Skip to main content
View expanded cover

Digital Strategies in a Global Market pp 39–52Cite as

Palgrave Macmillan

Institutionalization of the Fourth Industrial Revolution in National Economics and on Global Market: Different Paths to Success

Abstract

 This paper evaluates different approaches to embeddedness of the Fourth Industrial Revolution in national economics and on global market. The numerous and varied attempts to achieve success amidst this turbulent and constantly changing global market has created two main paradigms of institutional policy, correlating with the countries that initiated and/or achieved the embedding of the Fourth Industrial Revolution. The state, as the initiator, pursues a top-down policy: imposing formal institutions and stimulating business in every way possible to modernize its activities in accordance with the principles of the Fourth Industrial Revolution. If the idea of the Fourth industrial revolution was instead initiated by business, then a down-top policy is implemented: the state turns out to be a weak actor which adapts to changing conditions and is modernized through digitalization. Top-down policy is implemented mainly in Natural States; down-top policy (sometimes known as bottom-up policy) is mainly a characteristic of Open Access Order countries. Since the Fourth Industrial Revolution is associated with high level of technology (such as the development of the Internet of Things), the leading role in the global market is played by industrialized and post-industrial countries, as they are creating an institutional image of the new global market. Thus, the Open Access Order has the greatest impact on the development of the global market. The main goal of this research is to define the paths of institutional policy amidst the Fourth Industrial Revolution, whether in Natural States or in Open Access Order, through applying the methodology of Douglass North. Its impact on the global market can also be ascertained. Institutional and comparative analysis methodology was used in the research. The results indicate that (1) Natural States pursue a top-down policy to embed the institutions of the Fourth Industrial Revolution, (2) Open Access Order goes radically other way by employing a down-top path, and (3) digitalization occurs according to the chosen institutional policy. These findings not only make it possible to adjust the Fourth Industrial Revolution, but also to modify the institutions already in force. The experiences of those Fourth Industrial Revolution initiatives that have already been implemented in selected national economies avoids institutional traps, and allows those countries that have embarked on a different path to succeed.

Keywords

  • Fourth Industrial Revolution
  • Natural state
  • Open Access Order
  • Institutional policy
  • Global market

JEL Classification

  • L16
  • L52
  • K24

This is a preview of subscription content, access via your institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-58267-8_4
  • Chapter length: 14 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   129.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-58267-8
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   169.99
Price excludes VAT (USA)
Hardcover Book
USD   169.99
Price excludes VAT (USA)
Learn about institutional subscriptions
Fig. 4.1

(Source Created by the authors)

References

  • Basl, J., Sasiadek, M., Petr, D., Gerhard, C., & Vaclav, O. (2017). Comparison of Industry 4.0 Application Rate in Selected Polish and Czech Companies. Idimt-2017—Digitalization in Management, Society and Economy, 46, 401–410.

    Google Scholar 

  • Bonciu, F. (2017). The Race Towards the Future: Geopolitics Versus Technology. Implications for Romania. Romanian Journal of European Affairs, 17(1), 75–84.

    Google Scholar 

  • Bonciu, F. (2019). Impact of the 4th Industrial Revolution on the World Order. Romanian Journal of European Affairs, 19(2), 51–62.

    Google Scholar 

  • Coetzer, J. (2018). Application of HCI Design Principles in overcoming Information Illiteracy: Case of a M-Health Application for a Rural Community in South Africa. 2018 International Conference on Intelligent and Innovative Computing Applications (Iconic) (pp. 64–70).

    Google Scholar 

  • Dekeda, B., & Adonis, M. (2019). The Case for Integration of Renewables in Rail Freight Yards in South Africa. Proceedings of the 2019 Twenty Seventh International Conference on the Domestic Use of Energy (Due) (pp. 156–162).

