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The Past and Future of Manufacturing in Central and Eastern Europe: Ready for Industry 4.0?

Author

Listed:
  • Naudé, Wim

    (RWTH Aachen University)

  • Surdej, Aleksander

    (OECD)

  • Cameron, Martin

    (Trade Advisory Research (Pty) Ltd)

Abstract

In this paper we determine the industry 4.0 (I4.0) readiness of eight Central and Eastern European countries (CEECs): Bulgaria, the Czech Republic, Lithuania, Hungary, Poland, Romania, the Slovak Republic and Slovenia. We outline the nature of manufacturing in the region, describe three distinct time periods of industrialization since 1990, and explain the nature of I4.0. Using measures reflecting three key dimensions of I4.0-readiness, namely technological, entrepreneurial and governance competencies, we find that the Czech Republic, Lithuania, Hungary and Slovenia are most I4.0-ready, and that Bulgaria, Slovakia, Romania and Poland are the least ready of the CEECs. We make a number of recommendations. All the countries in the region could do more to promote entrepreneurship; to diversify and grow manufacturing export markets through focused trade facilitation and competitive exchange rates; and to cooperate regionally on industrial policy - through for instance establishing a regional CEEC I4.0 Platform.

Suggested Citation

  • Naudé, Wim & Surdej, Aleksander & Cameron, Martin, 2019. "The Past and Future of Manufacturing in Central and Eastern Europe: Ready for Industry 4.0?," IZA Discussion Papers 12141, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12141
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    References listed on IDEAS

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    Cited by:

    1. Bartłomiej Bajan & Joanna Łukasiewicz & Aldona Mrówczyńska-Kamińska, 2021. "Energy Consumption and Its Structures in Food Production Systems of the Visegrad Group Countries Compared with EU-15 Countries," Energies, MDPI, vol. 14(13), pages 1-24, July.
    2. Zoran Aralica & Bruno Skrinjaric, 2021. "Adoption of digital and ICT technologies and firms’ productivity," Working Papers 2102, The Institute of Economics, Zagreb.
    3. Lobanov, M. & Zvezdanovic Lobanova, J. & Zvezdanovic, M., 2022. "Typologization of industrial systems in the countries of Central-Eastern and South-Eastern Europe," Journal of the New Economic Association, New Economic Association, vol. 56(4), pages 92-122.
    4. Nedelcu Mihai-Răzvan, 2023. "Industry 4.0 in Central and Eastern Europe: Is Romania Ready to Embrace the Fourth Industrial Revolution?," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 618-629, July.
    5. Luigi Capoani & Gianluca Bortoletto & Samuele Fratini & Violetta Van Veen & Cristoforo Imbesi, 2022. "The Genesis and Evolution of the Blue Banana Region," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2022(2), pages 5-45.
    6. Éltető, Andrea & Sass, Magdolna, 2021. "A kapitalizmus változatai és az ipar 4.0 a visegrádi országokban [Varieties of capitalism and industry 4.0 in the Visegrad countries]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 490-514.

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    More about this item

    Keywords

    industry 4.0; industrialization; technology; manufacturing; innovation; entrepreneurship; Eastern and Central Europe; industrial policy;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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