Analysis of the innovative development of circumpolar countries in the context of the fourth industrial revolution

Abstract

Industry 4.0 is a new paradigm in the manufacturing world. It has radically changed the way people and machines interact. Main features of Fourth Industrial Revolution are the following: technological transformation, artificial intelligence and digitalization. The variability in innovation performance in circumpolar countries has led to the development of many theoretical concepts. These concepts include the role of public policy, research and development, foreign direct investment, human capital and financial development in the Fourth Industrial Revolution. This study examines the macroeconomic performance of circumpolar countries in terms of technological innovation from 2012 to 2017. The results show that globalization, R&D, GDP, financial development and human capital are important factors behind technological innovation. The article provides a detailed analysis of Industry 4.0 technologies in circumpolar countries. The authors believe that it is important to compare the statistics in circumpolar countries with the general statistics of the countries – members of the Organization for Economic Cooperation and Development (OECD), in the framework of the Fourth Industrial Revolution.