Industry 4.0: Industrial Revolution of the 21st Century

The purpose of this chapter is to study the notion, essence, and peculiarities of Industry 4.0 as a sphere of industry. The methodology of the chapter includes the method of content analysis of scientific literature, systematization and classification of scientific knowledge, and the methods of systemic analysis and structural & functional analysis. The information basis of the research includes the materials of the official normative and legal documents of governments of different countries. The authors systematize and classify the existing knowledge in the sphere of Industry 4.0 and distinguish conceptual approaches to treatment of the notion “Industry 4.0”. The authors offer their own definition of the notion “Industry 4.0”, in which Industry 4.0 is presented as a new industrial model. As a result, the authors come to the conclusion that Industry 4.0 is a new vector of development of industry, which is presented only in certain developed countries and has a small share of their real sector—but in the future it may lead to gradual modernization of other spheres of industry. This means that Industry 4.0, which is treated as a sphere of industry, possesses a potential for changes of the existing technological mode. The universal character of the new industrial model, offered by Industry 4.0, opens a possibility for new industrial revolution, as a result of which Industry 4.0 will become a new global industrial landmark and standard of development of the real sector of economy of the whole global economic system.

Genesis of the revolutionary transition to Industry 4.0 in the 21st century is was formed in the conditions of past industrial revolutions in the 19–20th centuries, which were accompanied by rise of production powers and deep transformation of the whole system of public production. Over the last three decades of the 19th century, the volume of global industrial production grew by three times. Modern history and economics distinguish three large qualitative leaps in the history of humanity—three revolutions in productive powers of society and structures of society. However, technologies change very quickly, creating new challenges in distribution of inter-sectorial and inter-country connections, as well as in the structure of labor resources and education, which stimulates emergence and formation of a new revolutionary stage of transition of countries to “Industry 4.0”. The authors analyze historical and economic tendencies of development of the modern economic society, related to “digitization” of economy and society, including development of clever services, clever data, cloud technologies, digital networks, digital science, digital education, and digital environment for living, in view of previous industrial revolutions on the path of the revolutionary transition to Industry 4.0 in the 21st century.

The purpose of this chapter is to determine fundamental differences of transition to Industry 4.0 from previous industrial revolutions. The methodology includes structural & functional analysis, comparative analysis, induction, deduction, formalization, etc. These methods are used for determining similarities with previous industrial revolutions and peculiarities of the future Fourth Industrial Revolution. The authors prove that transition to Industry 4.0 is a new industrial revolution, which is shown by the attributes that are a sign of all industrial revolutions: change of the type of technological mode as a result of mass implementation of accumulated industrial innovations and systemic transformations in industry, which results in deep changes in logistics and manufactured products. At the same time, the Fourth Industrial Revolution is unprecedented and possesses a whole range of peculiarities, as compared to previous industrial revolutions. It envisages full elimination of human from the production system, ensuring absolute automatization of the production process, simultaneous combination of formation of global industrial networks with elimination of negative social consequences, changes the essence of industrial patents, and creates a possibility for quick change of direction of industrial production’s specialization.

Evolution of the global economic system reached the stage when at the global level and at the level of separate national economic public reproduction is transformed into single global economic space, based on the process of globalization. Essential features of the globalization processes are expressed in stage-by-stage formation of the single information space by integration, diffusion of computer and information technologies, which cover the multi-aspect world environment, and in development of scientific and technological radical, optimizing, and modifying innovations, which have the potential scale of implementation. The multi-aspect globalization, which shows regularities of establishment by mega-trends, started the changes in the business environment and outlined its vector of development.

The purpose of this chapter is to study the fundamental provisions of the concept of knowledge economy. The authors use the systemic and dynamic approaches to studying socio-economic phenomena and processes. Also, the method of analysis of causal connections, the method of comparative analysis, induction, deduction, formalization, etc. are used. The authors conduct comparative analysis of knowledge economy and other types of economy, study the essence of the process of transition to knowledge economy through the prism of evolution of modern economic systems, and present a conceptual model of knowledge economy. As a result, the authors substantiate the evolutional point of view that treats knowledge economy as a pinnacle of the evolutional path of modern economic systems. The authors show that uniqueness of knowledge economy consists in the fact that it places human capital into the center of economic system, which allows satisfying public material needs and implementing the existing human potential (labor, intellectual, and innovational) of development, thus satisfying non-material needs of employees. This takes knowledge economy to the pinnacle of the evolutional path of modern economic systems.

