Disruptive technologies for the transition of digital economies towards sustainability

Economic Annals-ХХI: Volume 179, Issue 9-10, Pages: 22-30

Citation information:
Melnyk, L., Dehtyarova, I., Kubatko, O., Karintseva, O., & Derykolenko, A. (2019). Disruptive technologies for the transition of digital economies towards sustainability. Economic Annals-XXI, 179(9-10), 22-30. doi: https://doi.org/10.21003/ea.V179-02


Leonid Melnyk
D.Sc. (Economics),
Professor,
Head, Department of Economics,
Entrepreneurship and Business Administration,
Sumy State University
2 Rymsky Korsakov Str., Sumy, 40007, Ukraine
mealnyksumy@gmail.com
ORCID ID: https://orcid.org/0000-0001-7824-0678

Iryna Dehtyarova
PhD (Economics),
Associate Professor,
Department of Economics,
Entrepreneurship and Business Administration,
Sumy State University
2 Rymsky Korsakov Str., Sumy, 40007, Ukraine
i.dehtyarova@econ.sumdu.edu.ua
ORCID ID: https://orcid.org/0000-0003-4615-0437

Oleksandr Kubatko
D.Sc. (Economics),
Professor,
Associate Professor of the Department of Economics,
Entrepreneurship and Business Administration,
Sumy State University
2 Rymsky Korsakov Str., Sumy, 40007, Ukraine
okubatko@econ.sumdu.edu.ua
ORCID ID: https://orcid.org/0000-0001-6396-5772

Oleksandra Karintseva
D.Sc. (Economics),
Associate Professor,
Department of Economics,
Entrepreneurship and Business Administration,
Sumy State University
2 Rymsky Korsakov Str., Sumy, 40007, Ukraine
karintseva@econ.sumdu.edu.ua
ORCID ID: https://orcid.org/0000-0001-9570-3646

Anna Derykolenko
PhD Student (Economics),
Department of Economics,
Entrepreneurship and Business Administration,
Sumy State University
2 Rymsky Korsakov Str., Sumy, 40007, Ukraine
annysumy@ukr.net
ORCID ID: https://orcid.org/0000-0003-4971-5472

Disruptive technologies for the transition of digital economies towards sustainability

Abstract. The paper reveals the concept of disruptive technologies as a phenomenon that opens a new cycle of productive forces development. The paper shows essential disruptive technologies which have determined the change of socio-economic formations of human development: from agrarian societies to industrial and post-industrial ones. The authors of the article have analyzed key disruptive technologies which form the basis for the Internet of Things. Thus, it is stated that the innovations created on the basis of personal computers, mobile phones, Internet, Wi-Fi, renewable energy, 3D printers, digital technology, artificial intelligence, RFID tags, GPS, robots, and «cloud» technologies are the original components of the Internet of Things. A prognosis is that 37 billion devices will have been connected to the Internet of Things in the world by 2024. The paper demonstrates the economic view on disruptive technologies as a phenomenon that changes the benefit-cost ratio. The article reveals possible positive and negative effects of the implementation of disruptive technologies. The concept of the so called «the innovator’s dilemma» is discussed, and two principles of disruptive technologies are shown (creative, since it opens a new technological cycle, and destructive, since it undermines the production bases). The authors have empirically estimated the effects of key drivers that impact the average global GDP per capita. Thus, energy use, fixed telephone subscriptions (per 100 people), gross capital formation, improvements in life expectancy, and an increase in mobile cellular subscriptions are among the factors that increase the economic performance.

Keywords: Disruptive Technology; Innovation; Industrial Revolution; Internet of Things; Economic System; Development; Cyber-physical System; Gross Domestic Product per capita

JEL Classification: А14; F20; F21; F23

Acknowledgements and Funding: The publication contains the results of research conducted within the framework of the research project «Development of the Fundamental Bases of the Reproductive Mechanism of Socio-Economic Development during the Third Industrial Revolution» (No. 0118U003578).

