|Generate QR code
Open Access
Subscription Access
End-to-end digitalization factors: Challenges for Russian manufacturers
https://doi.org/10.32609/0042-8736-2023-9-5-28
Abstract
Despite clear progress in digitalization, Russia significantly lags behind global leaders in the use of digital technologies, including robots, artificial intelligence and 3D printing. In this study, we use the organizational characteristics of Russian industrial companies and the role of innovation diffusion channels to explain the digitalization factors of Russian industrial enterprises. The database is grounded on the results of a sample survey of 1.7 thousand companies; empirical estimates include the construction of logit regressions. The results of the study are mixed: digitized companies are focused on the domestic market, but are receptive to technology transfer from foreign investors, examples of other Russian and foreign companies in the industry, developments of research centers in the field of robotics and artificial intelligence. The study of the relationship between digitalization and firms’ use of innovation channels has shown the importance of market incentives and flexible public innovation policy instruments. Direct government involvement as an owner in stimulating digitalization affects innovative companies using robots and 3D printing, while indirect government support measures are significant for innovative companies using artificial intelligence. This suggests that Russian companies overcome the barriers of resource constraints and organizational rigidity in different ways, and are also selectively susceptible to external incentives, which should be taken into account by the government in its policies
About the Authors
L. S. Ruzhanskaya
Ural Federal University
Russian Federation
Russian Federation
Lyudmila S. Ruzhanskaya
Ekaterinburg
M. G. Kuzyk
HSE University
Russian Federation
Russian Federation
Michael G. Kuzyk
Moscow
Yu. V. Simachev
HSE University
Russian Federation
Russian Federation
Yuri V. Simachev
Moscow
A. A. Fedyunina
HSE University
Russian Federation
Russian Federation
Anna A. Fedyunina
Moscow
References
1. Abdrakhmanova G. I., Baskakova O. E., Vishnevskiy K. O. et al. (2020). Trends in Internet development in Russia and foreign countries: Analytical report. Moscow: HSE Publ. (In Russian).
2. Abdrakhmanova G. I., Vishnevskiy K. O., Gokhberg L. M. et al. (2021). Digital economy indicators in the Russian Federation: 2021: Data book. Moscow: HSE Publ. (In Russian). https://doi.org/10.17323/978-5-7598-2385-8
3. Abdrakhmanova G. I., Vasilkovskiy S. A., Vishnevskiy K. O. et al. (2022). Digital economy indicators in the Russian Federation: 2022: Data book. Moscow: HSE Publ. (In Russian). https://doi.org/10.17323/978-5-7598-2697-2
4. Avdasheva S. B., Golovanova S. V. (2009). Trends in the structure of Russian industry during the period of economic recovery. Moscow: Yustitsinform. (In Russian).
5. Anandan T. (2018). A glimpse into the future: Robotic additive manufacturing. Control Engineering Russia, No. 5, pp. 32—36. (In Russian).
6. Bogachyova S., Kukushkin V. (2020). Robotics in additive manufacturing. In: Proceedings of the 53rd International Scientific and Technical Conference of Teachers and Students, Vol. 2. Vitebsk: VSTU, pp. 324—325. (In Russian).
7. Dolgopyatova T. G., Akindinova N. V., Simachev Y. V., Yakovlev A. A. (eds.) (2021). Russian business response to COVID-19 pandemic (six industry cases). Moscow: HSE Publ. (In Russian).
8. Deloitte (2020). How to increase digital maturity — from strategy to implementation. Mimeo. (In Russian). https://www2.deloitte.com/kz/ru/pages/consulting/articles/sap-deloitte-research.html
9. Efimov A., Tsygankov V., Zatyagov D. (2019). Analytical review of global robotics market. Moscow: Sberbank Robotics Laboratory. (In Russian).
10. KPMG (2019). Digital technologies in Russian companies. Research results, January. (In Russian).
11. Maslova Z. N. (2020). Major trends in the development and transformation of cross-border e-commerce during the COVID-19 pandemic. Scientific Letters of Russian Customs Academy St.-Petersburg branch named after Vladimir Bobkov, Vol. 2, No. 74, pp. 66—70. (In Russian).
