Regional Business Environment Research Articles

Intellectual property protection and total factor productivity of enterprises: A quasi-natural experiment of intellectual property courts

This study reveals that the establishment of intellectual property courts can significantly improve the TFP of enterprises. After a series of robustness tests, the conclusion is still valid. Mechanistic research finds that the establishment of intellectual property courts can promote TFP of enterprises by strengthening regional law enforcement, improving the quality of enterprise innovation, and enhancing the regional business environment. Intellectual property rights protection has heterogeneous effects on different ownership types, enterprise sizes, and product competitive position. Intellectual property protection is highly important for improving the total factor productivity of enterprises and achieving high-quality economic development.

Does the emissions trading system promote regional green innovation? – Evidence from Chinese prefecture-level cities

ABSTRACT The previous economic development model based on scale expansion has caused serious environmental pollution and resource constraints. Therefore, the development of green innovation with clean production and environmental protection as the core is particularly important. The emissions trading system (ETS) has been introduced in the process of market-oriented environmental regulation, and its impact on green innovation is of great significance. This paper examines the impact of the ETS on regional green innovation and its mechanism of action using the PSM-DID method based on data from 154 prefecture-level cities in China. The study finds that the ETS has a positive effect on improving green innovation, and this effect gradually increases over time. The impact mechanism test shows that the ETS promotes green innovation by increasing regional innovation R&D investment, and the regional business environment plays a positive role in this process. Heterogeneity tests show that the effects of ETS are more pronounced in more polluted regions and in regions with stricter environmental regulations. This paper provides theoretical support for the implementation of ETS in China and some developing countries, and empirical evidence and policy implications for the green innovation effect of ETS.

Local business environment and firm innovation: evidence from China

PurposeThis paper aims to investigate the influence of the regional business environment on local firm innovation, considering various dimensions such as administrative, financial and legal environments.Design/methodology/approachMultiple regression analysis is employed to analyze archival data for firms listed on Chinese stock markets.FindingsWe find that the optimizations of the administrative and financial environments positively affect firm innovation, whereas the legal environment does not exert a similar impact. Our analysis also reveals that the business environment’s optimization significantly influences innovation in firms that are small, non-state-owned and operating in high-tech industries. Furthermore, the business environment acts as a moderating variable in the relationship between firm innovation and firm value.Research limitations/implicationsThis study contributes to a more comprehensive understanding of institutional-level determinants of firm innovation, highlighting the nuances of the legal environment and the importance of context-specific analysis, especially in emerging markets like China.Practical implicationsDeveloping countries can significantly enhance firm innovation by improving the business environment, including the optimization of administrative and financial systems, reducing transaction costs and ensuring capital supply. Tailored legal frameworks and alternative institutional strategies may also be explored.Social implicationsThis study explicitly emphasizes the governmental role in promoting firm innovation, shedding light on policy formulation and strategic alignment with local administrative policies.Originality/valueTo the best of our knowledge, this paper is the first to explore the relationship between the business environment and firm innovation using World Bank indicators in an emerging market context, providing novel insights into the unique dynamics of legal, financial and administrative sub-environments.

What types of business environment fosters the emergence of more specialized and sophisticated “little giant” enterprises?—An empirical study based on the TOE framework and configuration adaptation theory

AbstractNurturing specialized and sophisticated enterprises is a vital strategic initiative to mitigate the dependency on crucial technologies and to promote the competitiveness of Chinese manufacturing industry. Basing on a technology, organization, and environment (TOE) framework, combined with geographic concentration, qualitative comparative analysis (QCA), and data envelopment analysis (DEA) methods, this article analyzes the conducive business environment for the growth of specialized and sophisticated “little giant” enterprises (LGEs) from configurational perspective. It takes the quantity and density of LGEs in different regions of China as the consequence event. The findings show that: (1) the spatial distribution of LGEs is highly uneven with a geographic concentration index (CR5) of 0.436 and a Herfindahl–Hirschman Index of 0.0599. (2) The presence of numerous technology‐oriented SMEs and a “favorable” business environment are not necessarily the regions where a larger number of LGEs are fostered. Indeed, the harmonious interplay of TOE is more important for achieving optimal outcomes. The differential configurations contributing to the regional output variations of LGEs can be classified with three patterns: technology‐organization‐environment synergistic promotion type (H1), innovation stimulation through effective financial support type (H2a), and compensatory type for inadequate innovation resources (H2b). While these configurations may lead to similar outcomes, they do not yield the same effectiveness. (3) The DEA reveals a tendency for “over‐optimization” in improving regional business environment under the TOE framework, indicating the presence of “input redundancy” and corresponding “output loss” issues in TOE factors. Local governments must adhere to the “barrel principle” and optimize the business environment that aligns with development of LGEs through the concept of dynamic adaptation. Adopting an organizational mindset of “stringing beads into chains” can help construct regional industrial chains with distinctive features.

