industry 4.0 and implications for european regions · 2019-11-06 · industry 4.0 and implications...

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

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

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.

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

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

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

Technological change

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

Revolution or evolution?

Evolutionary - revolutionary

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

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

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

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

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

Technological revolution

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

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

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

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

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

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

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

Berger 2014

In MAKERS Broader

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

Technological revolution

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)

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

Disruptive change

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

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

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

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

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

Regional InnovationScoreboard2017

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

Regional InnovationScoreboard2017

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

Regional InnovationScoreboard2017

MAKERS - 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.

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

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

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

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

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

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

Thank you

l.depropris@bham.ac.uk

www.makers-rise.org

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