Determinants of Sustainable Development in an Old Industrial Region

Abstract

Proceeding from the sustainable development paradigm, the old-industrial region needs innovative solutions in the economic, environmental and social sphere, which would provide prerequisites for the modernization of economic relations, territories, environmental protection, infrastructure, industrial production, etc. In this regard, the problem of studying the main determinants of sustainable development of the old industrial region is actualized. The aim of the research is to systematize the determinants of sustainable development of the old industrial region and the ways of its modernization. The basic determinants of sustainable development of an old industrial region have been defined and classified according to such classification attributes as finance, ecology, food safety, social-cultural condition, infrastructure, marketing of the region, industrial-production potential. The features of sustainable development of old industrial region have been pointed out: the concentration of cities (districts within cities, settlements) around large industrial enterprises and agglomerations; a critically dangerous state of environmental pollution; the use of Industry 3.0 (less often Industry 2.0) technologies in industrial production. It has been proved that the problem of modernization of Ukrainian old industrial regions, which is acute in most countries of the world, involves the transition to Industry 4.0 technologies, which ensure the competitiveness of industrial production. This problem is complex and its solution requires the necessary deliberate decisions at the level of state authorities, local authorities and industrial owners. At the same time, it is necessary to develop an adequate state policy to shift Ukraine’s industry to Industry 4.0, including preferential taxation, cluster development, and comprehensive attraction of both domestic and foreign investors.