The purpose of the chapter is to determine and analyze preconditions for formation and development of Industry 4.0 in the conditions of knowledge economy by the example of modern Russia. For evaluating the level and character of influence of the process of formation of knowledge economy on the possibilities of formation and development of Industry 4.0, the author uses the method of correlation analysis. The objects of analysis include the index of knowledge economy according to the World Bank and the indices that indirectly characterize the possibilities and perspectives of establishment and development of Industry 4.0—index of innovational development of economy according to the INSEAD and WIPO and the index of development of information and communication technologies according to the International Telecommunication Union. The values of these indices are studied in dynamics of several years—2013–2017. The additional methods of research that are used for evaluation of the growth rate of the values of these indices are horizontal and trend analysis. As a result, the authors proved that in the conditions of knowledge economy the preconditions of formation and development of Industry 4.0 appear. Therefore, in the interests of formation of Industry 4.0 and stimulation of business activity in this sphere it is necessary to develop knowledge economy, which is a platform for new industrial revolution. This shows that knowledge economy and Industry 4.0 develop not in the parallel way but are a single system—i.e., they are mutually supportive processes. Based on the results of the performed complex analysis, the second potential scenario is determined, at which during the initial stage of establishment of knowledge economy it is a platform for starting business activity in Industry 4.0, but then Industry 4.0 comes to the foreground, which is en inseparable component and basic criterion for defining the economic system as knowledge economy.

Purpose: The purpose of the chapter is to substantiate the “knowledge economy” as the basis for the formation and development of Industry 4.0, which is characterized by the solution of the tasks of increasing competitiveness through the strengthened integration of “cyber physical systems”. Methodology: The methodological basis for the study of the role of education in the development of Industry 4.0 is the fundamental monographic work devoted to the theoretical and practical aspects of the transition to a new type of society development. The authors studied the basic elements of the knowledge economy: the institutional structure; an innovative system; education and training; information infrastructure. Particular attention is paid to education. Result: The authors reasoned that under the conditions of the transition from the “knowledge economy” to Industry 4.0, the content of the concept “human capital” is transformed. The result of the research was the differentiation of human capital into three types: “traditional”, “convertible” and “creative.” The latter is characterized by knowledge and skills in the advanced fields; the permanence of continuing education and knowledge updating; the ability to set tasks independently; ability to switch to various activities; high professional autonomy. It is the creative human capital that plays the role of the accelerator in the process of becoming and spreading Industry 4.0. In the process of analyzing the peculiarities of the “knowledge economy” development, their natural evolution has been revealed, which, if replaced, on the basis of the principle of continuity, will lead to the establishment of industry 4.0. There are no clear boundaries between the selected stages, but the employment structure of the population can serve as one of the criteria for determining the transition to Industry 4.0. It is concluded that the Russian education system’s desire to implement the tasks to ensure the transition to Industry 4.0 was reflected in the emergence of a new integrated function in higher education—the innovative-intellectual one, and the higher school itself is justified as a component of an economic system that has the potential to provide a multiplicative knowledge increment due to the presence of specific features. Conclusions: The characteristic feature of Industry 4.0 is the determining role of the effectiveness of information exchange organization. If for the “knowledge economy” the structure of the technological mode of production can be schematically represented as “information + knowledge + innovation”, in Industry 4.0 it is—“human intelligence + new information technologies + information + innovations”. The knowledge economy is a type of economy characterized by the duration and formation staging, the distinguishing feature of which is the predominant role of metamorphosis: “information–knowledge–innovative knowledge,” where the creativity of an individual and the formation of human capital are the qualitative basis of the good. Proceeding from the fact that the development of Industry 4.0 is characterized by the use of high-tech electronics and equipment, the widespread introduction of Internet technologies, the actual task is the adaptation of the education system to the requirements of the stage of society development. Under the circumstances, only accumulated knowledge will contribute to the development of Industry 4.0. and its safe development.