The impact of urban green business environment on FDI quality and its driving mechanism: Evidence from China

The world's leading recipient of foreign direct investment (FDI), China should pay attention to both the volume and quality of FDI as it seeks to integrate more fully into globalization. At this stage of development, establishing an environmentally friendly business environment has become a critical strategy for improving the quality of FDI. So, this paper constructs the index system of the urban green business environment and the measurement of FDI quality to test the driving mechanism of the urban green business environment on FDI quality. The study draws the following conclusions. Firstly, the green business environment can significantly enhance FDI quality, and this impact exhibits a positive spatial spillover effect overall. However, regionally, only the eastern region demonstrates a positive spillover effect. Secondly, the mechanism test results reveal that public services, financial services, market environment, ecological environment, human resources, and legal environment are the key driving factors of the urban green business environment on FDI quality. Moreover, the intermediary effect test establishes that the urban green business environment enhances FDI quality by mitigating risks. Thirdly, the heterogeneity test results indicate that the green business environment can enhance FDI quality for cities with varying income and pollution levels. The research results provide a new perspective for improving FDI quality and optimizing the green business environment. They hold significant implications for enlightening the coordinated development of the urban green business environment and FDI quality in different regions, as well as for maximizing the influence of the green business environment on FDI quality.

STRATEGY FOR MANAGING REGIONAL COMPETITIVENESS DEVELOPMENT

Abstract. The studies of economists are mostly devoted to the issues of ensuring the proper level of competitiveness of the country and finding ways to increase Ukraine's competitiveness rating in the world ranking. At the same time, there are many unsolved problems related to the competitiveness of the country's regions and the need to develop a strategy for managing regional competitiveness development, which indicates the relevance of the topic of research. The purpose of the article is theoretical substantiation of the essence of regional competitiveness and the development of a strategy of regional competitiveness development. The article examines the essence of the concept of "competitiveness" in relation to various objects: country, region, enterprise, products. The competitive advantages of the region have been studied and determined. The indicators used to assess the level of competitiveness of the region are grouped into blocks. An algorithm for increasing the competitiveness of the region, presented in the form of successivesteps: determination of strategic level of the competitiveness of the region; identification of main consumers and buyers of regional production; determination and increase of strategic factors of competitiveness of the region; formation of a strategy of regional competitiveness development; activation of the quality of regional business environment; formation of competitive regional market, has been developed. The necessity ofstrategic planning of regional competitiveness development is proved, the tasks and main characteristics of strategic planning are clarified. A mechanism of strategic management of regional competitiveness development, which involves the following stages: determination of target indicators of regionaldevelopment; strategic assessment of regional competitiveness; execution of necessary measurements in the region; implementation and adjustment of strategic plan is proposed. A mechanism of tactical planning of regional competitiveness development, which involves the creation of an information base about the region; performance of SWOT analysis of the region; positioning of the region; development of marketing and logistics strategy; implementation of the developed plan and monitoring and control over its implementation, is developed.

Strategy of directions, forms and tools of state influence on development processes of the regional business environment

The object of research is the content and factors of the formation and development of the regional business environment as an economic resource for the development of the region, its formation and effective use. Effective development of the regional business environment is a key factor in the sustainable functioning of business structures. Entrepreneurial activity ensures the improvement of the social situation in the regions, solving problems related to the employment of the population, the level of income of its working part, the income of local budgets, blocking centers of social tension. This necessitates the formation of an entrepreneurial environment that ensures the improvement of the efficiency of business structures, the activation of factors of its development operating at the macro-, meso-, micro- and nano-levels. Despite the growing interest of scientists and researchers in the study of problems related to the formation and development of the regional business environment, the search for factors affecting it, many issues of theoretical and methodological properties in this field of science and practical activity remain unresolved. This work is devoted to the study of these issues. The results obtained in the course of the study can be used by the state authorities, which form state programs for stimulating the development of the business environment at the regional level. And also by entrepreneurs, investors, financial structures, analytical and rating agencies when making relevant decisions related to the development and assessment of the state of the business environment. A number of conclusions can be used for analytical purposes, the formation of comparative indices, ratings, establishment of business contacts that correspond to the mutual interests of interested parties, strategic planning of the development of various regions, etc. Separate provisions can be applied in the process of further research into scientific and practical problems of the formation and functioning of business territories, as well as used in higher educational institutions to prepare a scientific and methodological base for teaching.

