A methodology to assess indicators of technological development of the industry: The electronics industry case

Abstract

Subject. The article deals with assessing the technological development of the industry. Objectives. The focus is on development and testing of a methodology for evaluating indicators of technological development of the industry. Methods. The study rests on general scientific principles and research methods, like abstraction, generalization of approaches to industry’s technological development assessment, analysis, synthesis, systematization, and generalization of obtained results. Results. The developed methodology includes five stages: (1) assessment of preconditions for technological level change; (2) analysis of intensity of modernization; (3) analysis of staff development, growth of labor productivity and remuneration level; (4) assessment of innovation activity; (5) analysis of consequences of changes in the technological level as an increase in value added, return on capital, and sustainable growth. Conclusions. I tested the methodology on data from a sample of electronic industry enterprises (OKVED 26 Manufacture of Computer, Electronic and Optical Products). Calculations show that there are evolutionary, but not large–scale changes. However, there are no signs of noticeable innovative development. At the same time, there are significant changes in individual companies, like PAO Element, controlled by State Corporation Rostec Group. The analysis of the company's consolidated financial statements showed a significant inflow of resources, an increase in investment and innovation activity, staff development, an increase in value added, return on capital, and accelerated growth.