Disruptive digital technologies as a means for destroying the foundations of oligarchomics: world experience and challenges for Ukraine

Economic Annals-ХХI: Volume 179, Issue 9-10, Pages: 31-39

Citation information:
Pecheranskyi, I., & Revenko, A. (2019). Disruptive digital technologies as a means for destroying the foundations of oligarchomics: world experience and challenges for Ukraine. Economic Annals-XXI, 179(9-10), 31-39. doi: https://doi.org/10.21003/ea.V179-03

Igor Pecheranskyi
D.Sc. (Philosophy),
Associate Professor,
Professor of the Department of Philosophy,
Kyiv National University of Culture and Arts
36 E. Konovalets Str., Kyiv, 01133, Ukraine
ipecheranskiy@ukr.net
ORCID ID: https://orcid.org/0000-0003-4722-2332

Anatoly Revenko
PhD (Economics),
Associate Professor of the Department of International Relations,
Kyiv National University of Culture and Arts
36 E. Konovalets Str., Kyiv, 01133, Ukraine
revenkoad@ukr.net
ORCID ID: https://orcid.org/0000-0002-4555-0677

Disruptive digital technologies as a means for destroying the foundations of oligarchomics: world experience and challenges for Ukraine

Abstract. The purpose of the article is to analyze the world experience of using disruptive technologies in the digital economy of the leading countries and to consider risks and perspectives resulting from the use of such innovations in Ukraine at the modern stage, including the peculiarities of digitalization of the country’s economy. The theoretical and methodological basis of the investigation comprises the methods of deduction and induction, theoretical generalization, abstract-logical method and the method of financial and economic analysis. The results of the research are in the statement that the digital economy of the 21st century has a powerful potential thanks to which companies and even separate countries have leading positions in the world by the key directions in socio-economical development including disruptive technologies which radically change the situation in the world market and determine the direction of further development of economic relations. It is pointed out that among such innovations the most famous is the Internet of Things, Blockchain technologies, artificial intelligence, quantum calculations, digital twins, etc. By many indicators and ratings covering the implementation of the so-called «breakdown» technologies with regard to the digitalization of economy, Ukraine is significantly behind the leading countries. Despite declarations and ambitious statements at the government level, the Blockchain technology is perhaps the only successful example of the use of disruptive technologies in our country for over the last 5 years. The possibility, the pace and risks of introducing disruptive technologies within the Ukrainian economy, which can be transformed into a conceptual initiative and a mechanism for destroying the foundations of oligarchomics, remain debatable and highly relevant.

Keywords: Digital Economy; Digitalization; Disruptive Technologies; Innovations; Internet of Things; Blockchain; Artificial Intelligence; Quantum Calculations

JEL Classіfіcatіon: F21; L86; O31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V179-03