The purpose of the work is to study the possibilities of formation of Industry 4.0 as a new vector of growth and development of knowledge economy by the example of modern Russia and to develop recommendations for their practical implementation. For this, the method of dynamics (horizontal and trend) analysis of time rows and correlation analysis are used. The indicator of development of knowledge economy is the corresponding index that is prepared by the World Bank. The vectors of growth and development of knowledge economy are share of innovations-active companies in the structure of entrepreneurship, number of developed completely new leading production technologies, and share of high-tech spheres in economy (as the indicator of development of the sphere of science and education) according to the Federal State Statistics Service. The author shows that knowledge economy, which was developing dynamically at the initial stage of its formation, has slowed down. The existing growth vectors—innovational entrepreneurship, high-tech spheres of economy, and the sphere of science and education—have depleted their potential and cannot ensure its further development. It is necessary to look for such vectors, of which the most perspective is Industry 4.0, as formation of Industry 4.0 leads to growth of knowledge economy: innovational development, increase of the values of indicators of socio-economic development of economic system, and increase of the role of intellectual component of economy—the sphere of science and education.

The purpose of this chapter is to study the main stages of formation of Industry 4.0 and to determine the key indicators of its development at each of them. The authors analyze the process of formation of Industry 4.0 and distinguish the main stages: preparation of the socio-economic system, formation of Industry 4.0 as a sphere of industry and the Industrial Revolution—transition to Industry 4.0. The authors determine the potential barriers on the path of formation of Industry 4.0 at each of the distinguished stages and offer recommendations for overcoming them. The authors also develop and present the system of indicators for monitoring of formation of Industry 4.0, which includes target values of the indicators for transition to the next stage. As a result of the research, the authors make a conclusion that modern economic systems are at different stages of the process of formation of Industry 4.0. Thus, while in developed countries transition to the second stage is close, developing countries have just started the first stage. Therefore, in the scale of the global economic system formation of Industry 4.0 should be forecasted for the long-term.

The purpose of this chapter is to determine the criteria for evaluating the effectiveness of Industry 4.0 from the point of view of stimulating the development of knowledge economy and to develop methodological basis for this evaluation. As Industry 4.0 is at the stage of formation, the object of evaluation is the process of development of Industry 4.0—i.e., analysis is conducted in dynamics, which allows—at the initial stages of formation of Industry 4.0—conducting evaluation of its effectiveness from the point of view of stimulation of development of knowledge economy. The methodological basis of this research is the classical method of evaluation of effectiveness of socio-economic phenomena and processes. According to this method, effectiveness is determined through finding the ratio of aggregate results to aggregate expenditures for their achievement, including negative “side effects”. Based on the classical method of evaluation of effectiveness, the proprietary method of evaluation of effectiveness of Industry 4.0 from the point of view of stimulating the development of knowledge economy has been developed. This method takes into account the peculiarities of Industry 4.0 and interprets its profits and expenditures through the prism of knowledge economy. The results of the performed research show the potential positive influence of the process of Industry 4.0 formation on development of knowledge economy. The offered methodological recommendations and justified criteria of evaluation of effectiveness of Industry 4.0 from the position of stimulating the development of knowledge economy contribute into formation of methodological basis of studying mutual influence of these phenomena. Advantages of the offered methodological recommendations are their universality—possibility to use them in any economic system; systemic and complex character—consideration of all aspects of potential influence of the process of Industry 4.0 formation on development of knowledge economy; vividness and wide possibilities for analysis of causal connections due to the possibility for considering each estimate criterion separately and conducting factor analysis.

The Fourth Industrial Revolution has already begun. It will lead to maximum consideration of consumers’ preferences. The purpose of the chapter is to describe the characteristics of the Fourth Industrial Revolution, make a forecast for the contents of the Fifth Industrial Revolution, and emphasize the fundamental role of Industry 4.0 in economic development of Russia. The conclusions are based on analysis of the trends of the indicators of the technological progress and specific efforts for development of the direction of Industry 4.0.