12. Simachev Y. V., Fedyunina A. A., Yurevich M. A., Kuzyk M. G., Zudin N. N., Gorodny N. A. (2021a). Russia in the markets of advanced production: Report to XXII April International Academic Conference on Economic and Social Development, Moscow, April 13—30. Moscow: HSE Publ. (In Russian).
13. Simachev Y., Fedyunina A., Yurevich M., Kuzyk M., Gorodny N. (2021b). New strategic approaches to gaining from emerging advanced manufacturing markets. Foresight and STI Governance, Vol. 15, No. 3, pp. 6—21. (In Russian). https://doi.org/10.17323/2500-2597.2021.3.6.21
14. Slusar V. (2002). Fabber-technologies: The designer and fabricator himself. Konstruktor, No. 1, pp. 5—7. (In Russian).
15. Stankoff.RU (2023). The impact of artificial intelligence on 3D printing: An expert opinion. (In Russian). https://www.stankoff.ru/blog/post/93
16. Tarasova N. N., Shparova P. O. (2021). Top 15 digital technologies in industry. Moscow: ISSEK HSE. (In Russian).
17. Khasbulatov R. (2020). Digitalization, robots, artificial intelligence (AI) and modernity: Theoretical and methodological aspect. Digital Economy, No. 3, pp. 5—14. (In Russian). https://doi.org/10.34706/DE-2020-03-01
18. Schwab K., Davis N. (2018). Technologies of the fourth industrial revolution. Moscow: Eksmo. (In Russian).
19. Abbasi I. (2023). The intersection between AI and 3D printing. AZoM, February 23. https://www.azom.com/article.aspx?ArticleID=22451
20. Andrade E. P., dos Santos Pereira J., Rocha A. M., Nascimento M. L. F. (2022). An exploratory analysis of Brazilian universities in the technological innovation process. Technological Forecasting and Social Change, Vol. 182, article 121876. https://doi.org/10.1016/j.techfore.2022.121876
21. Anzolin G., Andreoni A., Zanfei A. (2022). What is driving robotisation in the automotive value chain? Empirical evidence on the role of FDIs and domestic capabilities in technology adoption. Technovation, Vol. 115, article 102476. https://doi.org/10.1016/j.technovation.2022.102476
22. Acemoglu D., Johnson S., Robinson J. A. (2005). Institutions as a fundamental cause of long-run growth. Handbook of Economic Growth, Vol. 1, pp. 385—472. https://doi.org/10.1016/S1574-0684(05)01006-3
23. Ballestar M. T., Díaz-Chao Á., Sainz J., Torrent-Sellens J. (2021). Impact of robotics on manufacturing: A longitudinal machine learning perspective. Technological Forecasting and Social Change, Vol. 162, article 120348. https://doi.org/10.1016/j.techfore.2020.120348
24. Bellmann L., Bourgeon P., Gathmann C. et al. (2021). The pandemic has boosted firm investments in digital technologies. VoxEU, August 5. https://voxeu.org/article/pandemic-has-boosted-firm-investments-digital-technologies
25. Bican P. M., Brem A. (2020). Digital business model, digital transformation, digital entrepreneurship: Is there a sustainable “digital”? Sustainability, Vol. 12, No. 13, article 5239. https://doi.org/10.3390/su12135239
26. Belloc F. (2014). Innovation in state-owned enterprises: Reconsidering the conventional wisdom. Journal of Economic Issues, Vol. 48, No. 3, pp. 821—848. https://doi.org/10.2753/JEI0021-3624480311
27. Birkinshaw J., Ansari S. (2015). Understanding management models: Going beyond “what” and “why” to “how” work gets done in organizations. In: N. Foss, T. Saebi (eds.). The organizational dimension to business model innovation. Oxford University Press, pp. 85—103.
