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IN4ACT Research Program 2020-21 Bibliographical Reference Framework IN4ACT Research Program 2020-21 Bibliographical Reference Framework Takis Damaskopoulos Industry 4.0 impact on management practices and economics (IN4ACT) ERA Chair School of Economics and Management Kaunas University of Technology Anna Sadowska Industry 4.0 impact on management practices and economics (IN4ACT) ERA Chair Team Member School of Economics and Management Kaunas University of Technology I Overview | Rationale and approach | Industry 4.0 in historical perspective: Defining the ‘field’ | Method and conceptual framework: ‘anchor’ concepts | Level I: Micro-level – Industry 4.0 at the level of the firm, functions and phases of production I. 1. The decomposition / re-composition of production and the changing value composition of Global Value Chains I. 2. AI: the cloud, big data, algorithmic models and the Internet of Everything I. 3. The “platform economy” and associated business models I. 4. Industry 4.0 as a matrix of risk and opportunity (emphasis on SMEs) | Level II: Meso-level – Industry 4.0 at the level of regional economic and innovation ecosystems II. 1. Centralization vs. decentralization in Industry 4.0 II. 2. The changing economic geography and its implications for regional economic ecosystems II. 3. The challenges of commoditization and “smart specialization” II. 4. Symbiotic vs. parasitic ecosystems | Level III: Macro-level – Industry 4.0 at the level of governance systems and innovation strategy III. 1. Comparative readiness for Industry 4.0: assessment and measurement methodologies III. 2. The future of work: Industry 4.0 skillsets III. 3. Industry 4.0 and social sustainability: the challenges of rising inequality and social exclusion III. 4. Governance: regulation, innovation and sustainability | IN4ACT in the context of leading international scientific debates I Rationale and approach Rationale and approach The purpose of this presentation (to be read in conjunction with the IN4ACT Research Strategy document is to outline the zones of leading international literature currents the IN4ACT project engages during the implementation of its research strategy. It can be read as the project’s intellectual identity. Industry 4.0, as a core aspect of what is increasingly referred to as the Fourth Industrial Revolution, is a long-term systemic process that is bound to significantly affect the entire range of business operations regardless of the industrial sector in which firms are located as well as the institutional contexts in which they operate. Its implementation depends fundamentally on putting into place the appropriate ‘enabling framework’ conditions. These range from technological infrastructures, security/protection of know-how, new business models, novel forms of work organization, new skillsets, and governance, legal and regulatory frameworks at regional, national and EU levels. In addition, the implementation of Industry 4.0 will require sustained engagement with and buy-in from all key stakeholders across private and public spheres. In other words, the implementation of Industry 4.0 is dependent on the reconfiguration of existing structures of production, civil society and public administration. In this context, the field of literature engagement of the IN4ACT research strategy extends beyond traditional academic disciplinary boundaries: On one hand, this involves the adoption of an interdisciplinary perspective transcending traditional forms of specialization; On the other, it demands sustained engagement with stakeholders and social actors beyond the boundaries of academia (i.e., systematic engagement with the world of business, civil society, and institutions of governance, policy and regulation. I Industry 4.0 in historical perspective: defining the ‘field’ Industry 4.0 in historical perspective: defining the ‘field’ Focus is on the main aspects of the field the IN4ACT research program by focusing on selected elements of the 4IR. The purpose is to offer an anatomic view of the structural features and drivers of the 4IR. Research stream Brynjolfsson, Erik and Andrew McAfee, (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, New York: W. W. Norton and Company. European Commission, (2021). Industry 5.0: Towards a sustainable, resilient, and human-centric European industry https://ec.europa.eu/info/news/industry-50-towards-more-sustainable-resilient-and- human-centric-industry-2021-jan-07_en European Commission, (2020). Enabling Technologies for Industry 5.0 https://ec.europa.eu/info/publications/enabling-technologies-industry-50_en European Commission, (2018). Capitalizing on the benefits of the 4th Industrial Revolution https://publications.europa.eu/en/publication-detail/-/publication/cf1793da-184c-11e8-ac73-01aa75ed71a1 