Digital economy as a basic incentive of vertical integration in a rare earth industry

DOI

10.2991/mtde-19.2019.57How to use a DOI?

Keywords

digital economy, digitalization, rare earth metals, value chain, vertical integration

Abstract

The application of high technologies in the country's economy increases the efficiency, productivity and growth potential of a business, as well as its level of competitiveness in the market. The digital economy as one of the indicators of the scientific and technological development of a country has a significant beneficial effect on the development of its innovative entrepreneurship. The core of the digital economy is the production of high-tech products, while the rare-earth industry is the basis for the development of all innovations, which represents the need to study their development in modern conditions. The purpose of this study is to identify factors affecting the rare-earth industry in the conditions of digitalization of the economy. The logic of the study is as follows: first, the role of the rare-earth sphere in the production of digital products is substantiated, then the problem of the Chinese monopoly in the field of rare-earth metals, which impedes the development of the rare-earth market and is a threat to the development of the digital economy, is revealed. In this regard, it seems necessary to trace the pace of development of the rare-earth sector and the digital economy, as well as determine the strength of financial leverage in assessing the upper and lower stages of production of rare-earth metals, then the patterns of the distribution of added value between participants in production chains are analyzed, and finally the justifications for the development vertically integrated production "from raw materials to technology" are given, as well as a suggestion of optimization of production flows within abovementioned structure.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - V.E. Zykova
PY  - 2019/05
DA  - 2019/05
TI  - Digital economy as a basic incentive of vertical integration in a rare earth industry
BT  - Proceedings of the 1st International Scientific Conference "Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth" (MTDE 2019)
PB  - Atlantis Press
SP  - 298
EP  - 304
SN  - 2352-5428
UR  - https://doi.org/10.2991/mtde-19.2019.57
DO  - 10.2991/mtde-19.2019.57
ID  - Zykova2019/05
ER  -