Smart integration into Global Value Chains

Today the world discusses a lot the topics of reshoring, rebuilding regional and global value chaine and Manufacturing-as-a-service. Ukraine, as the biggest country of Eastern Europe with big industrial and he-tech potential can contribute to all such strategies, nevertheless for EU, or for worldwide countries. 

In order to facilitate such process we developed a concept of integration of local innovators 4.0 into Global Values Chains (GVC).

The concept is based on rational view of role and place of Ukrainian innovative ecosystem in EU and global landscape of Industry 4.0. Ukraine can not be a recognized leader setting the trends in Industry 4.0. Such position is not relevant to current status and involved countries resources into the development of Industry 4.0. In opposite, Ukraine can be a strong player and good partner when integrated its workforce, best products, services and capabilities into larger value chains and ecosystem. EU is #1 partner to be integrated.

In this approach, the term «smart integration» we consider 3 things:

  • Ukrainian focus and perspectives should be on high added values engineering services. It is a bit opposite to the previous Ukrainian State strategy of «cheap labor», as well as to «IT is #1» without any regards to manufacturing context. Both such strategies are irrelevant in the context of new EU Industry policies.
  • It is based on thorough analysis of best opportunities in EU with regards to set of existing programs at pan-European and European countries levels. That means we consider all so called «enablers» and shape them to our perspectives of integration.
  • Ukrainian stakeholders should be enough pragmatic with regards to real status of our innovative positions in Industry 4.0 but enough ambitious to changes their position from the status of «tier N» to «tier1-3». That means Ukraine speed-up and finish its understanding of future technologies and its place, mission and vision with regard to the future world.

Just few examples to illustrate these ideas. «Progresstech-Ukraine» is 1 of 4 worldwide Centers of expertise of Boieng corporation. Similar way, MDEM from Mykolaiv serve as a design bureau for DAMEN shipbuilding group for Holland, one of the leading in EU.  Both companies have similar business-model. They make close cooperation with local universities, have the developed policies of talent management, and invest al lot into new technologies Industry 4.0. So, such cases can be easily scaled-up in mentioned industries but also created in other ones. Just because engineering potential in term of number of qualified engineers is huge in Ukraine. 

At the glance, APPAU considers in this concept 4 axis of integration and internationalization

1. Services (=Industry as a Service)

5 sub-segments of services are to be considered:

  1. Software development. We include here 2 kind of developers, Product and «multi-service» companies (outsourcing). This is the biggest and fast growing segment in Ukraine.
  2. Hardware development (electronic, mechatronics, drones, mobility and so on).
  3. Engineering design (all kinds, mechanical, electronic, construction, automation, process…).
  4. System integration (all kind, Control system (OT), IT, OT-IT).
  5. Manufacturing outsourcing (here, targets should be well specified).

Ukrainian developers can be strong resource base for EU R&D centers and industrial brands. The name of our new web-site «Land4developers» reflects this idea.

2. Research and technology

Ukrainian science institutes already have experience of collaboration with German and other EU institutions in such sub-segments as:

  1. Research per an application.
  2. Labs research.
  3. Technology transfer.
  4. Educations.
  5. Standardization.

Tens of Ukrainian Universities and Science institutes already participate in EU programs, in particular in Industry 4.0 area.

3. Industrial startups

Here there are main topics for ecosystems and funds. We have already many exchanges around EU programs and bi-lateral exchanges. The program TechUkraine should enlarged with regard to this topic.

4. Brand ecosystems

In «tiers» value chain Ukrainian developers are not at «tier 1» or «tier 2» levels. This is a big issue we can overcome only through acceleration of clusterization processes. So, strong clusters recognized at international level and smart-specialization are also topics of development and integration. APPAU starts the realization of this strategy with its concept of EAM clusters already launched on the several regions in Ukraine.

Resuming, APPAU believes that for all these 4 directions Ukraine has much more stronger assets and potential in EU industrial development context. We invite our international partners, donors and Ukrainian government to develop this concept and transform it into real policies and working plans already in 2020.

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