The Digital Economy in the Context of the Fourth Industrial Revolution: Opportunities and Limitations

Abstract

The article focuses on the analysis the relationship between the digital economy and industry in the conditions of the Fourth Industrial Revolution. Analysis of the problem’s conceptual aspects has shown that the digital economy is one of the elements of the emerging smart cyberphysical society, in which the integration of material production and digital technologies is implemented. In this regard, the well-known dichotomy “industrial society — post-industrial society” loses its meaning, since “hardware” and “digit” supplement each other organically and co-evolve, although the possibilities and limitations of this process are determined to a greater extent by the production development rather than digital technologies. The empirical part of the study includes statistical analysis of the problem and mathematical modelling based on economic data on 74 countries for the period 2014–2016. This analysis showed that the size of the digital economy is well correlated with gross fixed capital formation, and that industrialized countries differ from less developed countries not so much in the level of development of the digital economy as in the amount of the fixed assets investments. In the modern world divided into new zones of technological influence the strategic prospects of countries’ economic development are defined by Industry 4.0 — smart robotic cyber-physical industry, located next to the consumer. Therefore, in order to achieve a higher level of income in the national economy, it is necessary not only to develop the digital economy, but also to increase investment in modern manufacturing technologies in or around the country. The analysis of the opportunities and limitations of the digital economy development on the example of the Russian Federation tax system digitalization has shown that it is generally successful. However, it creates some problems for the economy, as modern digital technologies are used to divert resources necessary for the industrial development. Therefore, the digital economy needs to be integrated into existing macroeconomic regulation mechanisms, including through new opportunities provided by the digital revolution.