines. Fairfield, CT: General Electric Co.
16. Industrie 4.0. (2014). Chancen und Herausforderungen der vierter indust¬riellen Revolution. Retrieved from https://www.strategyand.pwc.com/reports/industrie-4-0 [Accessed 7 Nov. 2017].
17. Belov, V.B. (2016). New Paradigm of Industrial Development of Germany – Strategy “Industry 4.0”. Contemporary Europe, 5 (71), pp. 11-22. Retrieved from http://www.sov-europe.ru/2016/5-2016/3.pdf [Accessed 10 Nov. 2017] [in Russian].
18. AT&T, Cisco, GE, IBM and Intel formed the Industrial Internet Consortium. Retrieved from https://www.cisco.com/c/ ru_ru/about/press/press-releases/2014/03-033114b.html [Accessed 7 Nov. 2017] [in Russian].
19. Erfort, I.Yu., & Zbarazska, L.O. (2017). China’s policy on smart-industry development. Visnyk economichnoi nauky Ukrainy, 1, pp. 39-47 [in Ukrainian].
20. European Commission (2016). Peer Review of the Ukrainian Research and Innovation System. Horizon 2020 Policy Support Facility. Directorate-General for Research and Innovation. Luxembourg: Publications Office of the European Union.
21. ITUdata. ICT Development Index 2016. Retrieved from http://www.itu. int/net4/ITU-D/idi/2016/ [Accessed 24 Jan. 2017].
22. Industry 4.0 in Ukraine. Retrieved from https://industry4-0-ukraine. com.ua/ [Accessed 10 Nov. 2017] [in Ukrainian].
23. The Prime Minister presented a draft Medium-Term Plan for Priority Actions of the Government for the period up to 2020 (2016). Government portal. Retrieved from http://www.kmu.gov.ua/control/uk/ publish/article?art_id=249628227 [Accessed 24 Jan. 2017] [in Ukrainian].
24. The pilot projects of smart specialization will begin in three regions of Ukraine (2017). Ministry of Economic Development and Trade Ukraine. Official web-site. Retrieved from http://www.me.gov.ua/News/Detail?lang=uk-UA&id=a43dbee5-485a-416f-9422-4c87d758303f&title=UTrokhRegionakhUkrainiRozpochnutsiaPilotniProektiSmartspet-sializatsiiPromislovosti [Accessed 7 Nov. 2017] [in Ukrainian].
25. Reiman, M. et al. (2017). Road2CPS. Priorities and Recommendations for Research and Innovation in Cyber-Physical Systems. Stuttgart, Germany: Steinbeis-edition. Retrieved from https://dspace.lboro.ac.uk/dspace-jspui/bits-tream/2134/24472/1/Road2CPS-EBook.pdf [Accessed 7 Nov. 2017].
Last Updated (Thursday, 07 December 2017 13:49)