28. Buer S. V., Strandhagen J. W., Semini M., Strandhagen J. O. (2021). The digitalization of manufacturing: Investigating the impact of production environment and company size. Journal of Manufacturing Technology Management, Vol. 32, No. 3, pp. 621—645. https://doi.org/10.1108/JMTM-05-2019-0174
29. Catozzella A., Vivarelli M. (2016). The possible adverse impact of innovation subsidies: Some evidence from Italy. International Entrepreneurship and Management Journal, Vol. 12, pp. 351—368. https://doi.org/10.1007/s11365-014-0342-3
30. Chege S. M., Wang D., Suntu S. L. (2020). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, Vol. 26, No. 2, pp. 316—345. https://doi.org/10.1080/02681102.2019.1573717
31. Chui M., Issler M., Roberts R., Yee L. (2023). McKinsey technology trends outlook 2023. McKinsey & Company.
32. Cirera X., Cruz M., Davies E. et al. (2021). Policies to support businesses through the COVID-19 shock: A firm level perspective. World Bank Research Observer, Vol. 36, No. 1, pp. 41—66. https://doi.org/10.1093/wbro/lkab001
33. Damioli G., Van Roy V., Vertesy D. (2021). The impact of artificial intelligence on labor productivity. Eurasian Business Review, Vol. 11, pp. 1—25. https://doi.org/10.1007/s40821-020-00172-8
34. Deloitte (2018). Exponential technologies in manufacturing. Transforming the future of manufacturing through technology, talent, and the innovation ecosystem. Deloitte University Press.
35. Deng P., Lu H., Hong J., Chen Q., Yang Y. (2019). Government R&D subsidies, intellectual property rights protection and innovation. Chinese Management Studies, Vol. 13, No. 2, pp. 363—378. https://doi.org/10.1108/CMS-02-2018-0422
36. DeStefano, T., De Backer K., Moussiegt L. (2017). Determinants of digital technology use by companies. OECD Science, Technology and Industry Policy Papers, No. 40.
37. Dezhina I. G. (2017). Science and innovation policy of the Russian government: A variety of instruments with uncertain outcomes? Public Administration Issues, No. 5, pp. 7—26. https://doi.org/10.17323/1999-5431-2017-0-5-7-26
38. Dezhina I., Etzkowitz H. (2016). Path dependence and novelties in Russian innovation. Triple Helix, Vol. 3, No. 1, pp. 1—10. https://doi.org/10.1186/s40604-016-0042-9
39. Dezhina I., Ponomarev A. (2016). Approaches to the formulation of Russia’s technological priorities. Foresight and STI Governance, Vol. 10, No. 1, pp. 7—15. https://doi.org/10.17323/1995-459X.2016.1.7.15
40. Dohale V., Akarte M., Gunasekaran A., Verma P. (2022). Exploring the role of artificial intelligence in building production resilience: Learnings from the COVID-19 pandemic. International Journal of Production Research. https://doi.org/10.1080/00207543.2022.2127961
41. Dolgopyatova T. G. (2017). Corporate governance in Russian big business: Trends of 2000s. Baltic RIM Economies Review, Vol. 2, No. 37, p. 37.
42. Duganova E., Novikov I., Novikov A., Zagorodnii N. (2022). Problems of introduction of digital technologies in the transport industry. Transportation Research Procedia, Vol. 63, pp. 1024—1033. https://doi.org/10.1016/j.trpro.2022.06.102
43. Ebner G., Bechtold J. (2012). Are manufacturing companies ready to go digital? Understanding the impact of digital. Capgemini Consulting.