The purpose of this chapter is to study successful experience of formation of Industry 4.0 in the countries of the world. As developed countries proclaimed the strategic course at practical implementation of the concept of Industry 4.0 and achieved the highest progress in its formation, they were selected as the objects for this research. According to the criterion of data accessibility and in the interests of coverage of various geographical regions of the world, we selected the USA, the UK, Germany, and Japan. Due to novelty of the concept of Industry 4.0, timeframe of the research covers 2016–2017, which does not allow evaluating the dynamics of progress in formation of Industry 4.0 in detail, but provides sufficient initial statistical and analytical data for studying this process. For that, the methodological recommendations in the sphere of monitoring of the process of Industry 4.0 formation and evaluation of effectiveness of Industry 4.0 from the point of view of stimulation of knowledge economy’s formation are used. The methodological basis of the research includes the systemic approach and structural and functional and problem analysis. As a result of the research, the scientific proofs are given for the fact that despite the recent emergence of the concept of Industry 4.0, successful experience of its practical implementation in the countries of the world is already accumulated. Developed countries have already started formation of Industry 4.0, as they possess necessary resources and social platforms. Complex analysis of forecasting data by the example of the USA, the UK, Germany, and Japan shows its high effectiveness from the point of view of stimulating the development of knowledge economy.

The purpose of the article is to study causal connections of formation of Industry 4.0 from the positions of the global economy. For collecting precise quantitative proofs of existence of causal connections of Industry 4.0 formation from the positions of the global economy and determining their character and strength, the author uses the method of regression analysis. Consequences of formation of Industry 4.0 for the global economy are determined. For determining the reasons of formation and development of Industry 4.0, the authors apply the method of factor analysis, which, due to absence of statistical data, has qualitative (logical) character. The author also uses the method of scenario analysis for determining further perspectives of development of Industry 4.0 in the global economy and substantiate the most optimal scenario that allows determining the global goals of strategic development of Industry 4.0. As a result, it is substantiated that at the global level Industry 4.0 is a more important economic phenomenon than at the national level. From the positions of the global economy, formation of Industry 4.0 is not just a tool of achievement of strategic goals in the sphere of international marketing and obtaining profit by certain states, but a means of solving the global problems of humanity and achievement of the global economic progress and social well-being.

The purpose of this chapter is to determine specific peculiarities and key problems of formation of Industry 4.0 in modern Russia. The authors use the methodological recommendations in the sphere of monitoring of the process of Industry 4.0 formation and evaluation of effectiveness of Industry 4.0 from the point of view of stimulating the development of knowledge economy, which were offered in the previous chapters, and the method of SWOT analysis. As a result of the research, the authors substantiate that the process of formation of Industry 4.0 in modern Russia has its specifics. In particular, despite the fact that Russia was late—as compared to developed countries—to proclaim the course at formation of Industry 4.0, the national program in this sphere is more detailed, and the most realistic forecast has been compiled—which allows conducting highly-effective management and monitoring of the process of Industry 4.0 formation in Russia and achieving high results, as compared to developed countries. However, the problems on the path of formation of Industry 4.0 in modern Russia are emphasis on digital economy instead of Industry 4.0, incompleteness of the process of formation of the socio-economic platform (digital society and digital economy), and remoteness of private business from financing and management of R&D and entrepreneurial projects in the sphere of Industry 4.0.

The purpose of the article is to perform comparative analysis of formation of Industry 4.0 in developed and developing countries. As peculiarities of formation of Industry 4.0 in developed countries have been studied in this book in the process of studying successful experience of formation of Industry 4.0 in the countries of the world, the authors focus on determining the specifics of formation of Industry 4.0 in developing countries. In order to ensure compatibility of data for developed and developing countries, the similar methods are used—which are based on the authors’ methodological recommendations for monitoring the process of formation of Industry 4.0 in developing countries in 2017 and evaluating effectiveness of Industry 4.0 from the point of view of stimulation of development of knowledge economy in developing countries. During comparison of results of research of the essence and peculiarities of formation of Industry 4.0 in developed and developing countries, the method of comparative analysis is used. For determining the barriers on the path of formation of Industry 4.0 in developing countries, the authors use the method of systemic and problem analysis. For complex study of specifics of formation of Industry 4.0 in developing countries, the objects are the countries that are peculiar for various levels of socio-economic development and belonging to various geographical regions of the world: the South African Republic, China, India, and Brazil. As a result of the research, it is substantiated that the process of formation of Industry 4.0 in developing countries has its peculiarities and is different than in developed countries. As compared to developed countries, in which the process of formation of Industry 4.0 was started earlier and aimed at marketing and social results, developing countries face institutional (absence of state policy of formation of Industry 4.0) and financial barriers and seek economic goals. At the same time, the initiative approach to formation of Industry 4.0 in developing countries, within which the initiators of this process are economic subjects (companies), envisages larger flexibility and effectiveness as compared to the directive approach (state initiative), which is applied in developed countries.

