Evolution of Internet of Things Concept and State Policy

DOI: 10.20542/0131-2227-2019-63-7-23-31

I. Dezhina (i.dezhina@skoltech.ru),
Skolkovo Institute of Science and Technology, 3, Nobelya Str., Territory of Innovation Center Skolkovo, Moscow, 121205, Russian Federation;
T. Nafikova (t.nafikova@skoltech.ru),
Skolkovo Institute of Science and Technology, 3, Nobelya Str., Territory of Innovation Center Skolkovo, Moscow, 121205, Russian Federation


The article is dedicated to the research on the Internet of Things (IoT). The three main areas of the research included a study on evolution of IoT, analysis of market estimates and trends, as well as comparison of state policies on IoT. The research is based on a wide range of scientific sources and information provided by global think tanks, analytical agencies and consulting firms. It has been revealed that there is no universal definition of IoT. The interpretation of the phenomenon varies from a simple combination of some of technological components to a sophisticated conceptual framework. The multifariousness of definitions results in a great variety of market estimates. Moreover, the outlook for the market becomes more and more subdued due to anterior misplaced market expectations and uneven development of elements of IoT technology stack. The ambiguousness of IoT definition has negative effects on advancement of government policy in this field: most of the countries have no specific tools for acceleration of IoT development and expansion of IoT market. The stark exclusion is China. The analysis of Chinese experience along with that of the two other leading countries in IoT — USA and France — is valuable for assessment and improvement of Russian state policy on IoT development. There are basically three policy tools — analytical reports and guidelines, regulatory frameworks and financial support — that can be applied both on state and regional levels. The most profound and broad policy is carried out by Chinese government. American approach is more focused on regulatory issues, while France is expert at supporting startups. It is worth noting that in all of the three countries the government support is unfolded in the context of success of private companies in development of IoT projects.


Internet of Things, concept, markets, state policy, standards, regulations, funding, international experience


1. Ménard A. How Can We Recognize the Real Power of the Internet of Things? Available at: https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/how-can-we-recognize-the-real-power-of-the-internet-of-things (accessed 07.07.2018.).

2. IBM IoT (Internet of Things). Available at: https://www.ibm.com/developerworks/community/files/basic/anonymous/api/library/20eaa907-3440-482c-a234-65c3584bdd7c/document/9d0ea50e-1466-4f63-b9ae-ebb8371797e3/media (accessed 07.07.2018).

3. What is the Internet of Things? Internet of Things Definitions. Available at: https://www.i-scoop.eu/internet-of-things/#Internet_of_Things_definitions_what_the_Internet_of_Things_is_not (accessed 13.07.2018).

4. Atzori L., Iera A., Morabito G. Understanding the Internet of Things: Definition, Potentials, and Societal Role of a Fast Evolving Paradigm. Ad Hoc Networks, 2017, vol. 56, pp. 122-140. Available at: https://www.sciencedirect.com/science/article/abs/pii/S1570870516303316 (accessed 20.07.2018). DOI:http://dx.doi.org/10.1016/j.adhoc.2016.12.004

5. Lund D., Turner V., MacGillivray C., Morales M. Worldwide and Regional Internet of Things (IoT) 2014–2020 Forecast: a Virtuous Circle of Proven Value and Demand. IDC, 2014. Available at: https://studylib.net/doc/13054228/worldwide-and-regional-internet-of-things-iot-2014%E2%80%932020 (accessed 29.01.2019).

6. Norton S. Internet of Things Market to Reach $1.7 Trillion by 2020: IDC. Available at: https://blogs.wsj.com/cio/2015/06/02/internet-of-things-market-to-reach-1-7-trillion-by-2020-idc/ (accessed 02.08.2018).

7. IDC Forecasts Worldwide Technology Spending on the Internet of Things to Reach $1.2 Trillion in 2022. Available at: https://www.idc.com/getdoc.jsp?containerId=prUS43994118 (accessed 02.08.2018).

8. Gartner Says 8.4 Billion Connected “Things” Will Be in Use in 2017, Up 31 Percent from 2016. Available at: https://www. gartner.com/en/newsroom/press-releases/2017-02-07-gartner-says-8-billion-connected-things-will-be-in-use-in-2017-up-31-percent-from-2016 (accessed 03.08.2018).

9. IDC Forecasts Worldwide Spending on the Internet of Things to Reach $772 Billion in 2018. Available at: https://www.idc.com/getdoc.jsp?containerId=prUS43295217 (accessed 02.08.2018).

10. Gartner Says 6.4 Billion Connected “Things” Will Be in Use in 2016, Up 30 Percent From 2015. Available at: https://www.gartner.com/newsroom/id/3165317 (accessed 03.08.2018).