44. Ellis S. C., Henke Jr. J. W., Kull T. J. (2012). The effect of buyer behaviors on preferred customer status and access to supplier technological innovation: An empirical study of supplier perceptions. Industrial Marketing Management, Vol. 41, No. 8, pp. 1259—1269. https://doi.org/10.1016/j.indmarman.2012.10.010
45. Fagerberg J., Srholec M. (2016). Explaining regional economic performance: The role of competitiveness, specialization, and capabilities. In: R. Huggins (ed.). Handbook of regions and competitiveness. Northampton: Edward Elgar, pp. 117—135
46. Feller I., Ailes C. P., Roessner J. D. (2002). Impacts of research universities on technological innovation in industry: Evidence from engineering research centers. Research Policy, Vol. 31, No. 3, pp. 457—474. https://doi.org/10.1016/S0048-7333(01)00119-6
47. Ghobakhloo M. (2018). The future of manufacturing industry: A strategic roadmap toward Industry 4.0. Journal of Manufacturing Technology Management, Vol. 29, No. 6, pp. 910—936. https://doi.org/10.1108/JMTM-02-2018-0057
48. Han B. R., Sun T., Chu L. Y., Wu L. (2022). COVID-19 and E-commerce operations: Evidence from Alibaba. Manufacturing & Service Operations Management, Vol. 24, No. 3, pp. 1388—1405. https://doi.org/10.1287/msom.2021.107
49. Hasselblatt M., Huikkola T., Kohtamäki M., Nickell D. (2018). Modeling manufacturer’s capabilities for the Internet of things. Journal of Business & Industrial Marketing, Vol. 33, No. 6, pp. 822—836. https://doi.org/10.1108/JBIM-11-2015-0225
50. Holl A., Rama R. (2023). Spatial patterns and drivers of SME digitalisation. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-023-01257-1
51. Hooks D., Davis Z., Agrawal V., Li Z. (2022). Exploring factors influencing technology adoption rate at the macro level: A predictive model. Technology in Society, Vol. 68, article 101826. https://doi.org/10.1016/j.techsoc.2021.101826
52. Hu J., Wang Y., Liu S., Song M. (2023). Mechanism of latecomer enterprises’ technological catch-up in technical standards alliances — An ambidextrous innovation perspective. Journal of Business Research, Vol. 154, article 113321. https://doi.org/10.1016/j.jbusres.2022.113321Get rights and content
53. Ingaldi M., Ulewicz R. (2020). Problems with the implementation of industry 4.0 in enterprises from the SME sector. Sustainability, Vol. 12, No. 1. https://doi.org/10.3390/SU12010217
54. IFR (2021). World robotics 2021 reports. International Federation of Robotics. https://ifr.org/ifr-press-releases/news/robot-sales-rise-again
55. Johnston A. (2021). Open innovation and the formation of university—industry links in the food manufacturing and technology sector: Evidence from the UK. European Journal of Innovation Management, Vol. 24, No. 1, pp. 89—107. https://doi.org/10.1108/EJIM-06-2019-0163
56. Jovanović M. M., Rakićević J. Đ., Jeremić V. M., Levi Jakšić M. I. (2020). How to measure Triple Helix performance? A fresh approach. In: Proceedings of the II International Triple Helix Summit. Cham: Springer, pp. 245—261. https://doi.org/10.1007/978-3-030-23898-8_18
57. Khrustalev E. Y., Slavyanov A. S. (2019). Dependence on imports as a threat to innovative development of the Russian manufacturing sector. Digest Finance, Vol. 24, No. 2, pp. 124—134. https://doi.org/10.24891/df.24.2.124
58. Korovin G. B. (2018). Problems of industrial digitalisation in Russia. Journal of New Economy, Vol. 19, No. 3, pp. 100—110. https://doi.org/10.29141/2073-1019-2018-19-3-9
