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Optimisation of structural parameters of the industry by the criterion of product innovation

Ishchuk Svitlana, Sozanskyy Luybomyr, Pukała Ryszard

Engineering Management in Production and Services

2021

Vol. 13, no. 3

7--24

The industrial sector of the Polish economy plays an important role in ensuring the socio-economic development of the country. The Polish industry accounts for 24.1 % of the country’s employed population and 25.1 % of the GVA. The article aims to model the structural parameters of the Polish industrial sector according to the criterion of increasing product innovation level based on a comprehensive assessment of the Polish industry performance in the regional context. The offered method focuses on estimating the industrial sector at the macro and meso levels using a set of indicators for investment, innovation, labour activity, and profitability. Correlation-regression analysis methods were used to prove hypotheses about the impact of product innovation on employment and wages in the industry. To optimise the structure of the Polish industrial sector, an economic-mathematical model was developed, which was solved using the linear programming method. The target functionality of this model is the level of product innovation, at which the gross average monthly wage of Polish industry workers will double (to the EU average). The simulation results, which was based on data from the Central Statistical Office of Poland, provide an analytical basis for selecting industrial policy benchmarks for Poland.

Optimisation of the relationship between structural parameters of the processing industry as a way to increase its efficiency

Ishchuk Svitlana, Sozanskyy Luybomyr, Pukała Ryszard

Engineering Management in Production and Services

2020

Vol. 12, no. 2

7--20

Industry, which on average accounts for about 60% of commodity exports in the EU-28, with over 58% resulting from the processing industry, plays a key role in ensuring the competitiveness of EU countries. The article aims to simulate the influence of structural processing industry parameters on the industry’s efficiency. Correlation methods and the regression analysis were used to substantiate the hypotheses regarding the effect that the share comprised of high-tech and medium-high-tech industries has on the output structure, and the impact made by the share of imports in the intermediate consumption of those industries on the efficiency (the share of gross value added (GVA) in output) of the processing industry. Based on the criteria indicating the increased technological level and reduced import dependence, economic and mathematical models of optimisation were created for the output structure and intermediate consumption of the processing industry, which were then solved using the linear programming method. The authors present the mathematical proof of the relationship between the change in structural parameters (shares of high-tech and medium-tech industries and the share of imports in the structure of their intermediate consumption) of the processing industry and the ratio of the gross value added/output. The results of the simulation, which were based on data from the European Statistical Office and the Organization for Economic Cooperation and Development, provide an analytical basis for selecting industrial policy benchmarks.