Impact of Technological Innovations on the Structure and Functions of Large Businesses in Economy

Abstract:

This article analyzes Russian and global trends of influence of change in the engineering capability of production on business structure and functions; in particular, that of large businesses and, primarily, in the USA, China, and the Russian Federation. This research looks into the impact of such innovations on the dynamics of total revenue, capitalization, income, foreign trade of large businesses amidst the formation of new stages of industrial revolutions and by virtue of technological innovations. The performance of measures is displayed, as well as damage and losses from the unfolding situation and the performance of business repositioning from industrial to science and technological, informational, innovational, and foreign economic fields. This article reveals the contribution of large businesses to the formation of the gross domestic product in world-leading economic and scientific and technological centres. The changes in the functional structure of large businesses for the last five centuries are also analyzed, especially in the wake of “Industry 4.0”. Among the researched indicators which reflect the development level of large businesses are the following: turnover, workforce productivity, capitalization, foreign trade activity in different sectors of economy, its correlation to the GDP index. The alternative variants of business development in various parts of the world are recognized along with the reasons for the developmental underperformance of large businesses in Russia and its regions. This is why both internal and external factors are considered. They influence the dynamics and intensity of scientific and technological changes in the development of large businesses in distinct regions of the globe. Practical measures are offered to enhance the economic growth rate, to leverage modernization plans and business reorganization as specified by “Industry 4.0”

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