Analysis of Industry Peculiarities in the Framework of Transition to Industry 4.0 (the Case of the Forest Industry in Sverdlovsk Region)

Abstract

The article discusses the theoretical background, institutional conditions, as well as industrial and regional peculiarities, which determine technological development within the fourth industrial revolution. This work aims to identify opportunities and risks that forest industry enterprises of Sverdlovsk region will likely face while engaging in their development prospects in the digital economy. The work systematizes findings of theoretical studies on the main development concepts of the fourth industrial revolution, describes governmental policies and initiatives, as well as defines the essence, characteristics and key technologies of "smart production". Based on the analysis of different studies, system-wide risks are identified, primarily including the deepening of inequalities in the society, such as social and gender inequalities. The main policy papers that determine the Russian national policy on the digital economy are also identified. Russia's position in the world in terms of the transition to digital economy is analyzed, based on which a lag developed countries is shown in the expansion of information and communication technologies (ICT). It is nevertheless found that ICT development indicators place the Sverdlovsk region as a leader not only of the Ural region but also in the whole Russia. Furthermore, in this regard, favorable economic conditions for forest enterprises are discovered, highlighting key growth potentials in digitalization of the forest sector in the region. The study is based on publicly available official statistics. The results of this work can be used in the development work of the regional "Digital Economy" project or by industry enterprises in defining their digital strategy. Promising areas of future research are model development for the transition to "smart production" and identifying factors of successful digital transformation