DIGITALIZATION AS A TOOL FOR MANAGING INNOVATION-DRIVEN  SUSTAINABLE DEVELOPMENT IN THE ARCTIC INDUSTRIAL SECTOR

Original article

Download article 

Vladimir S. Zharov1, 2

1Luzin Institute for Economic Studies of the Kola Science Centre of the Russian Academy of Sciences, Apatity, Russia, zharov_vs@mail.ru, ORCID 0000-0002-1877-9214

2Apatity Branch of Murmansk Arctic University, Apatity, Russia

 

Abstract. The sustainable development of industrial production is particularly critical in the Arctic regions. However, achieving this goal requires effective management, which can be improved through digitalization based on algorithmic processes. Accordingly, this study aims to substantiate and outline the key stages of algorithmizing the management of sustainable industrial development. The research identifies two essential conditions for effective management: first, establishing the relationship between technological advancement and sustainability levels; second, quantitatively determining sustainability levels. The study demonstrates that these objectives can be addressed using the methodology of economic analysis applied to technological renewal in production. The proposed algorithmization process consists of four stages. The first stage involves analyzing industrial activity in the Arctic regions over a retrospective period of at least 15 years to identify trends in material productivity, capital productivity, and technological development. The second stage employs a graphical life cycle model of technological development and a scoring method to perform a quantitative assessment of industrial sustainability, both overall and by specific sectors. The third stage involves developing an analytical simulation model to project future sustainability levels based on industrial investment capacity and potential financial support from regional and national governments. A block diagram of this simulation model is presented, along with an overview of the calculation procedure. Finally, the fourth stage formulates three potential industrial development scenarios, each achieving different levels of sustainability. Future research will focus on implementing the simulation model programmatically and conducting scenario-based calculations for the industrial sector in the Arctic.

Keywords: Arctic regions, industry, sustainable development, management process, digitalization stages, development scenarios, simulation model

For citation: Zharov V. S. Digitalization as a tool for managing innovation-driven sustainable development in the Arctic industrial sector. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2025, no. 1, pp. 73–86. doi:10.37614/2220-802X.1.2025.87.005.

