Industry 4.0 and Implications for European Regions · 2019-11-06 · Industry 4.0 and Implications for European Regions Lisa De Propris Professor of Regional Economic Development,

Industry 4.0 and Implications for European Regions

Lisa De ProprisProfessor of Regional Economic Development, Birmingham Business School

RSA Winter Conference 2017MAKERS - Smart Manufacturing for EU growth and prosperity is a project funded by the Horizon 2020-MSCA- RISE - Grant agreement number 691192.

MAKERS - Smart Manufacturing for EU growth and prosperity is a project funded by the Horizon 2020-MSCA- RISE - Grant agreement number 691192.

Contents

Introduce MAKERSDefine I4.0Present a broader interpretation of I4.0Levels of disruptionReadiness


What is MAKERS?

• A network of business, academia and policy• In UK, France, Italy, Spain, Sweden, US, Singapore,

Switzerland • Research agenda: to under the drivers, enablers

and dynamics of a new manufacturing model for Europe.


WP1 Industry 4.0

WP8

Industrial Policy WP2

Innovation &

knowledge transfer

WP 3

SMEs and LPSs

WP4 Reshoring

WP5

Glocal value chains

WP6

Sustainabilty

WP7

Skills


Technological change


Revolution or evolution?

Evolutionary - revolutionary


Schumpeter and Kondratiev (1930s-1940s)

Nelson and Winter (1980s)

Christopher Freeman and Carlota Perez

Dosi – technological paradigm

K1 K2 K3 K4 K5

1800 1850 1900 1950 2000s

Indices of economic activity

Steam CottonRailwaysIron Steel

Electricity Chemicals Autos

Electronics Synthetics Petrochemicals

now


Kondratiev’s Long Waves

Technological revolution

Perez 2004, 2010

• Technology follows a trajectory

• Crucial time between the demise of the obsoleting one and the emergence of a new one technological hole




time

Indicator of economic trend Technological

holeKogler

“knowledge space

4th Industrial revolution

Biotech, nanotech, neurotech, green &

renewables, ICT & mobile tech, 3D, AI, Robotics,

sensoring & space tech, drones


EU def of Industry 4.0

Efficiency driven arguments

• Smart and webbed factories

• Large plants • Large firms or multi-

national firms• Mass customisation

• AI- IoT – robotics- automation• Cyber-physical systems (smart

ordering, scheduling, control and delivery systems, ‘big data’.

• New combination capital & labour • lower inventory upstream, in

process and downstream.• Max productivity


Berger 2014- Industry 4.0

• Industrial excellence– production process

sophistication

– Degree of automation

– Workforce readiness

– Innovation intensity

• Value network– VA

– Industry openness

– Innovation network

– Internet sophistication


Berger 2014

In MAKERS Broader



Perez 2004, 2010

• Growth effect depends on impact on economy and society ( techno-economic paradigm) “the way socio-institutional structures are organised”(Perez 2010:194)


Disruptive change


Take one technology: remote sensoring

transport

Home

Medical devices

machinery

agricultureMAKERS - Smart Manufacturing for EU growth and prosperity is a project funded by the Horizon 2020-MSCA- RISE - Grant agreement number 691192.

IoT

Cloud

Industry 4.0


I4.0

New markets Personalised flexibleArtisan customisation

New business models

(gig economy & servitisation)

Local supply chains

Sustainability core

New production

spaces(Connected factory)

New technologies

Enable disrupting change at regional level

Regional level

National level


Regional InnovationScoreboard2017







Key issues

• Co-creation

• New ways of consuming, using, accessing or free-riding

• Servitising consumption and sourcing

• Downscaling

• Rethink products and processes from an ecological perspective

Regional index


0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

0.00 2.00 4.00 6.00 8.00 10.00 12.00

Employment in high-tech sectors by NUTS 2 regions-% of total employment 2016

MAKERS I4.0 Readiness index

Pinch points for change

• Limited awareness of change • Vested interests and resistance to change• Risk and uncertainty• Delusion about the inevitable supremacy of

ONLY services• Belief that businesses & market know better


Innovation matrix

National scale

Vision targetSustainability

Institutional framework-key actors

Technology

Key new(enabling) technologies

Regional innovation system

Triple /quadruple helix

Sector

IDs, clusters, industrial commons

Regions’ acceleration

• Political understanding of scale of change information and education

• Design and communicate clear vision shared vision

• Join tech with sectors understanding regional applicability promoting technology adoption and application


Thank you

[email protected]

www.makers-rise.org


mailto:[email protected]

http://www.makers-rise.org/

Documents

Industry 4.0 and Implications for European Regions · 2019-11-06 · Industry 4.0 and Implications for European Regions Lisa De Propris Professor of Regional Economic Development,