The institutional model of formation and development of industry 4.0 in the conditions of knowledge economy’s formation

Abstract

The purpose of the article is to develop the institutional model of formation and development of Industry 4.0 in the conditions of knowledge economy’s formation and to determine the relevance of the institutional provision of this process in the modern economic systems. The research is performed within the new institutional economic theory (neo-institutionalism) and is based on the following methods: empirical methods, which are aimed at determining and descripting the institutes that are necessary for successful formation and development of Industry 4.0 in the conditions of knowledge economy’s formation; the method of analytical modeling that is applied for developing the institutional model of formation and development of Industry 4.0 in the conditions of knowledge economy’s formation. The authors also use the method of formalization for graphical interpretation of this model and the method of comparative analysis, which is used by the authors for determining the relevance of institutional provision of the process of formation and development of Industry 4.0 in the conditions of knowledge economy’s formation in modern economic systems through comparing the received model to the institutional practice of developed and developing countries of the world. As a result, the authors develop and present the institutional model of formation and development of Industry 4.0 in the conditions of knowledge economy’s formation, which reflects the need of modern economic systems for the corresponding institutes. The performed comparative analysis showed that institutional provision of the process of formation and development of Industry 4.0 in the conditions of knowledge economy’s formation in modern economic systems is not formed and is peculiar for three main problems: incompletion of the process of formation of necessary institutes, presence of “institutional traps”, and weakness of connections of various institutes.