Optimisation of structural parameters of the industry by the criterion of product innovation

Abstract The industrial sector of the Polish economy plays an important role in ensuring the socio-economic development of the country. The Polish industry accounts for 24.1 % of the country’s employed population and 25.1 % of the GVA. The article aims to model the structural parameters of the Polish industrial sector according to the criterion of increasing product innovation level based on a comprehensive assessment of the Polish industry performance in the regional context. The offered method focuses on estimating the industrial sector at the macro and meso levels using a set of indicators for investment, innovation, labour activity, and profitability. Correlation-regression analysis methods were used to prove hypotheses about the impact of product innovation on employment and wages in the industry. To optimise the structure of the Polish industrial sector, an economic-mathematical model was developed, which was solved using the linear programming method. The target functionality of this model is the level of product innovation, at which the gross average monthly wage of Polish industry workers will double (to the EU average). The simulation results, which was based on data from the Central Statistical Office of Poland, provide an analytical basis for selecting industrial policy benchmarks for Poland.