The purpose of the article is to develop the priorities of development of Industry 4.0 in modern economic systems, characterized by different progress in the sphere of formation of knowledge economy. The methodology of the research includes the method of prioritizing and dialectical and logical methods, which are used for determining the logic of the process of Industry 4.0 development and priorities of managing this process depending on the progress in the sphere of formation of knowledge economy. For graphic interpretation of the conclusions and compiled recommendations, the authors use the method of formalization of data. The author classifies the goals of development of Industry 4.0 according to the criterion of advantages for knowledge economy and offer a logical scheme of development of Industry 4.0 in modern economic systems depending on the progress in the sphere of formation of knowledge economy. As a result, it is concluded that management of development of Industry 4.0 should be conducted in view of the achieved progress in the sphere of formation of knowledge economy. The offered priorities and the developed logical scheme of managing the development of Industry 4.0 in modern economic systems depending on the progress in the sphere of formation of knowledge economy takes into account this peculiarity and allows using it in the best way for the economic system. They allow for successful adaptation of this process to any economic systems due to flexibility of management.

The purpose of the work is to develop the mechanism of managing the process of establishment and development of Industry 4.0 in modern economic systems. The methodology of the research includes the methods of systemic, problem, structural & functional, and logical analysis, induction, deduction, and method of graphic presentation of conclusions and offered recommendations (method of formalization of data). The authors study the stages of the process of formation and development of Industry 4.0 and offer methodological recommendations for state management at each of them—determining target directions and perspective tools of management. As a result, the authors develop and offer the mechanism of managing the process of formation and development of Industry 4.0 in modern economic systems that allows reducing uncertainty of this process and ensuring target actions of the state in the required directions at each stage of this process. This process is cyclic, and each its stage leads to accumulation of larger experience and optimization of work and development of Industry 4.0. The offered mechanism shows that formation and development of Industry 4.0 does not require application of new and/or complex managerial tools from the state, as standard tools of state regulation of economy suffice. At that, the most important condition of achievement of high effectiveness during management of the process of formation and development of Industry 4.0 in modern economic systems is the complex character of application of these tools.

The authors analyze the specifics of functioning and development of the institute of continuous professional education as a space for formation of professional competences and labor functions of future employees of various sectors of economy in the conditions of development of knowledge economy and Industry 4.0. It is concluded that it is necessary to use in socio-economic discourse the notion “continuous professional education”, which emphasizes functional specifics of received knowledge, provide continuous updated of professional knowledge and skills, and focus on continuity of the training process in the professional sphere. It is noted that the problem of convergence for federal state educational standards of the version 3+ and professional standards could be solved in case of selection of the necessary totality of forms of professional activities, determination of the corresponding competences, and presenting the level description of competences through labor actions.

The purpose of the article is to study the transformation changes in the system of professional competences of modern specialist in the conditions of knowledge economy’s formation and formation of Industry 4.0 and to develop the innovational approach to its study and preparation. Methodology of this approach is based on application of competence-based approach to education and learning, the method of compiling a map of competences of a modern specialist, and the method of graphic interpretation of authors’ conclusions and recommendations (the method of data formalization). As a result of studying the structure and logic of organization of the educational services market and labor market by the example of modern Russia, it is concluded that a narrow specialization of employees is in demand. Business processes of modern Russian companies are strictly differentiated; ordinary employees, innovators, and technical specialists are separated. In the conditions of knowledge economy’s formation and formation of Industry 4.0, wide specialization of employees will be in demand. As production functions will be automatized, the number of companies’ employees will be reduced, and each employees will have to conform to requirements from all three categories. Transition to new requirements to a modern specialist in the conditions of knowledge economy’s formation and formation of Industry 4.0 will be related to transformation changes in the system of his professional competences. We compiled a map of professional competences of a modern specialist in the conditions of knowledge economy’s formation and formation of Industry 4.0 and distinguished three main professional competences, which a production specialist should possess in the conditions of knowledge economy and Industry 4.0: competence of generation of innovations, computer programming, and digital thinking. According to the above transformation changes in the system of professional competences of a modern specialist in the conditions of knowledge economy’s formation and formation of Industry 4.0, it is necessary to pass from narrow specialization of specialists’ training to creation of wide specialization of employees. For that, an innovational approach (Fig. 1) to teaching and training of a modern specialist in the conditions of knowledge economy’s formation and formation of Industry 4.0 is presented.