11. Ellis S., Santagate J., Morris H. D. IoT-Enabled Analytic Applications Revolutionize Supply Chain Planning and Execution. IDC, 2015. Available at: https://www.savi.com/wp-content/uploads/IDC-IoT-enabled-analytics-applications_final.pdf (accessed 05.08.2018).

12. Turner V. Reducing the Time to Value for Internet of Things Deployments. IDC, 2016. Available at: https://www.oracle.com/webfolder/s/delivery_production/docs/FY16h1/doc25/IDCWhitePaperFinal.pdf (accessed 05.08.2018).

13. Internet of Things Spending Nearing $800 Billion Mark in 2018 — Spending Shifts and Context. Available at: https://www.i-scoop.eu/internet-things-spending-2018/ (accessed 07.08.2018).

14. Internet of Things Technology Market by Node Component (Processor, Sensor, Connectivity IC, Memory Device, and Logic Device), Network Infrastructure, Software Solution, Platform, Service, End-use Application, and Geography — Global Forecast to 2022. Available at: https://www.marketsandmarkets.com/Market-Reports/iot-application-technology-market-258239167.html (accessed 03.08.2018).

15. Bain & Company Predicts the Internet of Things Market Will More than Double to $520 Billion by 2021. Available at: https://www.bain.com/about/media-center/press-releases/2018/bain-predicts-the-iot-market-will-more-than-double-by-2021/ (accessed 01.09.2018).

16. Internet of Things (IoT) Market: Global Demand, Growth Analysis & Opportunity Outlook 2023. Available at: https://www.researchnester.com/reports/internet-of-things-iot-market-global-demand-growth-analysis-opportunity-outlook-2023/216 (accessed 20.08.2018).

17. Newman P. IoT Report: How Internet of Things Technology is Now Reaching Mainstream Companies and Consumers. Available at: https://www.businessinsider.com/internet-of-things-report (accessed 19.08.2018).

18. The Internet of Things: A Movement, Not a Market. Available at: https://ihsmarkit.com/Info/1017/internet-of-things.html (accessed 21.08.2018).

19. Ericsson Mobility Report, June 2018. Ericsson, 2018. Available at: https://www.ericsson.com/assets/local/mobility-report/documents/2018/ericsson-mobility-report-june-2018.pdf (accessed 20.06.2018).

20. State of the IoT 2018: Number of IoT Devices Now at 7B — Market Accelerating. Available at: https://iot-analytics.com/state-of-the-iot-update-q1-q2-2018-number-of-iot-devices-now-7b/ (accessed 21.08.2018).

21. IoT Investment Heats Up in January 2017. Available at: http://harborresearch.com/iot-investment-update-january-2017/ (accessed 30.08.2018).

22. Sorrell S. IoT – The Internet of Transformation 2018. Juniper Research, 2018. Available at: https://www.juniperresearch.com/document-library/white-papers/iot-the-internet-of-transformation-2018 (accessed 30.08.2018).

23. Ivanova N.I., ed. Otraslevye instrumenty innovatsionnoi politiki [Sectoral innovation policy instruments]. Moscow, IMEMO, 2016. 161 p. DOI:10.20542/978-5-9535-0478-2

24. Spending on the Internet of Things in CEE to Exceed $11 Billion in 2018, According to IDC. Available at: https://www.idc.com/getdoc.jsp?containerId=prCEMA43526318 (accessed 20.09.2018).

25. IoT Spending in the Middle East & Africa Set to Almost Double over Coming Years. Available at: https://www.idc.com/getdoc.jsp?containerId=prCEMA43387417 (accessed 20.09.2018).

26. Inoue T., Hayakawa A., Kamei T. China’s Initiative for the Internet of Things and Opportunities for Japanese Businesses. NRI Papers, 2011, no. 165, pp. 1-13.

27. Si M., Wei H., Yu Ch. Internet of Things Gets Even Techier. Available at: http://www.chinadaily.com.cn/china/2017-09/11/content_31833613.htm (accessed 11.09.2018).

28. How China is Scaling the Internet of Things. GSMA, July 2015, 15 p. Available at: https://www.gsma.com/newsroom/wp-content/uploads/16531-China-IoT-Report-LR.pdf (accessed 11.09.2018).

29. EU-China Joint White Paper on the Internet of Things. EU-China IoT Advisory Group, 2016. 20 p. Available at: https://ec.europa.eu/digital-single-market/en/news/eu-china-joint-white-paper-internet-things (accessed 11.09.2018).

30. Report on Future Internet Chinese Projects for Future Collaboration. Available at: https://euchina-iot5g.media.martel-innovate.com/wp-content/uploads/sites/27/2018/07/D2.2-Projects-for-Future-Collaboration.pdf (accessed 12.09.2018).

31. Green Paper: Fostering the Advancement of the Internet of Things. The Department of Commerce Internet Policy Task Force & Digital Economy Leadership Team, January 2017, 65 pp. Available at: https://www.ntia.doc.gov/other-publication/2017/green-paper-fostering-advancement-internet-things (accessed 19.10.2018).