59. KPMG (2020). Living in an AI world 2020: Healthcare insiders.
60. Kravtsova V., Radosevic S. (2012). Are systems of innovation in Eastern Europe efficient? Economic Systems, Vol. 36, No. 1, pp. 109—126. https://doi.org/10.1016/j.ecosys.2011.04.005
61. Krzywdzinski M., Butollo F., Flemming J. et al. (2022). The growing gap between pioneers and laggards: Digitalization, automation, and organizational change in the wake of the COVID-19-crisis in Germany (Weizenbaum Series, No. 25). Berlin: Weizenbaum Institute for the Networked Society — The German Internet Institute. https://doi.org/10.34669/WI.WS/25
62. Lenka S., Parida V., Wincent J. (2017). Digitalization capabilities as enablers of value cocreation in servitizing firms. Psychology & Marketing, Vol. 34, No. 1, pp. 92—100. https://doi.org/10.1002/mar.20975
63. Lestari D., Darma D. C., Amalia S., Setini N. M. (2020). International trade in the Covid-19 outbreak: Is the digital economy working? International Journal of Business & Management, Vol. 8, No. 2, pp. 86—92. https://doi.org/10.20472/BM.2020.8.2.005
64. Litvinenko V. S. (2020). Digital economy as a factor in the technological development of the mineral sector. Natural Resources Research, Vol. 29, No. 3, pp. 1521—1541. https://doi.org/10.1007/s11053-019-09568-4
65. Lobacz K., Tylżanowski R. (2022). Digitalisation levels of innovation management practices — pilot study of service SMEs in Poland. Procedia Computer Science, Vol. 207, pp. 3770—3779. https://doi.org/10.1016/j.procs.2022.09.438
66. Longhitano G. A., Nunes G. B., Candido G., da Silva J. V. L. (2021). The role of 3D printing during COVID-19 pandemic: A review. Progress in Additive Manufacturing, Vol. 6, pp. 19—37. https://doi.org/10.1007/s40964-020-00159-x
67. Lowry A. (2021). Russia’s digital economy program: An effective strategy for digital transformation? In: D. Gritsenko, M. Wijermars, M. Kopotev (eds.). The Palgrave handbook of digital Russia studies. Cham: Palgrave Macmillan, pp. 53—75. https://doi.org/10.1007/978-3-030-42855-6_4
68. Müller J. M. (2019). Business model innovation in small- and medium-sized enterprises: Strategies for industry 4.0 providers and users. Journal of Manufacturing Technology Management, Vol. 30, No. 8, pp. 1127—1142. https://doi.org/10.1108/JMTM-01-2018-0008
69. Naudé W., Surdej A., Cameron M. (2019). The past and future of manufacturing in Central and Eastern Europe: Ready for Industry 4.0? IZA Discussion Paper, No. 12141. https://doi.org/10.2139/ssrn.3390128
70. OECD (2020a). OECD digital economy outlook 2020. Paris: OECD Publishing.
71. OECD (2020b). The digitalisation of science, technology and innovation: Key developments and policies. Paris: OECD Publishing. https://doi.org/10.1787/b9e4a2c0-en
72. Parida V., Sjödin D., Reim W. (2019). Reviewing literature on digitalization, business model innovation, and sustainable industry: Past achievements and future promises. Sustainability, Vol. 11, No. 2, article 391. https://doi.org/10.3390/su11020391
73. Pergelova A., Manolova T., Simeonova-Ganeva R., Yordanova D. (2019). Democratizing entrepreneurship? Digital technologies and the internationalization of female-led SMEs. Journal of Small Business Management, Vol. 57, No. 1, pp. 14—39. https://doi.org/10.1111/jsbm.12494
74. PwC (2022). The essential eight technologies. https://www.pwc.com/us/en/techeffect/emerging-tech/essential-eight-technologies.html
75. Qiu T., Yang Y. (2018). Knowledge spillovers through quality control requirements on innovation development of global suppliers: The firm size effects. Industrial Marketing Management, Vol. 73, pp. 171—180. https://doi.org/10.1016/j.indmarman.2018.02.008
76. Sharifi A., Ahmadi M., Ala A. (2021). The impact of artificial intelligence and digital style on industry and energy post-COVID-19 pandemic. Environmental Science and Pollution Research, Vol. 28, No. 34, pp. 46964—46984. https://doi.org/10.1007%2Fs11356-021-15292-5
77. Shen Y., Guo D., Long F., Mateos L. A. et al. (2020). Robots under COVID-19 pandemic: A comprehensive survey. Ieee Access, Vol. 9, pp. 1590—1615. https://doi.org/10.1109/ACCESS.2020.3045792
78. Simachev Y., Kuzyk M., Feygina V. (2015). Public support for innovation in Russian firms: Looking for improvements in corporate performance quality. International Advances in Economic Research, Vol. 21, pp. 13—31. https://doi.org/10.1007/s11294-014-9509-5
79. Simachev Y., Kuzyk М., Кuznetsov B., Pogrebnyak Е. (2014). Russia on the path towards a new technology: Industrial policy: Exciting prospects and fatal traps. Foresight-Russia, Vol. 8, No. 4, pp. 6—23.
