www.centro-antares.net REGIO- INDUSTRY 4.0 INDEX HOW EU REGIONS PREPARE TO INDUSTRY 4.0 CONTEXT The idea behind a region-industry 4.0 index is that a better knowledge of the determinants of industrial change across EU regions can lead to a better coordination of national policy actions and to more effective crossregional collaborations. A central part of European Union s challenge to boost growth and harness innovation in its industrial base lies in the effort to support Industry 4.0 type of initiatives which require the transformation of industry and value chains along new digital business models, exploiting the rise of cyber physical systems, the internet of things and cloud computing. The uptake and implementation of Industry 4.0 is not just a challenge for the business sector, but also for regions that host the industrial and innovation ecosystems that are bound to be transformed. WHY A REGIO-INDUSTRY INDEX Although several studies and analyses have been produced over the last years to account for the ongoing transformation, the need is felt to start measure not only the diversity of contexts across regions, but also the key factors that could act as enabling forces for the new digital revolution in manufacturing.
The idea behind a region-industry 4.0 index is that a better knowledge of the determinants of industrial change across EU regions can lead to a better coordination of national policy actions and to more effective cross-regional collaborations. THE METHODOLOGY The region-industry 4.0 index adopts a multifactor criteria analysis and applies it to the present transformation of industrial bases in EU regions The region-industry 4.0 index adopts a multifactor criteria analysis and applies it to the present transformation of industrial bases in EU regions. Since the goal is to improve the capacity to coordinate industry 4.0 policies, the baseline is represented by EU regions with an advanced manufacturing and advanced materials specialisation according to the respective smart specialisation regional agendas that have been communicated to the European Commission. There are 123 regions that have and advanced manufacturing specialisation in Europe. The sample used to build the index is made up of 61 regions at NUTS2 level (47% of total regions with an advanced manufacturing specialisation). The main data of these 61 regions refer to the relevance of high tech employment with regard to their respective manufacturing bases. Sample main variables mean CV High tech manufacturing employment in 61 EU 0,7 0,65 regions* Perc. of High tech patents** 16,94 1,29 Total Labour force with 551.338 0,92 tertiary education** Change in high tech manuf. 0,02 13,34 Employment 2011-2015 Manufacturing employment 2015 (thousand) 298,57 1,10 *= data from Eurostat; **= data from OECD The index is based on the residuals of a linear regression having the high-tech manufacturing employment as the dependent variable and controlling for all the above indicated dimensions. The model specification is tested against several statistical tests. 1 1 Results of the OLS regression are available upon request. 1
RESULTS There is a significant correlation in the model (R 2 =44%) between the present share of high-tech manufacturing employment and the adopted control variables. In particular the strongest coefficient is given by the presence of labour force with tertiary education followed by the rate of change of high-tech employment from 2011 to 2015 and by the percentage of hightech patents. A scenario of a transformation not only linked to the digital optimisation of produtive processes but also to skills and knowledge is confirmed, highlighting the need to accompany the digital uptake with an effective skill-based upgrading policy. Interestingly, the share of high-tech employment has a negative and significant correlation with a standardised measure of manufacturing specialisation across the 61 regions, which is an indication of how the current high-tech transformation does not occur in traditional manufacturing regions, but tend to benefit from other location features and ecosystem externalities. A scenario of a transformation not only linked to the digital optimisation of produtive processes but also to skills and knowledge is confirmed, highlighting the neeed to accompany the digital uptake with an effective skill-based upgrading policy 2
REGIO-INDUSTRY 4.0 INDEX (INDEX MEAN =100) EU region (NUTS2) 40index EU region (NUTS2) 40index FR10 - Île de France 262.5165 FI1D - Pohjois- ja Itä-Suomi 98.98175 ES30 - Comunidad de Madrid 195.6341 DEB - Rheinland-Pfalz 96.99496 FR52 - Bretagne 166.6076 ES52 - Comunidad Valenciana 96.57887 NO06 - Trøndelag 165.6077 FR43 - Franche-Comté 95.56389 AT1 - Ostösterreich 165.2207 FI19 - Länsi-Suomi 95.29517 FR71 - Rhône-Alpes 154.8553 DEF - Schleswig-Holstein 95.07446 BE2 - Vlaams Gewest 153.5573 FI1C - Etelä-Suomi 89.70136 DE6 - Hamburg 151.1368 FR51 - Pays de la Loire 87.40531 DE3 - Berlin 150.2568 ITH5 - Emilia-Romagna 82.7281 SE12 - Östra Mellansverige 148.5818 ITF1 - Abruzzo 82.41842 IE - Ireland 147.654 ITF3 - Campania 80.19764 FI1B - Helsinki-Uusimaa 141.3434 ES24 - Aragón 79.5672 DE7 - Hessen 136.4095 PL41 - Wielkopolskie 76.40395 DEA - Nordrhein-Westfalen 136.2139 ITC1 - Piemonte 76.21867 DE2 - Bayern 135.4026 SE31 - Norra Mellansverige 75.68925 UKL - Wales 130.6043 PL51 - Dolnoslaskie 75.27703 FR61 - Aquitaine 128.0394 NL1 - Noord-Nederland 74.63331 FR62 - Midi-Pyrénées 124.7736 ITI1 - Toscana 72.34376 BE3 - Région wallonne 116.4182 HU - Hungary 71.35811 DED - Sachsen 112.2324 ITH4 - Friuli-Venezia Giulia 70.06957 DE1 - Baden-Württemberg 111.155 EE - Estonia 69.99 DE4 - Brandenburg 111.1532 ITI3 - Marche 66.2846 DEG - Thüringen 110.259 DEE - Sachsen-Anhalt 66.20891 DE9 - Niedersachsen 109.4288 ES22 - Comunidad Foral de 66.16297 Navarra ES21 - País Vasco 101.947 NO04 - Agder og Rogaland 65.77635 ES11 - Galicia 101.5504 UKN0 - Northern Ireland (UK) 62.75286 ITC4 - Lombardia 60.67461 PL22 - Slaskie 58.95876 PL11 - Lódzkie 57.71117 PT11 - Norte 45.64724 ITH3 - Veneto 44.65384 CZ02 - Strední Cechy 37.08847 ITF4 - Puglia 35.45136 PL61 - Kujawsko-Pomorskie 22.49809 CZ08 - Moravskoslezsko -0.91922 3
Regio Industry 4.0 MAP Map of high-tech manufacturing employment change Map of change of manufacturing employment 2011-2015 4