Innovations in the context of modern economic transformation processes of enterprise, region, country: the eu experience

Authors:
L. Melnyk1, I. Dehtyarova1, D. Gorobchenko1, O. Matsenko1
1. Sumy State University (Sumy, Ukraine);
Pages:
260 - 271
Language:
English
Cite as:


Annotation

The aim of the article. The content of green (sustainable) economy is revealed. The role of the Third industrial revolution (T.i.r.) and generated innovations in its formation is shown. Characteristics of the T.i.r. and important prerequisites for its implementation are analyzed. Basic innovation transitions for the formation of new economy are considered. Directions of transformation of economic systems on different levels are studied. The article analyzes regularities of innovations origin that determine the events of the T.i.r. and its influence on the formation of economic systems at different levels.

Results. The key tasks of the Third industrial revolution are: to prevent ecological catastrophe of the Earth and ensure social (personal) development of man. This is what the Declaration on Sustainable development, adopted in 1992 ensures.

T.i.r. represents a series of transitions from the fundamental features that distinguish the economy of the Second industrial revolution to the characteristics of sustainable economy that are formed in the course of the T.i.r. The main innovation transitions can be expressed as follows:

·   from the primary use of non-renewable resources to the primary use of renewable resources;

·   from broken to closed cycles of nature management;

·   from subtractive to additive technologies (in the first case, the process of manufacturing products occurs by cutting unnecessary, in the second - by adding the necessary method, this is how 3D printers work);

·   from multiple forms to a single digital form of fixing and transferring information;

·   from isolated to network production systems;

·   from vertical (complex-intermediary) to horizontal (direct) production and consumer structures;

·   from capitalist or command to solidary forms of economic relations.

These transformations can be realized on the level of enterprise, region, and country. The following directions of innovation transformations are:

·   transferring the center of gravity (and consequently, costs) in the production process from product replication cycle (in other words, the production of goods) to design cycle;

·   significant dematerialization of the means of production and the manufacturing process itself; the means of production are computerized: algorithms, programs, databases); additive technologies sharply reduced the demand for raw materials, and because of its unification most of the logistics problems disappear [6];

·   transition from large-scale industrial enterprises to networks of small or individual producers [18];

·   transition to horizontal production and consumption structures, to solidary forms of economic relations;

·   virtualization of enterprises;

·   intellectualization of production on the basis of "cloud" technologies;

·   management networks of various levels are created: "smart" plant, smart house, smart city, intelligent highway, smart country;

·   creation of flexible plants

Conclusions and further research. Innovative technologies, like any innovations in general, can be successfully implemented with the concentration of the whole society efforts. The EU countries apply different instruments for such concentration, the so-called technological platforms, covering the projected innovation type from definition to the general research program. This term means the collaboration of state representatives, business, science and education representatives for mutual understanding of scientific and technological development trends and the formation of common approaches for development and industrial implementation of appropriate technologies [34].The Third industrial revolution promises to solve a number of economic, environmental and social problems. Its main result should be a significant decrease in the resource intensity of production systems and the reduction of anthropogenic pressure on natural systems. A significant increase in the efficiency of life support systems also creates a reliable platform for improving human welfare.

At the same time, it should be mentioned that the Third industrial revolution brings a number of social and humanitarian challenges. First of all, we should understand the phase scale of future transformations. People can benefit only if a civilizational transition to mass reproduction of a person dominated by his personal (information) needs takes place. The productive use of released free time, as a result of the radical automation of production processes, should also be directed at this.


Keywords
innovations, Third Industrial Revolution, renewable resources, ‘green’ (sustainable) economy, additive technologies, network


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