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Industrial Policy: A New Reality in the Context of Digital Transformation of the Economy

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Digital Transformation in Industry

Part of the book series: Lecture Notes in Information Systems and Organisation ((LNISO,volume 44))

Abstract

The latest technological and globalization trends have entailed a sharp increase in various regulatory functions, which enhances the content and significance of state industrial policy. Amid these conditions, it is becoming increasingly important to identify the key features of a new reality that determine the necessity for industrial policy to be adjusted under digital transformation. We hypothesize that the transformation of the priorities, goals and economic content of industrial policy is due to a new reality affected by changing core factors of technological development, the influence of recent globalization trends, and the growing importance of human capital. The fourth industrial revolution, globalization and human capital are believed to be the major drivers of today’s economic development, despite the differences in their institutional nature. Their combined impact provides a new direction for the development of industrial policy and encourages the formation of a system of public instruments for supporting priority industrial areas. The driving force of today’s economy is not only technology or the production sector, but also sophisticated organizational-economic models and advanced mechanisms for coordinating manufacturers based on a cross-platform network business model. Addressing the experience of developed and developing countries, we demonstrate the changing importance of production factors transforming industrial policy. The study substantiates the need for a proactive industrial policy that takes into account economic and social interests.

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Acknowledgements

The paper was funded by the Russian Foundation for Basic Research (RFFI), project No. 20-010-00719 “Modeling the processes of cross-industrial networkization in the industrial complex based on hybrid technologies”.

Author information

Authors and Affiliations

  1. Institute of Economics of the Ural Branch of the Russian Academy of Sciences, Moskovskaya St. 29, 620014, Ekaterinburg, Russian Federation

    Olga A. Romanova & Evgeny Kuzmin

  2. Ural State University of Economics, 8 Marta/Narodnoy Voli St. 62/45, 620144, Ekaterinburg, Russian Federation

    Evgeny Kuzmin

Authors
  1. Olga A. Romanova
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  2. Evgeny Kuzmin
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Corresponding author

Correspondence to Evgeny Kuzmin .

Editor information

Editors and Affiliations

  1. Bristol Business School, University of the West of England, Bristol, UK

    Vikas Kumar

  2. Faculty of Technology, Policy and Management, Delft University of Technology, Delft, The Netherlands

    Jafar Rezaei

  3. Department of Regional Industrial Policy and Economic Security, Institute of Economics of the Urals Branch of the Russian Academy of Sciences, Ekaterinburg, Russia

    Victoria Akberdina

  4. Department of Regional Industrial Policy and Economic Security, Institute of Economics of the Urals Branch of the Russian Academy of Sciences, Ekaterinburg, Russia

    Evgeny Kuzmin

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Romanova, O.A., Kuzmin, E. (2021). Industrial Policy: A New Reality in the Context of Digital Transformation of the Economy. In: Kumar, V., Rezaei, J., Akberdina, V., Kuzmin, E. (eds) Digital Transformation in Industry. Lecture Notes in Information Systems and Organisation, vol 44. Springer, Cham. https://doi.org/10.1007/978-3-030-73261-5_2

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