How do contract performance rates affect entrepreneurs' risk-averse attitudes? Evidence from China.

Entrepreneurs' attitudes toward risk is one of the most critical factors influencing business growth and economic development. Therefore, addressing the influencing factors and formation mechanisms of entrepreneurs' risk attitudes has become a crucial research endeavor. In this paper, we examine how contract performance rates affect entrepreneurs' risk attitudes through the mediating effect of subjective well-being as well as assess the moderating effect of the regional business environment on this relationship. The ordered probit regression technique was employed to analyze the data obtained from 3,660 sampled respondents from the 2019 China Household Finance Survey. All analysis was performed using Stata 15.0. The empirical results show that contract performance rates have a substantial positive indirect effect on entrepreneurs' degree of risk aversion through improved subjective well-being. The regional business environment plays a negative regulatory role in the relationship between contract performance rates and entrepreneurs' risk aversion. Furthermore, urban-rural heterogeneity appears to consistently determine the extent of the influence of contract performance rates on entrepreneurs' risk attitudes. To reduce entrepreneurs' risk aversion and enhance social and economic activity, the government should improve regional business environments by taking specific measures. Our study contributes to the empirical understanding of entrepreneurs' investment decisions in the context of urban and rural environments.

Study on the impact of business environment on private enterprises' technological innovation from the perspective of transaction cost

Technological innovation of private enterprises is an important condition for promoting high-quality development of China's economy. This paper matches the regional business environment data with the data of A-share private listed companies from 2017 to 2020 to study the impact of business environment on private enterprises' technological innovation and its mechanism of action based on the perspective of transaction cost. The empirical results show that the optimization of regional business environment promotes the technological innovation of private enterprises. A quality business environment reduces private enterprises' rent-seeking expenses and agency costs, thus promoting their technological innovation. Heterogeneity analysis shows that at a higher degree of market competition, the business environment is more conducive to stimulate the enthusiasm and motivation of private enterprises' technological innovation. A quality business environment reduces the impact of enterprise size differences on private firms' technological innovation, and the uneven development of business environment among regions.

ОЦЕНКА ПРЕДПРИНИМАТЕЛЬСКОЙ СРЕДЫ В РЕГИОНЕ (НА ПРИМЕРЕ РЕСПУБЛИКИ ТАТАРСТАН)

The regional business environment is a stable factor in the development of the country’s economy. In the Republic of Tatarstan, entrepreneurial activity has a favorable economic, political, and social aspect for development. The economic course chosen by the government of the region is aimed at creating conditions and opportunities for citizens and entrepreneurs that contribute to the sustainable development of their well-being and the country as a whole. The article evaluates the business environment in the republic with the help of officially published information. The analysis showed that the management system and the scientific and technological sphere need new approaches. Because the existing difficulties hinder the development of the region.

Analysis of Business Environment and Medical Insurance Coverage Rates in the Destination of China’s Migrant Population: Based on Geographically and Temporally Weighted Regression Model for Panel Data

Health risk is an important issue in the process of population spatial mobility, and it is also an important issue in the process of urbanization in China. Using the dynamic monitoring data of China’s migrant population and 31 provincial business environment data from 2011 to 2018, this study systematically investigated the spatial distribution and evolution characteristics of the migrant population’s participation in medical insurance in the destination areas and combined it with the Geographically and Temporally Weighted Regression Model for Panel Data (PGTWR) to analyze the impact of the regional business environment on the medical insurance coverage rate of the inflow area. The results are as follows: first, the spatial pattern of the insurance coverage rate is high in Eastern China and low in Western China. The areas with high insurance coverage rates are mainly distributed in the three major economic circles of China and provinces such as Shandong and Xinjiang. Second, there is significant spatial autocorrelation in the coverage rate, which shows that cities with high participation rates tend to form agglomeration areas in geographical space, and so do cities with low participation rates. The coverage rate of the popular areas is scattered, while the unpopular areas are concentrated. Third, the estimation results of the Geographically and Temporally Weighted Regression Model for Panel Data show that the macroeconomic and infrastructure indicators in the business environment have a greater impact on the insurance rate, while the impact of policy environment indicators is relatively weak. However, the overall improvement of the business environment can significantly improve the probability of the migrant population participating in medical insurance in the inflow area.