The purpose of the article is to develop a perspective algorithm that allows adapting the corresponding management not only to socio-economic peculiarities of a country but also to its possibilities and interests in formation of knowledge economy for provision of high flexibility of this process. During development of the algorithm of managing the process of formation and development of Industry 4.0 in modern economic systems in the conditions of knowledge economy’s formation, the authors use the methods of analysis, synthesis, induction, deduction, and formalization, as well as special methods of economic science—modeling of socio-economic systems and special-purpose method. As a result, the authors offer the algorithm of managing the process of formation and development of Industry 4.0 in the modern economic systems in the conditions of knowledge economy’s formation, which advantage, apart from flexibility, it its complex character: the offered algorithm takes into account not only the purposes of formation and development of Industry 4.0 but also the possibilities of the socio-economic systems in their achievement, determined by progress in formation of knowledge economy, and allows balancing these purposes with the purposes of knowledge economy’s formation, thus optimizing the management of the process of formation and development of Industry 4.0 in modern economic systems in the conditions of knowledge economy’s formation. Advantages of this algorithm include the universal character: it could be applied in any socio-economic systems, as it envisages consideration of national peculiarities and successful adaption to them; it could also be used at any phase of the economic cycle, including the phase of stability and the phase of crisis. An advantage of the algorithm is its interactive character: it is based not on tough frameworks but on the choice from existing alternatives and constant correction of the strategy of managing the process of formation and development of Industry 4.0 in modern economic systems in the conditions of knowledge economy’s formation depending on the current situation. This algorithm is cyclic: it envisages accumulation of experience, which ensures constant improvement of managing the process of formation and development of Industry 4.0 in modern economic systems in the conditions of knowledge economy’s formation.

The purpose of the article is to determine the contradictions and perspective means of overcoming them. The authors use the method of systematization and classification, the method of systemic and problem analysis, induction, deduction, and the method of data formalization. It is found that different categories of countries are peculiar for various systemic contradictions that hinder formation and development of Industry 4.0 in the conditions of knowledge economy’s formation. In developed countries, these contradictions are related to lack of desire of private business to stimulate implementation of national strategies of formation and development of Industry 4.0 in the conditions of knowledge economy’s formation and emerge due to high level of risk of these strategies with uncertain private commercial effect and social consequences. In developing countries, systemic contradictions are usually caused by unreadiness of separate elements of economic systems (social sphere, investment and financial sphere, normative and legal sphere, etc.) for formation and development of Industry 4.0 in the conditions of knowledge economy’s formation. At that, despite high interest of economic subjects, practical implementation of initiatives in the sphere of Industry 4.0 at this stage of socio-economic development of economic systems is impossible. The authors determined that systemic contradictions in these categories of countries are opposite to each other. Based on this, it is concluded that the most effective means of provision of quick formation and development of Industry 4.0 in the conditions of knowledge economy’s formation is not overcoming of these contradictions separately, the methods for which are given in this chapter, but strengthening of the integration processes in the global economy. Unification of efforts and close systemic interaction between the developed and developing countries will allow eliminating these contradictions due to elimination of their initial reasons with minimum expenditures of resources and time, as well as smallest transformations in economic systems.

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.

