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Opportunities and Limitations of the Program of Digitalization of the Economy of Italy (“Industria 4.0”)

Student: Badalyan Anna

Supervisor: Agnesa Viktorovna Avilova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Bachelor)

Year of Graduation: 2019

The world economy is on the threshold of the forth industrial revolution, which may radically change the way economic activity is conducted. Thus, many countries adopt national initiatives to foster the transition to “Industry 4.0”. In this paper the national program of the digitalization of the economy of Italy “Industry 4.0” is reviewed. There is little research on the Italian national program, that’s why the paper is going to bridge the gap. The aim of the paper is to identify strengths and weaknesses of the program and to estimate the opportunities and threats to the digitalization of the Italian economy within the given program. The qualitative methods have been used for the analysis, in particular the comparative analysis with a similar program in Germany, the leading country in the field of “Industry 4.0” and the SWOT analysis of the Italian program itself. The analysis identified the that the main threats to the digitization of the Italian economy include insufficient coverage of small and medium enterprises in the program (SME), the lack of interest to participate in the program by SME, the conservatism of the education system and cultural barriers. However, with proper use of financial resources, the Italian economy has the opportunity to maintain its leading position in industrial production in Europe and achieve an equal level of development in the Northern and the Southern Italy.

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