The Impact of Business Environment on the Quality of Export Products

The quality of export products directly affects the use value and price of commodities, and it is an important factor that determines the use efficiency of commodities and affects the market price of commodities. In the form of unprecedented fierce competition in the current international market, many countries and regions have taken improving the quality of commodities and striving to win by quality as an important part of non-price competition, which is one of the important means to strengthen foreign competition. Different business environments in different regions will lead to problems in the quality of export products. Based on this, by reviewing relevant literature, this paper focuses on analyzing the impact of regional business environment, environmental regulation, trade liberalization and emerging technologies such as digitalization on the quality of export products, and explains the impact mechanism of different business environments on the quality of export products. Finally, based on the conclusions obtained, this paper discusses how the government should create a business environment to improve the quality of export products.

MODELING OF FINANCIAL RESULTS OF SUBJECTS OF THE INNOVATION PROCESS IN THE REGION

The article develops and substantiates a methodological approach to modeling the results of innovative development of subjects of the regional business environment. The basic values of financial forecasting were indicators of the innovative potential of the business entity and indicators of the innovative attractiveness of the region.The system of indicators of innovation attractiveness of the region includes indicators of innovation activity of the region, social and economic indicators of regional development, indicators of innovative cooperation of the region, and indicators of international integration of the region. To assess the innovation potential of a business entity, such four levels of diagnostics are defined as: the potential of tangible assets; the potential of tangible assets in the form of working capital; the indicator of intellectual potential; the level of use of innovative potential.To substantiate the methodology for analyzing the innovative attractiveness of the region, software was developed in the database management system MS Access environment. Trends were identified by autocorrelation analysis and the foster-Stewart method, and the pair correlation approach was used with the sequential search of all parameters to find the relationship between the parameters. To achieve this goal, we will use the Pearson coefficient; various types of one-dimensional regression are used to increase the accuracy of the model.The forecast values calculated on the basis of modeling justified the existence of a close relationship between the expected economic results of the development of innovative cooperation in the region and the indicators of activation of entrepreneurial initiative. The results of modeling can be used as a basis for forming the policy of innovative development of the region. The results of modeling as well can be used in choosing strategic alternatives for innovative development of business entities.

Regional Entrepreneurship, Business Environment, and High-Quality Economic Development: An Empirical Analysis of Nine Urban Agglomerations in China.

The article selects socioeconomic data related to 146 prefecture-level cities included in nine city clusters from 2014 to 2018 to establish a city-level socioeconomic system in China. A sensitivity analysis of regional entrepreneurship and economic quality development based on system dynamics was conducted to explore the changes in regional entrepreneurship and economic quality development over time and their sensitivity factors. In this way, the dynamic evolution mechanism of the system can be portrayed, and the optimization of the system can be achieved through the coordination of the factors within the system. The article sets up three scenarios to explore the fluctuations in regional entrepreneurship and economic quality development when three sensitive factors, namely, business environment, financial services scale, and innovation environment, change. Findings: There are differences in the development of cities within city clusters. The business environment and high-quality economic development of the central cities within the city cluster are stronger than those of the non-central cities. Therefore, regions should focus on synergistic development within city clusters when formulating related policies. The variation of regional entrepreneurship development and economic quality development, after a factor in the system is changed, is asymmetric. Because the sensitivity of different urban clusters and the way they are affected by sensitive factors varies, the state should pay more attention to the adaptability of cities when formulating corresponding policy measures and adapt its policy measures to the sensitivity characteristics of each region according to local conditions.

