Application of The Aggregation and Multicriteria Optimization Method in Assessing the Level of the Knowledge Economy of World Regions in Industry 4.0

Abstract

The article proposes a new methodology for determining the level of the knowledge economy of countries in terms of the possibilities of using Industry 4.0 technologies. The relevance of the study is due to the transition to a new technological structure – “Industry 4.0” in the world. The aim of the study is to analyze data on the main sub-indices of the knowledge economy associated with Industry 4.0 for countries around the world based on the author’s methodology. As a tool for this analysis, the k-means++ clustering method was used to classify countries according to their characteristics. The assessment of the potential of Industry 4.0 is determined on the basis of 5 criteria characterizing various aspects of the development of countries at the level of economic knowledge. In the calculation process, determining the extent to which the indicators used describe the level of the knowledge economy, and the use of the aggregation formula and multi-criteria optimization, constitutes the scientific novelty of the study. It was concluded that as a result of clustering the countries of the world using the formula Aggregation and Multicriteria Optimization, the number of clusters decreased and the distribution of countries between clusters began to more adequately reflect reality. The results of the study can be used in the process of assessing the competitiveness of countries during the transition to the Industry 4.0 economy, as well as in developing strategies and concepts for countries.