The Strategist

WEF: Global industry is not ready for a revolution

01/16/2018 - 13:51

The fourth industrial revolution and new technologies, such as the Internet of things, artificial intelligence, robotics and 3D printing, are prompting the development of production practices and business models that will greatly change the sphere of production, experts of the World Economic Forum (WEF) state. This threatens the traditional model of competitiveness, based on the export of cheap manufactured goods. The speed and scale of the changes require countries to review industrial strategies, beginning with an understanding of the key factors and conditions for the transformation and assessment of the current level of readiness for it.

The WEF prepared report "Readiness for the Future of Production-2018", which assesses opportunities of 100 countries in two indices: the production structure (it reflects the complexity and scale of the current production base) and its drivers (takes into account the level of technology and innovation development, human capital, institutional structure and degree of participation in global trade and investment). The WEF divided the countries into four "archetypes" - leading countries with high scores for both indicators (these are 25 countries in Europe, North America and East Asia), countries with the previous technological order (good "inherited" base, but insufficient capacity), countries with a high potential for the development of technologies with a modest base and "nascent", which have neither one nor the other. Leaders now account for 75% of the added value of the global industry, the WEF notes. So, about 70% of sales of robotics are concentrated in China, Germany, Japan, South Korea and the United States. None of the countries was able to become an absolute leader: in the structure of production, Japan leads (8.99 points out of 10), the driver index is maximum at the USA (8.16 points).