DEVELOPMENT OF SOCIAL ENTERPRISE AS A TOOL TO ACTIVATE THE BUSINESS ENVIRONMENT IN AGRICULTURAL REGIONS OF UKRAINE

During the period of independence, the Ukrainian economy experienced various socio-economic problems that arose as a result of certain crisis phenomena. The most negative impact of the crisis has affected the standard of living of the population living in the agricultural regions of the country. In recent years, a new and quite effective tool for solving social problems of society has appeared in the world, which is called social entrepreneurship. That is why the work is devoted to the search for opportunities for the development of social entrepreneurship as a tool for activating the business environment of the agricultural regions of Ukraine. The relevance of activating the subject of social entrepreneurship for the development of the Ukrainian economy and the creation of a business environment in the agricultural regions of the country is substantiated. It has been established that social entrepreneurship is such a unique type of business that is aimed at solving social problems of society while simultaneously fulfilling the main goal of any entrepreneur's activity - making a profit. Based on a thorough analysis of the scientific works of Ukrainian researchers, the factors of development and important aspects of the implementation of social entrepreneurship projects, the prerequisites for the emergence and spread of it in Ukraine have been identified. The features of social entrepreneurship, its differences from socially responsible business are considered. The sufficiency and exhaustive legal and regulatory framework governing the activities of social entrepreneurs in Ukraine are characterized. The most relevant directions of development of social entrepreneurship in the agricultural regions of Ukraine are substantiated. The first direction chosen was the creation of new jobs using the latest approaches and labor technologies and ensuring a decent level of remuneration and working conditions. The second direction of social entrepreneurship is the formation of an order and the implementation of professional orientation for specific professional positions, which should correct the early choice of a future profession by young people with reference to their native area and will radically reduce the level of unemployment, youth unemployment and unemployment of highly qualified workers. The third direction in the implementation of projects and initiatives of social entrepreneurship in the agricultural regions has chosen to provide the population with sufficient volumes of high-quality goods and services at adequate prices. The content of successful examples of the implementation of the ideas of social entrepreneurship in Ukraine is given and characterized. The levers of the social entrepreneurship support mechanism at the state and regional levels are determined, which include propaganda, educational, psychological and emotional, financial.

Regional Business Environment, Agricultural Opening-Up and High-Quality Development: Dynamic Empirical Analysis from China’s Agriculture

Agriculture is the foundation of every country’s survival and development. This paper analyzes the interaction between the business environment, agricultural opening-up and high-quality agricultural economy from the perspective of China’s provinces. According to the panel data of 31 provinces and municipalities in China from 2009 to 2019, the empirical analysis was carried out based on the panel vector autoregression (PVAR) model. The results show that there is a quantitative interaction between China’s business environment, agricultural opening-up and high-quality agricultural development, and the long-term time effect is very obvious. Specifically, (1) the impact of the business environment and the high-quality development of agriculture on itself is decreasing year by year. The agriculture opening-up itself has a strong impact and has always maintained strong stability. (2) The high-quality development of the agricultural economy has little impact on the business environment and the opening of agriculture to the outside world, but it has a certain stable and continuous effect. It is particularly important that the agricultural opening-up has an increasingly strong effect on the business environment and the high-quality development of the agricultural economy as time progresses. Therefore, we must always adhere to the agriculture opening-up. The regional business environment and the agriculture opening-up can jointly promote the high-quality development of the agricultural economy. The research results can provide a basis and reference for the central and local governments to formulate relevant agricultural development policies and provide a reference for relevant agricultural economic entities and enterprises.

The Deep Participation of Zhejiang Private Science and Technology Enterprises in the Integrated Development of the Yangtze River Delta.

Private science and technology enterprises are the main force in building a high-level innovative province in Zhejiang, and are also the driving force for the province's high-quality integration into the Yangtze River Delta. At present, the integration of private science and technology enterprises in Zhejiang into the Yangtze River Delta has problems such as low integration ratio, high integration difficulty, low integration level, and insufficient integration confidence. The causes of the problem mainly include the concept bottlenecks and capacity limitations of private technology companies, the institutional dilemma of cooperation between regional governments and regional business environment synergy is not high, the role of non-governmental organizations is not fully developed. To create a powerful engine that drives private technology enterprises to deeply participate in the development of the Yangtze River Delta, it should be built and strengthened from the perspective of the main role of enterprises themselves, the role of government guidance, industry associations, and other non-governmental organizations to play the role of service coordination and supervision.