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V179-02

References

  1. Christensen, C. M. (2016). The Innovators Dilemma. When New Technologies Cause Great Firms to Fail. Harvard Business Review Press.
  2. Greenhalgh, S. (2016). The effects of 3D printing in design thinking and design education. Journal of Engineering Design and Technology, 14(4), 752-769.
    doi: https://doi.org/10.1108/JEDT-02-2014-0005
  3. Lozhka, M. (2019, September 11). 14 Top mobile app development trends in 2020.
    Retrieved from https://lanars.com/blog/top-mobile-app-development-trends
  4. McKinsey (2013). Disruptive technologies: Advances that will transform life, business, and the global economy.
    Retrieved from https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/disruptive-technologies
  5. Melnyk, L. G., Kubatko, O. V., & Kubatko, O. V. (2016). Were Ukrainian regions too different to start interregional confrontation: Economic, social and ecological convergence aspects? Economic Research-Ekonomska Istrazivanja, 29(1), 573-582.
    doi: https://doi.org/10.1080/1331677X.2016.1174387
  6. Melnyk, L., Derykolenko, O., Kubatko, O., & Matsenko, O. (2019). Business models of reproduction cycles for digital economy. Proceedings of the 15th International Conference on ICT in Education, Research and Industrial Applications. Integration, Harmonization and Knowledge Transfer. Volume II: Workshops. Kherson, Ukraine, June 12-15, (pp. 269-276).
    Retrieved from https://essuir.sumdu.edu.ua/handle/123456789/74617
  7. Melnyk, L., Kubatko, O., Dehtyarova, I., Matsenko, O., & Rozhko, O. (2019). The effect of industrial revolutions on the transformation of social and economic systems. Problems and Perspectives in Management, 17(4), 381-391.
    doi: https://doi.org/10.21511/ppm.17(4).2019.31
  8. Meng, Z., Wu, Z., Muvianto, C., & Gray, J. (2017). A Data-Oriented M2M Messaging Mechanism for Industrial IoT Applications. IEEE Internet of Things Journal, 4(1), 236-246.
    doi: https://doi.org/10.1109/JIOT.2016.2646375
  9. Mihardjo, L. W. W., Sasmoko, Alamsyah, F., & Elidjen (2019). Boosting the Firm Transformation in Industry 5.0: Experience-Agility Innovation Model. International Journal of Recent Technology and Engineering, 2S9(8), 737-742.
    doi: https://doi.org/10.35940/ijrte.B1154.0982S919
  10. Østergaard, E. H. (2019, May 23). Welcome to Industry 5.0: The «human touch» revolution is now under way. Magazine, Engineer IT, Featured. EE Publishers.
    Retrieved from https://www.ee.co.za/article/welcome-to-industry-5-0-the-human-touch-revolution-is-now-under-way.html
  11. Oztemel, E., & Gursev, S. (2018). Literature review of Industry 4.0 and related technologies. Journal of Intelligent Manufacturing, 31, 127-182.
    doi: https://doi.org/10.1007/s10845-018-1433-8
  12. Piccarozzi, M., Aquilani, B., & Gatti, C. (2018). Industry 4.0 in Management Studies: A Systematic Literature Review. Sustainability, 10(10), 3821.
    doi: https://doi.org/10.3390/su10103821
  13. Rada, M. (2018, January 21). Industry 5.0 definition. Medium.
    Retrieved from https://medium.com/@michael.rada/industry-5-0-definition-6a2f9922dc48
  14. Rifkin, J. (2015). Zero Marginal Cost Society. Griffin Publisher.
  15. Rossi, B. (2018, March 7). What will Industry 5.0 mean for manufacturing? Raconteur.
    Retrieved from https://www.raconteur.net/technology/manufacturing-gets-personal-industry-5-0