The European Files, (2017). Industry 4.0: The New Industrial Revolution for Europe https://www.europeanfiles.eu/magazine/industry-4-new-industrial-revolution European Parliament – Directorate General for Internal Policies, (2016). Industry 4.0 http://www.europarl.europa.eu/RegData/etudes/STUD/2016/570007/IPOL_STU(2016)570007_EN.pdf Floridi, Luciano, (2014). The 4th Revolution: How the Infosphere is Reshaping Human Reality. Oxford: Oxford University Press. Foreign Affairs, (2016). The Fourth Industrial Revolution: A Davos Reader. Gordon, J. Robert, (2016). The Rise and Fall of American Growth. Princeton, NJ.: Princeton University Press. Mokyr, Joel, (2017). “The Past and the Future of Innovation: some lessons from Economic History” https://cpb-us-e1.wpmucdn.com/sites.northwestern.edu/dist/3/1222/files/2018/02/PastandFuture- wqsumb.pdf OECD, (2017). The Next Production Revolution: Implications for Governments and Business. Paris: OECD Publishing http://espas.eu/orbis/sites/default/files/generated/document/en/9217031e.pdf Sassen, Saskia,, (2017). “Predatory Formations Dressed in Wall Street Suits and Algorithmic Math”, Science, Technology & Society, January http://saskiasassen.com/PDFs/publications/Predatory- formations.pdf Schwab, Klaus, (2019). “Globalization 4.0: A New Architecture for the Fourth Industrial Revolution”, Foreign Affairs, https://www.foreignaffairs.com/articles/world/2019-01-16/globalization-40 Schwab, Klaus, (2016). The Fourth Industrial Revolution. Geneva: World Economic Forum. Schwab, Klaus and Nicholas Davis, (2018). Shaping the Fourth Industrial Revolution. Geneva: World Economic Forum. United Nations Industrial Development Organization (UNIDO, (2018). “What Can Policy Makers Learn from Germany’s Industrie 4.0 Development Strategy?” https://www.unido.org/api/opentext/documents/download/11712839/unido-file-11712839 I Industry 4.0 in historical perspective: defining the ‘field’ Industry 4.0 in historical perspective: defining the ‘field’ (Cont’d) World Bank Group, (2018). Trouble in the Making? The Future of Manufacturing-Led Development https://www.worldbank.org/en/topic/competitiveness/publication/trouble-in-the-making-the-future- of-manufacturing-led-development World Economic Forum, (2015). Deep Shift: Technology Tipping Points and Societal Impact. Geneva: World Economic Forum. http://www3.weforum.org/docs/WEF_GAC15_Technological_Tipping_Points_report_2015.pdf I Method and conceptual framework: ‘anchor’ concepts Method and conceptual framework: ‘anchor’ concepts The historical setting of… VUCA: Vulnerability, Uncertainty, Complexity, Ambiguity The Fourth Industrial Revolution and the possible futures it holds is not a historical inevitability. The clusters of technologies associated with the current transformations in economy and society do not in themselves point to a “direction”. Instead, they represent a “potential” whose realization and actual implementation will be determined by the exercise of social and political options. These options will be shaped by the dynamic interactions of three forces: Technological advances and the specific ways they will be deployed across economy and society; The future of globalization, specifically the degree of its compatibility with socially and environmentally sustainable development; The role of the state, specifically in mediating and taking an active role in the creation of “enabling frameworks” for the diffusion and adoption of the technologies, the management of globalization, and their collective disruptive and destabilizing consequences for economic and social systems. I Method and conceptual framework: ‘anchor’ concepts Method, conceptual framework: ‘anchor’ concepts Technology as biology: beyond functionalism – technology as a “tool” – and toward more synthetic evolutionary conceptions. Novel technologies arise by combinations of existing technologies, through a process of combinatorial evolution. As we adopt and use new technologies, we are moving from using nature to intervening directly within nature. We are entering a period where, conceptually at least, biology itself is becoming technology, and physically, technology is becoming biology, an open “living system”. But as the economy becomes more combinatorial and technology more open, new operating principles are being introduced into the foundations of economies. Order, closedness, and equilibrium as ways of organizing explanations are giving way to open-endedness, indeterminacy, and the emergence of perpetual novelty. Research stream Arthur, W. Brian, (2009). The Nature of Technology: What It Is and How It Evolves. New York: Free Press. Bratton, H. Benjamin,(2015). The Stack: On Software and Sovereignty. Cambridge, Massachusetts: The MIT Press. Brynjolfsson, Erik and Andrew
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