Influencing Factors Identification and the Correlation Analysis of Business Environment in the Guangdong‐Hong Kong‐Macao Greater Bay

The outline of the development plan issued by CPC Central Committee and the State Council for the Guangdong Hong Kong Macao Bay Area clearly pointed out that the Guangdong‐Hong Kong‐Macao Bay Area should be built into a vibrant world‐class urban agglomeration, an international science and technology innovation center, an important support for the construction of the “the Belt and Road,” and a demonstration area for in‐depth cooperation between the mainland and Hong Kong and Macao; and a high‐quality life circle suitable for living, working, and traveling should be created to become a model of high‐quality sustainable development. In order to develop the Guangdong‐Hong Kong‐Macao Bay Area, it is extremely important to enhance the regional business environment. This paper focuses on five influencing factors: policy support, talent guarantee, market supervision, financial support, and cultural promotion. Based on one‐way ANOVA and Cobb Douglas function, this paper makes an empirical study on the two important node cities of Zhuhai and Macao. The results show that (1) different factors have different degrees of significant impact on the regional business environment, among which the industry type has the greatest impact, and the duration of enterprise registration has the least impact; (2) when the factors act alone, there is a significant positive correlation between the evaluation dimensions, but most of the correlation degrees are not much different. Finance and talents are the weaknesses of the business environment in the two cities. (3) When the factors are combined, different factors have significant differences in different regions. Zhuhai mainly benefits from policy support, while Macao mainly benefits from market supervision. (4) Regional integration can produce significant association relationship, among which cultural promotion is an important factor. These five important factors have been effectively identified, which have played a leading role in the further design and development direction of the Guangdong‐Hong Kong‐Macao Bay Area in the future and have an extremely important enlightenment for the study of the business environment in this region.

Efficiency Evaluation and Driving Factors of Regional Financial Resource Allocation: A Case Study of Guangdong Province

Evaluating the efficiency of regional financial resources allocation scientifically plays an important role in promoting the healthy development of financial industry and driving regional economic growth. In this paper, the panel data of cities in Guangdong Province from 2010 to 2017 are used to measure the financial resource allocation efficiency of cities in Guangdong from static and dynamic levels by first applying DEA model and Malmquist indicator, and then constructing a Tobit regression model to explore the driving factors of financial allocation efficiency. The results show that the efficiency of financial resource allocation in Guangdong Province is generally on the rise, but the overall efficiency is not effective, with the wide gap between cities, unbalanced regional development and the highest efficiency of financial resource allocation in the Pearl River Delta region. Regional industrial structure, local financial intervention, degree of opening to the outside world and regional business environment all have significant positive effects on the efficiency of financial resource allocation. The conclusion can provide corresponding enlightenment for the rational allocation of financial resources in provinces and cities.

Трансформація бізнес середовища підприємств під впливом технологій Індустрії 4.0

Анотація. У статті наведені основні відомості про зміну бізнес середовища різних регіонів світу, а саме Європа, Близький Схід, Африка, Північна та Південна Америка, Азіатсько-Тихоокенський регіон. Експерти McKinsey провели аналіз стратегій підприємств щодо впровадження досягнень Індустрії 4.0 та визначили відсоток підприємств: які активно реалізовують ці стратегії; які застосовують їх лише при необхідності; тільки розпочали їх розробляти; у яких ці стратегії відсутні. Також проаналізовано дані щодо готовності підприємств регіонів світу до проведення аудиту щодо впровадження технологій Індустрії 4.0. Розглянуто показники оновлення бізнес-моделей задля впровадження цифрових технологій. Визначено стимули підприємців для впровадження технологій Індустрії 4.0. Особливу увагу було приділено дослідженню впливу пандемії COVID-19 на трансформацію не лише бізнес середовища, а й самих технологій Індустрії 4.0. Досліджено як зміни у самих технологіях допомогли їх швидкому адаптуванню у підприємствах під час пандемії.
 
 Annotation. The article provides basic information about the change in the business environment in various regions of the world, namely Europe, the Middle East, Africa, North and South America, the Asia-Pacific region. McKinsey experts conducted a study, according to which they determined what percentage of enterprises have an Industry 4.0 strategy, apply only when necessary, have begun to develop or have no strategy. The data on the readiness of enterprises in the regions of the world to audit the implementation of industry 4.0 technologies were also analyzed. The indicators of updating business models for the introduction of digital technologies are considered. Identified incentives for entrepreneurs to implement industry 4.0 technologies. Particular attention was paid to the study of the impact of the COVID-19 pandemic on the transformation of not only the business environment, but also Industry 4.0 technologies themselves. It explored how changes in technology itself have helped their rapid adaptation in enterprises during a pandemic.