Prof. Dragan Djuricin
Prof. Dragan Djuricin is Full Professor for Strategic Management, Project Management, Economics of Strategy, and Strategic Financial Management at School of Economics, University of Belgrade. Prof. Djuricin holds membership of the following Professional Bodies:
2015 – to date President of Serbian Association of Corporate Directors
2012 – to date Chairperson of Kopaonik Business Forum
1997 – 2011 President of Serbian Association of Economists
1997 – 2000 Member of Economic Council of the Federal Republic of Yugoslavia
1992 – 1994 Member of Economic Council of the Republic of Serbia
His main books are: Escape From Transitionism (in English), 2017, Management and Strategy, 10-th ed., 2015, Management By Projects, 7-th ed., 2019, Economies in Transition: Privatisation and Related Issues (in English), 1994; Editorial work: 2011 – to date Chief editor, Economics of Enterprise – Journal of Business Economics and Management. Prof. Djuricin’s current interests refer to Industry 4.0 and Model of financing of sustainable and inclusive growth.
Smart Energy Systems Under The Impact Of Industry 4.0: New Economy Solutions
The planet Earth is an open and layered structure. It includes three layers: the natural system, the biosphere, and the economic system. Precisely, it is the nexus of elements and their relationships that bind people together in the process of positioning through evolution to the surrounding world. In such line of reasoning, the surrounding world is system dynamics, a plurality of components mainly interconnected by exchange relations (or flows). After almost two and a half centuries of industrialization, there is a negative synergy between the layers. Exponential growth related with negative external effects like climate change and pollution is a trigger of overshooting. Sluggish growth is self-inflected. For example, economic growth has natural limits due to finiteness of material and energy resources. Energy is a good example. Today, the global economy consumes entire yearly energy potential in a bit more than seven months.
The Great Recession of 2008 and Industry 4.0 are the most influential forces shaping the so-called New Normal. The former has challenged orthodox approach in economics and business management in terms of key ideas and concepts. The later enabled a quantum leap in performance and smart diversification based on combinatorial innovations. Rewriting the rules in a dramatically changing macroeconomic, digital, demographic and social landscape is actually a call for a paradigm change, both in macro and micro management. In this paper we will concentrate on fault lines of the neoliberal model of growth and related economic policy platform with the aim to provide feasible and coherent concepts for the new context.
Energy industry is a tradable good producer. Also, it is a service provider by respecting trade-offs between different energy sources and universal connectivity. Substituting the import and expanding the export, the energy industry is a typical tradable sector. It means it is a natural candidate for industrial policy approach. For policy makers in the energy field, Industry 4.0 creates two main challenges. First, how to stimulate the investment in a smart energy system based on economic rationale with the aim to provide energy security and environmental sustainability. Smart energy system must be not only more environmentally friendly, more connected, more innovative and more shared, but also profitable. Second, how to provide grid load balance in the context of growing share of discontinuous renewable energy production. We are opposed to the idea that the technology progress in energy sector is context free. We believe that the solution for current structural imbalances in the economy and society comes not only from the technology, but also from the economy side. We don’t think weakness of the sluggish growth will be engineered by core macroeconomic policies. Thinking about core economic policies in a structural way, we will accentuate with explanatory details the pivotal role of the monetary and fiscal stabilizers in the new growth model. Finally, to complete the discussion about new economy solutions, we will discuss the role of key industrial policy initiatives in the energy sector like public-private partnerships and mini grids.
Industry 4.0, double paradigm change, industrial policy for energy sector, mini grids