A public discussion “Technology 4.0 vs Ukrainian industry X.0. How to bridge the gap?” was held under the auspices of Kyiv International Economic Forum (KIEF) on July 5, 2016. The event has brought together representatives of the high-tech sector companies and Ukrainian industrial enterprises.

Today, international economists talk about the beginning of the Fourth Industrial Revolution, when the industry is increasingly using the intellectual potential of creative clusters and companies involved in information technology. Almost all the latest IT technologies are available in Ukraine, and plenty of software developers successfully use them in their outsourcing job. But why is advanced technology not introduced in domestic enterprises? What should be done by the high-tech market players for Industrial Revolution 4.0 to become reality and a guarantee of growth for Ukraine?

The participants agreed that Ukraine has a strong human capital, and our IT industry was able to use this factor first. That is why, the IT sector has been already integrated into the global space and is growing rapidly, but it remains far from the Ukrainian industry. From the other side, poor infrastructure is a serious inhibitory factor on the way towards the Fourth Industrial Revolution.

“Creating infrastructure is a “homework” of the state. The experience of neighboring countries shows that the state should be a partner and actively support innovation through creation of such development institutions as technology and industrial parks, venture and other funds, as well as protect intellectual property rights, and make education and science face the economic needs. On the other hand, it is important that our industrialists understand the necessity of new technology because radical changes are around the corner, and we must be prepared for them,” said Yurii Pyvovarov, CEO of the Ukrainian  Association for Innovation Development — co-organizer of the discussion.

During the event, it was determined that the only way to move towards Industry 4.0 is joining efforts of the state, ICT market participants, industrial management and engineering systems, as well as scientists and educators.

Nadiia Vasylieva, CEO of Microsoft Ukraine, emphasized the importance of the National Academy of Sciences of Ukraine, which had to play an important role in the development of technology 4.0. But today NASU is poorly linked with either universities or businesses, and lacks applied directionality. However, it requires more state funding, while in developed countries academies of sciences are funded by businesses. But in that case, science should be applied.

“Ukraine should decentralize its economy for start-ups to receive venture capital investment (we are happy this process has been launched), develop public-private partnership, combine businesses and developers-innovators, as well as involve the Academy of Sciences into work with startups,” comments Nadiia Vasylieva. “In Ukraine, one knows how to put forward ideas and offer creative solutions. But we must learn how to represent these ideas and make end products. On the part of international companies, we are ready to help and teach.”

The experts agreed that successful Ukrainian high-tech companies have to become a unifying factor and driving force of the movement towards Industry 4.0, as well as communicate to manufacturers the importance of high technology namely in their sectors. After all, the Ukrainian business has a barrier to accept innovation. According to experts, the best approach to overcome this barrier is financial: focus is to be made on cost saving through the implementation of a solution, but not on innovation itself.

The event was held on the KIEF platform. The third KIEF will take place on October 6-7, 2016. The Forum will bring together several dozen leading foreign and Ukrainian economists, reformers, businessmen and government officials, including experts from countries, whose experience of economic transformation can be useful for Ukraine.

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