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Industry 4.0 and Regional Transformations i Industry 4.0 and Regional Transformations This edited volume brings together a group of expert contributors to explore the opportunities and the challenges that Industry 4.0 (smart manufacturing) is likely to pose for regions, fi rms and jobs in Europe. Drawing on theory and empirical cases, it considers emerging issues like servitization, new innovation models for local production systems and the increase in reshoring. Industry 4.0 and Regional Transformations captures the complexity of this new manufacturing model in an accessible way and considers its implications for the future. It will be essential reading for advanced students and researchers and policy makers in regional studies, industrial policy, economic geography, innov- ation studies, operations management and engineering. Lisa De Propris , Birmingham Business School, University of Birmingham, UK. David Bailey , Birmingham Business School, University of Birmingham, UK, and Senior Fellow, the UK in a Changing Europe programme. ii Regions and Cities Series Editor in Chief Joan Fitzgerald , Northeastern University, USA Editors Roberta Capello , Politecnico di Milano, Italy Rob Kitchin , Maynooth University, Ireland Jörg Knieling , HafenCity University Hamburg, Germany Nichola Lowe , University of North Carolina at Chapel Hill, USA In today’s globalised, knowledge- driven and networked world, regions and cities have assumed heightened signifi cance as the interconnected nodes of economic, social and cultural production, and as sites of new modes of eco- nomic and territorial governance and policy experimentation. This book series brings together incisive and critically engaged international and interdiscip- linary research on this resurgence of regions and cities, and should be of interest to geographers, economists, sociologists, political scientists and cultural scholars, as well as to policy- makers involved in regional and urban development. For more information on the Regional Studies Association visit www. regionalstudies.org There is a 30% discount available to RSA members on books in the Regions and Cities series, and other subject related Taylor and Francis books and e-books including Routledge titles. To order just e-mail Luke McNicholas (Luke. [email protected]), or phone on +44 (0)20 701 77545 and declare your RSA membership. You can also visit the series page at www.routledge.com/ Regions- and- Cities/ book- series/ RSA and use the discount code: RSA225 139. Regional Economic Development and History Edited by Marijn Molema and Sara Svensson 140. Rural Development in the Digital Age Exploring Neo- Productivist EU Rural Policy Edited by Martin Pě lucha and Edward Kasabov 141. Smart Cities and Connected Intelligence Platforms, Ecosystems and Network Eff ects Nicos Komninos 142. Industry 4.0 and Regional Transformations Edited by Lisa De Propris and David Bailey For more information about this series, please visit: www.routledge.com/ Regions- and- Cities/ book- series/ RSA iii Industry 4.0 and Regional Transformations Edited by Lisa De Propris and David Bailey iv First published 2020 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2020 selection and editorial matter, Lisa De Propris and David Bailey; individual chapters, the contributors The right of Lisa De Propris and David Bailey to be identifi ed as the authors of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. The Open Access version of this book, available at www.taylorfrancis.com, has been made available under a Creative Commons Attribution- Non Commercial- No Derivatives 4.0 license. Trademark notice : Product or corporate names may be trademarks or registered trademarks, and are used only for identifi cation and explanation without intent to infringe. British Library Cataloguing- in- Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging- in- Publication Data A catalog record has been requested for this book ISBN: 978- 0- 367- 17841- 3 (hbk) ISBN: 978- 0- 429- 05798- 4 (ebk) Typeset in Bembo by Newgen Publishing UK v Contents List of fi gures vii List of tables ix List of contributors xi Preface xvii 1 Disruptive Industry 4.0 +: key concepts 1 LISA DE PROPRIS AND DAVID BAILEY 2 Servitization in Europe 24 FERRAN VENDRELL- HERRERO AND OSCAR F. BUSTINZA 3 Jobs 4.0 42 ARIANNA PITTARELLO, ANTONELLA TREVISANATO AND LISA DE PROPRIS 4 Transformative paths, multi- scalarity of knowledge bases and Industry 4.0 62 MARCO BELLANDI, CRISTINA CHAMINADE AND MONICA PLECHERO 5 Industry 4.0: transforming local productive systems in the Tuscany region 84 MARCO BELLANDI, ERICA SANTINI, CLAUDIA VECCIOLINI AND