    Google Scholar 

  • Efremov, V., Vladimirova, I. V. B., Lackovic, A., & Pavelin, G. (2019). Globalization of the World Economy: Features of the Current Stage. Economic and Social Development (ESD) (pp. 27–36).

    Google Scholar 

  • Flynn, J., Dance, S., Schaefer, D., Gao, J., ElSouri, M., & Keates, S. (2017). Industry 4.0 and Its Potential Impact on Employment Demographics in the UK (Proceedings Paper). Advances in Manufacturing Technology XXXI, 6, 239–244.

    Google Scholar 

  • Galetska, T., Topishko, N., & Topishko, I. (2019). Corporate Social Activities in Germany: The Experience of Companies. Baltic Journal of Economic Studies, 5(3), 17–24.

    CrossRef  Google Scholar 

  • Galushkin, A. A., Nazarov, A. G., Sabyna, E. N., & Skryl, T. V. (2019). The Institutional Model of Formation and Development of Industry 4.0 in the Conditions of Knowledge Economy’s Formation. Studies in Systems, Decision and Control, 169, 219–226.

    CrossRef  Google Scholar 

  • Grzelakowski, A. (2019). Assessment of the Current State of the EU Inland Shipping Development and Its Perspectives from the Policy and Transport Market Point of View. Scientific Journals of the Maritime University of Szczecin-Zeszyty Naukowe Akademii Morskiej W Szczecinie, 58(130), 74–83.

    Google Scholar 

  • Huckova, R., Sokol, P., Rozenfeldova, L., Duic, D., & Petrasevic, T. (2018). 4th Industrial Revolution and Challenges for European Law. EU Law in Context—Adjustment to Membership and Challenges of the Enlargement (pp. 201–215).

    Google Scholar 

  • Iwamoto, T., Kocaoglu, D., Anderson, T., Kozanoglu, D., Niwa, K., & Steenhuis, H. (2019). Development of the HRTech Market in Japan. 2019 Portland International Conference on Management of Engineering and Technology.

    Google Scholar 

  • Jaskova, D., & Kordos, M. (2020). Labour Market Changes in the Regions of Slovakia in the Context of Industry 4.0. Vplyv Industry 4.0 Na Tvorbu Pracovnych Miest 2019 (pp. 183–191).

    Google Scholar 

  • Kim, J., Torneo, A. R., & Yang, S. B. (2019). Philippine Readiness for the 4th Industrial Revolution: A Case Study. Asia-Pacific Social Science Review, 19(1), 139–153.

    Google Scholar 

  • Kim, S., & Heo, C. (2018). Analysis of Mineral Resource Exploration and Strategy in Australia (Review). Economic and Environmental Geology, 51(3), 291–307.

    Google Scholar 

  • Koren, V., & Kordos, M. (2019). The Readiness of the Labour Market in the Czech Republic for Industry 4.0. Vplyv Industry 4.0 Na Tvorbu Pracovnych Miest (pp. 101–113).

    Google Scholar 

  • Lenchuk, E. (2018). Russia’s Industrial Policy: Shifting Towards the New Industrialization. Zhurnal Novaya Ekonomicheskaya Assotsiatsiya-Journal of the New Economic Association, 3, 138–145.

    CrossRef  Google Scholar 

  • Machado, C. G., Winroth, M. P., & Ribeiro da Silva, E. H. D. (2020). Sustainable Manufacturing in Industry 4.0: An Emerging Research Agenda. International Journal of Production Research, 58(5), 1462–1484.

    Google Scholar 

  • Min, Y., Lee, S., & Aoshima, Y. (2019). A Comparative Study on Industrial Spillover Effects Among Korea, China, the USA, Germany and Japan. Industrial Management & Data Systems, 119(3), 454–472.

    CrossRef  Google Scholar 

  • North, D. C., Wallis, J. J., & Weingast, B. R. (2009). Violence and Social Orders. A Conceptual Framework for Interpreting Recorded Human History. Cambridge: Cambridge University Press.

