Risks of Modernizing National Economies in the Conditions of the Technological Leap

Abstract

The chapter discusses the development features of countries that are at different stages of economic modernization. The author determines that modernization can be caused by economic, technological, environmental, cultural, and social factors. The chapter analyzes the advantages and limitations for countries that have chosen the path of catch-up development in the context of globalization and which use technological transfer and equipment import, as well as which are oriented toward the export of raw materials. The prospects have been assessed for large-scale implementation of digital technologies in the world’s leading countries, which are actively increasing the pace of innovation commercialization, and in developing countries, where (in addition to social inequality) digital inequality is increasing. There are manifestations of reshoring, when developed countries withdraw production from developing countries where unemployment is increasing, yet unemployment is also on the rise in developed countries due to the spread of robotics. As a result of economic modernization, each country should choose its own set of advanced technologies that will provide competitive advantages on the global market, but this choice should be justified by the existing innovative potential, access to investment, and prospects for the activities of national companies. As recommendations to reduce the risks of modernization, it is proposed to use mechanisms of interaction between the state and business to implement investment projects using innovations and digital technologies in industry and services that provide employment and a country’s GDP growth.