Industrial Transformation in the Context of the Digitalization of the Economy: Implementation Features and Trends

Aim. The presented study aims to examine the process of industrial transformation and to assess the level of digital, innovative, and technological industrial transformation in the BRICS countries. Tasks . The authors examine the structure of the transformation process in general and the major elements of industrial transformation; identify the economic effects of industrial transformation and determine its impact on production processes; assess the level of industrial transformation in the BRICS countries. Methods. This study uses the methods of ranking and statistical data analysis, the method of formalization, the hypothetical method, abstraction, general logical methods, and other general scientific methods.Results. Industrial transformation includes three elements: digitalization, scientific and technological progress, and globalization. Each of these elements has an impact not only on the industry, but also on the economy as a whole, causing social changes. As a result, the economy and society need to adapt to new conditions. A study of these processes has applied significance since the results of industrial transformation directly affect the competitiveness not only of individual industries, but also of the economy as a whole. Therefore, it is important to assess the economy’s preparedness for transformation as well as its adaptability to changes and the potential speed of technology implementation. The structure of the transformation process is determined, the elements of industrial transformation and their impact on the economy are analyzed, and the impact of industrial transformation on production processes is evaluated. An assessment of the level of industrial transformation in the BRICS countries is provided. Conclusions. Industrial transformation is a system of interrelated processes, which trigger not only a technological restructuring of production processes, but also subsequent social changes. The practical significance of the study consists in that it substantiates the need for industrial transformation by determining its major social and economic effects.