Is the “Ukrainian cross” a verdict for Donbas 4.0?

The study aims to formalize the problems of Industry 4.0 formation in the Donbas from the standpoint of evolutionary economics and substantiate the directions for their solution. The general theoretical foundations of the work are based on a combination of the principles of free will and historical determinism. From the standpoint of free will in society there are two sets: (1) subjects, (2) objects. Subjects are characterized by the presence of (A) a strategy and (B) a resource (for its implementation). From the standpoint of historical determinism, certain scenarios and laws of interaction operate in the world (within the framework of the world-system approach; institutional and evolutionary economics). Within the framework of progressive economics and technological development (evolutionary determinism), significant problems are observed in the development of V-VI waves of innovation in the Donbas. The main reason for both the technological backwardness and the ongoing conflict in Donbas is the behavior model of Ukrainian and foreign large capitals. The main difference between the behavior model of Ukrainian capital is that it views the state as an instrument of budget redistribution and privatization in its favor of state property, that is why the formula “money” - “power” - “money plus” is constantly being reproduced. As a result, concerning the state power, domestic capital is divided into “pro-government” and “oppositional” capital. Large foreign capital sees its own government as a tool for lobbying its interests in the international arena. On the territory of Ukraine, there are conditional aggregates: "western" and "eastern" capitals. The combination of the activities of internal and external actors in Ukraine forms the "Ukrainian cross" configuration, within which two basic contradictions are recorded: between "pro-government" and "opposition" capital, on the one hand, and a group of "western" and "eastern" capitals, on the other. The regime of constant confrontation determines the focus of all groups of actors to extract rent and not investment profit. The conflict in Donbas, which began in 2014, not only worsened the structure of the economy (its compliance with Industry 4.0) both in the territories “controlled” and “not controlled” by the central government, but also reduced investment activity. The main direction for changing the situation in Donbas, from the standpoint of implementing the principle of free will by representatives of big business, is the transformation of the profile of domestic capital to consolidate its negotiating power in the foreign arena and ensure a peaceful settlement of the ongoing conflict.