LISA DE PROPRIS 6 Sustainable manufacturing: creating a regional forest-based bio- economy 97 PAULINA RAMIREZ 7 Driving factors in the adoption of Industry 4.0 technologies: an investigation of SMEs 112 GIANCARLO COR Ò AND MARIO VOLPE vi vi Contents 8 Exploring Industry 4.0 production in Sweden 133 CLAUDIO FASSIO AND MAX NATHAN 9 De- globalisation, value chains and reshoring 152 DILETTA PEGORARO, LISA DE PROPRIS AND AGNIESKA CHIDLOW 10 Reshoring in the US and Europe 176 STEFFEN KINKEL, DILETTA PEGORARO AND ROSEMARY COATES 11 Industry 4.0 and reshoring 195 STEFFEN KINKEL 12 Technological readiness in Europe: EU policy perspectives on Industry 4.0 214 MAFINI DOSSO 13 Industry 4.0 and transformative regional industrial policy 238 DAVID BAILEY AND LISA DE PROPRIS Index 253 vii Figures 1.1 Technological change 4 1.2 Industry 4.0+ 9 2.1 Mapping servitization intensity, EU- 28 29 2.2 Mapping manufacturing intensity, EU-28 30 2.3 Mapping digitization intensity, EU- 28 31 2.4 Manufacturing and servitization, by income groups 32 2.5 Digitization and servitization, by income groups 33 2.6 Digitization and manufacturing distribution 35 2.7 The relationship between digitization, manufacturing and servitization 36 5.1 Learning processes in local productive systems 88 7.1 Combination of diff erent technologies 121 9.1a FDI outfl ows, 1990– 2017 159 9.1b FDI infl ows, 1990– 2017 159 9.2 FDI outfl ows, by region and selected years 160 9.3 FDI infl ows, by region and selected years 161 9.4 Number and value of greenfi eld FDIs, 2007 and 2017 163 9.5 EU-28 intra- regional trade import in intermediate goods, 2000– 2017 164 9.6 EU-28 intra- regional trade export in intermediate goods, 2000– 2017 165 9.7 Revealed physical capital intensity in the US, 1988–2014 166 9.8 Taxonomy of reshoring 168 9.9 Forms of reshoring 168 10.1 Industry 4.0 readiness index in the German and Baden- W ü rttemberg manufacturing industry 183 11.1 Reshoring options 196 11.2 Industrial revolutions of the past and I4.0 200 11.3 German manufacturing companies’ off shoring and backshoring activities over time 203 11.4 Use of I4.0- enabling technologies in the German manufacturing industry 205 11.5 Distribution of I4.0 readiness index values 206 viii viii Figures 13.1 Enterprises that employ ICT specialists (% of enterprises) 245 13.2 Enterprises whose business processes are automatically linked to suppliers/ customers 246 13.3 Internet skills (individuals who have carried out fi ve out of six internet- related activities) 247 ix Tables 2.1 Measuring servitization using secondary sources 26 2.2 Regression analysis 36 3.1 Germany: vacancy shares by fi rms’ size and skills classifi cation, 2011– 14 49 3.2 Germany: vacancy variation rates by fi rms’ size and skills classifi cation, 2011– 14 50 3.3 Germany: absolute values of vacancies by skills classifi cation in the manufacturing sector, 2011– 14 51 3.4 Germany: vacancy variation rates by skills classifi cation in the manufacturing sector, 2011– 14 51 3.5 Germany: absolute values of vacancies by skills classifi cation in the business service sector, 2011– 14 51 3.6 Germany: vacancy variation rates by skills classifi cation in the business service sector, 2011– 14 51 3.7 Italy: vacancy shares by fi rms’ size and skills classifi cation, 2011– 15 53 3.8 Italy: vacancy variation rates by fi rms’ size and skills classifi cation, 2011– 15 54 3.9 Italy: absolute value of vacancies by skills classifi cation in the manufacturing sector, 2011– 15 55 3.10 Italy: vacancy variation rates by skills classifi cation in the manufacturing sector, 2011– 15 55 3.11 Italy: absolute value of vacancies by skills classifi cation in the business service sector, 2011– 15 55 3.12 Italy: vacancy variation rates by skills classifi cation in the business service sector, 2011– 15 55 3.13 The UK: vacancy shares by fi rms’ size and skills classifi cation, 2011, 2013 and 2015 56 3.14 The UK: vacancy variation rates by fi rm sizes’ and skills classifi cation, 2011, 2013 and 2015 56 3.15 The UK: absolute value of vacancies by skills classifi cation in the manufacturing sector, 2011, 2013 and 2015 57 x x Tables 3.16 The UK: vacancy variation rates by skills classifi cation in the manufacturing sector, 2011, 2013 and 2015 57 3.17 The UK: absolute value of vacancies by skills classifi cation in the business service sector, 2011, 2013 and 2015 58 3.18 The UK: vacancy variation rates by skills classifi cation in the business service sector, 2011, 2013 and 2015 58 4.1 Some key mechanisms for fi rms in LPSs to access diff erent knowledge bases in a multi- scalar setting 67 4.2 MAKERS cases: combination of knowledge
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