32. Nouvelle France Industrielle — Internet des objets. Available at: https://www.entreprises.gouv.fr/politique-et-enjeux/projet-internet-des-objets-iot (accessed 13.09.2018).

33. Le Fonds Ambition Numérique. Available at: http://investissementsdavenir.bpifrance.fr/financement_des_entreprises/fsn_pme_fonds_ambition_numerique (accessed 02.10.2018).

34. Fonds Ambition Amorçage Angels (F3A). Available at: http://www.bpifrance.fr/Qui-sommes-nous/Nos-metiers/Fonds-propres/Fonds-directs-Bpifrance/Capital-Innovation/Fonds-Ambition-Amorcage-Angels-F3A (accessed 02.10.2018).

35. French Tech initiative – French showcase in the field of creativity and innovation (In Russ.) Available at: https://www.diplomatie.gouv.fr/ru/politique-etrangere/diplomatie-economique-et-commerce-exterieur/povyshenie-privlekatel-nosti-francii/article/la-french-tech-ambassadrice-de-la-creativite-et-de-l-innovation-a-la-francaise (accessed 20.06.2018).

36. Benallal A., Duval A. Derrière des levées de fonds record, une génération montante. Available at: https://www.lesechos. fr/09/10/2017/LesEchos/22546-115-ECH_derriere-des-levees-de-fonds-record-une-generation-montante.htm (accessed 24.10.2018).

37. Cruickshank A. Why France May Lead in the Internet of Things. Available at: https://www.idgconnect.com/idgconnect/analysis-review/1026312/france-lead-internet (accessed 08.11.2018).

Registered in system SCIENCE INDEX

For citation:
Dezhina I., Nafikova T. Evolution of Internet of Things Concept and State Policy. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2019, vol. 63, No 7, pp. 23-31. https://doi.org/10.20542/0131-2227-2019-63-7-23-31

Comments (0)

No comments

Add comment

Current Issue
2020, vol. 64, No. 9

Topical Themes of the Issue:

  • World Energy after the Pandemic
  • Developing Countries in the Political Economy of the Post-Coronavirus World
  • The Prospects for Settlement of North Korean Nuclear Problem in View of the Presidential Elections in the USA 
  • EU Single Financial Market: Illusion or Reality?
  • Consequences of the Civil War in Syria and Ways of Overcoming Them
View This Issue (2020, vol. 64, No. 9)
Submit an Article

Dear readers!
Please note that free access to full-text issues of the Journal is being opened at our WEB-site after 6 months of the date of publications. Currently, the releases of 2015–2018 are available for free. The work on deepening the open archive of full-text issues will be continued.

Dear readers!
This is to inform the researchers of the Institute of World Economy and International Relations that electronic version of the 4-nd issue of 2019 of French magazine Politique étrangère is now available. Those who are interested, please personally address to the editorial staff of MEMO Journal (room 18-17) with an electronic media (e-mailing is not possible because of technical reasons).


In response to the challenges of our time the Editorial board continues to open new thematic rubrics:

“World Energy Sector after Pandemic”. We plan to publish articles presenting in-depth analysis of influence of Pandemic on the global energy sector and forecasts of further developments in its various branches.

“Civilization processes of modern development” is a new rubric opened by MEMO Journal in 2020. It will be devoted to the analysis of the influence of civilizational factors and inter-civilizational interactions on the political and socio-economic development of the world at whole, regions and countries.

“Africa today and tomorrow”The rubric devoted to contemporary issues of Africa which is attracting growing interest of the world's leading actors. We plan to publish the articles analyzing the status of statehood, socio-economic and political development of the countries of Black continent, as well as the integration processes between them.

Dear colleagues, authors and readers!

We kindly request you to turn to editor-in-chief and executive secretary directly concerning reviewing scientific publications in our journal. Only editor-in-chief takes decision on order and publication the reviews!


"World Eonomy and International Relations" announces a contest for the best joint academic publications of domestic and foreign researchers and experts in topical issues of the world economy and international relations. The winners will be selected according to the results of peer reviewing and discussion at the Editorial Board. The articles will be published in priority order.


The print version of “World Economy and International Relations” journal is distributed by advance subscription only, and is not offered for retail sale. To subscribe please address to any post office in Russia by referring to the Federal Postal Service Union Catalogue, section “ARSMI”, the journal index is 70542. The subscription may be made for the whole subscription period or starting from any nearest available month for desired number of issues.

To purchase the full-text electronic version of the journal’s issue/article please address to the WEB portal of Scientific electronic library eLIBRARY.ru or URL: https://press.gaugn.ru/.

In journal
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 |

The author’s opinions may not coincide with the position of editorial