10:16 18.02.2022

Author EDUARD MKRTCHAN

"Industry 4.0" as a vector of Ukrainian innovations

6 min read
"Industry 4.0" as a vector of Ukrainian innovations

Eduard Mkrtchan, entrepreneur, economic expert, head of a charitable foundation
 

Almost the only positive dimension can be focused in the specter of a great war. This is a challenge that makes the world stronger. The threat of war prompts countries and societies to find answers to threats that only yesterday seemed unlikely.

One of the key markers of the development of the last 20 years is the innovative concept of Industry 4.0. Today, his weight increases many times over. Because the world is already living in conditions of scarcity, high cost or inaccessibility of energy resources. This means that it requires fast, high-quality innovations. A few words from the background of the concept.

In 2013, it was proposed by experts from Germany to counteract expansion from Southeast Asia. They hoped to moderate Chinese companies that were ousting German corporations from the markets with innovations. Today, this concept forms a new world economic reality, taking into account the high risk of energy, logistics or raw material crises.

Industry 4.0 is an economic optimization algorithm. Its synergy ensures a higher quality of industrial development through process automation and logistics rationalization. According to a study by McKinsey, high-tech companies use less than 60% of their own potential. Therefore, in every industry there are excessive costs that should be optimized.

Artificial intelligence technologies are an indicator that eliminates the factor of cheap labor. The Industry 4.0 format transforms them from the need to follow certain algorithms to the ability to change them. For example, thanks to robotization, Tesla has deployed facilities in California. It turned out to be cheaper than producing and transporting cars from China.

For Industry 4.0, the Industrial Internet of Things format is key. It allows objects of the real economy to interact outside the human factor. We are talking about telecommunications systems for autonomous devices that exchange information taking into account production processes. The digitalization of objects integrates them into national and international chains, providing higher added value.

In 2019, the capitalization of the global Industry 4.0 market was estimated at $71.7 billion. According to Research and Markets, this figure will reach $156.6 billion by 2024. Thus, the average annual growth is almost 17%.

Given this, developed countries support the mentioned concept as a long-term trend. For example, in Israel, the Innovation Agency provides entrepreneurs with case studies of practical tools and access to structural funds for innovation ecosystems. The goal is to achieve competitive advantages in local and global markets. As a result, Israel ranked second according to the World Economic Forum 2016 report on global competitiveness.

In the end, let's return to the Ukrainian format of Industry 4.0. Unfortunately, our positions are disappointing. In the report of the World Economic Forum-2018 we take 67th place. According to the State Statistics Service, in 2020, the share of high-tech enterprises in the structure of value added over the previous four years decreased from 1.9% to 1.2%. This indicates reverse processes in the development of logistics and industrial automation.

Given the high military risks for Ukraine, Industry 4.0 should become a marker for us to increase manufacturability. Rapid implementation requires the synergy of three factors: the state apparatus, business and the education system. The analysis of the Association of Industrial Automation Enterprises indicates a high probability of production growth by 7-10% with the transition of Ukraine to Industry 4.0.

To do this, it is necessary to improve the legislative field, establish transparent rules and provide high-quality personnel. The first step has already been the adoption of the resolution of the Cabinet of Ministers of Ukraine on the concept of "Industry 4.0". The purpose of the document is to accelerate the transformation of the national economy, strengthen competitiveness, and expand the field of investment. It is important that the Ministry of Economy promotes the Industry 4.0 project together with the key players in the technological innovation market - the APPAU Association and the Industry4Ukraine platform.

 The document provides for the development of a network of Industry 4.0 Centers in Kiev, Kharkov, Lvov and other areas of innovative development. They will be deployed in universities, scientific institutions, industrial parks. To advise entrepreneurs on the methodology and resources for change, to promote the implementation of their developments.

The main factors hindering innovative changes in Ukraine are the outflow of young personnel from industry, the training of specialists without taking into account the requirements of Industry 4.0, and the lack of experts in its promotion.

We need programs tested in the EU countries to train expert consultants on audit, digitalization, technology implementation priorities. In this direction, the scientific communities of NTUU “KPI”. The Institute of Economics and Forecasting of the National Academy of Sciences prepared a methodology adapted to European standards.

It is necessary to stimulate investment in technology by law. Some countries provide concessional lending for industrial digitalization using national software and their providers. We have only indirect benefits provided for in the draft laws on Industrial Parks. There is no talk of direct stimulation of digitalization.

It is necessary to create a research infrastructure for Industry 4.0. For example, laboratories for testing technologies and prototypes. They are both demonstration and test platforms for working out prototype solutions. Such a tool could be envisaged in Centers 4.0. This will allow to accompany innovations to the stage of real integration into production chains. We are talking about targeted business cases for strategic industries - energy, metallurgy, mechanical engineering.

In the world, "Industry 4.0" is a strategic direction directed by the state. In Ukraine, these issues are proactively promoted by associations of entrepreneurs and experts. Last year, not a single corresponding target program of the state level was implemented. Therefore, it is appropriate to talk about the creation of a state agency that will consolidate policy on the implementation of Industry 4.0.

 A separate area is the promotion of this policy at the regional level. I will note an indicative indicator at the level of the territorial bulk of Kramatorsk. In the draft Development Strategy, its positioning is noted as "the economic core of the Kramatorsk agglomeration, industry 4.0, the scientific center of high-tech business, green and innovative economy." It is important that such markers of this innovative concept determine the development of Ukraine at all levels.

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