References

1. Accenture (2016). Why Artificial Intelligence is the Future of Growth.
   Retrieved from https://www.accenture.com/_acnmedia/pdf-57/accenture-ai-economic-growth-infographic.pdf
2. Accenture (2017). Innovating with Quantum Computing: Enterprise Experimentation Provides View into Future of Computing.
   Retrieved from https://www.accenture.com/t00010101T000000__w__/br-pt/_acnmedia/PDF-45/Accenture-Innovating-Quantum-Computing-Novo.pdf
3. Chase, P., David-Wilp, S., & Ridout, T. (2016). Transatlantic Digital Economy and Data Protection: State-of-Play and Future Implications for the EU’s External Policies. Study for the European Parliament’s Committee on Foreign Affairs. European Union.
   doi: https://doi.org/10.2861/173823
4. Christensen, C. (2015). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. (Management of Innovation and Change). (Kindle Edition). Harvard Business Review Press; Reprint edition.
5. Deloitte (n. d.). What is Digital Economy? Unicorns, transformation and the internet of things. New York: Deloitte.
   Retrieved from https://www2.deloitte.com/mt/en/pages/technology/articles/mt-what-is-digital-economy.html
6. Desjardins, J. (2018, January 12). How the Internet of Things has evolved over the last 50 years. World Economic Forum.
   Retrieved from https://www.weforum.org/agenda/2018/01/how-the-internet-of-things-has-evolved-over-the-last-50-years
7. Digital Economy and Society Index (2019). DESI Report 2019 – Integration of Digital Technology. Report 2019. European Commission.
   Retrieved from https://ec.europa.eu/newsroom/dae/document.cfm?doc_id=59979
8. Einaste, T. (2018, February). Blockchain and healthcare: the Estonian experience. e-Estonia.
   Retrieved from https://e-estonia.com/blockchain-and-healthcare- the-estonian-experience
9. European Commission (2017, March 23). European countries join forces to digitise industry.
   Retrieved from https://ec.europa.eu/digital-single-market/en/news/european-countries-join-forces-digitise-industry
10. European Commission (2019, November 7). Eastern Partnership – 20 Deliverables for 2020 Focusing on key priorities and tangible results. Joint Staff Working Document. High Representative Of The Union For Foreign Affairs And Security Policy.
    Retrieved from https://eeas.europa.eu/sites/eeas/files/swd_2017_300_f1_joint_staff_working_paper_en_v5_p1_940530.pdf
11. Haase, L. M., Gertsen, F., Johansen, S. S., & Rosenstand, C. A. F. (2017). Characterizing digital disruption in the general theory of disruptive innovation. In The XXVIII ISPIM Innovation Conference 2017: Composing the Innovation Symphony, 18-21 June 2017. Wienna: ISPIM Innovation Symposium.
    Retrieved from https://vbn.aau.dk/en/publications/characterizing-digital-disruption-in-the-general-theory-of-disrup
12. HITECH (2016). Digital Agenda of Ukraine – 2020 (Digital Agenda 2020). Conceptual backgrounds (version 1.0). Priority Areas, Initiatives, Digitization Projects of Ukraine to 2020. HITECH Office.
    Retrieved from https://ucci.org.ua/uploads/files/58e78ee3c3922.pdf (in Ukr.)
13. International Finance Corporation (2018). How Technology Creates Markets: Trends and Examples for Private Investors in Emerging Markets. International Finance Corporation. Washington, D.C.: International Finance Corporation. World Bank.
    Retrieved from https://openknowledge.worldbank.org/handle/10986/30196
14. Kepp, N. V. (2018). Disruptive and supportive innovation: the essence, features, development trend. Production Organizer, 26(2), 41-52.
    Retrieved from https://cyberleninka.ru/article/n/podryvnye-i-podderzhivayuschie-innovatsii-suschnost-osobennosti-tendentsii-razvitiya (in Russ.)
15. Lal Das, P., Beisswenger, S. C., Mangalam, S., Yuce, М. R., & Lukac, M. (2017). Internet of things: the new government to business platform – a review of opportunities, practices, and challenges. Working Paper No. 120876. Washington, D.C.: World Bank Group.
    Retrieved from http://documents.worldbank.org/curated/en/610081509689089303/Internet-of-things-the-new-government-to-business-platform-a-review-of-opportunities-practices-and-challenges
16. Manyika, J., Lund, S., Bughin, J., Woetzel, J., Stamenov, K., & Dhingra, D. (2016). Digital Globalization: The New Era of Global Flows. McKinsey Global Institute.
    Retrieved from https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/digital-globalization-the-new-era-of-global-flows
17. Marutyan, R. (2018, January 30). Ukraine among the leading countries in the implementation of blockchain technology. Matrix divergent.
    Retrieved from https://matrix-info.com/ukrayina-sered-krayin-lideriv-z-vprovadzhennya-tehnologiyi-blokchejn (in Ukr.)
18. National Research Foundation Singapore (2018). Virtual Singapore.
    Retrieved from https://www.nrf.gov.sg/programmes/virtual-singapore
19. Nedap (2019). RTA unleashes Smart Parking Project in Dubai.
    Retrieved from https://www.nedapidentification.com/cases/rta-unleashed-smart-parking-project-in-dubai
20. Niforos, M. (2017, July). Blockchain in Development – Part I: A New Mechanism of «Trust»? Note 40. International Finance Corporation, World Bank Group.
    Retrieved from http://documents.worldbank.org/curated/en/511661502947718159/pdf/118734-BRI-EMCompass-Note-40-Blockchain-Part-I-PUBLIC.pdf doi: https://doi.org/10.2861/173823
21. Nochvay, V., Koriavets, M., Kulchytskyi, I., Oleksiuk, L., Prykhodko, O., Horokhovskyi, K., & Hryha, V. (2018). Problems and prospects of harmonization of Ukraine’s digital market with EU and EaP markets. Analytical report.
    Retrieved from https://cid.center/3456787654345-2 (in Ukr.)
22. Pettey, Ch. (2017, September 18). Prepare for the Impact of Digital Twins. Gartner.
    Retrieved from https://www.gartner.com/smarterwithgartner/prepare-for-the-impact-of-digital-twins
23. Pouliquen, E., Kaleem, H., & Schlorke, S. (2018). IFC Manufacturing Sector Deep Dive: Unlocking the Value of Manufacturing for Development. (Internal document). Slide 9. International Finance Corporation, World Bank Group, Washington D.C.
24. Schwab, K. (2016, January 14). The Fourth Industrial Revolution: what it means, how to respond.
    Retrieved from https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond
25. Siemens (2017). Digitalization in industry: Twins with potential.
    Retrieved from https://new.siemens.com/global/en/company/stories/industry/the-digital-twin.html
26. Utesheva, A., Simpson, J. R., & Cecez-Kecmanovic, D. (2016). Identity metamorphoses in digital disruption: a relational theory of identity. European Journal of Information systems, 25(4), 344-363.
    doi: https://doi.org/10.1057/ejis.2015.19
27. Van Alstyne, M. (2016). How New Biz Models Are Changing the Shape of Industry. 3D Experience Forum 2016 – Dassault Systèmes.
    Retrieved from https://www.youtube.com/watch?v=8OFRD66pI0Y

Received 12.08.2019
Received in revised form 11.09.2019
Accepted 16.09.2019
Available online 11.11.2019