SMART ECONOMIC DEVELOPMENT WITHIN EUROPEAN COUNTRIES
Keywords:
Industry 4.0, Economic Development, Industry 4.0 Index, Smart Development, Europe
Abstract
An Industry 4.0 is a set of digital and physical technologies and cyber-physical systems that offer new values to the economy's macro and micro levels. It is causing significant changes and developments in the industrial sector worldwide. This research aims to determine the impact of Industry 4.0 on socio-economic development by establishing the correlation between Industry 4.0 Index and the UNDP Human Development Index (HDI). Following the correlation analysis, the country cluster will be formed based on the implementation of the I4.0 and socio-economic development. There is a strong correlation between Industry 4.0 implementation and socio-economic development on the European level, while all countries can be placed within three significant clusters. This paper confirms the positive impact of Industry 4.0 on socio-economic development. It also provides institutional and business stakeholders with an objective incentive to implement the core I4.0 technologies faster.
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Atik, H., & Ünlü, F. (2019). The measurement of industry 4.0 performance through industry 4.0 index: an empirical investigation for Turkey and European countries. Procedia Computer Science, 158, 852-860.
BCG. (2020). Industry 4.0. Boston Consulting Group. Accessed August 15th, 2021, available at: https://www.bcg.com/capabilities/manufacturing/industry-4.0
Bruce, P., & Bruce, A. (2017). Practical statistics for data scientists: 50 essential concepts. "O'Reilly Media, Inc.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral sciences. (3rd ed.). Mahwah, NJ: Lawrence Erlbaum Associates.
Czifra, G., & Molnár, Z. (2020). Covid-19 and industry 4.0. Res. Pap. Fac. Mater. Sci. Technol. Slovak Univ. Technol, 28(46), 36-45.
Deloitte. (2020). The Fourth Industrial Revolution: At the intersection of readiness and responsibility. Deloitte Development LLC. Accessed August 15th, 2021, available at: https://www2.deloitte.com/za/en/pages/about-deloitte/articles/industry-4-0-readiness-report.html
Freedman, D., Pisani, R., & Purves, R. (2007). Statistics (international student edition). Pisani, R. Purves, 4th Edn. WW Norton & Company, New York.
Gareth, J., Daniela, W., Trevor, H., & Robert, T. (2013). An introduction to statistical learning: with applications in R. Springer.
Kagermann, H., Wahlster, W., Helbig, J. (2013). Recommendations for implementing the strategic initiative INDUSTRIE 4.0. Final report of the Industrie 4.0 Working Group. Securing the future of German manufacturing industry. In: Communication Promoters Group of the Industry-Science Research Alliance. Germany.
Li, G., Hou, Y., & Wu, A. (2017). Fourth Industrial Revolution: technological drivers, impacts and coping methods. Chinese Geographical Science, 27(4), 626-637.
Lloyd, S. P. (1957). Least square quantization in PCM. Bell Telephone Laboratories Paper. Published in journal much later: Lloyd, SP: Least squares quantization in PCM. IEEE Trans. Inform. Theor.(1957/1982), 18.
Lucato, W. C., Pacchini, A. P. T., Facchini, F., & Mummolo, G. (2019). Model to evaluate the Industry 4.0 readiness degree in Industrial Companies. IFAC-PapersOnLine, 52(13), 1808-1813.
Machado, C. G., Winroth, M., Carlsson, D., Almström, P., Centerholt, V., & Hallin, M. (2019). Industry 4.0 readiness in manufacturing companies: challenges and enablers towards increased digitalisation. Procedia Cirp, 81, 1113-1118.
MacQueen, J. (1967, June). Some methods for classification and analysis of multivariate observations. In Proceedings of the fifth Berkeley symposium on mathematical statistics and probability (Vol. 1, No. 14, pp. 281-297).
Müller, J. M., Kiel, D., & Voigt, K. I. (2018). What drives the implementation of Industry 4.0? The role of opportunities and challenges in the context of sustainability. Sustainability, 10(1), 247.
Author 1. (2020). Implications of the Fourth Industrial Revolution on sustainable development. Economics of Sustainable Development, 4(1), 45-60.
PwC. (n.d.) Industry 4.0: Self Assessment. PwC. Accessed August 15th, 2021, available at: https://i40-self-assessment.pwc.de/i40/
Schwab, K. (2016). The Fourth Industrial Revolution. Switzerland. World Economic Forum.
Shapiro, S. S., & Wilk, M. B. (1965). An analysis of variance test for normality (complete samples). Biometrika, 52(3–4), 591–611. https://doi.org/10.1093/biomet/52.3-4.591
UNDP. (2021). Human Development Index. Human Development Data Center. Accessed August 14th, 2021 available at: http://hdr.undp.org/en/data
Vasin, S., Gamidullaeva, L., Shkarupeta, E., Finogeev, A., & Palatkin, I. (2018). Emerging trends and opportunities for industry 4.0 development in Russia.
Vrchota, J., & Pech, M. (2019). Readiness of enterprises in Czech Republic to implement industry 4.0: Index of industry 4.0. Applied Sciences, 9(24), 5405.
Zhou, K., Liu, T., & Zhou, L. (2015). Industry 4.0: Towards future industrial opportunities and challenges. In 2015 12th International Conference on fuzzy systems and knowledge discovery (FSKD) (pp. 2147-2152). IEEE. Zhangjiajie, China.
Published
2022/04/20
Section
Original Scientific Paper