The purpose of the chapter is to determine the main possible scenarios of development of Industry 4.0 in the conditions of knowledge economy’s formation and to determine their consequences for modern economic systems. The methodology of the research, which is conducted in this chapter, is based on using the method of macro-economic scenario analysis. This analysis is of the qualitative character, as it is performed not by the example of specific socio-economic systems but abstract (generalized) modern economic systems. This method is supplemented by analysis of causal connections and the method of formalization of scientific data. The performed analysis allowed determining the main scenarios of development of Industry 4.0 in the conditions of knowledge economy’s formation and showed that their consequences could be different. Lack of statistical data and experience of formation and development of Industry 4.0 is a basis for setting the same probability for all distinguished scenarios. The most pessimistic scenario is the one envisaging implementation of hidden threats to the concept of Industry 4.0 in the process of its practical implementation, as its consequences are imbalance and crisis of economic systems and of the global economy on the whole. There’s also scenario that envisages impossibility of practical implementation of the concept of Industry 4.0. It belongs to pessimistic scenarios, as it is related to implementation of innovational macro-economic project—formation of Industry 4.0. Optimistic scenarios include turning Industry 4.0 into the tool of formation of knowledge economy, which could be accompanied by appearance of large problems and their absence, which determine the time period of implementation of these scenarios. Positive consequences of these scenarios for modern economic systems are related to stimulation of quick formation of knowledge economy. The most optimistic scenario is the one that envisages implementation of the Fourth Industrial Revolution, related to transition to Industry 4.0, on the basis of knowledge economy. Consequences of this scenario include the change of technological mode, innovational development of economic systems, and studying anti-crisis effect.

The purpose of this chapter is to develop the methodology of criterial evaluation of consequences of the Industrial Revolution of the 21st century. At that, the authors use the traditional methodology of evaluating the effectiveness of socio-economic phenomena and processes, modifying it with application of general scientific methods of research: induction, deduction, analysis, synthesis, and formalization, As a result, the authors offer criteria for determining evaluation of consequences of the Industrial Revolution of the 21st century and methodological recommendations for their practical application. Due to systematization and classification of these criteria, the authors’ formula has been developed for evaluating the effectiveness of the Industrial Revolution of the 21st century in the sphere of Industry 4.0. The advantages of the offered methodology of criterial evaluation of consequences of the Industrial Revolution of the 21st century is consideration of not only main and target indicators of formation and development of Industry 4.0 in modern economic systems but also additional indicators. The offered recommendations for bringing the indicators to general measuring units with the help of special coefficients allow conducting complete and complex evaluation of consequences of the Fourth Industrial Revolution. The advantage of the offered methodology is high level of its detalization. The explained logic of treatment of the results of criterial evaluation of consequences of the Industrial Revolution of the 21st century with the help of this methodology envisages not only traditional accounting of the value of resulting indicator—coefficient of effectiveness of the Industrial Revolution of the 21st century in the sphere of Industry 4.0 but also considering other estimate criteria. Their model combinations allow determining the implemented scenarios of formation and development of Industry 4.0 in the conditions of knowledge economy’s formation.

Unattractiveness of the traditional scenario of implementing the Industrial Revolution of the 21st century, which envisages domination of developed countries and deepening of disproportions of the global economy, leads to necessity for developing the methodological approach to global management of development of Industry 4.0 in the conditions of knowledge economy’s formation for implementation of optimal scenario, which envisages implementation of the global Fourth Industrial Revolution in the sphere of Industry 4.0 on the basis of knowledge economy simultaneously in all interested countries of the world. Development of such approach is the purpose of this chapter. The methodological basis of the research includes the method of systemic, problem, and structural and functional analysis, as well as special-purpose and formalization methods. The authors develop and present the new approach to managing the development of Industry 4.0 in the conditions of knowledge economy’s formation for implementation of the optimal scenario, which is not just an alternative but a direct opposition to the traditional approach that is used during management of all previous industrial revolutions. The new approach is more preferable, as it ensures multiple advantages, which include prevention of crisis of socio-economic systems, which is traditionally viewed as an inseparable components of industrial revolutions. In addition to this, formation of Industry 4.0 will ensure innovational development of modern socio-economic systems, which will allow accelerating the process of their overcoming the long recession. Another advantages of the new approach is stimulating reduction of the level of differentiation of countries in the global economy. The offered approach is based on the mechanism of integration, which allows ensuring systemic interaction of all interested participants of global economic relations in the process of formation and development of Industry 4.0 and obtaining the synergetic effect.