Management of technological modernization of production as the most important factor of labor productivity growth in the industry of the Arctic regions

• Published in: IOP Conference Series: Earth and Environmental Science
• Main Authors: Zharov, V, Zharov, N
• Format: Article in Journal/Newspaper
• Language: unknown
• Published: IOP Publishing 2020
• Subjects: Arctic
• Online Access: http://dx.doi.org/10.1088/1755-1315/539/1/012059; https://iopscience.iop.org/article/10.1088/1755-1315/539/1/012059/pdf; https://iopscience.iop.org/article/10.1088/1755-1315/539/1/012059

Abstract It is shown that technological modernization should have a significant impact on the growth of labor productivity but this process must be effectively managed for the maximum use of available production resources. For this purpose, it is proposed to follow a new direction of economic analysis of the production system activity, namely, the investment-and-innovation analysis which allows determining the economic necessity and possibility of technological renewal for any production enterprise or industry. It was found that over previous years the intensity of technological renewal of industrial production in the Arctic regions was insufficient. As a result, the growth of labor productivity was provided mainly extensively due to the increase in the level of fixed capital per worker. Accordingly, a significant increase in capital productivity, and hence labor productivity, while reducing the material intensity of products, which allows the volume of toxic waste emissions into the environment to be diminished, can only be achieved due to the introduction of intensive technological innovations of intensive type. At the same time, the effectiveness of practical implementation of such solutions is largely influenced by the quality of the human capital used by the industry. It is shown that the successful implementation of technological modernization largely depends on the regulatory role of the state.