    CrossRef  Google Scholar 

  • Ottonicar, S., Valentim, M., & Mosconi, E. (2019). Public Policy Applied in Industry 4.0: A Comparative Study Between Brazil and Canada Focusing on Information Literacy. Revista Ibero-Americana De Ciencia Da Informacao, 12(2), 558–584.

    Google Scholar 

  • Owoseni, A., & Twinomurinzi, H. (2020). Evaluating Mobile App Usage by Service Sector Micro and Small Enterprises in Nigeria: An Abductive Approach. Information Technology For Development.

    Google Scholar 

  • Pillay, N., Maharaj, B., & van Eeden, G. (2018). AI in Engineering and Computer Science Education in Preparation for the 4th Industrial Revolution: A South African Perspective. 2018 World Engineering Education Forum—Global Engineering Deans Council.

    Google Scholar 

  • Pirvu, B., Zamfirescu, C., Kifor, C., Naito, M., Carausu, C., Topala, P., et al. (2017). Smart Factory in the Context of 4th Industrial Revolution: Challenges and Opportunities for Romania. Modtech International Conference—Modern Technologies in Industrial Engineering V (p. 227).

    Google Scholar 

  • Safar, L., Sopko, J., Dancakova, D., & Woschank, M. (2020). Industry 4.0-Awareness in South India (Article). Sustainability, 12(8).

    Google Scholar 

  • Schwab, K., & Davis, N. (2018). Shaping the Fourth Industrial Revolution. Cologne: World Economic Forum.

    Google Scholar 

  • Silverstrov, S. N., Osipov, V. S., & Zeldner, A. G. (2019). The Role of State Corporations in Redesign of Sectoral Supply Chain Management. International Journal of Supply Chain Management, 8(5), 314–324.

    Google Scholar 

  • Skryl, T. V. (2017). A Paradigm Shift in Russia’s Industrial Policy: From a Raw Model to Innovative Technological Growth Points. International Journal of Ecological Economics and Statistics, 38(2), 49–58.

    Google Scholar 

  • Sohimi, N., Affandi, H., Rasul, M., Yasin, R., Nordin, N., & Adam, S. (2019). Malaysian Industrial Collaborations for Skills Development in 4th Industrial Revolution. Journal of Technical Education and Training, 11(3), 63–72.

    Google Scholar 

  • Sojkova, L., & Kocourek, A. (2017). Is the Czech Republic Preparing for Society 4.0? Proceedings of the 13th International Conference: Liberec Economic Forum 2017 (pp. 125–135).

    Google Scholar 

  • Sumari, P., Idris, Z., & Abdullah, J. (2017). We Must Invest in Applied Knowledge of Computational Neurosciences and Neuroinformatics as an Important Future in Malaysia: The Malaysian Brain Mapping Project (Editorial Material). Malaysian Journal of Medical Sciences, 24(1), 1–9.

    CrossRef  Google Scholar 

  • Ziaei Nafchi, M., & Mohelska, H. (2018). Industry 4.0 and Labor Market in Iran as a Developing Country. Hradec Economic Days, Pt Ii (Vol. 8, pp. 550–561).

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Moscow State Institute of International Relations (MGIMO University), Moscow, Russia

    Vladimir Osipov

  2. University North, Varaždin, Croatia

    Ante Rončević

Authors
  1. Vladimir Osipov
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ante Rončević
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Vladimir Osipov .

Editor information

Editors and Affiliations

  1. Moscow State Institute of International Relations (MGIMO University), Moscow, Russia

    Natalia Konina

Rights and permissions

Reprints and Permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Verify currency and authenticity via CrossMark

Cite this chapter

Osipov, V., Rončević, A. (2021). Institutionalization of the Fourth Industrial Revolution in National Economics and on Global Market: Different Paths to Success. In: Konina, N. (eds) Digital Strategies in a Global Market. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-58267-8_4

Download citation