  16. Schwab, K., Davis, N., & Nadella, S. (2018). Shaping the Fourth Industrial Revolution. Davos: World Economic Forum.
  17. Shkarupa, O. V., & Kharchenko, M. O. (2017). Integrated assessment of environmental costs of national economy: a case study. International Journal of Ecological Economics and Statistics, 38(3), 43-50.
    Retrieved from ­http://www.ceser.in/ceserp/index.php/ijees/article/view/4965
  18. Sineviciene, L., Kubatko, O., Derykolenko, O., & Kubatko, O. (2018) The impact of economic performance on environmental quality in developing countries. International Journal of Environmental Technology and Management (IJETM), 21(5-6), 222-237.
    doi: https://doi.org/10.1504/IJETM.2018.10022295
  19. Sineviciene, L., Sotnyk, I., & Kubatko, O. (2017). Determinants of energy efficiency and energy consumption of Eastern Europe post-communist economies. Energy & Environment, 28(8), 870-884.
    doi: https://doi.org/10.1177/0958305X17734386
  20. Skinner, C. (2018). Digital Human: The Fourth Revolution of Humanity Includes Everyone (Kindle Edition). Marshall Cavendish International (Asia), Pte Ltd.
  21. Sotnyk, I. M., & Kulyk, L. A. (2014). Decoupling analysis of economic growth and environmental impact in the regions of Ukraine. Economic Annals-ХХІ, 7-8(2), 60-64.
    Retrieved from http://ea21journal.world/index.php/ea-v143-15/
  22. Sotnyk, I. M. (2016). Energy efficiency of Ukrainian economy: problems and prospects of achievement with the help of ESCOs. Actual Problems of Economics, 175(1), 192-199.
    Retrieved from https://essuir.sumdu.edu.ua/bitstream-download/123456789/43448/3/Sotnyk_Energoefektyvnist.pdf
  23. Sotnyk, I. M., Dehtyarova, І. B., & Kovalenko, Y. V. (2015). Current threats to energy and resource efficient development of Ukrainian economy. Actual Problems of Economics, 173(11), 137-145.
    Retrieved from https://essuir.sumdu.edu.ua/bitstream-download/123456789/42791/3/Sotnyk_Degtyariova_Kovalenko_UKRAINIAN_ECONOMY.pdf
  24. Statista (2019). Number of IoT devices in use worldwide from 2009 to 2020 (in billion units).
    Retrieved from https://www.statista.com/statistics/764026/number-of-iot-devices-in-use-worldwide
  25. Stram, B. N. (2016). Key challenges to expanding renewable energy. Energy Policy, 96, 728-734.
    doi: https://doi.org/10.1016/j.enpol.2016.05.034
  26. The World Bank (2019). World Development Indicators database.
    Retrieved from http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators
  27. Tleppayev, A. (2019). Digitalisation and energy: world experience and evidence of correlation from Kazakhstan. Economic Annals-ХХI, 176(3-4), 56-64.
    doi: https://doi.org/10.21003/ea.V176-06
  28. Vollmer, M. (2018, August 23). What is Industry 5.0? Linkedln.
    Retrieved from https://www.linkedin.com/pulse/what-industry-50-dr-marcell-vollmer
  29. Xiaofeng Xu, Zhifei Wei, Qiang Ji, Chenglong Wang, & Guowei Gao (2019). Global renewable energy development: Influencing factors, trend predictions and countermeasures. Resources Policy, 63, 101470.
    doi: https://doi.org/10.1016/j.resourpol.2019.101470
  30. Yang, G.-Zh. (2017). Digital architecture and robotic construction. Science Robotics, 5(2), eaan3673.
    doi: https://doi.org/10.1126/scirobotics.aan3673
  31. Zhang, Ya. (2019). Research on key technologies of remote design of mechanical products based on artificial intelligence. Journal of Visual Communication and Image Representation, 60, 250-257.
    doi: https://doi.org/10.1016/j.jvcir.2019.02.010