80. Schulze A., Townsend J. D., Talay M. B. (2022). Completing the market orientation matrix: The impact of proactive competitor orientation on innovation and firm performance. Industrial Marketing Management, Vol. 103, pp. 198—214. https://doi.org/10.1016/j.indmarman.2022.03.013
81. Strange R., Zucchella A. (2017). Industry 4.0, global value chains and international business. Multinational Business Review, Vol. 25, No. 3, pp. 174—184. https://doi.org/10.1108/MBR-05-2017-0028
82. Szalavetz A. (2017). The environmental impact of advanced manufacturing technologies: Examples from Hungary. Central European Business Review, Vol. 6, No. 2, pp. 18—29. https://doi.org/10.18267/J.CEBR.177
83. Teruel M., Coad A., Domnick C., Flachenecker F., Harasztosi P., Janiri M. L., Pal R. (2022). The birth of new HGEs: Internationalization through new digital technologies. Journal of Technology Transfer, Vol. 47, No. 3, pp. 804—845. https://doi.org/10.1007/s10961-021-09861-6
84. Tõnurist P. (2015). Framework for analysing the role of state owned enterprises in innovation policy management: The case of energy technologies and Eesti Energia. Technovation, Vol. 38, pp. 1—14. https://doi.org/10.1016/j.technovation.2014.08.001
85. Tõnurist P., Karo E. (2016). State owned enterprises as instruments of innovation policy. Annals of Public and Cooperative Economics, Vol. 87, No. 4, pp. 623—648. https://doi.org/10.1111/apce.12126
86. Turovets Y., Vishnevskiy K. (2019). Patterns of digitalisation in machinery-building industries: Еvidence from Russia. Engineering Management in Production and Services, Vol. 11, No. 4, pp. 7—22. https://doi.org/10.2478/emj-2019-0029
87. Turovets Y., Vishnevskiy K. (2023). Standardization in smart manufacturing: Evaluation from a supply-side perspective. In: C. Kahraman, E. Haktanır (eds.). Intelligent systems in digital transformation: Theory and applications. Cham: Springer, pp. 191—218. https://doi.org/10.1007/978-3-031-16598-6_9
88. Thurner T. W., Zaichenko S. (2016). Sectoral differences in technology transfer. International Journal of Innovation Management, Vol. 20, No. 02, article 1650020. https://doi.org/10.1142/S1363919616500201
89. Vanino E., Roper S., Becker B. (2019). Knowledge to money: Assessing the business performance effects of publicly-funded R&D grants. Research Policy, Vol. 48, No. 7, pp. 1714—1737. https://doi.org/10.1016/j.respol.2019.04.001
90. Vrchota J., Vlčková M., Frantíková Z. (2020). Division of enterprises and their management strategies in relation to Industry 4.0. Central European Business Review, Vol. 9, No. 4, pp. 27—44. https://doi.org/10.18267/j.cebr.243
91. Wang J., Wang X. (2015). Benefits of foreign ownership: Evidence from foreign direct investment in China. Journal of International Economics, Vol. 97, No. 2, pp. 325—338. https://doi.org/10.1016/j.jinteco.2015.07.006
92. Wen J., Qualls W. J., Zeng D. (2020). Standardization alliance networks, standardsetting influence, and new product outcomes. Journal of Product Innovation Management, Vol. 37, No. 2, pp. 138—157. https://doi.org/10.1111/jpim.12520
93. Xie X., Wang H. (2021). How to bridge the gap between innovation niches and exploratory and exploitative innovations in open innovation ecosystems. Journal of Business Research, Vol. 124, pp. 299—311. https://doi.org/10.1016/j.jbusres.2020.11.058
94. Yoon J., Park H. W. (2017). Triple helix dynamics of South Korea’s innovation system: A network analysis of inter-regional technological collaborations. Quality & Quantity, Vol. 51, pp. 989—1007. https://doi.org/10.1007/s11135-016-0346-x
Review
For citations:
Ruzhanskaya L.S., Kuzyk M.G., Simachev Yu.V., Fedyunina A.A. End-to-end digitalization factors: Challenges for Russian manufacturers. Voprosy Ekonomiki. 2023;(9):5-28. (In Russ.) https://doi.org/10.32609/0042-8736-2023-9-5-28
Views:
791
Email this article 