References

  1. Arkticheskoe prostranstvo Rossii v XXI veke: faktory razvitiya, organizatsiya upravleniya [The Russian Arctic in the XXI century: Development factors and territorial management]. Saint Petersburg, Peter the Great   Petersburg Polytechnic University; Nauka, 2016, 1016 p. (In Russ.).
  2. Kozlov A. V., Fedoseev S. V., Cherepovitsyn A. E., Gutman S. S., Zaichenko I. M., Marinina O. A., Rytova E. V., Tsvetkov P. S., Tochilo M. S. Kompleksnoe razvitie ekonomicheskogo prostranstva Arkticheskoi zony Rossiiskoi Federatsii [Integrated development of the economy of the Russian Arctic]. Saint Petersburg, Peter the Great St. Petersburg Polytechnic University, 2016, 315 p. (In Russ.).
  3. Druzhinin P. V., Shkiperova G. T., Potasheva O. V. Otsenka vliyaniya ekonomiki na okruzhayushchuyu sredu (prostranstvennye aspekty) [Assessment of the impact of the economy on the environment (spatial aspects)]. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and The Market: Forming the Economic Order], 2017, Vol. 54, No. 3, pp. 228–237. (In Russ.).
  4. Druzhinin P. V., Shkiperova G. T. Assessment of the interaction of economic and environmental processes. Economic and Social Changes: Facts, Trends, Forecast, 2014, Vol. 2 (32), pp. 213–224.
  5. Goryachevskaya E. S. Teoretiko-metodologicheskie osnovy otsenki ustoichivogo innovatsionno-promyshlennogo razvitiya regionov [Theoretical and methodological foundations for assessing sustainable innovative and industrial development of regions]. Drukerovskii vestnik [Drucker’s Bulletin], 2023, No. 3, pp. 242–252.  DOI: 10.17213/2312-6469-2023-3-242-252. (In Russ.).
  6. Tsukerman V. A., Goryachevskaya E. S. Vliyanie innovatsionnoi deyatel’nosti na sotsial’no-ekonomicheskoe razvitie arkticheskikh regionov [The impact of innovation on the socio–economic development of the Arctic regions]. Drukerovskii vestnik [Drucker’s Bulletin], 2023, No. 2, pp. 176–184. DOI: 10.17213/2312-6469-2023-2-176-184. (In Russ.).
  7. Meshalkin V. P., Dovi’ V. G., Marsanich A. Strategy of Chemical Supply Chain Management and Sustainable Development. Moscow, Mendeleyev University of Chemical Technology of Russia, 2003, 542 p.
  8. Kates R. W., Parris T. M., Leiserowitz A. A. What is sustainable development? Goals, indicators, values, and practice. Sci. Policy Sustain. Dev., 2005, No. 47, pp. 8–21.
  9. Strange T., Bayley A. Sustainable development: Linking economy, society, environment. Paris, OECD Insights, 2008.
  10. Kuhlman T., Farrington J. What is Sustainability? Sustainability, 2010, Vol. 2, pp. 3436–3448.
  11. Ghobakhloo M. Industry 4.0, digitization, and opportunities for sustainability. Journal of Cleaner Production, 2020, p. 119869. https://doi: 10.1016/j.jclepro.2019.119869.
  12. Zozulya D. M. Digitalization of the Russian economy and industry 4.0: challenges and prospects. Issues of the Innovative Economy, 2018, Vol. 8 (1), pp. 1–14. https://doi: 10.18334/vinec.8.1.38856.
  13. Dorzhieva V. V. Natsional’nye prioritety razvitiya promyshlennogo iskusstvennogo intellekta v usloviyakh novykh tekhnologicheskikh vyzovov [National priorities for the development of industrial artificial intelligence amidst new technological challenges]. Voprosy innovatsionnoi ekonomiki [Russian Journal of Innovation Economics], 2022, 12 (1). https://doi: 10.18334/venec.12.1.114205. (In Russ.).
  14. Pechatkin V. V., Vildanova L. M. Uroven’ tsifrovizatsii vidov ekonomicheskoi deyatel’nosti kak faktor ikh konkurentosposobnosti v usloviyakh pandemii [The level of economic activities digitalization as a competitiveness factor amidst the pandemic]. Voprosy innovatsionnoi ekonomiki [Russian Journal of Innovation Economics], 2021, 11 (1), pp. 47–60. https://doi: 10.18334/vinec.11.1.111893. (In Russ.).
  15. Meshalkin V. P., Zharov V. S., Leontiev L. I., Nzioka A. M., Belozersky A. Y. Sustainable Environmental Impact Assessment Using Indicators for Sustainable Energy–Intensive Industrial Production. Energies, 2023, Vol. 16 (7), 3172. DOI: 10.3390/en16073172.
  16. Dočekalová M. P., Kocmanová A. Composite indicator for measuring corporate sustainability. Indic., 2016, No. 61, pp. 612–623.
  17. Pazienza M., de Jong M., Schoenmaker D. Why Corporate Sustainability Is Not Yet Measured. Sustainability, 2023, No. 15, p. 6275. DOI: 10.3390/su15076275/.
  18. Kocmanová A., Šimberová I. Determination of environmental, social and corporate governance indicators: Framework in the measurement of sustainable performance. Bus. Econ. Manag., 2014, No. 15, pp. 1017–1033.
  19. Nikolaou I. E., Tsalis T. A., Evangelinos K. I. A framework to measure corporate sustainability performance: A strong sustainability-based view of firm. Prod. Consum., 2019, No. 18, pp. 1–18.
  20. Zharov V. S. Measuring the sustainability of technological development in production systems: A case study of Northern industries. Sever i rynok: formirovanie ekonomicheskogo poryadka, 2023, No. 4, pp. 19–33. DOI: 10.37614/2220-802X.4.2023.82.002. (In Russ.).